Kendall Consulting Group Archive

Kendall Consulting Group - Archive

		Archive Articles in the archive were published prior to 1992. This material remains useful to our friends and clients, and continues to serve as a resource for academic research in the fields. The following article is one of the articles in the archive.
		Critical Success Factors: Helping IS Managers Pinpoint Information Need "Providing quality information to managers can be the key to meeting organizational goals." Robert Reck and Adam Crescenzi (Adapted from original submission to Infosystems, July 1985) Many of today's information systems (IS) managers are facing an "executive information dilemma." While it is clear that management needs understandable and action-oriented information, it is unclear how to identify this information and implement support systems that provide it in an easy-to-use form. Managers in many organizations complain that while they are receiving more information than ever before, the quality of that information is lacking. Quality information has four characteristics: Significance and relevance Managers need information relevant to the critical components of their businesses. They require data that informs them of what is necessary to meet organizational goals. For example, the chief executive officer of a large manufacturing firm might need data that answers the questions, "What is causing the erosion of the gross margin on Product A?" Quality information can also help managers take action. Reliability Managers need information accurate enough to meet their needs - and not necessarily of "accounting accuracy." It should come from a source a source with integrity. Timeliness Obtaining information after damage is done or after competition has gained the lead is ineffective. Data must be accessible when needed so that problems can be addressed before they occur and business needs anticipated. Comprehensibility Good management information causes a manager to say "ah ha!" It provides insights into the business. If the information is incomprehensible, it is worthless. Traditionally, data has been provided to management from the operational or transactional systems of the business. Although data from these systems is usually accurate and reliable, it is probably not significant, vital and action-oriented to management. The reason for this is that management information usually is an unfocused by-product of the operational systems. These systems contain data that support record keeping requirements and structured decision making; it is information for the operational staff. Management information is thus limited to the information content and analytical capabilities of systems that were designed to help run and keep records on the business but not manage it. One way to define a manager's data needs is to identify the organization's critical success factors (CSFs), a technique developed by John F. Rockhart of the Sloan School of Management at Massachusetts Institute of Technology. CSFs are those activities most critical to achieving business objectives. They are, simply put, the things that must be successfully accomplished in order for managers to meet objectives. For example, a business objective may be a market share of 20 percent. To reach this goal, managers must keep close to top customers and introduce new products on a timely basis. The process of identifying CSFs can be extended to identify management support systems' (MSS) needs of a business. Many companies have used this method to find out what really counts in a business. Knowing what the CSFs are and determining how they are measured enable IS managers to identify the support systems needed. The CSF approach has two major phases: definition and implementation. Definition begins by interviewing the key business managers who will be supported directly by the new system. (This is normally 5 to 10 managers in a unit.) In the interview process, each manager's view of the business' mission, objectives and CSFs is determined. After the results of all interviews are approved by the managers, they are compared. A composite view of the business is prepared by a skilled business analyst. This is then discussed by the managers at a CSF working session. An alignment and agreement emerges as CSF priorities are set. Next, managers determine the measures for both objectives and CSFs. Key data indicative of the behavior and performance of each CSF are identified. Business questions dealing with each CSF also are raised. For instance, if achieving customer satisfaction is one CSF, how do managers measure a change in customer satisfaction? What would managers want to know if a key customer reduced its order volume? A project team is now prepared to identify the MSS opportunities for the business. This is done by considering the data needs associated with the CSF measures in conjunction with the information technology required to support each CSF. The support system defined then is discussed at a working session with managers. The process now moves to implementation. To successfully support management, the system should use the appropriate technology, start small and grow in an evolutionary way. Managers need to be involved throughout implementation since they are responsible for the objectives and CSFs that the system will help them manage. Prototype versions of the systems are developed in successive iterations, beginning with representative data supporting the CSF measures and evolving to manually entered business data and to automated input. The way in which the data is presented can be explored with the manager to determine what form is easiest to use. This prototype approach dramatically improves the likelihood of success for the support system as it grows in complexity and sophistication. Each manager learns the technology involved and contributes to resolving problems and developing quality information. The CSF approach is effective for two reasons. First, it selects the right problems to be addresses by the support systems. Second, it incorporates a "top-down" process that focuses on what is important to the business and how it should be measured, and then uses an appropriate information technology. There are two keys to making the CSF approach work. First, involve the right participants. The major participants are the business manager and the analyst builder. The manager should be a knowledgeable, willing participant with a real need. The analyst should be able to bridge the gap between the business and technology to achieve pragmatic results. Second, use the right tools. The most common mistake is to complicate the selection process by trying to find the "perfect" technology on the first try. A better approach is to fit the tool to the task. Do not push technology for technology's sake. If carried out carefully, the CSF process will allow IS managers to bridge the gap between technology and the information requirements of managers. # # # To Top of Page
				Links to other articles may be found at the bottom of this page.
		Links to other articles at KCG's website Innovations Articles • Measures of Success for Internal Consulting Orgs (NEW!) • Consultative Selling (New) • Trends in Consulting (New!!) • Commentary on Trends in Consulting (new) • Marketing of Consulting Services (new) • Skills and Competencies of Successful Consultants • Consulting Skills Development Experience (new) • Effective Uses of I.T. Staff as Internal Consultants • Strategy Implementation (new) • Organizational Due Diligence (Mergers and Acquisitions) • Principle Driven Operations • Change Management • Education's Role in Change Management • Communications and Change Management • Value Disciplines • Role of IS Strategy in Making Market Leaders • Strategic Planning and Change Mobilization • Project Management • Grow Your Own Consultants Archive Articles (below) • Designing Executive Information Systems • Executive Information Systems: An Overview of Development • Implications of Transition From an Industrial Era to One of Information • Critical Success Factors Techniques can Apply to Team Management, Too • Decision Scenarios Ensure Information System Meets Business Needs • Critical Success Factors : Helping IS Managers Pinpoint Information Needs • Combining Quality and Reengineering for Operational Superiority • Steering IS Committees Straight • Internal Consultants and a Consultative Approach • EIS Plays Critical Role in Reengineering • Rapid Software Selection

Kendall Consulting Group is an international general management consulting firm specializing in strategy execution, change management, and executive education. We invite you to contact us for how we might help you and your company grow and prosper. You may reference and use the material from any of the articles provided that full written credit is given to the company and authors in your work. © 2002 Kendall Consulting Group of Sarasota, Inc. All Rights Reserved.