Critical Success Factors – Meaning and How to find them for your Business

It is really difficult to get the actual knowledge of the business situation since there are lots of matters that are competing just to get attention in the business. Critical Success Factors are one of those results-driving factors that deserve your maximum attention when you are dealing with business management.

When it comes to successful channelization of a business, putting everyone in a team and dragging them in one direction is difficult. To make them focus only on the true essentials are important. It can be only helped by Critical Success Factors (CSFs). and we also learn

What is Transnational Strategy and its role in Marketing ?

Businesses these days are becoming increasingly global. They are reaching out to every corner of the globe to make their presence felt and gain customers. This requires a centralised objective and goal in place to start off with and strategies to achieve these common goals, which is called as ‘Transnational Strategy.’

The business arm in every part of the globe needs to work in tandem and work towards achieving the same objective and not different ones.

This requires significant planning and strategising. Every country has a different culture, different people, different languages, different laws and most importantly a different business climate. In spite of all this a business has to be able to weave the resources together to stitch their final outcome while respecting and taking cognizance of the various difference that arise as a result of multi country operations.

The objective to be achieved has to be the same in every country. The business has to go about its operations in different ways to suit the location of existence but will have to work toward the same objective.

Cultural differences are difficult to tackle as they are sensitive issues and need to be dealt with patience and understanding. What is important is coordinating value added activities that can affectively harness the potential that lay within the similarities and differences of the markets.

Learning and experiences from one market need to carried out to other markets. Needless to say, it is imperative that the marketing strategy needs to be in sync with the overall transnational strategy.

There are companies that use different brands in different countries as each brand has a particular type of positioning that appeals to people of a certain culture and practice. Other businesses use the same brand name in all the countries. Recently a study from Harvard Business School has suggested that having the same brand name across all the countries of operations makes the transnational strategy more effective.

Another important aspect of transnational strategy is contingency planning for unforeseen circumstances. This is considered by very few companies. Because of geographical differences that arise between countries, some countries are more prone to natural disasters as compared to others, Example Japan. Companies also factor these attributes when they make a transnational strategy.

What are Critical Success Factors?

It is also recognized as Key Result Areas. These are the areas where the activity has to be done to achieve a mission, the main objective of the business.

With the help of the identification of the Critical Success Factors, you can make a focus point to refer, which can help you in measure and direct the success of your project.Guide To Understanding Critical Success Factors - 1

With that focusing point which is common to everyone, the CSFs can make the people understand about the essential thing to do in the team. It makes people do their work in the right manner and finally pulling into the one single objective.

Let us now have a look upon the definition of CSF:

You can understand CSF as top-level goals or variables that are essential to meet to get positive and productive results for a business. Survival and successful channelization of businesses depend upon these factors.

Understanding All About CSFs

So, it was presented for the first by D. Ronald Daniel during 1960s.

Then it was further built by John F. Rockart, MIT Sloan of Management. It has been in use for the help of the business implementation mainly to help in their project and their strategies.

Certainly, the concept Critical Success Factors has developed; you must have seen the implementation of the ideas in numerous ways.

In this article, the simple definition of CSFs is provided, which is mainly based on original ideas of the Rockart.

The definition given by Rockart states that if the number of areas that are limited and if they are satisfied with the outcoming results, then it will be a successful performance of the organization.

These are the few main areas where the works must be performed in the right way to flourish the business. If the final results are not sufficient, then the effort done by the organization will be not as much of the desired for the particular period.

The conclusion given by Rockart is that the activity areas should get the care and the constant attention from the management.

So, Critical Success Factors are related to those strategies and the mission of your project or business. However, the goals and the mission focus on the aim and what you must achieve.

Critical Success Factors mainly focus onto the essential areas, and it reached to the heart of how you can achieve and what exactly you have to achieve.

How to find Critical Success Factors for your Business?

Critical Success Factors for your Business

There are certain things that you need to do to find out the proper critical success factors for your business. Now the factors might be a bit different for the different business, but the process of finding them is just the same.

Hence, we are going to shed some light on this particular topic so that you can have an idea of what we are talking about. For those businesses who are looking forward to determining their company’s Critical Success Factors, reading this article would be one of the best things to do because you will be able to solve different problems with the help of these factors.

#1. Putting A Team Together To Work For CSFs

Before going for any kind of step, it is really important to pull all of the people together to work in a team. This will help you in reaching the highest level for your organization. Moreover, it is also important to have a senior-level organizer.

Some other organizations prefer to keep a consultant for felicitating the work process, but, the discussion can be lead by you internally.

#2. Get The Thoughts And Important Feedback From Different Employees

Feedback From Different Employees

It is the most important note you must remember to have those employees who submit their feedback in some kind of form during the time of discussion for 10 to 15 level CSFs. But it also depends on your liking.

You can have some input that can be from other departments, or you can also come with the CSFs along with a group to shop some items, and you can easily get the feedback from them. The ideas which are given by your employees must be in consideration in any kind of project.

#3. Using Multiple Frameworks For Examining The Long-Term Goals

When it comes to an understanding of the long term goals for the business, this is one of the most important things to do for sure. Using these amazing frameworks might just take some time, but then these are pretty important as well. With the help of these frameworks, you will be able to determine and define the success factors for your business.

