Key Success Factors
by afif on Nov.22, 2009, under
A key success factor is a performance area of critical importance in achieving consistently high productivity. There are at least 2 broad categories of key success factors that are common to virtually all organizations: business processes and human processes. Both are crucial to building great companies. Our focus is primarily on the human processes.
To some extent, every human process is a key success factor. We talk about organizational performance, but in truth, it's people who produce results. Human processes are constantly evolving to fit new technologies and changing circumstances, but every once in a while, major shifts occur that dramatically change what's required in each of the key success areas. We’re experiencing such a shift right now—moving from the industrial age to a knowledge-based economy in a global marketplace.
Globalization and information technology are placing different, challenging demands on leaders and organizations in virtually every key success area. Here are some highlights of these changes:
Leadership
"Command and control" leadership carried many organizations to very high levels of financial performance during periods when competition was not so great and things didn't change very fast, but its time has passed. The demands on the total organization are too great for a few people at the top to call all the shots. More
Vision
A compelling vision is one of a company's greatest assets. It can be a magnet for attracting talented people. It can serve as a beacon when people temporarily lose their way. It can be a source of energy and inspiration when people are encountering difficult obstacles. The CEO has a primary responsibility to shape, communicate and sustain the vision, but this need not be a solitary task. In fact the more people who can be involved in shaping the vision, the better. More
Communication
In most organizations, there have been 3 pervasive patterns that will no longer work in knowledge-based organizations: (1) the primary flow of information was vertical—within departmental walls that were often impermeable, (2) information was hoarded and used as a source of power over others, and (3) people at the top often withheld crucial strategic information from those lower in the organization in the belief they couldn't handle it. More
Teamwork
Teamwork is more crucial to producing results today than ever before, and at the same time, the very nature of teams and their functions are changing rapidly. In the past it was typical to go for long periods—even an entire career—as the member of one functional team. Today, membership on more than one team is the norm, and it is unlikely that anyone entering the work force will remain on the first team they join for more than a year at most. More
Strategic Alignment
Process reengineering and systems thinking are moving strategic alignment back to the top of many corporate agendas. It has become crystal clear that many of the greatest opportunities for productivity improvement lie at the interfaces of the processes used to produce products and serve customers—and it is fruitless to excel in one process while lagging in others. In fact, it's counterproductive. More
Conflict Resolution
The new economy increases the potential for conflict in virtually every area of organizational life. Stakeholders are more informed and frequently more demanding. Employees are being asked to do more with less—without the promise of job security that existed in the past. Aligning self-interests with corporate interests is not as simple as it used to be. Alliances, mergers, and acquisitions bring together different cultures and set the stage for major internal conflicts and power struggles. Developing good conflict skills needs to be high on everyone's personal and corporate agendas. More
Embracing Change
Individuals and organizations that change before they have to will be the winners in global competition. People vary a lot in their tolerance of change and in the degree to which they actively seek change in their lives. It is difficult to grasp the potential for the continuing acceleration of change on a global scale. With more people having more access to more information, it is reasonable to expect more innovation and more competition on a daily basis. Merely accepting change and learning to tolerate it will not be enough to successfully compete in the next century. We must welcome change as our friend. More
Learning Organization
Leaders and managers have always given lip service to the notion of people being their most important asset and to the need for continuous training and development. In most companies, however, it has been no more than a notion. Most have not been consistent in this crucial area. The same company that will spend $5,000 a year to maintain a machine will not spend $500 to develop an employee. Of all the key success areas, this one is changing the most. The future belongs to learners—to individuals that take responsibility for updating their skills and knowledge, to teams that consciously develop the deep dialogue that enables team members to learn from one another, and to organizations that continuously improve their ability to transform data into value-added, actionable information to serve customers.
To some extent, every human process is a key success factor. We talk about organizational performance, but in truth, it's people who produce results. Human processes are constantly evolving to fit new technologies and changing circumstances, but every once in a while, major shifts occur that dramatically change what's required in each of the key success areas. We’re experiencing such a shift right now—moving from the industrial age to a knowledge-based economy in a global marketplace.
Globalization and information technology are placing different, challenging demands on leaders and organizations in virtually every key success area. Here are some highlights of these changes:
Leadership
"Command and control" leadership carried many organizations to very high levels of financial performance during periods when competition was not so great and things didn't change very fast, but its time has passed. The demands on the total organization are too great for a few people at the top to call all the shots. More
Vision
A compelling vision is one of a company's greatest assets. It can be a magnet for attracting talented people. It can serve as a beacon when people temporarily lose their way. It can be a source of energy and inspiration when people are encountering difficult obstacles. The CEO has a primary responsibility to shape, communicate and sustain the vision, but this need not be a solitary task. In fact the more people who can be involved in shaping the vision, the better. More
Communication
In most organizations, there have been 3 pervasive patterns that will no longer work in knowledge-based organizations: (1) the primary flow of information was vertical—within departmental walls that were often impermeable, (2) information was hoarded and used as a source of power over others, and (3) people at the top often withheld crucial strategic information from those lower in the organization in the belief they couldn't handle it. More
Teamwork
Teamwork is more crucial to producing results today than ever before, and at the same time, the very nature of teams and their functions are changing rapidly. In the past it was typical to go for long periods—even an entire career—as the member of one functional team. Today, membership on more than one team is the norm, and it is unlikely that anyone entering the work force will remain on the first team they join for more than a year at most. More
Strategic Alignment
Process reengineering and systems thinking are moving strategic alignment back to the top of many corporate agendas. It has become crystal clear that many of the greatest opportunities for productivity improvement lie at the interfaces of the processes used to produce products and serve customers—and it is fruitless to excel in one process while lagging in others. In fact, it's counterproductive. More
Conflict Resolution
The new economy increases the potential for conflict in virtually every area of organizational life. Stakeholders are more informed and frequently more demanding. Employees are being asked to do more with less—without the promise of job security that existed in the past. Aligning self-interests with corporate interests is not as simple as it used to be. Alliances, mergers, and acquisitions bring together different cultures and set the stage for major internal conflicts and power struggles. Developing good conflict skills needs to be high on everyone's personal and corporate agendas. More
Embracing Change
Individuals and organizations that change before they have to will be the winners in global competition. People vary a lot in their tolerance of change and in the degree to which they actively seek change in their lives. It is difficult to grasp the potential for the continuing acceleration of change on a global scale. With more people having more access to more information, it is reasonable to expect more innovation and more competition on a daily basis. Merely accepting change and learning to tolerate it will not be enough to successfully compete in the next century. We must welcome change as our friend. More
Learning Organization
Leaders and managers have always given lip service to the notion of people being their most important asset and to the need for continuous training and development. In most companies, however, it has been no more than a notion. Most have not been consistent in this crucial area. The same company that will spend $5,000 a year to maintain a machine will not spend $500 to develop an employee. Of all the key success areas, this one is changing the most. The future belongs to learners—to individuals that take responsibility for updating their skills and knowledge, to teams that consciously develop the deep dialogue that enables team members to learn from one another, and to organizations that continuously improve their ability to transform data into value-added, actionable information to serve customers.
