A PRIMER ON
CRITICAL SUCCESS FACTORS
Christine V. Bullen
John F. Rockart
V
June 1981
CISR No. 69
Sloan WP No. 1220-81
Center for Information Systems Research
Sloan School of Management
Massachusetts Institute of Technology
TABLE OF CONTENTS
' .
Introduction
II.
Definitions and
Concepts
III.
Interview Procedure and
IV.
Analysis of Data
Data Analysis Technique
4;
I
2
III
I.
INTRODUCTION
Faced with an
are deciding
that
is pertinent
to
they need access to
is
the
Introduced
in a
method
now
is
who
those
for
primer
article
to
entitled
the
number
CSF
of
additional
provide
is
written
carry out CSF
to
like
would
method.
(1),
Most particularly, it
on the method.
background
(CSF)
growing
is written
paper
This
a
most
is
information
Data Needs"
in
utilized
responsibilities.
Review
Their Own
Define
which
information
factors"
success
Business
Harvard
being
organizations.
as a
precisely what
"critical
"Chief Executives
the
roles and
their particular
of determining
One method
needed
increasingly complex world, managers today
interviews.
Critical
which favorable
activity in
for a particular manager
activity
areas of
events are
proceeding
CSF
interview method
technique which
can
managers to zero
in on
to
determine the
in
order
technique
designed
be
This primer
whether
in each area.
structured
a
interviewer
success
The
to assist
factors --
and
the
CSF
should
be
information needs.
understanding
application,
thoroughly familiar with the
article.
an
critical
should have the
provide
to
by
used
their
resulting
its
well
these
Because
determine
to
him
allow
to gain a complete
and
the manager
sufficiently
is
of
results are absolutely necessary
are critical,
information to
areas
key
reach his goals.
to
appropriate
few
the
are
factors
success
the
original
such
assumes
3
reader
of
Harvard Business Review
a
familiarity.
Where
appropriate, the
material
presented
article rather than repeating
This document
first section
contains
four
substantive
provides general background
interview
references
procedure.
parts.
The second section
It
emphasizes
identify their CSFs.
The
information on the
The
details
appropriate
techniques for the interviewer to use in helping
to think about and
that
ideas.
critical success factor concept.
the
here
interviewees
final
section
contains
those
concerns methods of analyzing the data.
The
interview
techniques which
procedure
we
have found, in three years of using
method, to be most successful
most important
section
ingredients
in drawing out CSFs.
in
successful
CSF
The
the
two
interviews,
however, are the preparation and skills which the interviewer
brings to the interview
thoroughly prepared.
itself.
He
The
must
have
interviewer
must
as deep as possible an
understanding of the industry, the specific company, and
job being
performed
addition, the
by
the
interviewer
manager being
should
be
interviewed.
(through
training
the
In
or
experience) have a command of basic interviewing skills.
The CSF interview involves a lively exchange
The interviewer
must
be
of
ideas.
comfortable in her preparation and
energetic in her participation.
In sum, the
interviewer must
have all the attributes and preparation of a good consultant.
The mnore consulting
better
the
skills that one brings to the
interview
will
be.
Given
this
task,
requisite
preparation, the interviewer will find the CSF method
4
_Iln
_
the
to
be
readily
acceptable,
interesting,
thought-provoking
and
enjoyable.
One of the important strengths of tne CSF method is that
it provides the interviewer with a logical way of relating to
and understanding
the managers who are interviewed.
think in the terms used in the CSF interview.
the CSF
method allows the
As
Managers
a
result,
interviewer to comfortably extract
the manager's view of the world.
Most important, it
enables
the manager to easily identify those few matters which demand
continuing
scrutiny
by
him.
The
process,
therefore,
ultimately provides the interviewer with an understanding
what information
will
really
be
perceived
as useful
of
(and
actually used) by each manager.
The CSF method is also of direct and
the interviewed
manager.
CSFs
subconsciously,
careers.
The
help
interview
factors explicit.
priorities'
which
to
can
set
important.
they
them
to
CSFs
more
All
good
manage
managers
helps
are
throughout
maKe
explicit,
knowledgeably
their
these critical
managerial
and
allocation of the manager's resources, especially
be made.
to
have been using, most often
method
Once the
be
use
t assists her to explicitly focus
attention on what is really
have implicit
immediate
improved
time,
can
This result from a CSF interview is useful and can
be accomplished far before the requisite information
systems
can be built.
The words "critical success factors"
take their
place
with
are
beginning
to
other basic terms concerned with the
5
management of an organization.
CSFs appear
at
various
Like
goals
and
levels in the management hierarchy.
The next section therefore is aimed at placing
P
their managerial context.
we have
tried
to
objectives,
the
CSFs
Since this is written as a primer,
err on the side of over-simplicity.
readers may wish to hurry through the next section where
material is very basic.
as "strategy,"
"goals,"
compar:d and contrasted.
from many
viewpoints.
and
the
"objectives," will be defined,
The CSF concept
Finally,
6
_m
Some
CSFs and other managerial terms such
will
be
explored
the hierarchical nature of
CSFs will be illustrated through a set of examples.
__I1I
in
II.
DEFINITIONS AND CONCEPTS
The
first
factors and
part of
concerning
A.
then
conceptual background
to provide additional
critical
terms
We
management of the organization.
the
in Part B,
success
the perspective of basic
places them within
concerned with
go on,
this section defines critical
success factors.
Definitions
1. Critical Success Factors
limited
number
results
will
performance
organization.
"things
and
of
-
in
which
areas
few
CSFs are the
department
or
where
to flourish
for the manager's goals to be attained.
the
2. Strategy - Strategy is
objectives,
what business
of
kind
complete
statement
in such a way as
to define
(or is
in
is
is
it
strategy
or
will
to
be
will
define
in)
A
the
the size
of
the
channels
be reached, the
means by which the operation is to be
the
be
is to be.
the
designed,
markets
these
profit objectives,
to
markets and market segments for
the
which products are
through which
resource
company
of
missions,
significant
the company
and the
product line,
stated
of
pattern
and
policies,
utilization plans
and
areas
key
for the business
must go right"
the
competitive
individual,
the
are
satisfactory
successful
ensure
for
CSFs
(CSFs)
financed, the
organization,
"image" which it will project to employees,
suppliers
and customers.
7
3. Objectives -
are
Objectives
statements
general
about the directions in which a firm intends to go,
targets to be reached at
specific
without stating
particular points in time.
4. Goals -
are
Goals
specific
are
which
targets
intended to be reached at a given point in time.
goal is
A
an operational transformation of one
thus
or more objectives.
5. Measures - Measures are
allow
of
calibration
the
critical success
Measures can
performance
or
goal,
factor,
be
standards
specific
either "soft,"
which
for
each
objective.,
that is subjective
and qualitative, or "hard," that is
objective
and
quantitative.
6. Problems - Problems are specific
importance
as
a
result
tasks
of
rising
to
unsatisfactory
Problems can
performance or environmental changes.
affect the achievement of goals or performance in a
CSF area.
Figure 1 summarizes the above definitions and uses an airline
company example to illustrate the relationship among the
Figure 2 notes, although in an overly simplistic way,
terms.
the hierarchy
of
the viewpoint
of
interlinking of
level
six
is
shown by
of each of these terms from
relationships
an
strategy
line
individual
and
including
objectives
them
in
the
manager.
at
8
the corporate
same
remainder of the concepts fall hierarchically.)
(The
box.
The
III
FIGURE 1
Comparison of Basic Terms in Airline Company Context
Term
Brief Definition
Brief Examples
Strategy
Basic decision of "what
business are we in?"
Regional airline
transportation
Objectives
General directional
statements
Develop profitable
route structure
Change over to more
fuel efficient fleet
Goals
Specific targets for
a period of time
Eliminate all routes
with less than "N"%
average seat usage
By year-end replace
all "X" planes with
"Y" lanes
Provide stockholders
with 10% ROI in 1981
CSFs
Measures
Key areas where things
must go right in order
to successfully
achieve objectives
and goals
Obtain certification
for higher-density
routes
Calibrations of
performance
Average % seat
capacity used
Develop bank financing for new equipment
% of cash requirements under written
equipment loan agreements with banks
Problems
Increasing price
of fuel
Tasks resulting
from unsatisfactory
performance or the
environment
Future competition
from video conferencing
9
FIGURE 2
Hierarchy of Management Concepts and Terms
..
...
_.
CORPORATE
STRATEGY
+l
BJCIV
EF3
--
IN
I DUAL
DIV
MANAGER
L'
CSFs I
MEASURES
^I------------------
-----
~PROBLEMS
B.
General Background 'on CSFs
This
section
understanding for
in the
is
aimed
at
providing
a
fuller
the reader of what CSFs are and their role
management
process.
Building
on
the
definitions
provided in the preceding section, this section will explore:
(1) - The nature of CSFs
(2) -
The
uses
of
attention to
the
its
CSF
key
concept
purpose
with
--
special
information
systems planning
(1) The Nature of CSFs.
have a
and
strateqy
--
and hlonored tradition in management literature.
long
Their definitions
are
relatively
well understood.
concepts are
What is
Terms like goals
or
is
n ot
particular manager
after some thought
a
precise
today
and
the
The same is not true of CSFs.
critical
success
factor
for
any
is a subjective judgement arrived at only
There is no clear algorithm
which
will
aid an interviewer to assist a manager to find his CSFs.
Yet managers
can,
success factors.
For
isolating
their
CSFs,
can
assist
interviewer
process.
This
background as
section
possible
and
do,
those
who
a
have
their
some
well-prepared,
greatly
is
determine
in
designed
the
to
to
supplement
difficulty in
knowledgeable
CSF-determination
provide
as
much
for potential CSF interviewers as to
the "nature of the beast" with which they are
aim is
critical
dealing.