So, you cannot skip this step in any way. This is certainly very important for the success of the business, and you need always to keep it in mind.

There are some amazing frameworks that you can use, such as the OAS Statement as well as the SWOT Analysis. The OAS Statement stands for Objective, Advantage, and Scope.

This is a particular method which has been used by people because it helps in describing a particular strategy in the best sense for sure. The business will be able to properly start with the critical goals when such a statement is made into an action.

SWOT Analysis is another one of the frameworks that you can use, and it stands for Strengths, Weaknesses, Opportunities, and Threats. This is another framework which helps in optimizing the performance of the company, managing the competition, and also minimizing the risks for the company as well.

It is also important to make sure that you have a strategic plan in hand so that you can have the proper critical success factors which can be a great help in determining the success of the company.

#4. Determining Key Factors For Achieving Long-Term Goals

Implementing The Plan With The CSFs In Mind

Here is another tip for the businesses who want to have their critical success factors to get the best success for the companies that they have in the first place.

To get the critical success factors, one needs to have a proper plan in the first place, and that is what we have been trying to tell you to do in the points mentioned above.

Also, another one of the most important things for the business to do would overcome all the challenges which might take place in the frameworks which are mentioned above.

So, to do that in the best way, one also need to have an understanding of some factors which are responsible and helpful in achieving the long-term goals of the business.

The company needs to combine all the different key elements which they got from the analysis and the frameworks and then determine all the important factors which are essential for the success of the company. This is one of the most important things that are essential for the business to achieve the success that it wants.

However, it is not possible to just lump some of the high organizational goals and then hope that this will work out, right? So, the one thing that you can do is divide these critical success factors and then test them out with the help of the ‘perspectives.

There are some important aspects that you need to test out which you are trying to do something like that. So, this is certainly one of the most important things that you always have to keep in mind when you are trying to find out the critical success factors for the organization or the company that you have.

This will be a great help when you need to create the perfect plan to implement so that your company can taste the fruit of success in the best way. We are here to tell you that doing this is pretty simple if you follow all these steps.

#5. Implementing The Plan With The CSFs In Mind

Now that you have the critical success factors in hand, would you just leave them be and not do anything about it? What is the point of finding them out if you are not going to test them with the plan?

There are some actions that you need to take to implement the CSFs into the company of yours. You need to create a Balanced Scorecard to do that. This framework is a strategic one, and you will get to use your CSFs in the best way with the help of this.

Wrapping it up!

So, that is all we have for you today, people.

We certainly hope this article was helpful to you in understanding and finding out the critical success factors for an organization.

What are the Critical Success Factors for your business? Share with us in the comments below.

What is Transnational Strategy and its role in Marketing ?

Businesses these days are becoming increasingly global. They are reaching out to every corner of the globe to make their presence felt and gain customers. This requires a centralised objective and goal in place to start off with and strategies to achieve these common goals, which is called as ‘Transnational Strategy.’

The business arm in every part of the globe needs to work in tandem and work towards achieving the same objective and not different ones.

This requires significant planning and strategising. Every country has a different culture, different people, different languages, different laws and most importantly a different business climate. In spite of all this a business has to be able to weave the resources together to stitch their final outcome while respecting and taking cognizance of the various difference that arise as a result of multi country operations.

The objective to be achieved has to be the same in every country. The business has to go about its operations in different ways to suit the location of existence but will have to work toward the same objective.

Cultural differences are difficult to tackle as they are sensitive issues and need to be dealt with patience and understanding. What is important is coordinating value added activities that can affectively harness the potential that lay within the similarities and differences of the markets.

Learning and experiences from one market need to carried out to other markets. Needless to say, it is imperative that the marketing strategy needs to be in sync with the overall transnational strategy.

There are companies that use different brands in different countries as each brand has a particular type of positioning that appeals to people of a certain culture and practice. Other businesses use the same brand name in all the countries. Recently a study from Harvard Business School has suggested that having the same brand name across all the countries of operations makes the transnational strategy more effective.

Another important aspect of transnational strategy is contingency planning for unforeseen circumstances. This is considered by very few companies. Because of geographical differences that arise between countries, some countries are more prone to natural disasters as compared to others, Example Japan. Companies also factor these attributes when they make a transnational strategy.

Examples of Transnational Strategy Analysis & Marketing Swot Strategies

Apple is a good example to take. Ever observed the layout of Apple authorised retailers in India? India does not have Apple Stores yet but there are many authorised and exclusive Apple products sellers like iStore, Nyasa, Maple etc. Apple has mandated all these stores to have their store layout and interior design in sync with the Apple Stores. The kind of furniture used, or the way the products are displayed are all controlled by the head office. This is a classic example of marketing strategy being dictated by the transnational strategies. Apple wants to give the same look and feel to its customers all over the world. It does not want to compromise on the simplistic sophistication that its stores display.

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McDonalds is another good and common example to take. The menu of McDonalds is decided by the country they operate in, the country’s culture, its people’s tastes and preference and is influenced by the most common local ingredients. But if you see the overall feel and look of every McDonalds outlet, they keep it the same. Also the concept of combo meals or the iconic happy meal are all present and are offered to the customers. This ensures that the look and feel and concept of the outlet remains the same, but it also adapts to cultural preferences!

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