Question

It is very important that we objectively measure the progress of our strategic initiatives. This measurement involves use of critical success factors (CSFs) and metrics. What is the relationship between the two? Can you give an example of one CSF and the metric(s) that might be used with it?

Answer 1

Critical success factor (CSF) is an activity or set of activities which is important for an organization or firm to achieve its objective.

Metrics on the other hand is a numerical measurement that is used to measure progress of a project or report its outcome based on its objectives. Metric is a value which itself is meaningless but when combined with Critical success factors and KPIs gives it a meaning. Metrics are used in concurrence with KPI to measure CSF.

Example: ABC Corporation has launched its new service desk capabilities. Their objective is that maximum users reach out to service desk. For this purpose, ABC has defined its critical success factor for the first year - 50% increase in call volumes at service desk. At the end of the year, metrics of previous year are compared with first year of new service desk to conclude if the objective was met.

KPI in this example could be average 5% increase in volume of calls to service desk month-on-month.