Gap Analysis

There are two primary reasons for wanting to perform strategic planning for project management. First and foremost is the desire to secure a competitive advantage. The second reason is to minimize the competition's competitive advantage or to strengthen your own competitive advantage.

The key to reducing any disadvantage that may exist between you and your competitors is the process known as gap analysis. Figure 1-2 illustrates the basic concept behind gap analysis. You can compare your firm either to the industry average or to another company. Both comparisons are shown in Figure 1-2.

Just for an example, using Figure 1-2, we can compare the gaps in total sales. According to Figure 1-2, the gap between your firm and your major competitor

FIGURE 1-2. Gap analysis.

is significant and appears to be increasing. The gap between your organization and the industry average is also increasing, but not as greatly as the gap between you and your major competitor.

For a company aspiring to perform strategic planning for project management, there are three critical gaps to analyze:

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