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The term "Key Success Factors": как достичь конкретной цели или задачи.


The key success factor. How to use it? 09 / February / 23 Homer Barton Visitors: 761 Rating: ★★★★★

The term "Key Success Factors" is used to refer to the key elements to achieve a specific goal or objective.

It is often used in the field of strategy and marketing because it identifies the elements that need to be implemented to achieve a particular goal. For example, increasing a company's competitiveness in its market by 2 points. They can also be used to target specific customers, for example: penetrating a specific market segment.

Essentially, it expresses what the company must do or achieve to achieve the goals outlined in the strategic plan.

DEFINING A KEY SUCCESS FACTOR

Key success factors can be of a wide variety of nature, they can be:

  •  the qualities the company must achieve (flexibility, reliability, variety, etc.);
  •  The characteristics of the product (price, size, image, features, etc.)
  •  skills to be mastered (technical skills, know-how, etc.)
  •  Specific relationships with third parties (customer loyalty, exclusivity of suppliers, etc.)

Every company has its key success factors, which change over time and also with the development of the economic sector. In order to determine the key factors of a company, it is necessary to consider the functioning of the company and the characteristics of the target market and/or target marketing segment. Indeed, to be part of a company's strategy, the key success factor must correspond to:

  •  The specific response of the company's commercial offering to the characteristics of market demand,
  •  a resource or strength that the company can provide or realize.

Note:

Proper use of key success factors is an advantage, but does not give a competitive advantage. It all depends on the level of competition in the target market and the quality of their offerings in relation to customer expectations.

 

Moreover, very often the success of a marketing strategy or plan does not depend on one key success factor, but on several, each of which has special importance or weight.

The disparity of FCS depends largely on the homogeneity of the target market and the level of organization of the company, the more homogeneous the segment, the more prominent and powerful the key success factors will be. Likewise, the better a company is organized, structured and efficient, the easier it will be to identify the strengths that should be exploited or the weaknesses that need to be refined.

To define and plan a strategy, a company must consistently articulate the following three elements:

  •  strategic objectives;
  •  strategic scope;
  •  key success factors.

WHAT IS THE IMPACT OF KEY SUCCESS FACTORS OR FCS ON THE COMPANY?

Identifying key success factors provides a significant advantage to a company wishing to grow its business in the industry. Indeed, the impact on FCS allows for greater efficiencies, resulting in:

  •  greater results;
  •  faster market response;
  •  better targeting and, therefore, less need for investment.

Through key success factors, a manager can:

  •  improve targeting of strategic actions;
  •  better take into account the expectations of employees;
  •  improve the qualifications of the company's employees;
  •  refine and reorganize the company's operational decision-making (execution plans, organizational structure, purchasing, production, marketing, sales, tools, technology, etc.)

HOW TO IDENTIFY THE COMPANY'S KEY SUCCESS FACTORS?

Identification of key success factors requires an internal and external audit of the company.

The information obtained will allow for a Swot and identification of the company's success factors (FCS). Swot is a strategic tool that allows you to identify the FCS and choose a strategy, combining the strengths and weaknesses of the company with the opportunities and threats in the market.

Combining Swot with well-conducted market research and tools to identify a company's strategic business areas or DAS, such as Porter's value chain, allows very effective strategies to be developed in most cases.

Regular updating of these elements is part of the strategic process.


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