A Primer on Critical Success Factors
The idea of critical success factors for an organization is a simple one. Every organization has factors that are essential for success. Failure of management to identify and achieve these will result in the failure of that organization. Once identified, critical success factors help everyone involved focus on the right priorities, gives them measurable goals to aim for and helps create a culture of teamwork. These factors vary from organization to organization.
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History
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The concept of critical success factors was published in the "Harvard Business Review," first by Ronald Daniel in 1961, (see Reference 1) and later expanded on by John F. Rockart in 1979 (see Reference 2). According to Rockart, critical success factors are "areas of activity that should receive constant and careful attention from management."
Example
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If the objectives of a grant-funded after-school program are to raise the grade-point average of those in attendance by 0.5, decrease absences and increase voluntarism among the students, these are critical success factors in order to fulfill the grant contract. The managers, board of directors and support staff know what data they need to collect and what activities they need to focus on to meet their objectives. Failure to do so will result in cancellation of the program.
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Identify and Plan
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Critical success factors are often identified in brainstorming sessions--casual meetings to receive input from management and staff. Once the factors are identified, a strategic plan should be created with the objectives, the data needed to verify progress and a time line for regular evaluation.
The Role of Management
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To use the concept of critical success factors effectively, managers should provide consistent and visible support for attaining goals. They should also be clear about priorities because there are always issues competing for attention in an organization. Managers should require hard data to correctly analyze progress toward goals and regularly review and evaluate progress and recommend adjustments as needed.
Communications
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The identified factors, as well as individual responsibilities and expectations, should be clear to all team members. Communication tools can include regular meetings, memos, emails, training and recognition for achievement of goals or progress toward goals .
Caution
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The critical success factors are only those few factors without which the organization will fail. They do not include everything that would be beneficial to the organization. If too many factors are identified, the organization will lose focus on what is most critical.
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References
Resources
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