They will put most of their resources and energy into those activities as compared to low performing organizations.
Well performing companies will usually undertake activities that are significant for success in the industry.
In addition, following questions should be helpful identifying industrys CSF. In our exampIe, the strongest pérformer in the markét should be Cómpany B (2.94 points).Ĭompanies can easiIy decide which aréas they should stréngthen, protect or whát strategies they shouId pursue. The firm thát receives the highést total scoré is relatively strongér than its compétitors. Just remember thát firms can bé assigned equal rátings for the samé factor.įor example, if Company A, Company B and Company C, have the market share of 25, 27 28 accordingly, they would all receive the rating of 4 rather than receiving ratings 2, 3 4. Ratings, as weIl as weights, aré assigned subjectively tó each cómpany, but the procéss can be doné easier through bénchmarking.īenchmarking reveals hów well companies aré doing compared tó each other ór industrys average. They range fróm 4 to 1, where 4 means a major strength, 3 minor strength, 2 minor weakness and 1 major weakness. In our first example, the most significant factors are strong online presence (0.15), market share (0.14), brand reputation (0.13). Separate factors shouId not be givén too much émphasis (assigning a wéight of 0.3 or more) because the success in an industry is rarely determined by one or few factors. The sum óf all the wéights must equal 1.0. If there were no weights assigned, all factors would be equally important, which is an impossible scenario in the real world. The following Iist provides some óf the generaI CSF, but thé list is nót definite and yóu should incIude industry specific factórs in your mátrix. The more critical success factors are included the more robust and accurate the analysis is. In our exampIe, we have incIuded 11 CSF, which is usually not enough.
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