Performance planning gap
A performance planning gap is the difference between the desired future performance and the forecast result from the current strategy or plans. Gap analysis makes the shortfall explicit and evaluates feasible actions to close it. Alternatives can include better execution, product or market choices, resource changes or revising an unrealistic objective. Assess financial and non-financial consequences and avoid treating the target as automatically achievable.
Worked example
Current plans forecast profit of $3 million in three years, while the strategic objective is $4 million. Analyse the $1 million gap and credible options rather than merely increase departmental targets.
Common mistake
A gap is not solved by changing the forecast without a real action or justified change in the objective.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |