Types of Critical Success Factor
There are four basic types of CSF's
They are:
1. Industry CSF's resulting from specific industry characteristics;
2. Strategy CSF's resulting from the chosen competitive strategy of the business;
3. Environmental CSF's resulting from economic or technological changes; and
4. Temporal CSF's resulting from internal organizational needs and changes.
Things that are measured get done more often than things that are not measured.
Each CSF should be measurable and associated with a target goal. You don't need exact measures to manage. Primary measures that should be listed include critical success levels (such as number of transactions per month) or, in cases where specific measurements are more difficult, general goals should be specified (such as moving up in an industry customer service survey).
Each CSF should be measurable and associated with a target goal. You don't need exact measures to manage. Primary measures that should be listed include critical success levels (such as number of transactions per month) or, in cases where specific measurements are more difficult, general goals should be specified (such as moving up in an industry customer service survey).
Definitions
Critical Success Factor
>> 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. This can enable analysis.
>> 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. The identification and strengthening of such factors may be similar.
>> is a business term for an element which is necessary for an organization or project to achieve its mission. For example, a CSF for a successful Information Technology (IT) project is user involvement.
Using the term
The term “Critical Success Factor” is used differently, due to ambiguity of the word “critical”,
back and forth translations into other languages and interpretation when analyzed in portfolios:
1. Definition 1: “critical” = important, key, determining, vital, strategic, etc.back and forth translations into other languages and interpretation when analyzed in portfolios:
2. Definition 2: “critical” = alarming, anxious, etc.
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?”
MAIN ASPECTS OF Critical Success Factors and their use in analysis CSF's are tailored to a firm's or manager's particular situation as different situations (e.g. industry, division, individual) lead to different critical success factors. Rockart and Bullen presented five key sources of CSF's:
1. The industry,2. Competitive strategy and industry position,
3. Environmental factors,
4. Temporal factors, and
5. Managerial position (if considered from an individual's point of view). Each of these factors is explained in greater detail below.
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.
It was quite hazy to define what best approaches to identify Critical Success Factors (CSFs) because there are lot of resources and information that are available in the books and in the internet. The data that I had given about CSFs above is one of the simplest ways. CSFs are used by organizations to give focus on a number of factors that help define its success. They help the organization and its personnel to understand the key areas in which to invest their resources and time. Ideally, these CSFs are observable in terms of the impact on the organization to allow it to have guidance and indications on its achievement of them. Other hand CSF identifies key areas of activity in which favorable results are absolutely necessary to reach goals. But these keys also have their limitation. There is a significant degree of variability that could result from the qualitative input required. Thus, there could be significant differences in what various people consider CSFs in industries and organizations to be, necessitating considerable effort and discussion in determining them.
It was quite hazy to define what best approaches to identify Critical Success Factors (CSFs) because there are lot of resources and information that are available in the books and in the internet. The data that I had given about CSFs above is one of the simplest ways. CSFs are used by organizations to give focus on a number of factors that help define its success. They help the organization and its personnel to understand the key areas in which to invest their resources and time. Ideally, these CSFs are observable in terms of the impact on the organization to allow it to have guidance and indications on its achievement of them. Other hand CSF identifies key areas of activity in which favorable results are absolutely necessary to reach goals. But these keys also have their limitation. There is a significant degree of variability that could result from the qualitative input required. Thus, there could be significant differences in what various people consider CSFs in industries and organizations to be, necessitating considerable effort and discussion in determining them.
References:
http://rapidbi.com/created/criticalsuccessfactors.html#WhatareCSFs
http://www.coursework4you.co.uk/essays-and-dissertations/critical-success-factors.php
