GAP Analysis - Major Tools

 

Various gap analysis tools exist that can ensure that it is done right and nothing falls through the cracks. These are the most commonly used tools:

1. Fishbone analysis: This cause-and-effect visualization tool helps to analyze manpower, methods, metrics, machines, materials, and the time. It aids in identifying how each area links to any underlying issues that might exist and is often used to identify root causes of problems. Ishikawa diagrams (also called fishbone diagrams, herringbone diagrams, cause-and-effect diagrams, or Fishikawa) are causal diagrams created by Kaoru Ishikawa that show the potential causes of a specific event.
   
   
   The diagram looks just like a fish’s skeleton with the problem at its head and the causes for the problem feeding into the spine. Once all the causes that underlie the problem have been identified, managers can start looking for solutions to ensure that the problem doesn’t become a recurring one. It can also be used in product development. Having a problem-solving product will ensure that your new development will be popular – provided people care about the problem you’re trying to solve. The fishbone diagram strives to pinpoint everything that’s wrong with current market offerings so that you can develop an innovation that doesn’t have these problems.
   
       Finally, the fishbone diagram is also a great way to look for and prevent quality problems before they ever arise. Use it to troubleshoot before there is trouble, and you can overcome all or most of your teething troubles when introducing something new.
2. McKinsey 7S Framework: This tool, named after the consulting firm McKinsey & Co., is used to determine specific aspects of an organization that are meeting or not meeting expectations. It is an analysis of a business through the lens of seven people-centric categories, including strategy, structure, staff, systems, style, skills and shared values.
3. SWOT analysis: SWOT stands for strengths, weaknesses, opportunities, and threats. These are factors that have an effect on the efficiency and success of a product, project or person. SWOT analysis helps companies to determine the best possible solution by playing to their strengths, allocating resources in accordance with needs, while avoiding potential threats.
4. Nadler-Tushman model: Named after Professors David Nadler and Michael Tushman, the Nadler-Tushman model, also referred to as the organizational congruence model, examines how business processes work collectively and how gaps influence the operational effectiveness of an organization or a firm as a whole.
   
   
   The Nadler-Tushman model determines operational gaps by assessing an organization’s operations by separating its business processes into inputs, transformation, and outputs. Input refers to the operational atmosphere, physical and non-physical resources used, and the workplace environment. Transformation denotes the existing procedures, people and processes present in a place that changes input into an output. The Nadler-Tushman’s congruence model is used to identify performance gaps within an organization. It is based on the principle that a business’s performance is a result of these 4 elements; work, people, structure and culture.
   
   
   The higher the compatibility among these elements, the greater the performance will be.  

• Steps involved:

1. Gather all data that points at the symptoms of poor performance
2. Specify and analyze inputs which include the environment, resources and history. And define your organization’s strategy.
3. Identify which outputs are required at individual, group and organizational levels to meet the strategic objectives
4. Figure out the gaps between desired and actual output and the problems associated with it (and mark down the costs associated with them as well)
5. Collect data on and describe the basic nature of the 4 major components of  the organization
6. Assess the degree of congruence among these components
7. See how poor congruence and problems related to outputs are correlated. Check if the poor ‘fit’ of the 4 major components are related to  the problems
8. Come up with action steps to deal with the problem causes

5. Burke-Litwin Casual Model

Burke Litwin Model of Change explains three levels of changes- transformational, transactional changes and changes in performance. 

These changes are derived by 12 factors which include external environment, mission and strategy, leadership, organizational culture, structure, system, management practices, working climate, task and skills, individual values and needs, motivation level and individual and organizational performance.

Among these drivers some are hard factors and some are soft; some are tangible and some are intangible. 

Organizational change is a display of these complex yet interconnected factors of change.

This tool helps you understand the different components of an organization relate to each other when going through a period of change. There are 12 components that are interrelated and they are as follow:

Burke Litwin Model identify 12 factors or elements of change which drive change in an organization. Let’s check these 12 factors out and discuss these in detail. 

1.      External Environment

Organizations do not work in isolation. Many external factors like economy, culture, social norms, competition, market situation etc has effect on organisation. Organizations do have control over external factors and that is why these are the strongest factors of change. 

2.      Mission and Strategy

Mission and Strategy refers to purpose and goal of organisation. Leadership devises mission and strategy at organisations. This is also a powerful factor of change and for this reason it is among transformational factors as per this model. 

3.      Leadership

Leadership is also among strong transformation factors.  They are the champions of change and change leaders. They explain change, lead its process, assess its performance and take corrective actions to put change in the right direction.

4.      Organisational Culture

Another transformational factor is organisation culture. It is about norms, behaviour of employees and value system prevails in an organization. It is less tangible and formal but it has strong influence on the future and process of organizational change. 

5.      Structure

Structure is a tangible factor. It is about hierarchies and departments but it also includes communication channels and decision making relationship between those hierarchies and departments. As per this model, structure is a transactional factor. 

6.      Systems

Next transactional factor is system. It refers to rules and regulations, policies, procedures which help employees to function in an organization. These are tangible factors of change and it requires complete understanding of existing system before initiating any organizational change. 

7.      Management Practice

Management practices refer to behaviour and activities of managers towards implementing strategy. These practices inform how managers, leadership and employees are adhering to rules and regulations and what is the nature of relationship among different hierarchies and departments. Management practices do have influence on organizational change. 

8.      Working Climate

Working climate refers to organizational environment; what is attitude of employees towards work; are they comfortable in organizational culture; how they feel about the leadership. This working climate is also driver of change and it does affect the change process. 

9.      Tasks and skills

Actions which are required to be completed in a given time by employees are tasks and expertise which are needed to complete that actions are skills. For an organizational change to happen, skills of employees must be aligned to new roles and tasks.

10.  Individual values and needs

Employees come from different social and educational backgrounds and they have different expectations from organization about working climate, remuneration, growth opportunities etc. It is a powerful factor which affects productivity and efficiency of employees and has strong impact on success or failure of organizational change. 

11.  Motivational Level

It is about employees’ level of dedication and commitment towards achieving organizational goals. Motivation level of employees depends on many other factors like what is organizational culture, values, remuneration, management practices etc. This is a soft factor but it is prerequisite to implement change initiative in an organization.

12.  Individual and Organizational Performance

Performance of individuals refers to completion of tasks in effective and efficient manner. And sum total of individual performance is the organizational performance. The organizational performance is assessed by achievement of organizational goals in given time period. 

Steps involved:

1. Find out where the need for change is coming from; whether from the external environment, transformational factors etc.
2. Identify which of the elements in each group is responsible for the situation
3. Examine the key element along with the other 11 elements; pay special attention to those that are closely linked to the identified element
4. Figure out the changes you need to make to the main element along with the other few elements it is closely linked to

Advantages of Burke Litwin Model of Change. 

·         This is a comprehensive model covers all the important factors into account to explain why change is happening, what is driving change and helps in formulating change strategy. 

·         This model explains factors of change on the basis of cause and effect relationship which helps to have complete understanding about organizational change. 

·         This model explains the meaning and distinction between transformational and transactional level of change leadership in an organization.

Limitations and Disadvantages of Burke Litwin Model of Change

·         The critics of this model are of the view that over simplification of different factors of change results into producing sub factors which actually makes it a more complex model.

·         This model only focuses on what drives change and fail to explain how to implement change. 

·         It puts external environment factors on the top which drives change which is not always the case. There are internal factor as powerful factors which lead to organizational change.