There are several features to a strategic plan, especially when it’s done correctly. At NMBL Strategies, we pride ourselves on making sure the work we do provides a holistic approach and in turn a holistic path forward for our clients. Part of this effort is a gap analysis in your strategic planning process, a key component of your nonprofit strategy. At NMBL Strategies, our strategic planning efforts are primarily focused on nonprofits and small businesses. Oftentimes we get asked, why should a gap analysis be performed? What value does it offer? How should you use it for a strategic plan?

Let’s start simple, what is a gap analysis? A gap analysis is an internal analysis that reviews a company's performance deficiencies. Said another way, a gap analysis determines where you are underperforming and why you are not meeting your potential. When looking at nonprofit strategic planning, this is an analysis of how and why targets are not being met, and in many cases, includes an examination of funding, operations, marketing, and many other opportunities within the spectrum.

Why should a gap analysis be performed?

A gap analysis is an efficient way to determine if your efforts are being optimized. If they are not, it can get to the bottom of why they are not being optimized. By looking through historical performance and inputs for performance, one is able to determine optimal returns and whether they are being met.

Let’s look at a simple example to understand:

A nonprofit focused on senior care has decided to target their audience through social media and determines tik tok is the most popular, growing platform available right now. The senior care operator pours funding and efforts into creating tik tok videos with the seniors they already assist, yet they do not get the response or engagement expected.

It may be easy to see where the deviation occurred in this example, but it shows how gap analysis can help an organization identify issues plaguing its success. Even if social media is the correct path here, tik tok does not typically cater to a large senior demographic (unless you mean seniors in high school). When user demographics are considered, a platform like Facebook is much more commonly used by seniors. The gap analysis finds where the gap is. Social media is not the gap, the selected platform is.

What value does a gap analysis play in strategic planning?

We spoke with companies that recently developed strategic plans and used a gap analysis as part of the planning process. Their experiences display the value a gap analysis brings to a strategic planning session. It allows for organizations to quickly identify where their product, operation, funding, or other performance is lacking in relation to their expected progress. Even with a plan, things do not always work out as they should and gap analysis is a valuable tool for seeking out the leaks and patching them up. Miranda Yan, the co-founder of VinPit, implemented gap analysis alongside the implementation of their strategic plan, and “it covered our move.” This allowed VinPit to adjust and work out a new deal with their server provider and security developers which all led to a successful expansion of their services. A gap analysis brings value to a strategic plan by effectively monitoring the strategies it put in place and ensuring that they accomplish its goals. Using it to cover your move is a great way to look at its function when implemented alongside execution. A gap analysis can also function as a core feature of the planning process when used to sort out where adjustments are needed before setting a course of action. Let’s take a look at that now.

How should you use a gap analysis for a strategic plan?

Another developer, Daivat Dholakia, Director of Operations at Force by Mojio, utilized a gap analysis in order to properly develop their strategic plan to achieve their goals. Force by Mojio provides GPS fleet tracking for small businesses but in recent years has implemented a strategic plan with the goal of bringing in customers with larger vehicle fleets. With this goal in mind, a gap analysis revealed that they needed to address scalability issues within their app. Specifically targeting the needs of larger fleets, they were able to immediately implement a strategy that attracted their target customers. Here, a gap analysis allowed them to attract larger customers and retain them. The gap analysis was key in understanding what they needed to do specifically in order to have a strategic plan that actually led them to their goal. By understanding where the current gap was, they could efficiently craft a targeted strategic plan to achieve their goals.

Going through the strategic planning process and then implementing everything you developed can seem overwhelming, but with the proper guidance, mistakes can be avoided. Whether it is used within the planning process or alongside implementation, gap analysis is a great guiding feature that allows organizations to recognize gaps in their plan and fix them quickly and completely. Simply applying a new strategy and waiting until it runs its course to examine whether it worked is a waste of time and resources. Utilizing gap analysis is a must when strategic planning.

The world is always changing and your organization needs to be prepared. In order to prepare for your future and maximize your success, NMBL Strategies will help you develop a strategic plan that sets your organization on the right path. Don’t wait to get started. Download our free Strategic Plan Prep Guide today!

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