If you’ve ever ridden the London Underground, you’ve seen the signs warning you to “Mind the Gap.” In London, the gap in question is the space between the edge of the subway platform and the floor of the train you plan to step into. The signs are intended as a reminder that you need to “bridge” that gap if you’re going to board the train without stumbling or falling.
As we talked about last time, organizations often face performance gaps that they need to bridge if they want to succeed, particularly in hard economic times. The process used to help identify those gaps and determine how best to close them is known as performance analysis. Previously, we discussed the “why” of performance analysis. Here we’ll briefly outline the “how.”
Performance analysis has four phases:
- Performance gap analysis
- Root cause analysis
- Needs analysis
- Recommendations
Performance gap analysis is simply the discrepancy, or gap, between how you want your business to perform and how it’s actually performing. In other words:
Gap:
Desired Performance – Current Performance = Performance Gap
Example:
98% desired customer satisfaction rating – 70% actual customer satisfaction rating = 28% customer satisfaction rating gap
Depending on the nature of your business and the gap you want to analyze, this phase might involve an examination of your total sales volume, your customer satisfaction scores, or perhaps the number of “widgets” your organization manufactures/processes/distributes during a specified period.
Root cause analysis is the process used to uncover why the identified performance gap exists. It involves the examination of various factors that may influence employee performance, including:
- Skill/knowledge
- Capacity/environment/resources
- Consequences and incentives
- Motivation and expectations
- Information and feedback
Some of these are more self-explanatory than others. Want more info? Here are some details about performance analysis.
Needs analysis is used to find the appropriate “bridge” for the gap that’s been identified. Depending on the type of gap and its root cause, one or more types of specialized analyses may be involved, including an analysis of audience, job function, job task, subject matter (content), work environment, or delivery media, as well as a possible cost-benefit analysis.
The resulting Recommendations are presented in a comprehensive analysis report that offers proposed solutions for improving performance results. Often the overall analysis reveals multiple problems and root causes, so multiple integrated solutions are recommended. Although established procedures are involved, performance analysis is really a customized process designed to achieve specialized solutions for unique performance issues – there is no “one size fits all” solution when a truly rigorous analysis is employed.
Is your organization experiencing performance issues? If so, then perhaps it’s time to start “minding the gap.”