Its
the material concerning the nature of
CSFs found in the original Harvard Business
We include material concerning:
11
Review
article.
- the importance of CSFs
- the
need to
"tailor" CSFs and
information
requirements to
each
individual
manager's
uniquely different situation
- the sources of CSFs
- a useful classification of CSFs
- the hierarchical nature of CSFs
- examples of CSFs
Let us look at each of these in turn.
(a) The importance of CSFs. Critical success factors are
the relatively small number of
truly
important
which a manager should focus her attention.
the term
"critical
success
represent the few
"factors"
"success"
manager
of
the
matters
For this reason,
factors" is aptly chosen.
which
are
concerned.
"critical"
There
be
diverted.
The
key
to
to
They
the
are, in every
manager's life, an incredible number of things to
attention can
on
which
her
success for most
managers is to focus their most limited resource (their time)
on those things which
really
make
the
difference
between
success and failure.
In general, there are, for
limited number
of
critical
success
given in the original article.
found in
the
any
manager,
factors.
will
final part of this section of this paper.
mystery.
Most
few
areas
very
factors
is
be
For
far
managers spend considerable time and
energy both on the job and in their
about these
a
Examples are
Additional examples
most managers this limited set of important
from a
only
of
leisure
hours
thinking
activity which are "close to the
12
III
bone."
Much
performance
process
time
in
is
each
of
considering
these
areas.
ways
to
improve
The value of the CSF
is to make these areas explicit, not merely implicit.
They then can be used
to aid
spent
in
the
company's
communication
information
(as will be discussed more fully later)
among
planning
the
firm's
process,
management,
to
enhance
and
to
aid
systems development.
It is important for a manager to determine his goals
which are
the
managerial
lore.
targets
determine, in
It
a
he
is
will
shoot for.
equally
conscious
That is common
important,
explicit
however,
in
the
pursuit
of
to
manner, what the basic
structural variables are which will most affect
or failure
--
these goals.
his
success
These are the
critical success factors.
Critical
that these
success factors are
key
areas
of
sufficient
importance
of activities should receive constant
and careful attention from management.
The current status of
performance in each area should be continually
status information should be made accessible
measured
and
for management's
use.
(b) Different managers
information.
CSFs
are
-
different
related
to
CSFs
the
-
different
specifics
of
a
particular manager's situation.
This
tailored to
company, and the individual
the
being interviewed.
to
manager
industry,
the
means
CSFs will certainly differ
according
to
organization's hierarchy.
the
In
individual's
addition,
13
they
they
must
from
place
often
be
manager
in
the
will
the
as
opportunities arise for a particular
or
particular problems
or
changes,
industry
an
within
company's position
as
changes,
environment
industry's
the
as
change
manager.
what
In this light, it is important to understand
They are not a standard set of measures, sometimes
are not.
indicators,"
called "key
a
divisions of
company.
be
They
are
not limited to factors
aggregated,
historical,
solely
CSFs are the particular areas
viewpoint.
particular
of major importance to a particular manager, in a
a
division, at
They therefore
time.
many
measures,
situational
demand specific and diverse
which must
in
point
particular
manager's
a
from
world
critical
the
contrary,
the
success factor method looks at the
current operating
all
can
On
information.
accounting
to
applied
which
which can be reported on by
of
be evaluated through soft, subjective information
not currently gathered in
can
indicators"
explicit
an
formal
by
way
the
No standard set of organization-wide
manager's organization.
"key
CSFs
provide
the
operating
necessary
information.
(c) Five prime sources of CSFs.
interviewer during
interviews.
from
arise
five
should be researched by a potential CSF
which
major sources
CSFs
preparation
the
for
a
series
of
The sources of CSFs are:
(1) The Industry.
success
Each industry has a set
factors
that
are
determined
characteristics of the industry itself.
14
of
critical
by
the
Each company
III
in the industry must pay attention to these
For
example,
from
article, there are
industry.
the
four
Harvard
Business
for
CSFs
the
Review
supermarket
manager of each and every supermarket
The
They
are
inventory, sales promotion, price.
The
four.
firm must be concerned about these
product mix,
factors.
this industry set can
rationale behind
be
found
in
the referenced article.
Industry
(2) Competitive Strategy and
company
within
industry
an
situation determined
by
position in the industry
example, a
its
an
resulting
company's
dictates
CSFs.
some
its
always be concerned about protecting
Similarly
in an industry dominated
leader's
the
probable impacts.
positioning of
For
particular
by a single major firm, a CSF for all the
understanding
current
company in an industry must almost
small
industry niche.
individual
and
history
The
strategy.
competitive
in
is
Each
Position.
the
In
like
company
For example, retail firms in
transporation management
as
others
and
strategies
manner,
is
their
geographic
the
can also generate CSFs.
rural
a
areas
while
CSF
may
have
for more
urban companies this is less critical.
(3) Environmental Factors.
those areas
control.
mission
over
The
while
which
Environmental
an
organization
riding
the
15
factors
are
organization has little
must
tides
accomplish
of
its
environmental
change.
Two obvious environmental
are the
fluctuations
politics.
of
the
sources
of
CSFs
and national
economy
Some companies are sensitive to additional
factors such as population trends, regulatory trends,
and energy sources.
These
(4) Temporal Factors.
within an
organization
areas
are
something
For example, a crisis
would not generate CSFs.
as the
of
loss
a
of
such
large number of executives in an
airplane crash would generate the short term
"rebuilding the
out
Normally these areas
taken place.
has
activity
become critical for a
which
particular period of time because
the ordinary
of
of
Similarly, while
group."
executive
CSF
inventory control would not normally
appear
on
the
list of CSFs for a CEO, it could become a CSF for him
under extreme circumstances of over or understocking.
(5) Managerial Position.
a
position has
it.
Each
gneric
functional
managerial
set of CSFs associated with
For example, almost all
manufacturing
managers
are concerned with product quality, inventory control
and cash control.
(d) A useful classification of CSFs.
looking at
CSFs is illustrated
classified along
internal
versus
All
(3) all
three
of
in Figure 3.
Each CSF can be
dimensions.
These
(2)
external,
building-adapting, and
just above.
major
three
One useful way
the
monitoring
five
sources
are
(1)
versus
discussed
dimensions are ways of categorizing
16
CSFs.
The pattern of
CSFs
insight into
a
manager's
pattern can
also
serve
questions.
which
emerge
world
an
view.
provides
But
interviewer
a
good
the resulting
as
a
source
of
The two dimensions not yet discussed are:
(1) Internal versus external -- Every manager will
internal CSFs
relating
she manages.
These
including
such
sphere
of
can
run
and
wide
resource
control.
The
primary
CSFs
is
within
that they deal
the
control.
control.
manager's
External
however, pertain to situations generally
the manager's
gamut,
human
situations
influence
very
as
internal
and
a
things
inventory
characteristic of
with issues
to the department and people
diverse
development and
have
less
CSFs
under
For example the availability
or price of a particular critical raw material is
an
external CSF.
(2) Monitoring versus building/adapting -- Managers
are oriented
toward
emphasizing near term operating
results invest considerable effort
in
tracking
guiding their organization's performance.
CSFs
involve
situations.
CSFs.
the
who
continued
scrutiny
and
Monitoring
of
existing
Almost all managers have some monitoring
Often these include financially oriented
such as
actual
current
status
performance
of
versus
product
monitoring-oriented CSF
rates.
17
might
budget
cost.
or
CSFs
the
Another
be personnel turnover
Managers who are either in
control
reasonable
of
day-to-day operations, or who are insulated from fire
spend
fighting concerns,
These
adapting) mode.
planners whose
more
people
time in building
are
(or
future-oriented
primary purpose is to implement major
change programs aimed at adapting the organization to
a perceived new environment.
area include
hiring
the
and
Typical
CSFs
in
this
successful implementation of major
or
efforts
training
new
product
development programs.
In general, managers will have a mix of both
and building/adapting
CSFs.
However,
there
monitoring
is
usually a
strong tendency toward one of these quite different types
of
CSFs.
This three dimensional classification
visualize the
clustering
can
be
used
to
a particular manager's CSFs by
of
combining the characteristics as shown in the illustration in
Figure 3.
For
example,
external, building
"Company
Acquisitions"
is
an
CSF whose source is competitive strategy.
"New Skills Acquisition" is an internal, building CSF arising
from competitive strategy.
monitoring CSF,
probably
"Interest
problem area.
"Employee Morale" is an
temporal,
Rate
internal
coming out of a current
Levels"
is
an
external,
monitoring CSF, generated by the environment.
We will note later in the section on "The CSF Interview"
that an interviewer can use this classification process
good effect
in
evaluating
the
18
with
results obtained from a CSF
FIGURE 3
MAJOR DIMENSIONS OF CRITICAL SUCCESS FACTORS
SOURCES '
- industry
- strategy
- environmental
- temporal
- position
EXTERNAL
INTERNAL
interview.
From an individual
(e) The hierarchical nature of CSFs.
which
manager's viewpoint, there is a set of his own CSFs on
the manager
From a company viewpoint,
must primarily focus.
however, one can discern four different
of
considered.
each
factors,
success
critical
levels
hierarchical
of
must
which
be
These are:
- industry CSFs
- corporate CSFs
- sub-organization CSFs
- individual CSFs
4
As Figure
in
organization
industry
suggests,
an
develop
strategy
a
of
development
No organization can
strategy, objectives, and goals.
to
the
in
industry
does
which
not
each
affect
CSFs
its
afford
adequate
provide
attention to the principal factors which underlie success
in
the industry.
