Determining Critical Success Factors

The final step identifies the factors that are critical, or the most risky, to meet the stakeholders’ values, expectations, KPIs, and targets already defined. Those factors will be used later to evaluate solutions that could apply. They are also the flip side of risk assessment and can be used to get started with mitigation.

Refer to Figure 10.7 (see the bottom center “CSF” section) for an example of the knowledge produced as a result of determining critical success factors.

Techniques

The techniques of determining critical success factors are well established. and are known to management, such as

• Practices benchmarking

• Risk management

Lessons Learned

Critical success factor (CSF) analysis explores the key factors in the minds of managers when it comes to ensuring success by their organizations. It’s important, however, that the exercise relate to those issues and changes agreed on as most important for the future. That is all the work that we’ve performed so far in the Business Context phase.

After reviewing the stakeholders’ values, expectations, and performance improvement targets, a business’s change initiative team should be able to complete the following statement: “To achieve the results we have defined for the chosen stakeholder group, it’s vital that...” the team should obtain only three to five responses per stakeholder type from each respondent for each relationship. After that, they are no longer dealing with critical items and are delving into wants rather than needs.

After you identify the critical success factors for all relationships, consolidate all perspectives and create a set of prioritized ones for the successful completion of the transformation program. Describe the reconciled CSFs, making sure that the interests of customers, owners, and staff are considered along with other stakeholders.

Determining critical success factors is closely related to risk management. Almost by definition, the opposite of a CSF is a risk because not attaining a CSF will put the objectives of the transformation program at risk. Risk management techniques can also be used to derive CSFs.