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
Famous quotes containing the words relation to, relation, key and/or performance:
“Among the most valuable but least appreciated experiences parenthood can provide are the opportunities it offers for exploring, reliving, and resolving one’s own childhood problems in the context of one’s relation to one’s child.”
—Bruno Bettelheim (20th century)
“The adolescent does not develop her identity and individuality by moving outside her family. She is not triggered by some magic unconscious dynamic whereby she rejects her family in favour of her peers or of a larger society.... She continues to develop in relation to her parents. Her mother continues to have more influence over her than either her father or her friends.”
—Terri Apter (20th century)
“Japanese mothers credit “effort” as the key determinant of a child’s achievement in school, while American mothers name “ability” as the more important factor.”
—Perry Garfinkel (20th century)
“No performance is worth loss of geniality. ‘Tis a cruel price we pay for certain fancy goods called fine arts and philosophy.”
—Ralph Waldo Emerson (1803–1882)