Corporate (Group)
Critical Success Factors

View Template for: Corporate (Group) Critical Success Factors

The purpose of this section is to identify critical success factors (CSFs). Critical success factors are those things which must go right for the organization to achieve its mission.

The advantages of identifying CSFs are that they are simple to understand; they help focus attention on major concerns; they are easy to communicate to coworkers; they are easy to monitor; and they can be used in concert with strategic planning methodologies. Identifying corporate (group) CSFs in priority order, measuring results, and rewarding superior performance, will all improve the odds for long-term success.

Two obvious CSFs facing all corporations are: 1) selecting the optimal mix of businesses in which to compete; and 2) maximizing the interrelationships between corporate businesses.

Example of Critical Success Factors for Financial Software Company XYZ:

Critical Success Factor	Source of CSF	Primary Measures & Targets
1. Maximize shareholder value	Industry	Stock price; Discounted cash flows
2. Optimize business mix	Strategy	Weighted average of ....  industry attractiveness  scores of corporate SBUs
3. Maximize interrelationships  between SBUs	Strategy	$ amount of cross-selling; $ savings from sharing
4. Lower cost of capital	Environmental	Lower cost of capital 2%
5. Develop succession plan	Strategy	Identify potential CEO's by 12/31/03
6. Improve employee morale	Temporal	Increase employee retention rate above 95% / year
7. Improve corporate wide  strategic planning process (Yes!)	Strategy	Buy Structured Strategic Planning workbook for all key decision makers.

KEY for sources of critical success factors:

INDUSTRY
 = Industry CSF resulting from specific industry characteristics.
STRATEGY
 = Strategy CSF resulting from << Insert Group Name >>'s chosen strategy.
ENVIRONMENT
 = Environmental CSF resulting from economic or technological changes.
TEMPORAL
 = Temporal CSF resulting from internal organizational needs and changes.

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Last modified:   Tuesday February 19, 2008