What is the primary difference between kpis and csfs?

The main difference between a KPI and a CSF is that performance indicators reflect the level of success, while CSFs point out the cause of success. ... The KPI is what makes an objective quantifiable and the only way to reach your targets is by identifying the factors that influence your objective.

What is the primary difference between KPIs and CSFs?

Some people use them interchangeably or confuse them, but they're two totally different concepts. The easiest way to understand them singly and in contrast is by understanding that CSFs are the cause of your success, whereas KPIs are the effects of your actions.

What is the difference between KPI and performance measure?

A KPI, or Key Performance Indicator, is also a measurement. Like metrics, KPIs must be very well defined and are also quantifiable. The difference is that these types of measurements relate to a specific strategic business goal and reflect how successful the business is in achieving that goal.

What is the difference between KPI and KRI?

A KRI is a Key Results Indicator and you may be surprised to learn that most of the metrics you think of as KPIs are actually KRIs. ... The basic difference is that KRIs and KPIs is this: KRIs are trailing indicators. They are business outcome-based measurements.

What is an example of a KPI?

Examples of Sales KPIs

• Number of New Contracts Signed Per Period.
• Dollar Value for New Contracts Signed Per Period.
• Number of Engaged Qualified Leads in Sales Funnel.
• Hours of Resources Spent on Sales Follow Up.
• Average Time for Conversion.
• Net Sales – Dollar or Percentage Growth.

What are the 5 critical success factors?

As a reminder, the 5 Key Success Factors are:

• Strategic Focus (Leadership, Management, Planning)
• People (Personnel, Staff, Learning, Development)
• Operations (Processes, Work)
• Marketing (Customer Relations, Sales, Responsiveness)
• Finances (Assets, Facilities, Equipment)

What are CSFs and KPIs?

These are the critical success factors (CSFs). ... Key performance indicators (KPIs) are the way to measure whether the CSFs are working. Using CSFs and KPIs helps a business stay focused on the key actions that will keep it on track to achieving its goals.

What are the 5 key performance indicators?

• 1 – Revenue per client/member (RPC)
• 2 – Average Class Attendance (ACA)
• 3 – Client Retention Rate (CRR)
• 4 – Profit Margin (PM)
• 5 – Average Daily Attendance (ADA)

What are the three types of KPIs?

Types of KPIs include:

• Quantitative indicators that can be presented with a number.
• Qualitative indicators that can't be presented as a number.
• Leading indicators that can predict the outcome of a process.
• Lagging indicators that present the success or failure post hoc.

What makes a good KPI?

Good KPIs: Provide objective evidence of progress towards achieving a desired result. Measure what is intended to be measured to help inform better decision making. Offer a comparison that gauges the degree of performance change over time.

What is KPI KRI in HR management?

Human Resources key performance indicators (HR KPIs) are metrics that are used to see how HR is contributing to the rest of the organization. This means that HR KPIs measure how successful HR is in realizing the organization's HR strategy. The HR strategy follows the organizational strategy.

What are examples of key risk indicators?

KRIs are indicators or metrics that are used to measure risks that the business is exposed to....

Examples might include:

• Financial KRIs: economic downturn, regulatory changes.
• People KPIs: high staff turnover, low staff satisfaction.
• Operational KPIs: system failure, IT security breach.

What are KCI's?

A Key Control Indicator quantifies how effectively a specific control tool, approach, or methodology is working. ... Key Control Indicators (KCIs) are used to define the company wide controls to and monitor the achievement of the set objectives.

The key difference between CSF and KPI is that CSF refers to the causes for success whereas KPI refers to the effects of success.

CSF stands for critical success factors while KPI stands for key performance indicators. Both CSF and KPI are quite common concepts in the modern business world and used as tools to measure the progress of the business. CSF results from an organization’s mission and strategic goals. Companies can develop KPIs according to the CSFs they identify.

CONTENTS

1. Overview and Key Difference
2. What is CSF 
3. What is KPI
4. Relationship Between CSF and KPI
5. Side by Side Comparison – CSF vs KPI in Tabular Form
6. Summary

What is CSF?

CSF stands for Critical Success Factors. This is used to identify a limited number of areas to ensure the performance of the company. In other words, identifying critical success factors of a company will lead to track and measure the progress towards accomplishing strategic goals, and finally the mission of the company. A CSF is a high-level goal that is essential for a business to meet. Furthermore, it determines what’s most significant in ensuring the progress and stability of the company. CSF is also known as Key Result Areas.

The following are examples of CSF.

1. Increasing market share with the existing customers
2. Achieving On time in Full (OTIF) through excellent on line process improvement.

Identifying and communicating CSFs within the firm ensures that the business or project is focused on its objectives. Moreover, this reduces the effort and time taken to focus on less important areas.

What is KPI?

KPI stands for Key Performance Indicator. This is used to measure the performance of a company in terms of achieving organizational objectives. KPI can evaluate the performance of an individual as well as organization performance. Firms use KPIs at multiple levels to evaluate their success at reaching targets. Most of the time, KPIs are measurable values. For instance, to increase sales revenue by 20% this year. Generally, the best KPIs are SMART. SMART stands for Specific, Measurable, Attainable, Relevant and Time-bound.

Moreover, high-level KPIs are given to top management for organizational performance while low-level KPIs are given to middle-level management to drive organizational objectives. It is important to understand the organizational objectives and its impact on the business when developing a strategy to formulate KPIs. Furthermore, Objectives and KPIs may vary from organization to organization. The progress of KPIs has to be reviewed in a timely manner.

What is the Relationship Between CSF and KPI?

CSF and KPI have a close relationship in achieving the progress of a company. CSF results from an organization’s mission and strategic goals. Companies can develop KPIs according to the CSFs they have identified. Moreover, KPIs have measurable and specific criteria; the top management uses them to evaluate the performance of the company. They also provide data that enables organizations to decide whether CSFs have been met or objectives have been achieved.

What is the Difference Between CSF and KPI?

The key difference between CSF and KPI is that CSF is the cause for success whereas KPI is the effects of success. In general, KPIs are more descriptive and quantitative than CSFs. For instance, a company can identify CSF as “significant increase sales volume in European markets” and to drive the identified CSF, a KPI can be assigned as “Increase sales revenue in European markets by 10% against last year, by year-end.”

KPIs need to be SMART, but there is no specific requirement for CSF to be smart. KPIs are assessed or evaluated in a timely manner by top management while CSFs do not need to be evaluated. In general, CSFs are identified by top management whereas KPIs are assigned by department heads to drive CSF or company objectives. Moreover, KPIs are used to evaluate individual performance whereas CSF is not used to evaluate individual performance. Another difference between CSF and KPI is that most CSFs are quite universal across the business world whereas KPI differs from company to company and depends on the business situation.

Both CSF and KPI are quite common concepts in the modern business world. They are useful as tools to measure the progress of the business. The key difference between CSF and KPI is that CSF can identify the significant factors for the company, leading to finding the causes of success, while KPI can measure or evaluate the success of an organization.

Reference:

Image Courtesy:

1. “QA-project” By Camargo4 – Own work (CC BY-SA 4.0) via Commons Wikimedia
2. “SMART-goals” By Dungdm93 – Own work (CC BY-SA 4.0) via Commons Wikimedia