Gap Analysis Gap Analysis

What Is Gap Analysis?What Is Gap Analysis?

Gap analysis is a survey Gap analysis is a survey instrument used to determine the instrument used to determine the gaps between a service offered gaps between a service offered and a customers expectations.and a customers expectations.

So Where Do We Start?So Where Do We Start?

There are several ways to conduct There are several ways to conduct Gap Analysis.Gap Analysis.• SURVQUAL Expectations Survey and SURVQUAL Expectations Survey and

Perceptions SurveyPerceptions Survey• SAGASAGA

The SURVQUAL The SURVQUAL Expectations Survey and Expectations Survey and Perceptions SurveyPerceptions Survey

This tool was developed by This tool was developed by Parasurman, Zeithamel, and Berry Parasurman, Zeithamel, and Berry to assess services quality.to assess services quality.

SURVQUAL instruments are a SURVQUAL instruments are a series of questions that deal with series of questions that deal with tangibles, reliability, tangibles, reliability, responsiveness, assurance, and responsiveness, assurance, and empathy. empathy.

What Do We Do With This What Do We Do With This Survey?Survey?

Administer the survey to Administer the survey to customers, and management customers, and management

Results will show the differences in Results will show the differences in perceptions between:perceptions between:• CustomersCustomers• ManagersManagers• EmployeesEmployees• Managers and customersManagers and customers

Gap 1 - TangiblesGap 1 - Tangibles

The first gap will show the The first gap will show the difference between actual difference between actual customer expectations, and what customer expectations, and what management perceives to be management perceives to be customer expectationscustomer expectations

Gap 2 - ReliabilityGap 2 - Reliability

Gap 2 is the difference in Gap 2 is the difference in managers expectations of service managers expectations of service quality, and the actual service quality, and the actual service quality specifications.quality specifications.

Gap 3 – Responsiveness Gap 3 – Responsiveness

Delivery of perfect services is not Delivery of perfect services is not guaranteed, even if service guaranteed, even if service specifications are defined, due to specifications are defined, due to lack of training, preparations, and lack of training, preparations, and training.training.

Gap 4 – Assurance Gap 4 – Assurance

This gap shows what the This gap shows what the differences between services differences between services delivery and the external delivery and the external communications with the communications with the customer.customer.

Gap 5 – Empathy Gap 5 – Empathy

This is the gap that shows the This is the gap that shows the differences in expected service differences in expected service and perceived service.and perceived service.

So Where Do We Begin?So Where Do We Begin?

We have to fix gaps 1, 2, 3, and 4, We have to fix gaps 1, 2, 3, and 4, before we can fix gap 5.before we can fix gap 5.• You can accomplish this by having a You can accomplish this by having a

thoughtful systems design, good thoughtful systems design, good communications, and well trained communications, and well trained employees that can provide good, employees that can provide good, constant customer service.constant customer service.

SAGA – Self Assessment SAGA – Self Assessment Gap AnalysisGap Analysis

This method of Gap Analysis was designed This method of Gap Analysis was designed by AMP Inc.by AMP Inc.

Rather then sending out a survey, SAGA is Rather then sending out a survey, SAGA is a process used to take a good, close look at a process used to take a good, close look at an organization’s operations.an organization’s operations.

Much like a Baldrige assessment, it gives Much like a Baldrige assessment, it gives nearly everyone associated with an nearly everyone associated with an organization (employees, customers, organization (employees, customers, partners and suppliers) an opportunity to partners and suppliers) an opportunity to participate. participate.

Where Do We Start?Where Do We Start?

SAGA starts by looking at the first SAGA starts by looking at the first category of the Baldrige criteria. category of the Baldrige criteria.

Next, a company wants to address Next, a company wants to address what a Baldrige like company what a Baldrige like company would do in their situation.would do in their situation.

Thirdly, you go over how your Thirdly, you go over how your company is actually comparing company is actually comparing with Baldrige. with Baldrige.

1.1 - Leadership1.1 - Leadership

This category looks at how the This category looks at how the leaders in the company set leaders in the company set directions, establish clear values, directions, establish clear values, communicate performance communicate performance expectations, focus on customers expectations, focus on customers and stakeholders and encourage and stakeholders and encourage continuous learning in the continuous learning in the organization. organization.

