The first step in creating a gap analysis is examining the current state of your business. In the first column of the template, add notes to describe the current situation in detail. Determine where you are right now compared to where you want to be. Assessing the current state of your business helps you better understand what you can improve on.

Next, clearly define your objectives and the desired state of your business. Consider what you want to accomplish for your business, such as increasing productivity or boosting sales. Defining these goals is central to your gap analysis.

Now that you know where your business is and where you want it to be, you can identify the gaps keeping you from reaching your goals. Identifying these gaps helps with project planning and management, empowering you to make the necessary changes to achieve your long-term goals. Be as specific as possible when identifying the gaps.

Perform a root cause analysis to find underlying reasons for the gaps you’ve identified. Once you’ve nailed down the root causes of your gaps, you can start figuring out ways to fill those gaps. A cost-benefit analysis can also be helpful at this stage.

Once you’ve identified your gaps and their root causes, you can create a plan with specific action items and start working to close them. Review and discuss the gaps as a team to identify the following steps, roles, responsibilities, and desired outcomes. Your plan should include your objectives, a timeframe for completing those objectives, and the resources you’ll need to meet your goals.

Now that your plan is in place, you can start executing it and tracking your progress. If you’re not making progress or progressing too slowly, you can make adjustments as needed. Your plan should play a role in everything you do, from long-term planning to project management.