Gap Analysis: the Basics, Steps and a Template

Article by: Patty Mulder

Last update: April 21, 2026

A gap analysis helps clarify where an organization, team, or project currently stands and where it wants to go. This makes it easier to see which areas are falling behind, where the biggest differences lie between the current and desired situations, and which actions are needed to move closer to the goal.

In this article, you will discover what a gap analysis is, how to carry it out in 6 steps, and how it is used in practice. You will also learn how the identity and image perspective fits into this model, how gap analysis differs from other frameworks, and how to turn the results into concrete actions. In addition, a gap analysis template is available, so you can get started right away with a quick scan and a practical action plan.

What is a gap analysis?

A gap analysis is a method for identifying the difference between the current situation and the desired situation. This difference is called the gap. By making that gap visible, it becomes easier to understand what is missing, where performance falls short, and which steps are needed to reach the desired level.

A gap analysis can be used in many different ways. In organizations, it often focuses on performance, processes, customer experience, competencies, or strategic goals. In communication and marketing, it can also focus on the difference between how an organization sees itself and how it is perceived by the outside world. The well-known identity and image approach is one example of this.

How to Conduct a Gap Analysis in 6 Steps

A gap analysis works best when the goal is clear from the beginning. Without a clear target, it becomes difficult to determine where the gap actually lies. That is why it helps to build the analysis step by step.

Step 1. Define the desired situation

Start with the desired outcome. Describe as clearly as possible what the organization, team, or project wants to achieve. This could mean higher customer satisfaction, better collaboration, a stronger image, or a more efficient process. The clearer the desired situation is, the easier it becomes to identify the differences.

Step 2. Map out the current situation

Next, examine the current reality. What do figures, feedback, observations, or conversations show? This is the moment to look honestly at the situation as it is, without making it seem better or worse than it really is.

Step 3. Identify the differences

Then compare the current situation with the desired one. This is the core of the gap analysis. Which areas are lagging behind? Where do expectations and outcomes no longer match? And where is the gap the widest?

Step 4. Investigate the causes

A gap only shows that a difference exists. The next question is why that difference has emerged. In many situations, several causes are involved at the same time, such as unclear goals, limited resources, weak communication, insufficient knowledge, or a poorly designed process.

Step 5. Set priorities

Not every gap needs the same level of attention straight away. That is why it is useful to determine which differences have the greatest impact on results, quality, or collaboration. This creates focus and helps prevent time and energy from being spread too thin.

Step 6. Turn the findings into actions

A gap analysis only becomes valuable when it leads to improvement. Determine what needs to be done, who is responsible, and when progress should be reviewed. This turns the analysis from an insight into a practical management tool.

Download the gap analysis template and start using it right away

Do you want to do more than understand what a gap analysis is? Then this download helps you move from insight to action more quickly. The quick scan helps you identify the biggest differences between the current and desired situations in just a few minutes. After that, the template helps you work out those gaps in more detail, set priorities, and translate them into improvement actions.

Its main value is the clarity it provides. You do not need to build a framework from scratch or figure out where to begin. The Excel document guides you step by step, helping you create structure, make clearer choices, and quickly see where the greatest gains can be made. That makes it practical and easy to use for teams, projects, and organizations.

Because the quick scan, detailed analysis, and prioritization are all combined in one file, it becomes easier to move logically from the first signal to the next concrete step. This turns the analysis into a practical working document that can be used immediately.

Download the gap analysis template

For members only | Get instant access to this gap analysis template plus unlimited access to 1,200+ expert articles and tools. Explore Membership Options

Gap Analysis: The Four Components

In the identity and image variant of a gap analysis, the current and desired identities are often explored through an internal strengths and weaknesses analysis.

In this version of the model, four components are examined:

Desired identity
Current identity
Physical identity
Current image

By comparing these four aspects, an organization can identify gaps between the identity it wants to project and the way it is actually perceived. That makes it easier to decide where improvements are needed.

Examples of gap analysis in practice

A gap analysis can be used in many practical situations. In project management, for example, it helps identify why a project is falling behind in terms of schedule, quality, or results. In HR, it may show a mismatch between the skills currently available and the skills needed to achieve future goals. In marketing and communications, it often focuses on the difference between how a brand wants to be perceived and how customers actually experience it.

A gap analysis is also useful in process improvement. Think of situations in which an organization wants to work faster, reduce errors, or improve customer satisfaction. By comparing the current and desired situations side by side, it becomes easier to see where improvement is needed and which actions are likely to have the greatest impact.

Gap Analysis Example

Imagine that an organization wants to project values such as trustworthy, modern, advisory, clear in communication, distinctive, high quality, and service-oriented. Research shows that the values trustworthy, clear communication, and service-oriented score below 30% among audiences. This means there is a gap between identity and image.

A gap analysis helps determine which factors are causing that difference. This gives the organization a clearer view of the areas that need attention in order to rebuild customer trust. The four elements below explain this approach in more detail.

1. Desired identity

An organization’s desired identity is focused on the future. This is the part where it defines where it wants to go and how it wants to present itself to the outside world, including customers, suppliers, partners, investors, and competitors. The following questions can help:

What is the organization’s mission, what is its core business, what does it stand for, and who are its customers?
What is the organization’s vision, and which objectives need to be achieved in the short, medium, and long term?
What are the organization’s core competencies, how does it want to be recognized, and how does it want to serve its customers?
What are the organization’s values and ideas, such as Corporate Social Responsibility, and how does it want to communicate them to the public?

2. Current identity

Current identity is the organization’s actual identity in practice. It is shaped by employees, because they represent the organization and communicate with its audiences.

