Which analysis helps determine the gap between current performance and potential performance?

Which analysis helps determine the gap between current performance and potential performance?

• A. Benchmarking
• B. SWOT analysis
• C. Gap analysis
• D. Cost-benefit analysis

Answer: (C)

Gap analysis is about identifying the difference between what you’re achieving now and what you could achieve if things were optimized. It starts by setting a target or potential level of performance, then measuring current results, and calculating the gap between the two. This delta points you to specific areas that need changes—whether in skills, processes, resources, systems, or policies—so you can design actions to close the gap. For example, if current productivity is 70 units per hour but potential productivity with new tools and training is 95, the gap analysis highlights exactly what to address—training programs, tool upgrades, or process tweaks—to raise performance to the desired level. This focus on the shortfall between present and possible performance is what makes this analysis the right fit for the question. Benchmarking looks outward to compare with external peers, SWOT analyzes internal and external factors, and cost-benefit weighs financial trade-offs of options. While they’re useful, they don’t specifically determine the internal delta between current and potential performance the way gap analysis does.

Gap analysis is about identifying the difference between what you’re achieving now and what you could achieve if things were optimized. It starts by setting a target or potential level of performance, then measuring current results, and calculating the gap between the two. This delta points you to specific areas that need changes—whether in skills, processes, resources, systems, or policies—so you can design actions to close the gap.

For example, if current productivity is 70 units per hour but potential productivity with new tools and training is 95, the gap analysis highlights exactly what to address—training programs, tool upgrades, or process tweaks—to raise performance to the desired level. This focus on the shortfall between present and possible performance is what makes this analysis the right fit for the question.

Benchmarking looks outward to compare with external peers, SWOT analyzes internal and external factors, and cost-benefit weighs financial trade-offs of options. While they’re useful, they don’t specifically determine the internal delta between current and potential performance the way gap analysis does.