In turn, the strategy, objectives, and
by a
company
Given
developed
lead to the development of a particular set of
factors
critical success
CSFs).
goals
its
the
for
strategy
and
corporation
(corporate
objectives, as well as the
other factors in its specific environment (see the automotive
and computer industry and company examples in
section), each
the
following
corporation will develop a set of CSFs unique
to its own circumstances.
In turn, corporate CSFs become an input into
CSF determination
process
for
19
a
similar
each sub-organization in the
111
FIGURE 4
FROM A CORPORATE VIEWPOINT
CORPORATE
INDUSTRY
CSFs
· STRATEGY
· OBJECTIVES
· GOALS
ENVIRONMENTAL
FACTORS
TEMPORAL
FACTORS
CORPORATE
CSFs
SUB-INDUSTRY
CSFs
or
FUNCTIONAL
CSFs/
SUB-ORGANIZATIONAL
· STRATEGY
ENVIRONMENTAL
FACTORS
· OBJECTIVES
· GOALS
SUB-ORGANIZATIONAL
CSFs
INDIVIDUAL MGR
· GOALS
· INDIVIDUAL
CSFs
ENVIRONMENTAL
FACTORS
TEMPORAL
FACTORS
corporation.
The
appropriate),
analysis
corporate
of
sub-industry
strategy,
CSFs
objectives,
(where
goals,
and
CSFs, and its own strategy, objectives, and goals, as well as
environmental and
temporal
sub-organizational CSFs
company.
factors
for
each
lead
to
a
of
in
the
sub-organization
The process can be continued for as many levels
organizational
hierarchy
as
exist.
Note
that
sub-organization, whether a division or a function,
affected in
its
development
and CSFs by its own
factors as
set
environmental
well as by the strategy, etc.
sub-industry CSFs,
Divisions will be
functions
each
will
and
temporal
of the next higher
affected
by
their
by their functional role CSFs.
Managers at each of the organizational levels will
an individual
set
of
CSFs
be
of strategy, objectives, goals
particular
organizational level.
of
have
which depend heavily upon their
particular roles and on temporal factors,
and
upon the
(See examples next
section).
industry
and
the environment.
Each of these individual
determined in
the
light
sets
of
less
heavily
CSFs
must
be
of all the higher level managerial
developments concerning strategy,
objectives,
goals
and/or
CSFs.
From the viewpoint of CSFs alone, the hierarchy
shown as
illustrated
in
Figure
5.
can
Conceptually, industry
CSFs (at the top) heavily influence each company's CSFs.
turn, the
company
CSFs
will
play
a
significant
determining the CSFs of the CEO and all other
the corporate
level.
Each
executive,
20
be
role in
executives
however,
In
at
will have
FIGURE 5
THE CSF HIERARCHY
CORPORATE MANAGEMENT INDIVIDUAL CSFs
EXEC
lo
EXEC
A
B
LLJ
l
lu
~~CEO
EXEC
LL
EXEC
D
LL,
individual CSFs,
depending
responsibilities.
This
on
his
top-down
particular
influence
role
and
pattern is then
repeated at each sub-organizational level.
In theory,
top-down.
the
development
However,
stated CSFs.
a
CSFs
should
be
from
where corporate or sub-organization CSFs
have not been explicitly
upward from
of
developed,
they
can
be
inferred
careful analysis of each individual manager's
(We will return to this in section III.)
(f) Examples
success factors
of
CSFs.
are
Several
examples
of
critical
provided in the original article.
This
section is aimed at providing further structured examples
develop
a
fuller
understanding
of
industry
to
CSFs,
organizational CSFs, and individual CSFs.
1.
Industry CSFs
In this section we will
industry, and
the
computer
discuss
the
industry.
U.S.
automotive
These two industries
are useful vehicles for illustrating industry CSFs since they
clearly point out the two prime characteristics
CSFs.
of
industry
These two characteristics are:
- Industry CSFs are determined by the
competitive structure
the industry's
of
economic,
the
technical
and
industry as well as
political
and
social
environment.
- As these factors change, the industry's
CSFs
will
change.
a.
U.S.
Automotive Industry.
The automotive industry's CSFs, originally
21
----------"·r1·13iaol·r-i-_-_
_
defined
two
decades ago, have seen at least two significant changes since
that time.
We
look
here at an original definition and the
two subsequent changes.
Original CSFs - 1961.
automotive
the U.S.
The first discussion of
in 1961
industry was by Daniel
critical
that time he noted three
success
CSFs
in
(2).
At
factors.
These
were:
- Styling
- Quality Dealer System
- Cost Control
Americans had
always
purchase choices by
influenced
highly
The
styling.
major
in their car
U.S.
automakers
model year to out-style each other.
battled each
ever forget the
styling was
been
great
tail-fin
It
era?
was
Can anyone
clear
that
critical success factor in the early 60's for
a
every company in the automobile industry.
in 1961 was the quality of the dealer
A second CSF noted
system.
The
automakers'
direct
on
the
dealer's
is
through servicing
relationship.
Good
a
with
the
Not only do initial sales depend
consumer is the car dealer.
heavily
representative
quality,
constant
reinforcement
but
follow-up
reinforcement
leads
to
contact
of
the
future new car
purchases.
industry CSF noted by
Cost control was the third
because profit
per
for each company)
Since pricing
is
(and therefore total
automobile
heavily
influenced
by
cost
Daniel
earnings
control.
is dictated primarily by competition, the more
22
efficient the production and assembly line, the
greater
the
profit.
A change in industry CSFs - 1976/7.
When
updated this discussion of CSFs in the U.S.
1977, we
included
these
three
meeting energy standards.
become a
CSF
in
the
pollution control
dimension to it.
standards.
demand
fuel
to
government-imposed
This was then an example of an
Increasingly today
supplies
were
twenty
standards is today
this
limitless"
economy was not an issue.
economy, however,
demanded styling
due
CSF
status as car buyers have added a new
When fuel
inexpensive, fuel
auto industry in
CSFs, but added a fourth --
industry
additional
initially
At that time, energy standards had
environmentally generated CSF.
has gained
we
in
years
doubly
the
ago.
Consumers today
same
way
Thus,
critical.
In
and
that
they
meeting energy
1977,
then,
the
industry CSFs were seen to be:
- Styling
- Quality Dealer System
- Cost Control
- Meeting Energy Standards
Yet another change - 1978.
only by the
1977,
When in 1976 General Motors introduced
fuel-efficient
car
on
sale
in
the country, the
Chevette, that car did so poorly in the market
being called
disturbed
initial oil crisis in 1973/4, Americans continued
to demand large cars.
the most
Throughout
"the
Edsel of the 70s."
big three automakers had
to
close
_ ---
it
was
In 1976 and 1977, the
small-car
23
that
plants
while
III
their big-car
plants were on double-shifts trying to keep up
with the demand.
The second oil price surge
made a
difference
with
the
in
1978,
North
however,
American consumer.
image of the automobile as a stylish projection
personality changed,
a means
of
finally
of
his
efficient
transportation.
(For the few who can
have
makes sense to remove "styling"
with "image"
where
quality and fuel
finally
formerly
the
caught
attributed
on
buyers
to
efficiency
and
must
be
The U.S.
to
these
through
foreign
dealers have succeeded in the
image of
changed
once
past
It
essentially one of
automakers appear
new
decade
of
They
on
automakers.
an
by
to
are
image
Foreign
tinged
car
creating
an
with romance.
to "one-up" this consumer
perception by projecting a new image for the
ease
CSFs.
improving
reliability
automakers are now attempting
efficiency, reliability,
more.
from the list, and replace it
image
efficiency.
attempting to lure
U.S.
lingers
But the new view predominates.)
Thus, the industry CSFs
have
own
for most people, to a view of the car as
afford it, however, one suspects the old image still
on.
His
80's
maintenance,
combining
comfort and
patriotism.
Thus in 1980, we have a different set of industry
They are now:
- Image
- Quality Dealer System
- Cost Control
24
CSFs.
- Meeting Energy Standards
This evolution
in
automobile industry CSFs illustrates
well the point that industry CSFs will change,
major ways,
with
industry exists.
shifts
As
in
the
environment
economic,
political,
sometimes
in
in which the
social
or
competitive conditions change, the industry CSFs will change.
To understand
must closely
the
current
analyze
set of CSFs for an industry, one
all
these
factors,
with
particular
attention to the changes that are taking place.
b.
Computer Industry
In this dynamic, growth industry there are five industry
CSFs at the present time:
- Choice of Market Niche
- Technological Leadership
- Orderly Product Development
- Service and Stability
- Attraction and Retention of Quality Personnel
As a result of its youth and growth,
extremely complex.
In
years
several different industries.
the industry
considered
as
to
come
this
industry
is
it may devolve into
However, at this
point,
with
a whole, it is imperative for a
company to have a basic strategy, which answers the question,
"What business are we in?"
of the
industry
However, recently
allowed
as
For many years, the sheer
almost
competition
any
has
company
become
to
growth
prosper.
increasingly
severe, companies are beginning to fail because they have not
clearly
defined
the
market
niche
25
appropriate
to
their
III
particular skills, size, etc.
the business,
an
Without a clear definition
organization
cannot
create
of
well-defined
strategies, objectives and goals, and therefore most probably
cannot succeed in the 80s.
Most successful new entrants into the computer
concentrate on
adaptation of
leadership
a
new
industry
technology or a particularly creative
existing
technology.
(within
its
niche)
company to get off
the
ground.
This
makes
technological
it possible for a new
Maintaining
technological
leadership will help to ensure success.
Once the strategic decision has been made
to the
basic
business
niche,
products for that market sector
industry's available
lead
new technology.
based on
such
orderly
must
technology
upgrade its offerings.
must be
the
be
with
respect
development of
planned.
