CSFs & KPIs

Question 1

Critical success factors (CSFs)

Answer 1

Are vital areas where things must go right for the business in order to achieve their strategic objective

Question 2

Key Performance Indicators (KPI)

Answer 2

The achievements of CSFs can be measured by establishing KPIs for each CSF and measuring actual performance against these KPIs.

Question 3

5 Prime sources of CSFs

Answer 3

1. Structure of the industry
2. competitive strategy, industry position and geographic location.
3. Environmental Factors
4. Temporary factors
5. Functional managerial position

Question 4

Classifying CSFs

Answer 4

Internal - within managers control
External - outside manager’s control
Monitoring - continuously scrutinise actual vs budget
Building - look into the future of the organisation and its development