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PowerPoint Diagram Pack

Key Success Factors


Key Success Factors, also known as Critical Success Factors, is the term for elements necessary for an organization or project to achieve its mission. This methodology is commonly used in data analysis and business analysis.
Effective Distribution Strong Brand Innovative Product Tiered Pricing Multiple Segmentation Low Cost Manufacturing High R&D spend Total

Relative Importance for National Regional Marketer Marketer 5 4 5 2 2 4 1 2 21 3 3 3 1 3 1 18

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Key Success Factors (KSF) and index of key success factors introduction
What They Are Why We Use Them

Key Success Factor (KSF): Key success factors:  Any dimension in which excellence is crucial for  Determines at what companies must excel to be successful competitive success, for example: in a business or segment Parts of the marketing mix  They should be the logical outcome (the so what) of PEST, Porter etc. analysis Research and development Index of key success factors: Low-cost manufacturing  Evaluate competitors strengths and weaknesses in areas  Also known as a critical success factor (CSF) that are critical to success  Analysis of KSFs is crucial in most studies of  To position our client relative to competitors competitive strategies:  Skill is in identifying appropriate KSFs Strengths & Limitations Index of key success factors:  A summary table that scores and ranks each  Benefits: competitor against the KSFs for the business or If rigorously applied, clarifies what capabilities or skills segment companies need to compete successfully Note: Index allows us to quantify competitors relative strengths  The important insights come from understanding what THIS IS A PARTIALagainst KSFs PREVIEW is key to success in the industry or segment: Index provides a structured, concise technique for The index is simply a device to display the output comparing document and You can preview the full PowerPoint competitors Refer to section on industry dynamics  Drawbacks:

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The KSFs and comparative index are only as good as the business understanding and judgement used to develop them
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Key success factors and index of key success factors how to apply them
Key Success Factors  Index of Key Success Factors

Determining KSFs requires a thorough understanding of a  The purpose of developing an index of KSFs is to business or segment, and therefore draws on several of understand: other analytics in the toolkit. Which ones are most important Relevant issues in understanding the business or How competitors perform relative to each key success segment are: factor How customers buy, and whats important to them in  Ranking KSFs, and scoring competitors, requires a good the purchase decision: understanding of the business or segments See key purchase criteria  Key steps in the process for ranking and weighting KSFs: Whos successful in the business or analytic segment, Identify KSFs (see box, left) and why. See: Give each KSFs a weighting reflecting its relative Company analysis importance (this is a non-trivial task): Financial analysis How would you allocate investment resources for a competitor? Trends within the business or segment Other sources of insights into key success factors are: Score each competitor against each key success factor: Clients executives/staff Document Industry analysts or commentatorsTHIS IS A PARTIAL PREVIEWthe rationale for each score Add up the total scores for each competitor Determining KSFs is an iterative process: initial research, developing draft hypotheses, testing and, refining these Convert the total for each competitor into a percentage You can preview the full PowerPoint document and hypotheses (i.e. what proportion of the perfect score it achieved?) download it at http://learnppt.com/powerpoint/ the relative  The resulting percentages indicate performance of each competitor

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Key success factors and index of key success factors illustrative output

Index of Key Success FactorsHypothetical Example


Relative Importance for National Regional Marketer Marketer 5 4 5 2 2 4 1 2 21 3 3 3 1 3 1 18 As National Marketer Competitor Competitor A B 4 2 5 2 1 4 1 2 19 3 1 1 1 1 2 11 As Regional Marketer Competitor Competitor A B 4 3 3 3 3 1 3 1 18 18/18 4 2 2 1 3 1 16 16/18 = 89%

Effective Distribution Strong Brand Innovative Product Tiered Pricing Multiple Segment Participation Low Cost Manufacturing High R&D spend Total

THIS IS A PARTIAL PREVIEW


19/21

11/21

Note: The scale does not matter. A five-point maximum per factor is convenient because people are used to making five-point scale evaluations.

You can preview the full PowerPoint document and = 90% = 52% = 100% download it at http://learnppt.com/powerpoint/

Source: MAC Group, Core Practice Manual.

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Key success factors & index of key success factors guidelines


Key Success Factors Identification Techniques
Technique I Environmental analysis (e.g. PEST) Focus Macro Sources Environment scanning (Corp. Staff) Econometric models Socio-political consulting services Advantages Disadvantages Future orientation More difficult to operationalise Macro orientation: analysis goes into specific industry or firm KSFs beyond industry-firm focus Results may not lend themselves Can be linked to threats/ opportunity to incorporate usage in current evaluation timeframe (todays KSFs)

II Analysis of industry Industry structure (e.g. Porter, Value Macro Chain)

A variety of industry structure frameworks

Specific focus is on industry Frameworks allow user to understand interrelationships between industry structural components Can force more macro level focus (beyond industry boundaries)

While excellent source for industry-wide KSFs not so useful in determining firm-specific KSFs

III Industry/business experts

Industry Micro

Industry association Means of soliciting conventional executives wisdom about industry and firms Financial analysts Subjective information often not specialising in industry discovered with more objective, Outsider familiar with firms formal and analytical approaches in industry Knowledgeable insiders who work in industry

Lack of objectivity often leads to questions in verifying/justifying

THIS IS A PARTIAL PREVIEW

IV Analysis of competition (focus is limited to the competitive environment, how firms compete)

advantage of detailed, specific data development limited to YouMicro preview the full PowerPoint document and can Line managers Internal consultants Depth of analysis leads to better competitive arena (as opposed to it at http://learnppt.com/powerpoint/ industry structure approach) means of justification downloadExternal consultants

Industry

Staff specialities

Narrowness of focus, offers,

Narrowness of focus KSF

Note CSFs = Critical Success Factors. Source: Leidecker and Bruno, Identifying and using Critical Success Factors, 1984.

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END OF PARTIAL PREVIEW You can preview the full PowerPoint document and download it at http://learnppt.com/powerpoint/

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