Question

Define critical success factors (CSFs) and key performance indicators (KPI) Explain how managers use them to measure the success of MIS projects. and some examples about (Sabic) company for critical success factors and key performance indicators (900 wards)

Answer 1

There are two measurements with management that evaluate results to determine whether a project is meeting its goals in business , they are- Critical Success Factors(CSF) and Key Performance Indicators(KPI). Critical Success Factors are key factors/activities or areas required to achieve an objective within a project /program or strategy.They are the crucial steps a business takes to achieve their objectives or projects.If they are followed accurately by the business then can offer business competitive advantage. Critical success factors are different in each organization. CSF will reflect the current business position and future goals.If correctly targeted, it can help in business survival and reduce costs.example-training and education.

KPI Key Performance Indicators - Is a quantifiable measure used to evaluate the success of an organization in meeting objectives for performance. It is a measurable value that demonstrates how effectively a company is achieving its goals.It is used to measure progress toward CSF's and hence are more specific than CSF. KPIs provides a focus for strategic and operational improvement,can track effectiveness,project quality, compliance, behaviors, economics, project performance, personnel performance or resource utilization. KPI's are what a company uses to gauge its performance over time.

Managers find out and define the Key Performance Indicators and CSF of the MIS projects and measure business value that would help the managers understand customer expectations and then measure business value and then understand business drivers using KPI and CSF and the next step is to measure the project outcomes.This is how the managers use these measurements to measure the success of MIS projects.

SABIC 's critical success factors are- Technology - the company directs its efforts toward developing technologically advanced and complex products.Thier success lies in their customers who look for such sophisticated products.Another one is Innovation- The company focusses on offering customers more technologically advanced products and design products that meet global demand which increases their customer demand.These provides the company competitive advantage.KPI of SABIC are many as there are many to be developed in each case.example the company uses -  “EHSS rate,” which captures a comprehensive range of incident types, including accidental releases to the environment, process-safety events, occupational health-and-safety injuries, and illnesses and security incidents.