Whether you are managing a restaurant, boutique, or insurance agency, it is important to know that you are focusing on those things that help the organization achieve its mission.
Anyone who manages internal processes understands how challenging it can be to balance daily responsibilities with monitoring how well the organization is performing.
It has been said that what gets measured, gets done.
However, it can be difficult to evaluate how the organization is doing without the right tools.
A quality improvement tool that many organizations use is called Critical Success Factors (CSF).
CSF are indicators that measure how well an organization is achieving its strategic plan and objectives.
CSF are customized to each organization and help provide the needed focus for fulfilling strategic objectives.
These indicators of success are used to identify those things, that if done well, lead to breakthrough results.
Most organizations have between eight and twelve CSF and adjust them as strategy and strategic plans change.
Having too many measures can make it difficult to target those things that would achieve the greatest results.
Having too few limits the organization’s ability to move to the next level.
SMART Goals should support the CSF measures so there is a strategy and timeline for achieving targets.
As a general rule of thumb, CSF should target those things that affect quality, cost, customer satisfaction, market share, and increased revenues.
Monitoring these indicators monthly provides a quick visual for how well the organization is achieving its goals and is the best way to ensure they are achieved.
4 Examples of Critical Success Factors
These are merely examples of the kinds of indicators that can be targeted and measured for success.
Like any other business goals, CSF are only as good as they are measured and monitored.
Create reporting processes where these indicators are reviewed every month by senior leaders.
Successful organizations have learned how to tie their CSF to their strategic plans and use business goals to accomplish them. This is all part of a performance management system.
Does your organization know what their indicators of success are?