The “So That” to Find Success Factors

Quick Insight

Critical success factors say "what" needs to be achieved. KPIs are the specific measurement of a critical success factor to achieve success. They clarify "how much." Take any of your metrics and ask "why" you need to achieve that target. Answer with a sentence that starts with "so that". Your answers will lead toward your critical success factors and strategy if they are aligned with them.

Critical success factors say "what" needs to be achieved. KPIs are the specific measurement of a critical success factor to achieve success. They clarify "how much."

The link between critical success factors and KPIs may seem obvious to you. The problem is many times metrics are picked completely apart from strategy. Industry benchmarks are picked as a KPI without linking them to that specific company's strategy. KPIs may be picked from a rule of thumb, long-held company metrics from an old strategy, or a list of metrics that someone pulled from the internet. 

Take any of your metrics and ask "why" you need to achieve that target. Answer with a sentence that starts with "so that". Your answers will lead toward your critical success factors and strategy if they are aligned with them. They lead to a dead end if they don't. There will be no compelling or critical answer for the metric.

Metrics picked without a link to strategy are not necessarily bad metrics. However, they don't guarantee that you're achieving your business's particular purpose or strategy.

I wish you increased effectiveness from aligned metrics and success factors. I wish you well.
- Rob Stephens

Further Insight

CFO Perspective Resources

  • Video: KPIs And Strategic Planning - KPIs are most effective when they’re integrated into your strategic planning process. In this video, I’ll explain how KPIs fit into a strategic planning process.
  • Course: Key Performance Indicators (KPIs) and KPI Dashboards - KPIs are more than metrics. They’re the foundation of your most important decisions. KPIs define success to drive success. This course explains: how to choose metrics,  KPI dashboard tips, the process of implementing KPIs, and managing with KPIs.
  • Book: Key Performance Indicators (KPIs) and KPI Dashboards - With well-defined and well-managed KPIs, you can align your company’s vision from the ground up and maintain steady progress toward your goals. Get tips on dashboard best practices. Avoid common mistakes managers make with KPIs. I’ll guide you through the implementation process so you can start achieving your goals ASAP.

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