As
improves, each company must
In turn, the company's customer
the
need
Orderly product
things
as
development
thus
must
for
the
managing
demand
is
a
be
technological advances, growth in
company
to
expand
its
key issue in this CSF.
needs,
markets.
Coordinating the availability of new products with
and market
base
smoothly through succesive transitions to each
existing customer sophistication, changes in customer
and
the
financing
Another is
the growth of the business.
A major CSF for all companies in the
industry,
because
of the past history of growth and instability, is the ability
to provide
ongoing high quality service.
increasingly intertwined with the most
26
Data processing is
vital
operations
of
the firm.
Networks for major companies extend world-wide and
into some
very
remote
locations.
about the vendor's stability
will be
and
whether
supported with service.
which has generated
industry leader,
this
IBM,
Customers are concerned
of
always
service"
maintained
reputation for service, worldwide.
It has
companies in the industry is
has been
a
shortage
high mobility,
a
short
based
good
fierce.
average
The
set
retention
of
people among
the
Traditionally,
tenure
a
industry.
and
of qualified people.
escalating salaries.
an industry
for
CSF.
therefore
The final industry CSF is attraction
Competition
factor
an excellent
high standard in this area for companies in the
quality personnel.
investment
There is yet another
"quality
has
their
there
This has lead to
of
position,
and
Quality personnel are the foundation of
on
technology.
Therefore the ability to
attract and retain the skills needed to create,
market,
and
service the products is an important CSF.
2.
Organizational CSFs
As Figure 4 suggests, industry CSFs are one input --
a very
large
one
organizations.
--
into
However,
the
each
CSFs
for
corporation
drive its CSFs.
only
estimate
company's CSFs.
Working
the
and
other
which
also
externally from the company, one can
effect
of
all
these
factors
on
the
This, however, is what this section attempts
given our knowledge
industry
particular
has
environmental, strategic and temporal conditions
and
one
of
in
_
~
four
the
companies
computer
~
27
in
the
industry.
~~~~~ ~~~~~~~_
automotive
This
last
computer-industry company
provide
the
reader
is
with
analyzed
an
in
extensive
some
depth
to
description
of
"organization" CSFs at the corporate level.
We deal primarily
section.
CSFs
sub-industry,
for
with
the
sub-organizations
environmental,
conditions) could
be
corporate
level
(with
strategic
described
in
this
their
own
and
temporal
in exactly the same manner.
The analytical process is the same.
a.
Automotive Industry
As Figure 6 shows, each of the four companies noted must
include the industry CSFs as part of their CSF
however,
has
an
additional
CSF
which
list.
arises
Each,
from
its
particular approach to, or position in, the industry.
Within
the
differing CSFs
competition.
industry,
individual
have
based on market niche, temporal problems, and
AMC, through its JEEP division has the
share in the four-wheel drive market.
heavy share
automakers
of
AMC's profits.
largest
This market provides a
Maintaining the lead in this
market niche is therefore one of AMC's CSFs.
Chrysler has a serious cash flow problem.
immediate, temporal
(they
hope!)
CSF
They have
of obtaining enough
cash to keep the production lines rolling.
Ford and GM
chosen to
head
meet
currently coming
the
out
foreign
with
competition
new
product
lines
have
on, and are
of
small,
economical, front-wheel-drive
cars.
CSF is to successfully compete
in this small-car market.
Their common additional
Any critical success factors list for any
28
an
company
will
industry
show the
reflected in the individual company
CSFs
It will also show,
CSFs list.
will have
each
company
which exist apart from the
CSFs
individual
some
that
however,
industry-wide ones.
b.
Computer Industry
Recently we were asked to put ourselves in the shoes
of
the president of a major computer company (which we will call
Company" and to describe the CSFs we would see
"The Computer
Since the philosophy of CSFs requires that
for that company.
they are based on the current strategy being followed by
the
company, the major objectives being pursued, and the personal
world view
the top corporate officers, the following can
of
only represent
the
Therefore,
outsider's
an
noted
CSFs
of
view
are,
at
all
best,
these.
of
an
outsider's
evaluation of what that company's top officers might list
CSFs for
provide
company
the
an
at
extensive
current
the
But they do
time.
of
illustration
as
one
company's
"organizational CSFs".
The company deals in a rather
(1) Market Understanding.
complex marketplace and one which is shifting
The emphasis
is
on
increased emphasis
to
information support)
and even clerks.
large
on
accounting transactions
operations, and
changing
clearly
what
for
we
the
from
central
transaction
on-line
term
significantly.
decision
processing of
machines
processing
support
Office processing
and
message
for
(or
processing
Software development is
29
'------------------
an
line managers, staff professionals
are becoming increasingly important.
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to
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changing from
the use
of
an
emphasis
multiple-use
Perhaps most
to
in
software
its
several
forms.
the need is clear in the 1980's for
important,
computer companies
build your own" to "buy" and
on
good
provide
networking
capability
and software) in a market place which will be
(both hardware
increasingly communication-oriented.
Given the above complexity and change, an
of the
needs of the marketplace by the company is most
real
critical.
understanding
Available, but limited resources must be spent
produce the
products
are most needed.
which
limited even
for
this
large
attempted in
the
past
to
company.
span
least some presence, it must
to
Resources are
Although
it
has
much of the market with at
have
market
understanding
to
select the major key market segments appropriate to it.
(2) Insightful/Competitive
Analysis.
One
way
to
understand the market is through the analysis of competitors.
This analysis
provides
selection process
however, is
some
discussed
analysis
one obviously
is
(through both
private
input
in
into the market segment
CSF
#1.
of competitive threats.
Japan
--
which
resources
has
companies
Proper understanding
development of
in
of
the
counter-strategies
significant
the
company
intentions
are
muscle
and
and
necessary
computer industry is perhaps the major Japanese
30
The major new
the
industry in the next decade.
Japanese
the next decade.
critical,
and government assistance)
and appears to be a growing threat to
other major
More
the
- for the
target
over
III
(3) Technological
"Leadership".
Market
understanding
without the development of the appropriate technology is less
than useful.
Moreover
as
computers
increasingly become a
"commodity," the maintenance of a technological edge
(or
the
becomes
very
least
parity)
increasingly necessary.
with
the
competition
at
It is also important for purposes of
CSF #4 which follows immediately.
(4) Developing an Image.
clear image
in
the
The company has
computer
provided product leadership.
industry.
At
yet
focused on particular industries.
seen as
At
other
never
had
times
it has
times
it
a
has
At other times it has been
an "alternative source" to the industry leader, IBM.
In the marketplace this changing purpose has lead to
than robust
image
in the past.
(CSF
#2)
less
Internally, it has provided
the potential, at least, for low morale.
market segment
a
A decision
on
its
and therefore its image (this CSF)
appears critical at this increasingly competitive time in the
industry.
(5) Developing
Staff.
The
company
a
More
appears
factor in the market place.
and thin"
manner.
To
Effective
to
Corporate
have decided to be a major
Yet it has operated in
gain
Marketing
better
a
market and competitive
understanding, it is very important to establish and
a
significantly
larger
and
"lean
upgraded
corporate
develop
marketing
staff.
(6) Quality People.
successful company.
The
This is the driving force in
Computer
31
every
Company has done well in
the market place
employees.
by
The
need
attracting
for
and
increasing
keeping
high
quality
productivity
in
the
industry
CSF
industry makes this even more important today.
(7) Service and Stability.
which is
an
industry
This
must".
is
an
As explained in the industry
discussion above, it is increasingly critical today.
Figure 7
company CSF
shows
how
each
CSFs 1,2,3,6, and
CSFs.
#4
specific to
computer
relates to the computer industry CSFs previously
discussed.
CSF
company-specific
"Developing
7
an
tie
directly
Image"
is
industry
temporal
CSF
the company and therefore does not appear on
the
industry list.
a
to
CSF #5 "Developing a More Effective Corporate
Marketing Staff"
is another company specific CSF whose source
is corporate strategy.
It should be clear from this example
some
individual
company
critical
context of industry wide CSFs.
In
how
success
one
can
fit
factors into the
addition
some
CSFs
are
there
are
generated from the sources discussed previously.
3.
Individual Manager CSFs
Just as there exist individual company CSFs,
CSFs
for each sub-organization within a company, that is each
division, department,
group, etc.
And at every level of the
organization there are a set of people,
each
of
whom
have
CSFs
are
individual CSFs.
As Figure
affected
by
4
noted,
several
"individual
factors.
manager"
Heavy
influences
individual's CSFs include role-related and temporal
32
on
factors.
FIGURE 7
COMPANY CSFs AND INDUSTRY CSFs
THE COMPUTER COMPANY CSFs
INDUSTRY CSFs OR SOURCES
1.
Market Understanding and
Creation
Market Niche
2.
Insightful Competitive
Analysis
Market Niche
3.
Technological Leadership
Technological Leadership
4.
Developing an Image
Temporal CSF
5.
Developing a More Effective
Corporate Marketing Staff
Temporal CSF from Company
Strategy
6.
Quality People
Attraction and Retention of
Quality People
7. Service and Stability
Service
Role-oriented CSFs
cut
across
integral part
of
regardless of
pressures
the
job
example, manufacturing
control and
cost
all industries.
itself
and
produced
managers
control
as
by
therefore
other
persist
factors.
invariably
CSFs.
They are an
list
For
quality
Presidents always have
"Corporate Performance" in one form or another as a CSF.
In
performing a
to
CSF
study,
it
is
important,
therefore,
closely examine each individual's role.
Temporal factors for each manager are usually related to
the current problems and opportunities which the
facing.
manager
is
This area is therefore an important source for CSFs.
