What Are Critical Success Factors? How Can They Be Identified

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The Answer is Those critical factors that tend to separate the winners from the also-rans within an industry-and whose successful implementation along with other hard-to-imitate elements specific to a firm may account for a firm's continued success within a particular industry-are called the industry's critical success factors, or CSFs. An industry's CSFs may be identified by asking two key questions: (1) Which few decisions or activities are the ones that, if gotten wrong, will almost always have severely negative effects on company performance? (2) Which decisions or activities, done right, will almost always deliver disproportionately positive effects on performance? An efficient and well-connected team enables firms to enhance the attractiveness of an opportunity because it is more likely to be able to ride out the inevitable winds of change. Connected people up and down the value chain are able to control the uncertainties involved with the attractiveness of an industry, and the success of the product by changing strategies according to requirements.

What Are Critical Success Factors? How Can They Be Identified

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