What is a likely consequence of a performance gap in business?

A performance gap in business refers to the difference between the desired performance level and the actual performance level. When a performance gap is identified, it often signifies that an organization is not meeting its goals or benchmarks, which can prompt a reassessment of strategies.

The potential need for strategic change arises because the existing practices, processes, or strategies may not be effective in achieving the desired outcomes. As businesses strive to close performance gaps, they may need to adopt new approaches, innovate, or realign their resources and objectives to better meet market demands or operational expectations.

In contrast, the other choices—such as increased employee morale, improved customer loyalty, and enhanced product features—are generally positive outcomes that might not directly result from a performance gap. Instead, they are ideal states that organizations aim for. A performance gap typically indicates areas needing improvement rather than areas of strength or achievement.