For example
the
president
not normally
review
However, the
dynamic
all
of a large commercial bank would
loans
political
such countries may cause the
become a
problem,
president.
should look
and
the
developing
environments
portfolio
therefore,
In performing
at
to
of
countries.
today in many
these
generate
loans
to
a
CSF for the
the
interviewer
the
CSF
study,
problems
and
opportunities
facing
a
manager, and how she is dealing with them.
Other factors
managers include
which
generate
strategy,
for
individual
objectives, goals, and CSFs from
organizations and individuals above
hierarchy.
CSFs
them
in
the
corporate
If, for example, a VP Marketing has set a goal of
increasing overall
sales
by
25%
in
the
coming year, the
marketing managers for each product line will have both goals
and CSFs related to achieving that goal.
Individuals are
also
affected
by
the
33
_
_____·1_1111_1__111_
organization's
III
environment and
industry,
but
to
a
lesser
degree.
For
example, whereas the overall corporate CSFs can be enormously
influenced by new competition
more of
a
particular
conditions
product
line
in
the
industry,
manager's CSFs will be
generated by the resulting corporate strategy,
than
by
the
return to the computer industry, we can look
at
the
competition itself.
To
example of
the
financial
vice presidents of three dynamic,
growing companies like DEC, Prime and
all have
at
Apple.
least one CSF in common --
and expansion.
All three are managing
The
financing for growth
in organizations which
have grown rapidly during their lifetimes, and are
in a
tight money economy.
and
current
each
How
is
temporal
because
vice-president
particular problem will no doubt be different.
example, went
public
doing
so
This CSF is role-oriented, arises
from corporate strategy,
economy.
managers
in
of
the
solves
his
(Apple,
for
December 1980 to increase
its cash
available for growth.)
Figure 8 completes the hierarchy of CSFs for one company
from the auto
industry example, Chrysler, by reproducing
industry CSFs,
individual CSFs.
below the
the
organizational CSFs, and adding three sets of
The emphasis
level of President
on
role
and
temporal
CSFs
(where CSFs are about identical
with those of the corporation) should be noted.
2.
Uses of the CSF Concept.
concept and
placed
it
in
Having discussed
the
CSF
relationship to other managerial
concepts, we now turn to a discussion of the three major uses
34
of the concept.
These are:
- To help an individual manager determine his
information
needs
- To aid an organization in its general planning process -for strategic, long range and annual planning purposes.
- To aid
an
organization
in
its
information
systems
planning process.
Attention will be concentrated in this paper on the last
of these uses.
The
original Harvard
first
is
discussed
in
in
it
should
after reading the next section.
general corporate
in
review
that
article
(as an aid in
The second use
is not the focus o f this primer
planning)
which is targeted toward the information systems field.
the
general" planning use
relatively lightly.
the
The reader who is
Business Review article.
specifically interested
d epth
of
CSFs
will
be
also
Thus
treated
We will concentrate on the third use --
information systems planning -- which is
the
today
primary
use of the CSF concept from our perspective.
a.
Determining
an
Individual
Manager's
Information
--
Needs
As Figure 9 suggests, an individual manager lives within
the context of a corporation and
her
own
sub-organization.
Where strategies, objectives and goals exist at higher levels
(and
in
most
major
organizations
they
do
today),
the
individual manager must pay attention to these in determining
her own goals.
These goals, in turn, are
the determination
of
the
factors
35
which
the
are
backdrop
critical
for
in
III
FIGURE 8
THE RELATIONSHIP OF COMPANY AND INDIVIDUAL CSFs
INDUSTRY CSFs
(
- IMAGE
- QUALITY DEALER SYSTEMS
- COST CONTROL
- MEETING ENERGY STANDARDS
- CASH
1
CHRYSLER
- IMAGE
- QUALITY DEALER SYSTEMS
- COST CONTROL
- MEETING ENERGY STANDARDS
- CASH
I
I
MARKETING
MANAGER
.
e
MANUFACTURING
MANAGER
INFORMATION
SYSTEMS
MANAGER
- COST (CORPORATE CSF)
- SERVICE (ROLE)
- QUALITY (ROLE)
- COMMUNICATION WITH
i
- IMMEDIATE HIGH
SALES (FROM CORPORATE
CSF NEED FOR CASH)
- LOCAL IMAGE (ROLE)
- PERSONNEL (ROLE)
II
TOP LINE (ROLE)
- INVENTORY POSITION
(ROLE)
- PERSONNEL (ROLE)
- M (TEMPORAL)
- ADAPTATION TO NEW
ENVIRONMENT (ROLE)
- N (TEMPORAL)
- A (TEMPORAL)
I
ffi
J4
z
.1
- Y (TEMPORAL)
- B (TEMPORAL)
- C(ENVIRONMENTAL)
_
-9
A
_
FIGURE 9
THE CSF PROCESS USED IN DETERMINING
INDIVIDUAL MANAGERIAL INFORMATION NEEDS
MANAGER'SS
BUSINESS
/
I
!
rVVTV0MMVWilT
CORPORATE
.
(INCLUDING PROBLEMS,
OPPORTUNITIES)
STRATEGY, OBJECTIVES,
GOALS
1\
SUB ORGANIZATION
.
STRATEGY, OBJECTIVES,
GOALS, CSFs
INDIVIDUAL MANAGER
GOALS
CSFs|
NOF
I MEASURES
W
REPORTS
DATA BASES
II
obtaining these
determination
goals.
of
the
Measures
status
determined and the reports
value of
each
measure
which
of
will
each
which
will
CSF
allow
must
display
must be designed.
the
then
the
be
latest
Finally, the data
bases from which the reports can be drawn are developed.
This is a rather straightforward, top-down process.
manager starts by thinking about
while
paying
requisite
attention
objectives and goals of upper
(The higher
is bounded
others.)
the
by
He
levels
business
to
of
environment,
the
strategies,
his
organization.
manager is in the organization, the less he
the
strategies,
then,
objectives
by proceeding
Figure 9, moves from
systems focus
his
The
a
and
goals
of
through the steps noted in
business
focus
to
an
information
in a series of clear steps which end up in the
definition of data elements needed.
During the past two years, we have found this
useful conceptual
path.
to
be
a
It has helped many top managers to
clearly visualize their information needs.
However, it takes
time, dollars, and energy to build the requisite data
bases.
By the time these are built, some of the appropriate measures
and reports
will
have changed.
Therefore, from a pragmatic
viewpoint, the CSF concept is today being used for
part as
described
the
most
an aid in information systems planning in the manner
in Section c.
below.
It is on this that
we
will
concentrate this discussion.
b.
CSFs As An Aid in General Corporate Planning
Figures 4 and 5 in Section II.e.
36
noted
four
different
levels of
CSFs:
individual.
industry, corporate, sub-organization, and
There is every
reason
to
make
use
of
these
various levels of CSFs in the corporate planning process, and
this is
being
done
by
several
organizations.
Since CSFs
designate the areas in which good results must be obtained to
ensure success at any level of
sense
for
an
organization
determine the
pertinent
allocated
the
in
the
or
CSFs
planning
organization,
individual
so
that
process
to
it
consciously
resources
to
makes
ensure
can
be
successful
efforts in each CSF area.
There are multiple possible uses of
For example,
industry
corporate
CSFs
strategy.
sub-organization CSFs
can
CSFs
be
corporate
significant
short-term planning process, and individual
used by
each
manager
particular year.
in
planning.
be utilized in determining
Similarly,
should
in
and
inputs to the
CSFs
should
be
developing her action plans for a
The following
paragraphs
briefly
discuss
the first and last of these uses.
Industry CSFs, as noted in Figure 5, are a
necessary
process.
input
into
the
corporate
logical
strategic
planning
Corporate strategy should be heavily based upon
in-depth understanding of industry CSFs.
significant literature
concerning
development of corporate strategy.
the
a
concept
similar
an
In fact, there is a
use
of
CSFs in the
Many consulting firms who
specialize in strategic planning use either the
directly or
and
to it.
CSF
concept
They tend to preach
that, for an organization to be successful, its strategy must
37
_
_1_
_1__1_1^__ _______
high
where
be developed to allow it to excel in those areas
performance is critical -- or the organization must move into
niche in which, in effect, different CSFs exist.
an industry
useful
At the individual manager's level, CSFs are also
After the manager's goals have been determined,
in planning.
of the relevant CSFs will lead to improved
the determination
insight into the "best" resource allocation to
key
programs
to ensure that critical areas are emphasized.
and activities
Figure 10 illustrates this individual planning sequence.
The Use of CSFs in Information Systems Planning
c.
a
Currently the CSF method is being used
primarily
as
systems
planning.
It is
in
aid
technique to
information
another tool like IBM's BSP or Gibson
"Stages"
In this section, we
be used as a planning method.
which can
Nolan's
and
will discuss the CSF procedure as it is used for I/S planning
which
purposes, the concept of "information data bases"
the primary
are
of using the CSF process in this manner,
output
and the reasons underlying the growing use of the CSF process
in this manner.
(1) Procedure.
procedure as
Figure
11
is used for I/S planning.
it
the
diagrams
CSF
The steps are as
follows:
the
(a) In
corporation or
the top
10-20
a
major
managers
interview process
paper.
chosen
often
a
suborganization such as a division,
are
discussed
Each manager's
most
organization,
CSFs
interviewed
in
are
38
the
using
final
determined.
the
CSF
section of this
(Where
time
allows, the
measures
used for each CSF are also determined,
but this is not a necessary part of this routine.)
(b) Analysis of the results of the
interviews is
performed.
individual
The individual manager's CSFs are
charted, as shown in Figure 12, to determine the
have
been
identified
CSF
by
multiple
managers
CSFs
and
which
which,
therefore, provide a good approximation of the organization's
CSFs.
Although each top manager's job is
his CSFs
are
therefore
different
in
different
some
ways
--
from his
colleagues -- we have found that the intersection of all
manager's CSFs
is
the
set
of
and
top
CSFs for that organization.
