Relation To Key Performance Indicator
Critical Success Factor vs. Key Performance Indicator (KPI):
Critical success factors are elements that are vital for a strategy to be successful. A critical success factor drives the strategy forward, it makes or breaks the success of the strategy, (hence “critical”).
Strategists should ask themselves 'Why would customers choose us?'. The answer is typically a critical success factor.
KPIs, on the other hand, are measures that quantify management objectives, along with a target or threshold, and enable the measurement of strategic performance.
An example:
- KPI = Number of new customers. (Measurable, quantifiable) + Threshold = 10 per week
- CSF = Installation of a call centre for providing superior customer service (and indirectly, influencing acquiring new customers through customer satisfaction).
Read more about this topic: Critical Success Factor
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