The simplest way to perform a gap analysis, is for companies to list their strongest attributes from their operations. Identify the Departments that are a strong performer and have a distinct advantage over competitors. Most Companies can then list how weak performing departments are operating and compare them to better performing competitor operations. This identifies gaps in business operations and will allow management to focus on creating more effective internal controls to enhance these departments.
This type of analysis is sometimes called a needs-analysis approach to business analysis. In theory, a needs analysis focuses on only the departments that are under-performing and the needed changes to enhance their operations. Sometimes management may only look at weaker departments rather than looking at the company as a whole, which results in more time and effort.