How to find a gap
Organizations usually change because they have something which they want to achieve. Achievements including launching new business line, reducing cost, or reducing complexity. Usually, the big ideas are known, but how can a company be sure that the transformation won't cause further or unknown negative side effects to the business?
Enter the gap analysis. A gap analysis takes the overall goal and determines what negative side effects could come true. The gap analysis looks all aspects of the intended change and makes sure that the change addresses all concerns, confirms any which hadn't been considered before, and makes sure that the change doesn't negatively impact existing plans.
Here are three things to consider when performing a gap analysis.
What the company is doing today
Has anyone ever asked you why the company is going to transform? When launching a transformation project, the first thing staff will ask is "What am I doing wrong that everything needs to change?" Normally (hopefully!), your staff aren't doing anything wrong or not at the highest professional level, but making change takes people out of their comfort zones. While everyone is in this together, staff need to understand the changes to:
Process: How does the company actually work, and why is change needed? What about that process needs to be improved in order to ensure future success?
Technology: A new business line most likely needs changes to existing digital solutions. That could be adding new profit centers or a need to implement an entirely new software. Maybe another department has started using a new piece of tech in their area and your team can't connect easily? What's going well in your company's digital architecture?
Organization design: What roles are filled? Who works in your company? Do you have bookkeepers and programmers? Maybe some dedicated office staff? What about customer success and sales? What's going on today that isn't working?
People: With every change comes skill sets. What can your staff currently do?
Once a company understands what it has today, it can understand what it needs for tomorrow.
Now that you really understand how your company works, you can understand what's missing for tomorrow. There's no easy answer to address all of the gaps which your company will need to fill in.
So what can you do?
Prioritize what comes first. Is the reason why your undergoing change to reduce cost? What are the most expensive areas? If you remove that, what would happen to the rest of your business?
Look at what's available in the market. Are there companies offering technological solutions to fill in your gap? If so, why not use it?
Is one part of your business struggling to keep up with the rest? What's causing the delays?
Are there any specific staff members who hold too much operational knowledge? That's a big turnover risk which you can't afford. How can your company reduce its reliance on human resource in operational areas?
Your business case
Now, the company understands what's wrong and what could be done to fix it. The time is right for a business case to analyze all of your options. Preparing a business case needs to take into account budget, resource, time, and value.
That's where Advancing to IPO comes in. We understand all of the moving components to your company's change. Implementing new systems comes with upskilling of staff. Changes to your company's organization design will require changes to how your processes are structured. Don't let anything get lost in your change. Contact us today for a free consultation.