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Key success factors

What secret of success do some companies and divisions hide, and what is the reason for the failures of others? It turns out that the answer to this question is a management tool or a scientific model under the loud name "Key Factors of Success". It has been widely used by corporations and entrepreneurs for 50 years.

A bit of history

Brilliant top manager Ron Daniel created his model "Key Success Factors" in 1961. With his help, he scientifically explained the mechanism for the success of companies and units.

What's this?

Key Success Factors - a limited number of areas of activity in which the achievement of positive results guarantees the success of a company, unit or person in a competitive struggle. Speaking business language, this is what you need to focus on, to be on the top of the stairs, when everyone else is down.

Key Success Factors are several areas where everything should go without any disruption to ensure the success of the company or the manager. These are the areas of work of the firm, which need to be given constant and special attention, thus achieving maximum results.

Features and Examples

Their key factors for the success of the company exist in every industry. Therefore, the person who develops strategies must understand the industry or the business in which it operates.

An important component in determining the key success factors is the mission of the company. She gives an answer to the question: how to reach the goal set in the mission?

Key success factors relate either to workflow management or to personnel management. Neglect of this or that area is fraught with failure.

Today the main key factor of success is the improvement of the working process, modern technologies. This includes high labor productivity, quality control, low cost of goods. This is a powerful sales network, brand strength, advertising and customer guarantees. In the service sector, this is the speed with which they are rendered, the qualifications of employees, and the design. And finally, nothing will come about without a strong team spirit, an effective methodology for making changes, a culture of learning in the company, an effective system of vertical and horizontal communications.

Beyond theory

The key factors in the organization's success in practice can be applied as follows:

Step 1. We organize a "strategic session" - training. It involves the managers of the company, which the leadership chose.

Step 2. These workers are thinking and writing the following sentence in writing: "In order for our company to be more successful than others, we must be able to do particularly well ...". Everyone thinks for himself. You can also write an organization mission.

Step 3. All gathered one after another sound their answers and argue them. All this is recorded.

Step 4. The main part in the process of determining the key success factors - the allocation of two or three mandatory points. Quite often people choose: hiring competent employees, understanding the needs of customers. Of course, managers can be understood, they want to cover all the most important aspects of the firm's activities. However, the essence of the key success factors in the ability to focus on the main thing.

To be more precise, then focusing on several main areas of activity - no more than three, we achieve the greatest results.

Any business has two or three areas that determine success. If your company has good results in these areas, but it is mediocre in everything else, you still succeed.

Step 5. Finally, based on the key success factors, an analysis is made. It includes all the strengths and weaknesses , opportunities and threats.

This analysis in the future should underlie more detailed strategic planning. To be more precise, all these are the key factors of success, the compass in the search for the direction of strategic planning and, of course, the development of the company. It is they who set the vector of change and allocation of funds.

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