Critical success factors have a few attributes in common.
Critical success factors are issues that have been deemed vital to an organization. They impact the organization's present and future performance, and they must be realized for an organization to meet its goals and accomplish its mission. Each industry and each organization has unique critical success factors, but all of the factors have some attributes in common.
Based on a Formally Designed Vision
In order to determine critical success factors, a company must first have a clearly defined mission statement and vision of how it wants to develop and evolve. CSFs are designed and written to help a company achieve its vision.
Five Sources
All CSFs are based on one or more of five sources. These include Industry, or characteristics and standards unique to the industry in which the organization operates; Strategy, or the specific methods an organization has chosen to meet its goals; Environment, or outside influences such as technology, legislation, politics and global developments; Temporal, or temporary internal organizational needs; and Managerial, which focuses on one or more departments or individual positions whose performance is critical to the organization's success.
Match Changes to Vision
All critical success factors define changes an organization must make in order to meet its vision and goals. These changes may be large, such as restructuring the entire organization to make it more efficient, or relatively small, such as providing extra training support for a critical department.
Link Business Needs to Vision
Critical success factors are designed to pinpoint areas where an organization may be lacking and to propose solutions that will help the organization overcome its weaknesses and achieve its vision. A critical success factor, for instance, might specify bringing an agency into compliance with industrial standards, improving marketing techniques or utilizing newly available technology.
Measurable
In order to be effective, critical success factors must be quantifiable and measurable. For instance, rather than stating, "strengthen human resources department," a critical success factor might state, "Within the next year, hire three new human resources professionals with a master's degree in human resources management."
Thrive in Certain Organizational Cultures
Critical success factors are most useful in an organizational culture that supports new projects and nurtures project management. CSFs that are not "owned" by the entire organization, from the top down, tend to be forgotten. As they fall by the wayside, the organization reduces its chances of achieving its vision and becoming or remaining competitive in its industry.
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