KSF ANALYSIS Procedure V0701
Objective: The objective of a Key Success Factor (KSF) analysis is to identify a few strategic and/or operational areas for improvement or sustaining focus. This takes into consideration an industry analysis of those things that anyone in the industry must do well to continue to exist to your organization’s and key competitors state of attainment. In doing so you arrive at the few items where you have the greatest competitive advantage and disadvantage. These factors become the areas for your action.
Process:
1. Start by using the Excel template (04_Forms_for_Strategy_Development tabs KSF MY Co). This file contains several worksheets and also a set of KSF worksheets to demonstrate the following steps as well as a blank form you’re your personal use.
2. Under the column called FACTOR make a list of not more than 10 factors that must be done well in the industry you participate to survive.
3. In the column called WEIGHT, assign a percentage weight to each factors importance relative to each other so that the total adds to 100%.
4. Score your company’s achievement for each factor on a scale of 1 to 5. Whereby 5 is the best and 1 the worst and 3 being average.
5. Then score your key competitors. Do not compare more than 2 competitors to your score.
6. Multiply your score and the competitions’ times the weight for each factor.
7. Compare your results to the competitor and put the variance in the Variance Rated column.
8. Select the Factors with the greatest variance, negative and positive, for your focus. These become the areas of strategic and operational importance for you to develop tactics.
9. The results from a KSF analysis may or may not feed into a SWOT analysis. It depends on the level of detail being sought.
Process:
1. Start by using the Excel template (04_Forms_for_Strategy_Development tabs KSF MY Co). This file contains several worksheets and also a set of KSF worksheets to demonstrate the following steps as well as a blank form you’re your personal use.
2. Under the column called FACTOR make a list of not more than 10 factors that must be done well in the industry you participate to survive.
3. In the column called WEIGHT, assign a percentage weight to each factors importance relative to each other so that the total adds to 100%.
4. Score your company’s achievement for each factor on a scale of 1 to 5. Whereby 5 is the best and 1 the worst and 3 being average.
5. Then score your key competitors. Do not compare more than 2 competitors to your score.
6. Multiply your score and the competitions’ times the weight for each factor.
7. Compare your results to the competitor and put the variance in the Variance Rated column.
8. Select the Factors with the greatest variance, negative and positive, for your focus. These become the areas of strategic and operational importance for you to develop tactics.
9. The results from a KSF analysis may or may not feed into a SWOT analysis. It depends on the level of detail being sought.