Critical success factors are variables or conditions that are essential for an organisation’s success. Details to consider when identifying critical success factors include the type of industry or product, the business model or strategy of the company, and outside influences, such as the environment or economic climate. Critical success factors should be periodically evaluated and adjusted as necessary to account for changes in those identifiers that might affect the company’s success. Critical success factors vary by organisation, but basic commonalities do emerge.
No business can expect to be successful without effective leadership. A good leader inspires, guides and motivates a group of people while directing them toward a common goal. Without someone to monitor and keep the group focused, most groups will flounder and fail to achieve success.
Successful businesses must have clearly defined goals. All employees should know where the company is going and how it is going to get there. The goals should be specific, attainable and attached to a timetable. The environment of the business should be such that attaining the goals is always the focus. Goals should be revisited and redefined as necessary when outside factors change in a way that might affect the desired outcome or attainment of the goals.
Roles and Responsiblities
Once leadership and goals are in place, it is important to define the roles and responsibilities necessary to achieve those goals. It is also important to ensure that all necessary resources are available to those responsible for working toward a specific goal. Before assigning roles, leadership should ensure that those tasked with certain responsibilities have the necessary training and resources available to them to effectively work toward and achieve the goals that have been laid out.
Sharing Information and Teamwork
Successful businesses encourage cooperation and teamwork. Because all employees are working toward a common goal, the sharing of information and cooperation across departments should be encouraged. The technology and infrastructure should be in place to ensure that information sharing and teamwork are possible, and all barriers that might interfere with information dissemination should be removed.
Measures of Success
Businesses must employ methods and procedures that are measurable. It is difficult to declare success if there is nothing in place that can be measured to show proof of that success. Critical success factors should not be confused with key performance indicators. Critical success factors are measured strategically, whereas key performance indicators are quantitatively measured. For example, a critical success factor might be the implementation of a new sales strategy, and the key performance indicator would be the resultant increase in the number of sales.