CRITICAL SUCCESS FACTORS (CSF)

& CRITICAL PATH ANALYSIS

BY
Lim Cheng Sang
27 August 2009

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 Implementation and Execution ----- Phase 2
KPIs
Now comes the hard part. We have to produce results and meet the
KPIs we have set out for the Foundation

To do this we will need to allocate and apportion enough time and

effort for execution. Unless we do so effectively and efficiently and
timely all our plans will just remain as plans or end up dismally

That was Phase 1 and we have gone fairly far and there is still work
to be done By now, we should know who are our competitors and be
able to anticipate how they would react against our initiatives

We must now aggressively begin Phase 2, The implementation and

execution of our plans to produce results and deliver the “goods”

The CEO must now alter his allocation of time and emphasis and
switch his control button to ensure things happen and objectives and
KPIs are achieved and within specific time frame

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 Implementation and Execution ----- Phase 2
KPIs
It is an accepted practice to set up quantifiable targets; by which
performance will be accessed and they are known as Key
Performance Indicators KPIs

Ideally we set a target and a time frame and we will be able to

assess objectively how well the work gets done

In practice, it is not as easy as all that. You need to have certain

things to help you to achieve the set targets. Without identifying
those factors, it would be almost impossible to achieve your
targets

These factors are known as Critical Successful Factors ( CSFs)

Setting KPI targets by themselves is not enough. It is crucial to
identify the CSFs necessary to achieve the KPIs

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 Critical Success Factor

A Critical Success Factor is not a Key Performance Indicator

Critical Success Factors are the essential elements that are vital for a
strategy to be successful

KPIs are measures that quantify objectives and enable the

measurement of performance

For example

•KPI

•Number of customers achieved

•Delivery time taken to customers

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 Critical Success Factor (CSF)
Installation of a service centre for providing customer service

Identifying the things that really matter for success is crucial to help
you to achieve KPIs

So many important matters compete for your attention and time in

business and it is often difficult to see the “Wood for the trees”

It can be extremely difficult to get every one in the team pulling in the
same direction and focusing on the real essentials

CSFs are the essential areas of activities that must be performed well
if you are to achieve your objectives and KPIs

By identifying your CSFs you can create a common point of reference

to help you direct and measure the success of your business

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 Critical Success Factor (CSF)
CSFs help every one in the team to know what exactly are the most
important things needed to be done. This will help the members of the team
to perform their own work in the right direction and so pull together towards
the same overall goals

CSFs focus on the most important areas linking it to what is to be achieved

and how you will achieve it
E.g.
• KPI CSF
• Gain 25% market share Increase our competitive advantage
Attract new customer outlets
• Achieve fresh supplies from farm Establish and sustain successful
to customers for 80% of our product relationship with farmers
range
• Expand product range to attract Source new products
10% more customers
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 Critical Success Factor (CSF)

There are no hard and fast rules, but it is useful to limit the
number to be no more than 8 or fewer absolute essentials

In summary, CSFs are the areas of your business that are

absolutely essential to its success

By identifying and communicating these CSFs you can ensure

that the business is well focused. You will avoid wasting effort
and resources on the less essential and unimportant areas

By making CSFs explicit and communicating them with every

one involved, you can keep the business moving towards the
common aims and goals

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 Critical Path Analysis and Management

It is obvious that if we know what point we are in a product

development or a project launch, we will be better placed to ensure
its success

Having early warning mechanisms that will highlight warnings on

delay would allow us to take timely and necessary actions to correct
the situation

This mechanism defines and monitors the progress of a process flow

Each step may have a different owner (person responsible) but this
process tracking will bring them all together and gives every one
immediate and real time visibility of the status of the process
It also presents those involved a personal and prioritized task lists to
enable them to do what is required in a timely, orderly and efficient
manner

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 Critical Path Analysis and Management

Besides and in addition, it would provide valuable information with

regard to project adherence by those responsible in the process eg if
a person is always behind time then we need to look at the situation
and that would become a Critical Issue

This system would provide on going continuous improvement and not

a static monitor after the event for complaining when things do not get
done

With this monitoring, you are placed in a position to learn very quickly
what the true state of your critical path is and what the real lead times
are

You can therefore make pragmatic changes to ensure that this new
knowledge is built into future plans to avoid problems reoccurring

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 Critical Issues

Critical Issues are those major changes,

modifications, additions to the following, arising
from the setting up of the strategy. They must be
resolved for the strategy to succeed

The organization’s structure and systems

Its capabilities and resources

Its information needs and practice

Management philosophy and procedure

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 Critical Issues
Some examples
• Insufficient funding
• The lack of understanding of business
• Insufficient customers during low periods
• Pricing does not present an opportunity for the Foundation for profits
• Facilities are not meeting the needs of top end market sectors
• The absence of attractive and quality programs to interest customers
• Employees do not possess the right attitude towards customers
• The lack of accountability
• An fairly extensive revamp of accommodation facilities
• Sales effort is most inadequate
• The understanding and be aware of the external environment and
competition
• The establishments of optimal outlets for our Organic vegetables
• Establishing and sustaining a healthy and cordial strategic partnership and
working relationship with our farmers and outlets
• Making sure that our behavior and attitude do not make things difficult and
unpleasant to want to work with us 11
 Conclusion

I hope that using these tools in a professional and

discipline manner will help us to go ahead

I may not be able to give you the right answers all the time,
but I hope you will agree with me that quite often I am able
to ask the right questions

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