In ITIL we often use the term ‘Critical Success factors (CSFs), it is nothing but a list of things that tells you whether the project is going in the right direction. CSFs aim at answering a few questions like why one is going for change management, what are the customer requirements, and how is one hoping to achieve them. Unlike key performance indicators (KPIs) which are metrics, CSFs are outcomes of change management. CSFs help you understand whether your mission to bring about changes has been successful or not and to what extent.
Answering the following few questions can help you understand whether or not your project is going in the right direction.
- What do customers complain about?
- Are you meeting customers’ needs in the present moment?
- Do you get a reasonable amount of change requests at the service desk?
- Do you have business initiatives that will help you surpass current capability and enhance client satisfaction levels?
When you start with the change management process according to ITIL best practice guidance, keep in mind that you need to keep it simple and start with things that are easy. Avoid undertaking too many at one time. Choose those aspects that are most important for your organization.
Difference Between CSFs and KPIs
Before moving further with the discussion, we need to first try to understand the difference between CSFs and KPIs.
Critical success factors are often the vital elements that are needed for the success of a project or an organization’s mission and vision. They represent things that need to be in place for your project’s objectives to see the light of success. A KPI on the other hand denotes whether a performance is good or bad, whether it needs improvement or not, to what extent, etc. KPIs denotes a defined performance level needed for a set of factors to achieve success.
For example, an IT department is going through turmoil at the present moment, and services are not running as expected. Therefore, the critical success factor, in this case, is the restoration of normal service. The key performance indicator, in this case, will be the average time required for service restoration, and the promptness of restoration after the go-ahead has been given.
Similarly, for example, a bank is trying to recover its loan amount from customers on the defaulter’s list. The CSF in this case will be the percentage of the loan amount collected versus the total amount pending.
Significance of CSFs in ITIL Change Management
Sometimes when you are working with ten other members on a project, it often becomes difficult to pull everyone’s attention in the same direction. You may find one thing to be important for change management, while your colleague may find something else. CSFs are the essential areas or activities that must be paid attention to in order to achieve the mission and goals of your organization. The best approach is to identify the CSFs by all team members in a consolidated manner and then move on with this common point of reference. This will enable everyone to work within the right context, undertaking the correct approach.
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Using the Tool – CSF:
For example, ABC is a farm fresh shop. It aims to be the number one in its locality by making the highest sale and being the most popular among customers. The objectives set by the farm include the following.
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- Gaining market share by at least 30%
- Get fresh farm supplies for maximum products to get customers’ attention
- Expand the variety of products to increase the number of customers attending the shop
- Have sufficient amount of space in the store to accommodate a large supply of varied products
Now, in order to achieve the goals set by the store owner he needs to find out the critical success factors. Below are the possible CSFs in this case:
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- Arrange investment or finance for expanding the store.
- Manage the construction or expansion of the store without causing disruption to the business.
- Increase the competitiveness with other stores in the same locality.
- Sustain good rapport with suppliers to get a fresh supply of farm products daily.
- Retain the good quality of products so as to build a solid place in customer’s minds.
- Source new and variety of products.
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Identifying Critical Success Factors:
In order to identify the CSFs of your project, a step-by-step process has to be developed. When you pen down the areas of improvement within your organization, you may come up with 30 odd areas that need attention. However, not all of them can be worked upon at the same time. This needs to be thin-lined as per the performance management goals set by the company. Here are a few steps that can be followed to identify the most appropriate CSFs as per the goals of your project.
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Determine Existing Success Factors:
Once you start with the process of identifying the CSFs, your first job should be to review all the existing documents and identify the success factors that have already been identified before. Also, interview the old officials within the system to find out what according to them are the key factors to determine whether the project is running as expected. On the basis of your research, jot down the existing success factors.
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Hold CSF Workshop:
Your second step should be holding a CSF workshop where you identify all the oracles of the organization. By oracles we mean, the ‘go-to’ people across all functions of your organization when you have any questions or doubts. Identify the CSFs in discussion with oracles.
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Conduct Relationship Mapping Process:
Once you have the success factors in your hand, put all of them on a whiteboard and try connecting each other according to what impact one is having on the other. Success factors impacting a maximum number of other success factors should be prioritized. Hence, you can decide which to focus on as critical to the success of your project.
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Finalize CSFs:
Once you have the list of success factors, you need to shortlist the most critical among them. In order to arrive at a conclusion regarding this, you have to discuss it with senior management and identify stakeholders, employee union representatives, and employee focus groups.
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Communicate to Employees:
Once the CSFs are identified, it is very important that the same is communicated to employees. That will help them align their work in line with what is most important and what can be done later.
We have seen how CSFs play a critical role in ITIL change management. However, identifying the appropriate CSFs is critical for the success of a project.