These resulting CSFs are then checked with the organization's
management.
(c) The organization's CSFs, as charted in step
2,
in every case will indicate one or more key "information data
bases" or
"data
processing
systems"
which
should receive
priority in the information systems development process.
example, the CSFs shown in Figure 12 indicate the need for
Human
Resources
information
data
Strategy information data base.
the development
base
and
to
of these data bases since they represent the
the organization --
people
in
top management.
(d) The information concerning the
lll__·__IXI____III_____·
a
Corporate
Priority should be given
means to satisfy the information needs of the key
perspective on
a
For
information
top
management
systems needs developed in steps
1-3 above is then fed into the
regular
planning process.
are developed for information
Priorities
39
information
systems
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systems development.
(2) Information data bases -As step
3
in
the
the
primary
output:
procedure above indicates, there are two
major types of systems needs which are developed through this
CSF procedure.
The first is the
processing systems
--
need
for
particular
such as an on-line order entry system.
This type of system needs no further explanation.
an indicated
need
data
for
these
operational
In
data
fact,
processing
systems is not often a direct output of a CSF process,
top management
contained
is
not usually interested
solely
in
a
since
in the information
single
operational
transaction-processing system.
Most often the key "systems" needs indicated by the
procedure are
the
development
data bases."
'op
managers
spanning various
areas
of
of
most
CSF
one or more "information
often
need
the
business.
required information
cannot
be
supplied
operational system's
data base.
Rather an
information
In general, the
by
a
single
"information data
base" must be built.
Many examples of information data bases are given in the
"Executive Information Support Systems"
paper
(3).
full
bases
and
discussion
of
examples, the reader
information
data
For
a
relevant
is referred to that paper.
Briefly, however,
information
data
bases
are
quite
unlike the traditional transaction processing data bases such
as those
developed
control, etc.
for
accounts
Those more traditional operational data
40
_ _ _ _II
~~~~~~
__ ~~~
receivable, manufacturing
I_
~ ~ ~~__ -- --
bases
III
store files
which
is
of
the
data which are used to process the paperwork
mainstay
of
the
day-to-day
life
of
an
data bases must be up-to-date, accurate
organization.
These
and complete.
They must have well-designed sequences of data
storage, optimized as far as possible to facilitate efficient
processing of the thousands of daily transactions which occur
in major organizations.
Information support data bases, on the other
very different
in
(See Figure 13.)
the
and
type of data they use.
They have no role in day-to-day operational
part,
data bases.
but only in part, by data from the operational
much
Moreover,
market
customer surveys,
So
significant
sampling,
data
"soft"
and
included in the
processes are often also
data bases.
to
They are
information available for recall and analysis.
fed in
are
They are built primarily as data repositories
paperwork.
make
purpose
hand,
internal
from
planning
information
support
"externally purchased" data from any of
is
the approximately three
thousand
processable
machine
data
bases which can be bought from information vendors today.
In technical structure, information support
are also
different
primarily for
support data
from
the
processing.
transaction
bases
are
conventional
information
designed with very inefficient, yet
exist as a "set of tables."
Primarily they
This makes them inefficient with
regard to computing machine usage but
to
bases
data bases used
Most
simple and easily understood file structures.
understand, simple
data
easy
for
a
user
to
access, and very responsive to change
41
and evolution.
(3) Reasons for the use of the CSF method as an
Information Systems
Planning.
aid
The use of the CSF method for
information systems planning is occurring because of
factors concerning
both
the
executives
a
growing
well
are
These are:
number
aware
of
of
with
these
systems
for
emphasis
and
planning
therefore
need
process,
to
information needs of top management and the information
data
be
the
the past 20-25 years.
the
must
in
creating
are
bases which
on
systems
operational
They have been
What they understand far less well,
place
information
their
paperwork-processing systems needs.
and working
several
data processing environment of
the 1980s and the CSF method itself.
- In 1980,
to
built to support these needs.
The CSF
method provides a technique to do this.
- The CSF method to aid information systems planning
a
"rifle-shot"
technique
aimed
management's information needs.
at
understanding
effort.
be
completed
in
each
approximately
a
manager's
time.
person-month
of
It is, therefore, inexpensive as a planning tool.
- In addition
planning, the
CSF
to
its
method
yield
for
provides
an
information
This benefit
is a relatively deep understanding of the way in
senior manager
interviewed
interviewed managers
spend
views the world.
the
42
systems
additional, perhaps
equally important, benefit for the interviewer.
_*____
top
It attempts to do only this.
Therefore, it takes only 1-3 hours of
It can
is
interview
which
each
In effect, the
time
discussing
III
Figure 13
A COMPARISON OF TRADITIONAL AND
INFORMATION SUPPORT DATA BASES
Traditional Transaction
Data Base
Information Support
Data Base
----* data repository
e support transaction
Purpose
and use
----r
processing systems
I
I
Data
attribut
i
)
Storage
method
Ability to
change the
data base
*
·
·
*
-I
II
I
III
I
I
I
I
I
I
up-to-date
accurate
consistent
complete
II
* timeliness not critical
* "hard" and "soft" data
c consistent
* completeness not always
possible
!
- -- -
I
I
. _
- _- - -
-
- -
- -
--
* optimized for efficienc Y: e tables of data des igned
of computer resources
for easy access & change
II
-
-
* difficult
* only after much
consideration of
"downstream" effects
I
-- -
II *
easy to accomplish
I data base designed
for change and
evolution
FIGURE 10
SEQUENCE OF CSFs
USED IN INDIVIDUAL PLANNING
I~~
i
I
RESOURCE ALLOCATION TO
KEY PROGRAMS
AND
ACTIVITIES
-
-- --
--
---
---
III
FIGURE 11
CSF PROCEDURE FOR I/S PLANNING
MGR B
DETERMINE
INDIVIDUAL
CSFs
MGR A
DETERMINE
INDIVIDUAL
CSFs
N
``··\
.
.
.
.
e,
ANALYZE INDIVIDUAL CSFs
TO DETERMINE ORGANIZATION'S CSFs
NI
/
.
DETERMINE
PRIORITY INFO
DATA BASES &
KEY SYSTEMS
*:
Az
I/S PLANNING
(PRIORITIZE
INFO SYSTEMS
DEVELOPMENT)
MGR "N"
DETERMINE
INDIVIDUAL
CSFs
their jobs as they see them, and the areas which they believe
are most
critical
CSF process
to
them.
(in many cases
systems) have
Interviewers who have used the
the
top
person
in
information
almost unanimously reported that this "insight
into top management and
its view of the business"
has
been,
by itself, of significant value to the I/S department.
- Perhaps equally important, the CSF procedure
top management
with
a
information needs.
management has
In
given
information needs.
vehicle
far
for
too
little
thinking
many
time
provides
about
their
organizations,
to
pondering
their own
Rather, they have been concerned with the
traditional areas of marketing, manufacturing, finance,
In many
top
organizations,
top
etc.
management has not yet made the
shift to the realization that, with today's technology, it is
not only feasible, but desirable (and
some
necessary) for
thinking through their
information
them
to
spend
requirements.
business-based, logical,
time
The
and
CSF
would
say
method
time-sparing
is
even
a
entree into this
new endeavor for line management.
- Finally,
the
information systems
CSF
method,
planning,
used
focuses
as
an
needs
of
all
number) of
managers.
It
top
(or
is
for
on the definition of
those information data bases which are necessary
the information
aid
at
to
support
least a significant
expensive
to
build
an
information data base for only a single executive (even if he
is the
President).
However,
where
it can be shown, as in
this use of the method, that an information
43
~~~~~~_^
..
.
.
-------
data
base
will
III
serve the information needs of many of the organization's top
executives, the
justification
of
system is more straightforward.
44
the development of such a
III.
INTERVIEW PROCEDURE AND TECHNIQUES
This section is written for the person who is
Here,
interview.
CSF
first
undertake his
communicate all those things which appear
we
look
back
on
years
three
CSF
of
we
about
to
attempt to
to be important
as
interviewing.
In
addition, this section reflects the knowledge gained from our
Three
discussions with others who have used the CSF method.
major areas
of
technique follow.
and
procedure
interview
They are:
- Objectives of the interview
- Pre-interview preparation
- Interview procedure
A.
Objectives of the Interview
A CSF interviewer has a unique opportunity.
managerial time
the
and attention which has been made available,
Just coming out with
she should capitalize on it fully.
manager's CSFs is not enough.
seek to accomplish all of the
1.
Given
To understand
the mission
interviewer should
Rather, the
following four objectives:
organization
interviewee's
the
role
and
the
"world
(the
interviewee within the context of his
and
view") of the
organization
as the interviewee perceives them.
2.
To understand
the
goals
and
objectives
of
the
interviewee.
3.
To elicit CSFs and measures from
4.
To assist the manager in better
own information
needs.
interviewee.
comprehending
her
This may be the first time
45
II__
the
___
III
that the manager has confronted
needs in a structured way.
presents the
data"
useful
on CSFs and
support
that
In the haste to "collect
information needs,
educational opportunity
B.
interact with the
information
to her.
information
The CSF interview often
initial occasion to
manager on the types of
might be
these
should
the
reverse,
not be overlooked.
Pre-interview Preparation
As
noted
earlier
in
preparation is
important.
knowledge, but
also
brings.
following
The
this
It
with
the
guide,
provides
one
confidence
steps
pre-interview
not only with
that
represent
pre-interview actions we have found
to
knowledge
the
be
most
major
useful
to
people desiring to conduct CSF interviews:
1.
