Critical success factor
A critical success factor is an area in which the organisation must perform well to achieve its objectives in its particular environment. It provides a link from strategy to meaningful indicators and actions. Factors can differ between business models and change over time. They are not the numerical measures themselves, and an apparent factor should be justified by its effect on strategic success rather than included because a standard framework lists it.
Worked example
For an emergency repair service, rapid reliable response may be critical. Response time, first-time fix and availability can then be candidate KPIs.
Common mistake
Do not list generic indicators without explaining which strategic success factor they represent and why it matters in the scenario.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |