1. Gap Analysis
Gap Analysis Slide Presentation

2. Table of Contents Definition of Gap Analysis Service Gap Analysis
SERVQUAL
Gaps Model
Dimension Model
Real World Gap Analysis
ISO 2

3. Definition of Gap Analysis
Formal means to identify and correct gaps between desired levels and actual levels of performance
Used by organizations to analyze certain processes of any division of their company
Gaps are indicators of corrective action and improvements
In manufacturing, it could be difference between desired and existing conformance levels 3

4. Service Gap Analysis
Expected level of service vs Actual level of service provided
SERVQUAL
- 5 gaps
- 5 dimensions
A good example where gap analysis is used for improvements in business is in the services field
The most popular assessment tool used in service quality is called SERVQUAL, which involves a set of the 5 most important dimensions of quality according to rankings of customers
Also involves a set of 5 gaps which represent the difference between customers’ expectations and perceptions 4

5. SERVQUAL A gap analysis research instrument
created by Parasuraman, Zeithamel, and Berry
Introduced in 1988
The marketing research team of Parasuraman, Zeithamel, and Berry created this service quality measuring tool in 1988
Has been used in a wide range of studies including fields such as health care, banking, appliance repair, and many other professions
Five Gaps include
Customer expectations vs. managerial perceptions
Manager’s expectations of quality vs. quality specs
Communication with customer at point of service or sale
Service delivery vs. communication
Perceived services vs. expected services
SERVQUAL is not a measurement to compare and rank separate companies but only to provide a measure for managers to determine actions needed in their own services 5

6. SERVQUAL Model 6

7. SERVQUAL Model Gaps Gap 1
The difference between actual customer expectations and management’s idea or perception of customer expectations
Managers and employees have a very internal process-oriented view of their business, it is tough to break this view and to see things the way the customer does
This gap of the SERVQUAL Model can help management with customer service 7

8. SERVQUAL Model Gaps Gap 2
Mismatch between manager’s expectations of service quality and service quality specifications
To implement a system to improve this gap, management must first understand exactly what the customer wants
If this understanding is not present, it will be impossible for management to know whether their expectations are aligned with customer specifications. 8

9. SERVQUAL Model Gaps Gap 3 Poor delivery of service quality 9
Once the specifications from gap 2 are aligned the next step is to deliver these services in a perfect manner
Quality of delivery must be perfected during the interaction with the customer
The employees that are responsible for these actions are referred to as contact personnel
Some reasons for a lack of quality include poor training, communication, and preparation 9

10. SERVQUAL Model Gaps Gap 4
Differences between service delivery and external communication with customer
Customers are influenced by what what they hear and see about a company’s service
Word-of-mouth publicity and advertising are main outlets which customers open their opinions to
The difference between what a customer hears about a company’s service and what is actually delivered is represented by gap 4
This gap can lead to dangerously negative customer perceptions 10

11. SERVQUAL Model Gaps Gap 5
Differences between Expected and Perceived Quality
This gap is directly related to everyone’s perception of service quality
Customers expect certain things from certain companies
When someone goes into a McDonalds to order their favorite meal – a Big Mac, they are expecting exactly what they are accustomed to getting (a quick, no hassle, tasty big burger with all the works). If it takes 15 minutes to get a Big Mac that doesn’t even have the famous special sauce on it the customer’s perceived service of McDonalds is going to plummet.
If gaps 1 through 4 are closed to a minimum then gap 5 should follow, if there are any gaps left in steps 1 through 4 the perceived customer service quality will be negatively affected
The way to make sure these gaps are closed is through thorough systems design, precise communication with customers, and a well-trained workforce. 11

12. Gaps Model 12

13. Gaps Model There are 22 items which can be rated
i.e. modern looking equipment, prompt service, understanding of needs, etc.
These items are broken up into 5 dimensions:
Tangibles (Items 1-4)
Reliability (Items 5-9)
Responsiveness (Items 10-13)
Assurance (Items 14-17)
Empathy (Items 18-22)
Tangibles: appearance of physical facilities, equipment, personnel, and communication materials Reliability: ability to perform the promised service dependably and accurately Responsiveness: willingness to help customers and provide prompt service Assurance: knowledge and courtesy of employees and their ability to convey trust and confidence Empathy: the caring, individualized attention the firm provides its customers
Reliability is the most important dimension
Tangibles is the least important dimension
There is a shared importance between Reliability and Responsiveness 13

14. Gaps Model
Perceptions and Expectations are given a rating for certain dimensions
Ratings scale
1 (Strongly Disagree) to 7 (Strongly Agree)
Average expectation rating is then subtracted from the average perception rating
Average ratings should usually be taken from a sample size of at least 50 participants 14