Read and be throughly familiar with
the
articles,
"Chief Executives Define Their Own Data Needs"
"Executive Information
Support
Systems"
earlier sections of this guide.
addition to
the
All
when
(3), and
provide,
in
conceptual aspects and procedures
of the CSF method, some useful examples
be used
(1),
needed
which
can
to explain the rationale for
CSFs to an interviewee.
2.
Be
thoroughly
familiar
with
the
industry.
Understand the industry competitive forces, trends,
and environment.
and news
Know the current problems, issues
makers.
interview both
in
This
is
eliciting
46
important
CSFs
and
during the
in
fully
understanding the importance of each CSF.
3.
Study the company or companies to
be
Use
such
publicly
available
sources
reports, internally-available
and organization
charts.
interviewed.
as
company
annual
histories,
External sources such as
articles in the Wall Street Journal, Business Week,
Forbes, and Fortune, are often
are available
in
greater
thought.
Most important,
with the
people
highly
useful
and
volume than is commonly
one
should
spend
time
in the company who are sponsoring
the study.
Their insights into
strategy,
environment,
opportunities are
political issues
the
current
invaluable.
company,
problems
Internal
its
and
company
should be probed, where possible,
with these
company
important.
All of this background is highly useful
for
conducting
contacts
each
since
interview
these
smoothly
are
and
intelligently.
4.
Initiate the transmission of a letter from the
top
management of the company to all interviewees prior
to the
interview.
The
letter should explain the
purpose of the undertaking and explicitly show
management support for it.
include
background
include a
copy
of
This letter should also
material
interviewee for the session.
top
to
It
prepare
is
desirable
the
to
"Chief Executives Define Their
Own Data Needs" with a
47
request
that
it
be
read
III
prior to
the
outline of
interview.
the
In
interview
addition,
process
a
brief
should
be
enclosed.
5.
Plan to start interviews at
be
management to
the
interviewed
lowest
and
level
work up.
of
This
provides the ability to review, in preparation
for
interviews
the
with
higher-level
knowledge gained
managers
at
from
lower
interviewer
can
comfortable in
the
managers,
CSF
levels.
interviews
In
become
this
way
increasingly
of
the
more
discussing the company and industry
issues before being confronted with the top two
or
three managers in the organization.
6.
Plan to have, and enlist, a key
company
to
accompany
interviews.
There
method.
the
On
are
from
the
on
the
interviewer
pros
and
cons
to
There
is
discussing
someone
the
interview
available
help clarify company-related obscure points
the interview.
In
addition,
company has a stronger stake in
he has
been
during
implementation
part of the process.
during
who can
the person from the
minus side, the interviewee may not
and frank
this
plus side, one has the benefit of
an insider's insight in
afterwards.
the
manager
if
However, on the
be
as
honest
the interview because an insider
is present.
There is no available objective evidence as to
48
whether the pros outweigh the con
Suffice it
to
say,
that
for
on
this
issue.
all three positive
reasons noted above, we generally want
to
have
a
key manager with us during the interviews.
7.
Prior to
the interview,
interviewee and
assume
the
role
of
the
list, from all acquired knowledge,
her probable objectives, goals, CSFs and
measures.
This can be an enormous aid during the interview in
eliciting a
complete
quickly and easily.
set
interviewer's
track.
danger
interviewer may
interviewee.
CSFs
This technique
getting the
The
of
in
try
is
thinking
doing
to
and
this
measures
an
aid
in
on
the right
is
that
the
force his own CSFs on the
Care must be taken to
guard
against
this.
8.
Brush
up
on
interviewing
skills.
There
approaches and techniques for conducting
in an
interpersonal
are
interviews
setting which, used well, can
enhance the success of a CSF interview.
C.
Interview Procedure
With the necessary preparation out of the way,
of the
first
interview
arrives.
This
the
day
section provides a
step-by-step outline of the several parts of a CSF interview.
These are
(1)
Description
of
Opening
Mission
Interviewee's Goals,
CSFs, and
the
and
Interview,
Role,
(4) Developing
(6) Determining Measures.
49
--
-
(2)
(3)
CSFs,
(5)
Interviewee's
Discussion
of
Prioritizing
III
1.
Open the
interview.
statement
of
Give
how
the
a
CSF
brief
introductory
method
determine managerial information
is
used
needs.
to
Although
the interviewee has h ad preparatory material, a few
remarks to
place.
help to
refresh
his
memory
The response to
h is
determine
never out of
remarks
will
also
degree of understanding of
If it becomes apparent
the CSF concept.
interviewee has
these
are
that
the
not read the material provided, it
is necessary for the interviewer to provide a
in-depth introduction
to
the
more
CSF concept and the
purpose of the interview.
a.
Example of brief introductory
you know
we are
from
using
statement.
'As
the material you have received,
a
new
method
for
assisting
managers in looking at the way they manage and,
as
a
second
ste p,
information needs.
identifying
those
for
determining
This technique
factors
in
environment which m ust go right
the
manager
objectives.
to
achieve
their
focuses
a
in
her
on
manager's
order
goals
These are called critical
for
and
success
factors or CSFs."
b.
Example of lengthy introductory statement.
the past, analysts have
occasional success,
to
needs of managers.
For
50
attempted,
with
"In
only
define the information
the
most
part
this
failure has
been
vocabulary, a
business on
due
poor
the
to the lack of a common
understanding
part
inability of
the
information
needs
of
day-to-day operations.
called "management
designed and
management.
to
relate
We
demands
of
As a
result,
many
which
are
his
the
information
built
the
the analyst, and an
manager
to
of
in
his
systems'
no
way
currently
so
were
served
using
an
interview method which appears to have overcome
many of the shortcomings of
previous
methods.
This new technique focuses on identifying those
factors in
a
manager's
environment which are
the most important and for which
must be
obtained
in
In the
past,
designed
objectives.
success
to
These
factors"
information
primarily
systems
report
design
are
or "CSFs".
have
on
levels
achievement toward managerial goals.
CSF method we can
results
order for the manager to
achieve his goals and
called "critical
good
information
been
of
Using the
systems
which report on the results in areas underlying
eventual success or failure in the achieving of
goals.
CSFs
answer
the
basic
question
of
'Where should you place managerial attention?'.
Once that
question
has
been
answered
an
information system can be designed to report on
_ ___
____
51
III1
the current
status of areas which require most
attention.
"In
this interview we are going
to
start
by describing your mission and role, move on to
your objectives and goals, and then discuss the
critical success
If the
factors
that support these."
interviewee
clarify her
needs
understanding
examples from
article or
the
this
to
of the concept, use
Harvard
guide.
examples
Business
Review
Choose examples which
are appropriate to the interviewee, the company
and the industry.
2.
Ask the interviewee to
role.
This
purposes.
initial
his
question
First, it is an
interviewee into
talking.
describe
the
He is asked
to
serves
easy
process
way
and
discuss
company
and
however, as
the
manager
discusses
the world."
his
into
the
"caretaker" put
which
is
the
to
which
managers?
Many of the things which
him
the
start
him
which
job.
set
routines
to
come
have
job
to
been
light
52
major
he
Second,
his
job,
he
as to how he "views
organization,
in
and
get
Is he strategically oriented?
view his job as one
change
clues
to
that
his
provides
two
to
knows best,
almost always
mission
up
or
to
is
carry
developed
during
Does he
are
this
induce
he
out
by
a
the
past
important
exposition
including, often, a few critical
The
interviewer
should
take
success
factors.
careful notes during
this section of the interview.
It should provide a
cross-check on
what
later
manager's CSFs
should
is
said
consistently
since
the
relate to his
role as it is perceived.
3.
Discuss the manager's goals.
often necessary
in
this
Managers will often
objectives?
on
goals
Some definitions
part
ask
"Do
of
you
the interview.
mean
Short-term or long-term?".
(see
definition
objectives, as defined
meaningful with
pages
goals
6-7)
to
CSFs.
the time horizon
is most meaningful for him.
one-year horizon;
term goals.
very
As to the time
asked
(short or long)
Most managers
to
that
pick
a
some provide both long and short
The choice of the time-span and nature
of the goals selected
it
since
in this guide, are not
regard
or
We zero in
horizon for goals, the manager should be
respond with
are
provides
is meaningful in itself since
further
insight
into
the
way
the
manager views his job.
A fair
number
of
managers,
given
this
question, will reach into a drawer and pull out the
set of
goals,
often determined by an MBO process,
on which they are being measured during the current
year.
Seeing
addition to
this
list,
writing
our
response
--
in
them down -- most often is to
53
III
ask, "All right, this is the set of goals on
you are
to
measured,
be
which
but managers often have
other less forma lly stated goals.
of
Some
these
aire often as important, if n ot more
informal goals
Do y ou have
important, than tthe agreed-upon goals.
any goals which f it this category?"
m anagers
Here
significant, unspoken goal s.
sometimes expose
For
example, a manage!r in one company had, as a primary
goal, the elevati on of his sub-organization
in the
Since a
to
company
very important --
useful where
of
to
these
unstated -- yet
it
goals,
informal
c ritical
managers'
some
relate
success factors
it (and him) more power.
give
pa rt
good
higher
highly
is
to bring these goals to the
possible
surface.
4.
Develop
manager's
the
determining the
process
The
CSFs.
of
manager's CSFs can be quite simple
done
the
or rather difficult.
If the manager has
prerequisite reading
and has given some thought to
his CSFs he may even have a written list to present
to the interviewer
explanation of
together
responsibilities may
an
appropriate
Alternatively, a manager
each CSF.
who has not thought much
with
about
prove
to
his
job
and
be a poor subject.
Fortunately, the latter case is not often found
the top
of
reasonably-sized
organizations.
note ways of working with "difficult"
54
its
at
(We
interviewees
later in this section.)
(a)
Some
questions
eliciting CSFs.
