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The CSF is the linking element between the hypothetic goals of the strategic plan and the actual metrics of the operational activity. Those factors have the specific purpose of defining, describing and communicating the key areas where unconditional excellence is required to achieve those strategic goals. It is a way to prioritize and focus efforts to execute the strategy. Although they can be quantified, CSFs are not tangible metrics. Instead, they form a family of primary measurements related to KPIs
Primary Events
The strategic planning process should have identified the framework within which the organization’s visionary goals will be executed. The CSFs complement that information by providing the primary events on which to focus. It is inefficient for any organization or individual to try to excel in all possible activities. Thus, each event has a certain degree of relevance towards the mutual strategy. The critical factors for success are prioritized events. The intensity of focus increases with fewer numbers of factors. Therefore, an organization should distill a few of the most important events from the entire scope of its business activities.
Alignment
By linking the strategic plan with the actual operational metrics of business processes, CSFs provide a clear framework of alignment. Each CSF defines the events required for achievement of those goals. Since each CSF is not an operational metric by itself, it is directly supported by a set of operational key performance indicators. The principle of those alignments is the clear understanding and communication how individual actions of a business activity relate to the achievement of the visionary goals.
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