What Would a Baldrige-What Would a Baldrige-like Company Do?like Company Do?

Management will listen and talk Management will listen and talk with employees about:with employees about:• ValuesValues• DirectionsDirections• Customer FocusCustomer Focus• Need for Continuous LearningNeed for Continuous Learning

Continued…Continued…

Management will make it known Management will make it known that all important information will that all important information will reach everyone.reach everyone.

Management will have a way to Management will have a way to review performance and make review performance and make adjustments to performance.adjustments to performance.

Management will involve suppliers, Management will involve suppliers, partners and customers when they partners and customers when they develop goals.develop goals.

How Does Your Company How Does Your Company Measure up?Measure up?

Do you have a mission and vision Do you have a mission and vision statement?statement?

Who was involved in the Who was involved in the development of these statements?development of these statements?

How are these statements How are these statements communicated throughout the communicated throughout the organization?organization?

Continued…Continued…

Have clear values been established for Have clear values been established for company employees? Do employees company employees? Do employees know what is expected of them?know what is expected of them?

Does your organization leadership Does your organization leadership serve as a role model?serve as a role model?

Does your organization leadership Does your organization leadership display a customer focus that is display a customer focus that is obvious in carrying out their day to obvious in carrying out their day to day job duties?day job duties?

Continued…Continued…

Does your organization encourage and Does your organization encourage and promote the submission of ideas?promote the submission of ideas?

What indicators are used to determine how What indicators are used to determine how well the organization is doing overall?well the organization is doing overall?

Are the organization’s performance results Are the organization’s performance results shared and reviewed with the workforce? shared and reviewed with the workforce? How?How?

Does the organization leadership use Does the organization leadership use performance review findings and employee performance review findings and employee feedback to improve their leadership feedback to improve their leadership effectiveness?effectiveness?

1.2 - Organizational 1.2 - Organizational Responsibility for Responsibility for CitizenshipCitizenship

This category examines how the This category examines how the organization demonstrates its organization demonstrates its awareness of its public awareness of its public responsibilities and makes those responsibilities and makes those responsibilities part of everyday responsibilities part of everyday operations. operations.

What Would a Baldrige What Would a Baldrige Like Company Do?Like Company Do?

Have strong policies reinforcing social Have strong policies reinforcing social responsibilities and good citizenship.responsibilities and good citizenship.

Regularly review its planned work and Regularly review its planned work and how it impacts the public.how it impacts the public.

Act proactively to minimize public Act proactively to minimize public impacts before they occur.impacts before they occur.

Have senior leaders who routinely Have senior leaders who routinely promote, reinforce, train, and monitor promote, reinforce, train, and monitor legal and ethical behavior of employees.legal and ethical behavior of employees.

How Does Your Company How Does Your Company Measure up?Measure up?

How do you anticipate public How do you anticipate public concerns with current and future concerns with current and future projects?projects?

Does the organization leadership Does the organization leadership encourage employees to become encourage employees to become involved in, and support, employee involved in, and support, employee events and outside activities?events and outside activities?

What do you do for the community?What do you do for the community? Are you a good neighbor?Are you a good neighbor?

Due to time limits, we have only Due to time limits, we have only covered two on the sections of the covered two on the sections of the Baldrige Award Criteria. In order Baldrige Award Criteria. In order to truly assess your company, you to truly assess your company, you have to go though each section of have to go though each section of the criteria and ask questions the criteria and ask questions geared towards your company. geared towards your company.

Content of this slide was from the interview with Alan Stambaugh.

EvaluationEvaluation

Once you compare your Once you compare your organization with that of the organization with that of the Baldrige Criteria, you will see Baldrige Criteria, you will see where your company has gaps, or where your company has gaps, or areas that can be improved. areas that can be improved.

Bibliography Bibliography

Foster, S. Thomas (2001). Foster, S. Thomas (2001). Managing Quality Managing Quality . Upper Saddle . Upper Saddle River, New Jersey: Prentice Hall.River, New Jersey: Prentice Hall.

Interview: Alan Stambaugh, Interview: Alan Stambaugh, Bureau of Maintenance and Bureau of Maintenance and Operations, Pennsylvania Operations, Pennsylvania Department of Transportation.Department of Transportation.