Whether you are managing a restaurant, nonprofit organization or a church, it is important to know that you are focusing on those things that help move the organization forward and achieving results.
Anyone who manages an organization understands how challenging it is to stop the day-to-day tasks and check to see how well the organization is performing.
It has been said that what gets measured, gets done but finding an easy way to evaluatate how the organization is doing is what keeps many in leadership from doing so.
A quality improvement tool that many organizations use is Critical Success Factors (CSF) which are indicators that measure how well an organization is accomplishing its strategic plan and objectives.
CSF are customized to each organization and help provide focus to steer the organization toward fulfilling its mission and vision through strategic objectives. These indicators of success are used to identify those things, that if done well, lead to breakthrough results.
Most organizations have between eight and twelve CSF and adjust them as strategy and strategic plans change. Having too many measures can make it difficult to target those things that would achieve the greatest results. Having too few limits the organization’s ability to move to the next level.
Targeting these indicators and monitoring them monthly provides a quick visual for how successful the organization is and keeping goals at the forefront is the best way to ensure they are achieved.
So what are some examples of critical success factors?
Example 1 - Restaurant Critical Success Factors
Critical Success Factor |
Target |
| Customer Satisfaction | 83% extremely satisfied |
| Market Share | 20% of 10 mile radius |
| Employee Turnover | 25% per year |
| Food Quality | 5% returned meals |
Example #2 – Non-profit Organization Critical Success Factors
Critical Success Factor |
Target |
| Number of Donors | 15,000 monthly donors |
| People Served | 2000 per month |
| Volunteers | 350 active volunteers |
| Customer Satisfaction | 92% extremely satisfied |
Example #3 - Church Critical Success Factors
Critical Success Factor |
Target |
| Weekly Attendance | 1000 per week |
| Volunteers | 200 active volunteers |
| Sunday School Attendance | 350 per week |
| Weekly Contributions | $20,000 per week |
| Visitors | 25 per month |
| Customer Satisfaction | 88% extremely satisfied |
Example #4 – Car Dealer Critical Success Factors
CSF |
Target |
| Sales Volume | 150 units per month |
| Diagnostic Accuracy | 3% error rate |
| Customer Satisfaction | 95% extremely satisfied |
| Market Share | 15% within 10 mile radius |
These are merely examples of the kinds of indicators that can be targeted and measured for success. Like any other business goals, CSF are only as good as they are monitored, measured and tracked for performance. There should be reporting processes put in place and these indicators should be reviewed on a monthly basis by senior leaders of the organization.
Successful organizations have learned how to tie their CSF to their strategic plans and use business goals to accomplish them. This is all part of a well designed performance management system.
Does your organization know what their indicators of success are?
photo courtesy: vmaurin
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