In simple terms we can say that : Comparing Actual Performance with required or desired performance.
Gap analysis helps to identify the areas that should be improved so as to get maximum performance.
You can use it at any stage of a project to analyze your progress, but it's most useful at the beginning.
Gap analysis can be conducted by following steps :
1. Identify Your Future State
2. Analyze Your Current Situation
3. Identify How You'll Bridge the Gap
Gap Analysis compares your current situation with the future state that you want to achieve once your project is complete. By conducting a Gap Analysis, you can identify what you need to do to "bridge the gap" and make your project a success.
To carry out a Gap Analysis, first identify your project's objectives – this is your "future state." Then analyze your current situation, making sure that you gather information from the right sources.
Finally, identify how you'll bridge the gap between your current situation and the desired future state.
More reading at :