For example, one indifferent customer service employee can undermine the work of a friendly and solution-oriented receptionist. That can seriously damage the image of a company that wants to be seen as helpful and service-oriented.

The following questions can be useful:

What are the organization’s strengths and weaknesses as shown in an internal SWOT analysis?
What does the organization need to do to serve its audiences as well as possible?
Which associations do audiences already have with the organization?

Current identity can vary from one employee to another. That means it may be presented and communicated in different ways. Because employees experience the organization differently, they may also express that identity differently.

Current identity can be explored through an internal survey in which employees reflect on the organization’s core values.

3. Physical identity

Desired identity and current identity together shape physical identity. Physical identity refers to the visible and sensory elements linked to an organization or brand.

Examples include:

Seeing: everything that is visually recognizable, such as a logo, visual identity, advertisements, or colors. Think of the blue and yellow often associated with IKEA.
Hearing: recognizable sounds, tunes, or audio signals linked to a brand.
Tasting: products that people strongly associate with a specific brand.
Smelling: scents that audiences connect to a product, brand, or experience.
Feeling: the emotional response a brand or organization evokes.

Physical identity therefore relates to the different ways in which audiences experience an organization or brand. When a brand’s physical identity does not match its desired identity, credibility suffers and a gap appears.

4. Current image

Current image is formed outside the organization by its audiences. People develop an opinion based on the information available to them and on their experiences. This makes image the result of a combination of desired identity, current identity, and physical identity. It is a mistake to assume that image is based only on what consumers think.

Image is also shaped by other stakeholders, including partners, trade organizations, investors, competitors, and governments. It takes time to build an image, but it can be damaged very quickly.

That is why it is useful to understand what the image is based on. Current image can be explored by asking customers, business relations, consumers, and other stakeholders to take part in interviews and surveys.

Areas for improvement based on a gap analysis

When major differences appear in a gap analysis, they can become the starting point for improvement.

For example, a healthcare institution may communicate that it is open, honest, and sincere, while internal decisions clearly suggest otherwise. In that case, tension arises between the desired identity, the actual identity, and the organization’s image.

When desired identity no longer aligns with actual identity and current image, the organization needs to review its objectives and identify which values should truly guide its actions.

In this way, a gap analysis helps identify concrete areas for improvement. In some cases, this may even lead to a revised strategy or a stronger campaign plan.

What is the difference between a gap analysis and other models?

A gap analysis focuses on the difference between the current situation and the desired situation. This makes it especially useful when improvement, development, or adjustment is the main goal.

A SWOT analysis takes a broader view. It looks at strengths, weaknesses, opportunities, and threats. This is especially useful for strategic exploration and positioning. A baseline measurement mainly shows where an organization or team currently stands. A gap analysis goes one step further by showing the distance between the current level and the desired one.

Some models are closely related to gap analysis but focus on a more specific area. For example, SERVQUAL looks specifically at the difference between expected and perceived service quality. In that sense, SERVQUAL can be seen as a specific form of gap analysis within service delivery.

Recommended books and articles on gap analysis

A gap analysis helps identify where the current situation deviates from the desired level. These books provide a solid foundation for strategic analysis, performance improvement, and organizational alignment, while the articles demonstrate how to better examine, interpret, and translate differences between current and desired performance into targeted action. This gives you a practical framework to identify bottlenecks, opportunities for improvement, and change priorities more quickly.

Hill, C. W. L., & Jones, G. R. (2012). Strategic Management Theory: An Integrated Approach. Mason, OH: Cengage Learning. → This book shows how to analyze the gap between current performance and strategic goals and translate it into decisions.
Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Hoboken, NJ: Wiley. → This book helps link gap analysis to project control, planning, and performance improvement.
Kotler, P., & Keller, K. L. (2016). Marketing Management. Harlow, UK: Pearson. → This book explains how to use differences between current market position and desired outcomes as a basis for analysis and action.
Nadler, D. A., & Tushman, M. L. (1980). A model for diagnosing organizational behavior. Organizational Dynamics, 9(2), 35–51. → This article provides a robust framework for understanding performance issues resulting from a lack of alignment within the organization.
Puyt, R. W., Lie, F. B., de Graaf, F. J., & Wilderom, C. P. M. (2023). The origins of SWOT analysis. Long Range Planning, 56(3), Article 102304. → This article provides historical context for strategic analysis frameworks and helps to better situate gap analysis within the broader field of management tools.
Shabdin, N. I., & Ismail, A. et al. (2024). The gap analysis fundamentals for digitalization strategic planning. International Journal of Academic Research in Business and Social Sciences, 14(1), 1567–1581. → This article demonstrates how gap analysis is structured as a framework for strategic planning and change.
Wheelen, T. L., & Hunger, J. D. (2012). Strategic Management and Business Policy: Toward Global Sustainability. Upper Saddle River, NJ: Pearson. → This book places gap analysis within a broader strategic diagnosis and helps to systematically assess deviations.
Weihrich, H. (1982). The TOWS matrix: A tool for situational analysis. Long Range Planning, 15(2), 54–66. → This article helps not only to describe identified gaps but also to translate them into concrete strategic options.
White, C. (2004). Strategic Management. New York, NY: Palgrave Macmillan. → This book provides context for strategic analysis models and helps link performance gaps to policy choices and change.

How to cite this article:
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Original publication date: December 7, 2017 | Last update: April 21, 2026

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Article by:

Patty Mulder

Patty Mulder is an Dutch expert on Management Skills, Personal Effectiveness and Business Communication. She is also a Content writer, Business Coach and Company Trainer and lives in the Netherlands (Europe).
Note: all her articles are written in Dutch and we translated her articles to English!