What does 'gaps' indicate in strategy analysis?

In the context of strategy analysis, 'gaps' refer to the differences between the current state of an organization and its desired future state. Identifying these gaps is crucial because it allows business analysts to understand where the organization currently stands in relation to its strategic objectives and what changes or improvements are necessary to bridge that divide. This process involves evaluating existing capabilities, resources, and processes against the goals set by the organization to achieve its vision.

Understanding gaps informs decision-making, allowing stakeholders to prioritize initiatives, allocate resources efficiently, and define strategies that will help close these gaps. It is a fundamental part of strategic planning and transformation initiatives since it highlights areas that require attention for successful change and alignment with overarching business goals. This holistic view supports the development of actionable plans aimed at achieving the desired future state effectively.