The Great Debate, Not All Hope is Lost! Gap Analysis

Gap AnalysisYou weren’t sure who to vote for. Top Down Forecasting didn’t seem your speed so you put all your eggs in the Bottom-up basket, and that didn’t seem right either. So what do you do? It’s a tough question to answer when there are no other options, but 9DOTS is here to help!

There is still another candidate in The Great Debate–The Gap Analysis. Top Down approach driven on market demand. The challenge is whether or not the business is structured to capitalize on market demand–a high market demand means you may be losing opportunity if you don’t have the necessary resources aligned internally. Bottom-up approach is driven on resource supply. Estimate potential sales revenue of a product in order to establish the total sales figure.

The Gap Analysis approach combines the two and compares what you might be missing. It turns the data from Top Down with the data from bottom-up into actionable intelligence. It analyzes the gap, showing you numbers you have never seen before that you can use to gain competitive advantage. Your organization’s need is unique based on its industry & market conditions.

With only the top-down or bottom-up, there is no comparison and it can be misleading with revenue or supply. Gap analysis allows for a more holistic view of the business. Viewing the difference between a Top-down and bottom-up can give you actionable intelligence. For example, more market demand means you can safely hire more people, or a constraint on resource supply could determine the possibility of raising prices to increase margins.

The end of the year is about to smack you in the face. The year 2016 has passed you by faster than you imagined, and the same will probably happen in 2017! Budgeting season is among us just as quickly as the christmas trees and decorations. If you are a professional services organization, take the gap analysis approach and get ahead for next year. New projects are starting, old projects are continuing on. Making sure your organization’s headcount is in balance with your backlog and projected pipeline is a constant challenge. You need the right tools to help you see far enough into the future to understand your organizations staffing needs.

There is even more info if you check here