Critical Success Factors
December 27, 2008
Identify and discuss the steps for “critical success factors” approach?
To link the previous topic regarding with this question, as you can observe from the past discussion we usually identify steps and factors concerning to aim on success. Thus, they were strategically study and define to find advance in each problem, mostly approaches to solution the dilemma is based and observe on real scenario of the real world. Lately from the previous question we were so great in discussing those factors and strategically made a conclusion after end after we plan every step and move we should take. Now, we look forward for the given question that we are headed right now to identify and discuss the steps for critical success factors approach. Before we start we should identify first what is critical, it can be define as important, vital, decisive, significant, serious, determining, and etc. though we had describe it from the word its self critical mean something important or vital to the success factors. And as we look into another angle it could be approach on how you identify and decomposed those important success factor that would lead closer to vision of the company and aim those missions stated. By that mean we could simply stratify those success factors into sub factor to eliminate easily the problem and identify those weaknesses to have a formulation of solution on it.
By outsourcing some of information and definition regarding about critical success factor it would be a bias if only my meaning of critical success factor would be in this page but I would like to recognize some description about critical success factor which I had used for determining and referring my reflection all about. They define CSF as an element of organizational activity which is central to its future success. Critical success factors may change over time, and may include items such as product quality, employee attitudes, manufacturing flexibility, and brand awareness. Any of the aspects of a business that are identified as vital for successful targets to be reached and maintained. Critical success factors are normally identified in such areas as production processes, employee and organization skills, functions, techniques, and technologies. Critical success factors define key areas of performance that are essential for the organization to accomplish its mission. Managers implicitly know and consider these key areas when they set goals and as they direct operational activities and tasks that are important to achieving goals. However, when these key areas of performance are made explicit, they pro-vide a common point of reference for the entire organization. Thus, any activity or initiative that the organization undertakes must ensure consistently high performance in these key areas; otherwise, the organization may not be able to achieve its goals and consequently may fail to accomplish its mission.
In the article I had read they identify and summary the critical success factor into six steps namely:
Step One: Establish your business’s or project’s mission and strategic goals
Step Two: For each strategic goal, ask yourself “what area of business or project activity is essential to achieve this goal?”
To make sure you consider all types of possible Critical Success Factors, Rockart and Bullen presented five key sources of Critical Success Factor
The industry - These factors result from specific industry characteristics. These are the things that the organization must do to remain competitive. There are some CSF common to all companies operating within the same industry. Different industries will have unique, industry-specific Critical Success Factors.
Competitive strategy and industry position - These factors result from the specific competitive strategy chosen by the organization. The way in which the company chooses to position themselves, market themselves, whether they are high volume low cost or low volume high cost producers. The nature of position in the marketplace or the adopted strategy to gain market share gives rise to CSF’s Differing strategies and positions have different CSF’s
Environmental factors - These factors result from macro-environmental influences on an organization. Things like the business climate, the economy, competitors, and technological advancements are included in this category. These relate to environmental factors that are not in the control of the organization but which an organization must consider in developing CSF’s Examples for these are the industry regulation, political development and economic performance of a country, and population trends.
Temporal Factors - These factors result from the organization’s internal forces. Specific barriers, challenges, directions, and influences will determine these CSFs. These relate to short-term situations, often crises. These CSF’s may be important, but are usually short-lived. Practically, with the evolution and integration of markets globally, one could argue that temporal factors are not temporal anymore as they could exist regularly in organizations.
Managerial Position - An individual role may generate CSF’s as performance in a specific manager’s area of responsibility may be deemed critical to the success of an organization. This is important if CSF’s are considered from an individual’s point of view.
Step Three: Evaluate the list of candidate CSFs to find the absolute essential elements for achieving success - these are your Critical Success Factors.
As you identify and evaluate candidate CSFs, you may uncover some new strategic objectives or more detailed objectives. So you may need to define your mission, objectives and CSFs iteratively.
Step Four: Identify how you will monitor and measure each of the CSFs.
Step Five: Communicate your CSFs along with the other important elements of your business or project’s strategy.
Step Six: Keep monitoring and reevaluating your CSFs to ensure you keep moving towards your aims. Indeed, whilst CSFs are sometimes less tangible than measurable goals, it is useful to identify as specifically as possible how you can measure or monitor each one.
Thus, this information I had gathered through my data mining about critical success factor are summarized, though it was quite ambiguous in first place to define what best approaches to identify CSF’s because there are a lot of resources and information about CSF in the internet. But the one I had given in this page identify the most simplest way about critical success factor however there would be much to define about what is critical success factor and there would be lessen if would sum it all but on the other hand CSF identify key areas of activity in which favorable results are absolutely necessary to reach goals. Where areas must be flourishing and aiming for the business success factor that would be critically directed for the success of the organization and it should be constant and carefully plan from the management and team, in addition to every single detailed should be listed and focus for it might be a factor for the success of the company.
Resources:
http://www.sei.cmu.edu/pub/documents/04.reports/pdf/04tr010.pdf
http://www.mindtools.com/pages/article/newLDR_80.htm
http://www.rapidbi.com/created/criticalsuccessfactors.html
All comments are moderated. Your comments will not appear here unless approved by the blog owner. Thank you.
