What Is a Performance Gap?

A performance gap is the measurement of the difference between the present status in a business operation and its ultimate goal of performance. With the eventual goal of eliminating the gap, analyzers often compare productive employees with unproductive ones and the business as a whole with other similar businesses.

Business owners analyze the performance gap to discover how far the business has come, how far it still needs to go, what areas of the business are performing up to standards and which ones need the most improvement, according to the Houston Chronicle. Sometimes, closing a performance gap lies in training personnel, while other times it is necessary to update technology. Occasionally, the gap is addressed through reorganization and dismissal of employees.