This refers to the difference between forecast results and the desired results or targets of the business.
The planning gap between what is currently planned and the organisation’s targets requires management action; typically increasing production or sales activities in order to generate more income or profit. In the public sector the planning gap may be between the level of citizen demand (for example the number of hospital operations) and the level of service available within funding limits.
Planning gap is a term normally found in strategic management.
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