How far from the goal?
A web shop wants 90 out of every 100 orders sent on time. This month it sent 78.
Is that bad? How bad? Which problem should you fix first? Three tools help you answer with numbers, not feelings.
Key words
| Word | What it means |
|---|---|
| Gap analysis | comparing where you are now with where you want to be, and naming the gap |
| KPI | key performance indicator: a number you track against a target |
| Target | the number you want to reach |
| Actual | the number you really got |
| Score card | a table that scores each option against the same list of criteria |
| Criteria | the things you judge options by, such as cost and speed |
The cells students fill in are left blank in this preview.
By the end of this lesson
Note
I can use gap analysis, KPI analysis and a score card to judge how well a business is doing.
Starter
Have a go
Starter
3 questionsYour answers are marked here and are not kept. A college account keeps every student’s marks.
Worked example: gap analysis
| Where we want to be | Where we are now | The gap | An action to close it |
|---|---|---|---|
| 90 orders in 100 sent on time | 78 in 100 | 12 orders in 100 | Pack earlier in the day |
| 120 survey replies a week | 95 a week | 25 a week | Send one reminder message |
The cells students fill in are left blank in this preview.
Gap analysis
Gap analysis has four parts. Say where you want to be. Say where you are now. Work out the gap. Then list actions that close it.
It turns "we are not doing well" into "we are 12 short, and here is a plan".
KPI analysis
A KPI is a number you track on purpose. Each has a target and an actual value.
Subtract to find the gap. A KPI that meets its target is met. One that falls short is missed. List the missed ones, biggest gap first, and fix those.
Run it: KPIs met and missed
select kpi, target, actual,
actual - target as difference,
case when actual >= target then 'met' else 'missed' end as status
from kpis
order by kpi;On site you use a spreadsheet
Tip
A real spreadsheet program does this with a column that holds the formula target minus actual. A spreadsheet task is not available here, so we do the same sums in code.