Definition of Critical Success Factors
If you were asked at a job interview what you thought the critical success factors were for the company, would you be able to respond? Successful businesses rely on each employee's ability to contribute to the success of the organization, which--in turn--contributes to the organization's mission. Critical success factors are a management tool designed to ensure company objectives are met.
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Definition
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Many factors determine an organization's success, but critical success factors define what must be achieved. These factors can be termed "mini objectives" that without constant focus will result in failure.
Types
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Critical success factors are different for different organizations. Management determines what is critical for success, then continually measures and communicates the status.
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Examples
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An airline whose mission is to achieve the best on-time arrival record in the industry might determine this as a critical factor: "Early-morning flights must leave on time." A philanthropic organization whose mission is to increase contributions by 50 percent may determine that a critical success factor be the addition of a set number of benefactors.
History
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The concept of critical success factors was first introduced by D. Ronald Daniel in the 1960s, but it became a widespread management tool in the next decade, popularized by the Sloan School of Management at MIT.
Benefits
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Critical success factors focus an organization--from the front-line employee to senior management. The entire organization pulls in one direction to achieve the factor objectives.
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References
- Photo Credit success image by martin schmid from Fotolia.com