15. Gaps Model High Training needed negative = in certain rating dimension
If the average rating is negative there is a need for action
As the rating gets lower below zero, the more stress must be placed on that process
If the average rating is above zero, the requirements have been met and no action is needed
High Dimension is OK,
positive = no training
rating needed 15

16. Gaps Model Example For Example:
If a survey was taken which showed the averages for each dimension is as follows:
Dimension Perception Average Expectation Average
Tangibles
Reliability
Responsiveness
Assurance
Empathy
What dimension should be emphasized? 16

17. Gaps Model Example Perception – Expectation = Difference
Tangibles: = 3.0
Reliability: = 1.0
Responsiveness: = -0.3
Assurance: = 2.8
Empathy: = -1.4
Empathy has the lowest rating therefore it is the dimension where training should be emphasized the most. A focus should also be placed on Responsiveness because of its negative rating. 17

18. Applications of Gap Analysis
ISO
Praxiom Research Group Limited
Process Approach
The Praxiom Research Group Limited has a gap analysis tool offered on the internet at
This tool helps an organization find out what they need to do to meet the new ISO standard
The tool is offered in a hardcopy edition or a digital edition (either in Word or PDF format)
This tool uses a process approach to service quality, not only because this approach makes the most sense but the ISO makes it mandatory to do so
Clause 4.1 of ISO 9001 2000 makes it very clear that organizations must identify and manage the processes that make up their Quality Management Systems 18

19. ISO 9001 2000 Gap Analysis Tool Phase 1: Identify Gaps
Phase 2: Fill Gaps
The Praxion Research Group’s Gap Analysis Tools is made up of 2 phases:
Identification of Gaps
Filling of Gaps
These Phases will be broken down in the next few slides 19

20. ISO 9001 2000 Gap Analysis Tool Identify Gaps:
Tool lists the five sets of requirements from the ISO as questions
Systematic
Management
Resource
Realization
Analytical
This list of requirements is usually in the form of statements but for this tool they are used to ask questions not to make statements 20

21. ISO 9001 2000 Gap Analysis Tool Identify Gaps:
Three answers are possible for each question:
Yes – organization has met one of ISO’s requirement
No – points to a gap
N/A – question is not applicable to situation
No answers reveal gaps between ISO’s standard and the organization’s process
No answers also tell the organization that a process needs to be modified, improved, or created 21

22. ISO 9001 2000 Gap Analysis Tool Identify Gaps:
Each time “NO” is answered, there is a column to help organization identify which processes need to be fixed
22 total processes which can be fixed
22 Processes:
Quality Management Process
Resource Management Process
Regulatory Research Process
Market Research Process
Product Design Process
Purchasing Process
Production Process
Service Process
Product Protection Process
Customer Needs Assessment Process
Customer Communications Process
Internal Communications Process
Document Control Process
Record Keeping Process
Planning Process
Training Process
Internal Audit Process
Management Review Process
Measuring and Monitoring Process
Nonconformance Management Process
Continual Improvement Process
General Systemic Process 22

23. ISO 9001 2000 Gap Analysis Tool Fill Gaps:
Preparation and Implementation of System Development Forms
Each of the 22 processes listed in Phase One has a system development form
After identifying the gaps and figuring out which processes need changing, the preparation and implementation of System Development Forms occurs 23

24. ISO 9001 2000 Gap Analysis Tool Fill Gaps:
These system development forms are used to prepare System Development Plans
The Gap Analysis questions are turned into action statements
These action statements formulate remedial actions which will fill in the gaps
To develop plans from the forms, an organization must turn their gap analysis questions into remedial action statements
These remedial actions are used to fill the gaps that are found in the identification stage
The placement of these actions into the gaps is called the System Development Plan
All remedial actions must be assigned a Remedial Action Number
These numbers must cross reference ISO clause numbers and gap analysis questions answered earlier
Job responsibilities are then given out to make sure that the remedial actions are carried out 24

25. Quality Management System
ISO Gap Analysis Tool
Fill Gaps:
Once all actions are performed and gaps are filled, the organization will have a
- After all remedial actions are set into motion and recorded in alignment with the ISO standards the date is recorded and after the actions take place the organization’s processes are soon on their way to becoming ISO compliant.
ISO compliant
Quality Management System 25

26. Summary of Gap Analysis
Gaps can be found in any process of an organization’s operations
Tools like SERVQUAL, Two-Dimensional Analysis, and ISO can all be used to perform gap analysis
Gap Analysis is one of the best procedures to help lead a company to not only improve their processes, but recognize which processes are in need of improvement.
Bibliography
Foster, S. Thomas, Managing Quality: An Integrative Approach. Prentice Hall, 2001: pg ,
Hiller, Steve, ARL SERVQUAL Survey Pilot. University of Washington Libraries.
Nitecki, Danuta A., SERVQUAL: Measuring Service Quality In Academic Libraries,
“ISO Gap Analysis Tool”, 26