Question

Students are required to answer the following:

Explain Critical Success Factors (CSF) and Key Performance Indicators (KPI) with examples

Answer 1

Explain Critical Success Factors (CSF)

Critical Success Factors, or CSFs, are pointers for circumstances, exercises, or conditions required to accomplish a target inside a task or mission. Critical Success Factors (CSF) vary per association and reflect current and future destinations. Regardless of whether it concerns a bar, a protection office, or contractual worker, it's fundamental that the strategy is composed of those perspectives that help the association satisfy its crucial. These key factors regularly huge affect how much an organization is fruitful and viable in arriving at key objectives inside the mission and are urgent in increasing an upper hand.

Critical Success Factors (CSF) are accordingly of fundamental significance for the accomplishment of an association. They can be made for a particular office inside the association, for the association overall, however, they are in every case legitimately connected to the organization's system and are made by higher administration.

The idea of Critical Success Factors (CSF) was created and presented by D. Ronald Daniel, in the interest of McKinsey and Co, in 1961. After 10 years, John F. Rockart refined and promoted the idea. Since the time at that point, the idea has been broadly applied to manage associations in creating and actualizing methodologies and undertakings.

Critical Success Factors examples

The following are a few instances of Critical Success Factors (CSF). Some may be immaterial in specific businesses, though different enterprises extra CSFs ought to be included.

• Increase customer loyalty
• Prevent price wars
• Invest in rising markets
• Respond to changing customer needs and wishes
• Analyze and understand the capacity, potency, and strategy of the competition
• Develop new technological tools to boost the production process

Key Performance Indicators (KPI)

Key execution pointers (KPIs) allude to a lot of quantifiable estimations used to check an organization's general long haul execution. KPIs explicitly help decide an organization's vital, money related, and operational accomplishments, particularly contrasted with those of different organizations inside a similar division. Key execution pointers (KPIs) measure an organization's prosperity versus a lot of targets, goals, or industry peers. KPIs can be budgetary, including net benefit (or the reality, net revenue), incomes short certain costs, or the current proportion (liquidity and money accessibility). KPIs can likewise be increasingly narrative, estimating pedestrian activity in a store, worker maintenance, rehash clients, and nature of client experience, among others.

Examples of Sales KPIs

1. Number of New Contracts Signed Per Period
2. Dollar Value for New Contracts Signed Per Period
3. Number of Engaged Qualified Leads in Sales Funnel
4. Hours of Resources Spent on Sales Follow Up
5. Average Time for Conversion
6. Net Sales – Dollar or Percentage Growth