No
interview goes,
it
that
matter
are
how
helpful
in
smoothly
the
is useful to triangulate in on
the manager's CSFs through a series
of
questions.
The first, and obvious, question is:
"Will you please tell me, in whatever order
they come to mind, those things that you see as
critical success factors in your job at this time?"
As
the
manager
proceeds,
the
interviewer
should not hesitate to ask for clarification
CSF where
it
is unclear.
her
CSFs
the
assist
in
manager
to
from two other perspectives
which can elicit additional CSFs or,
least,
a
At the end of the list,
however, we find it useful to get
think about
of
prioritizing
at
CSFs.
the
The
very
two
additional questions are:
"Let me ask the same question
concerning
critical success factors
in another way.
In what
one, two or three areas would failure to perform
well hurt you the most? In short, where would you
most hate to see something go wrong?"
and
"Assume you are placed in a dark room with no
access to the outside world, except for food and
water, today. What would you most want to know
about the business when you came out three months
later?"
As simple as these questions seem,
turned out
to
be
highly
effective
they
in assisting
managers to zero in on the few most critical
of their
responsibility.
55
_lj_m__
_
11
have
areas
One must, of course, use
a manager with at least a slight sense of humor
to
react well to it.
In general, each CSF interviewer
tends to
his
develop
set
own
of "CSF-checking"
These are the ones we use, however, and
questions.
they can serve as a starting point.
(b) Things to do while the manager is
always in
the
during
mode
"multi-processing"
Among the things that are helpful to do
interview.
while the
interviewer is
CSF
skillful
The
CSFs.
you his
telling
is
manager
down her CSFs (or even
in
few
a
"dead"
moments
of the interview if necessary) are
end
toward the
talking and you are writing
the following:
(1) Using the CSF
3,
in Figure
mentally
summarized
classifications
the list of CSFs to
check
ensure the interviewee has not focused on only
type of
example, some managers tend to
For
CSF.
think only of their internal
the roles
they
one
externally.
play
and
issues
overlook
The interviewer
should be aided in uncovering this oversight by the
initial mission and role description given
which
was
addition
In
interviewee.
performed
interviewer to
ask
the
the background research
should
about
by
also
the
help
relevant areas that the
interviewee has not mentioned, particularly in
the
area
For
of
external
example, especially
and
at
56
environmental
the
CSFs.
presidential
level,
consider
CSFs
involving
that
might
arise
environmental
out
factors
of
issues
such
as
competition, new technology, and regulatory issues.
(2) "Aggregate" CSFs to ensure that one CSF is
not
being
discussed
in
multiple
ways.
interviewees "get stuck" discussing one
is of
area
particular concern at the moment.
often echo the same
think
they
are
CSFs
in
talking
different
about
Some
new
that
They will
ways
CSFs.
and
The
interviewer should be aware of this possibility and
be ready to suggest that several
one.
Then
are
really
using techniques described earlier, try
to draw out others.
a manager
CSFs
to
Of course, it is possible
for
have only one or two CSFs, therefore
the interviewer should not try to persuade him into
more CSFs if it is not appropriate.
(3) Check to ensure that all
elicited, not
hard data.
are
being
only those that can be measured with
Even
talking about
CSFs
though
the
computer-based
CSF
method
avoids
information systems,
some interviewees limit their thinking to what they
believe
to
be
"computerization."
appropriate
Be
sure
to
CSFs
stress
that
method is designed to elicit all information
--
soft as well as hard.
like
"relationship
with
the
needs
Use examples of soft CSFs
the
boss,"
"supportive
spouse and family" to illustrate this point.
57
for
III
In sum, doing the interviews, the
should
check
to
be
sure
"helpful," not directive.
when
asking
questions
his
He
interviewer
involvement
be
careful
not
covered
should
areas
about
is
directly by the manager to not indicate a judgement
His
on his part.
job
is
not
convince
to
Most
interviewee of his CSFs but to draw them out.
managers will
not
be
interviewer but one
unduly
should
the
influenced
by
the
sensitive
to
the
be
possibility.
On the other hand, as suggested by points 1-3
above, the
interviewer
should be sure that he has
in
"stretched" the manager as far as possible
thinking during
the
The
interview.
majority of
with
interviewees have no difficulty in responding
their CSFs.
Some,
however, do not understand the
concept and need a great deal of prompting.
possible, the
examples and
interviewer
anecdotes
should
from
assist in such a situation.)
in which
one
must
be
be
(Where
ready
interviews
past
This is
a
with
to
situation
extremely sensitive to the
problem of "leading the witness."
must walk
his
The
interviewer
the narrow line of eliciting information
without creating the answers.
5.
Prioritize CSFs.
manager is
often
Some
further
insight
into
the
gained by having the interviewee
put CSFs in priority order.
58
Abosolute
priorities
are not essential:
general
interviewee views
as
indications of what the
most important will suffice.
In fact, many managers will
and
it
prioritize
is not necessary to do so.
CSFs,
They are, after
all, a small high-priority set of things --
all
which are
is more
critical
6.
not
critical.
Quite
no one
than the others.
to
time
Where
Determine Measures.
useful
often
determine
for
measures
CSFs have
determined
been
it
is
and
to
permits,
CSFs
identify the sources of these measures.
and
After
the
prioritized,
the
ways
interviews should proceed to discuss possible
each.
of measuring
creativity.
This
appear unusual.
in
which
factor now.
an
area
for great
may
come
up
are meaningful
she
The
measures
interviewer
on
her
subsequently acquired
indicating
the
status
may
wish
initial
here.
The
the
of each
to
make
preparation or
knowledge.
"leading"
with
to her but which
The interviewee is
suggestions based
danger of
is
interviewee
The
measurements which
ways
of
There
is
no
interviewer
may
suggest a way of measuring that the interviewee did
not think of but likes and will use.
In general,
measures, does
this
not
final
need
the initial CSF interview.
if one
has
extra
time
59
step,
determining
to be carried out during
It is certainly
useful
at the end of the initial
III
interview.
entire
However, it can wait
initial
CSF
exercise
primer has been completed.
information data
bases
until
described
in
Then, when the
have
the
this
desired
been decided upon, a
more probing second-stage interview
Here measures
after
can
be
held.
should be defined in great detail to
zero in on the contents of the required information
data bases.
60
IV.
ANALYSIS OF DATA
They
There are two major steps in the analysis process.
are described below:
A.
classification and dimensions noted
the
reviewed against
be
should
Each interviewee's CSFs
Reviewing CSFs.
all
Section III to check whether the interviewee has covered
against" each other to see if each fits a
check interviewees
current
problems,
industry structure,
opportunities,
The
forth.
so
and
conditions,
competitive
managerial
common
a
to
"pattern" of CSFs which appear due
perception of
In addition, one can
control noted?).
inventory
costs, and
quality,
as
such
CSFs
"role"
are
manufacturing manager,
interviewee is a
if the
(e.g.
job
his
of
areas
the major
in
interviewer has the background of his research, the interview
and
his
own
Primarily, however, the interviewer will have a
for the
after
the
major
gaps,
this
there are
be
should
to be reviewed and approved by the
addition to ensuring that the facts are
B.
version
of
interviewee.
In
noted
Interviews.
As
executives in
one
determining the
company
CSFs
correct,
this
step
information.
CSFs
Aggregating
a
interviewee.
It is highly desirable to prepare a written
may elicit additional
If
in
up
brought
subsequent review meeting with the particular
the CSFs
"feel"
good
of the interviewing.
start
company
review.
this
in
him
assist
to
experience
for
the
From
earlier,
is
the
61
the
Individual
interviewing
initial
step
company as a whole.
Manager
several
towards
By then
aggregating the CSFs
from
the
individual
interviews,
the
interviewer can discover exactly which information data bases
are most necessary to support the managers.
For example,
in
interviewees list
several
CSFs
instances,
that
we
have
had
deal with market analysis.
most of these cases, some of the information needed to
progress with
"hit/miss"
in
reports.
origin;
for
Other
example,
information
competitors
the
CSFs
pointed
directly
to
the
was
actions,
customers response patterns, and market share data.
however,
track
regard to these CSFs was internally generated,
e.g., sales
external
In
In
need
sum,
for
a
marketing information data base.
In another situation,
improving
chain,
employee
morale.
executives
development
and
the
were
president
Farther
concerned
training
for
named
down
the
about
their
a
CSF
management
professional
employees.
One
interviewee mentioned that employee turnover in his area
higher than
desirable.
the "personnel"
theme.
of
was
Many other CSFs in this company hit
The need for a human
resources
data
base was easily identified.
A CSF chart, such as the one shown on Figure 12, can
very useful
in
this
aggregating
circle the CSFs which point to
process.
particular
be
One can easily
information
data
bases.
At this point, the CSF data should be in convenient form
to feed
process.
into
The
the
company's
information
information
data
62
bases
systems
required
planning
for
top
management should
be
development.
too
willing
Not
given
consideration
for
priority
surprisingly, top management is often
to allocate additional
resources for the
development
of these systems.
Once a decision is made to go ahead
information data
base,
from
manager's
data needed for each measure.
data
structure
for
each
In
for
this
information
63
_ _______
identifying
measures
established.
__
a
particular
a second phase of interviews begins.
Here the emphasis switches
determining each
with
the
CSFs,
to
his CSF's and the
way,
data
the
base
necessary
can
be
References
1. John F. Rockart, "Chief Executives Define Their Own Data
Needs," Harvard Business Review March-April 1979, p.
81.
2.
D.
Ronald
Daniel,
"Management
Information
Harvard Business Review September-October 1961, p.
Crisis,"
111.
3. John F.
Rockart and Michael
E.
Treacy,
"Executive
Information Support
Systems,"
CISR Working
Paper No.
65,
November 1980 (Revised:
April 1981)
64