In the project that you do, you want to realize success by completing all the tasks, processes successfully to meet the expectations of the customers. There is one method that contributes to this success.
Before we talk about critical success factors in project management let us understand the 4 main types to understand which organization you belong to. Only when you understand this you can know how to implement it in managing projects.
1. Industry CSF – Based on the character of the business. For example, if it is a product development start-up business, then CSF will be an innovation. It is important to always find novelty to get into the market as a startup. On the other hand, an established service firm will aim at customer retention as their CSF.
2. Strategic CSF – This is now narrowing down to the strategy your business will use to win the competition. For example, a cost-effective solution is one strategy, and producing in large volume is another.
3. Environmental CSF – This is purely the environment that influences the business. It can be the location your business is in, the people, or the competitors who decide the CSF from time to time.
4. Temporal CSF – The internal modifications in the business are called temporal and as the name implies, they are temporary. It can be handling the specific issue at a given point in time.
1) People – People are the resources needed from the start to the end of the project. You need the people at the right time and at the right place to do the right thing. Without people, everything will fall apart and thus becomes useless. Unless there are people to realize the benefits, to do work, to manage, to contribute to the work, to control, and to deal with other stakeholders.
There are various personnel resources as per the Prince2 they are
There is no project without the people. So you must have the people hiring and people management as the key but more importantly, the key resources are the people who do the actual work.
2) Project Plans – There must be thorough planning in place from the project start to project finish. The plans as per the prince2 are for example the project plan, stage plan, team plans, etc. The project plan consists of the most detailed steps on the project, such as the roles and responsibility, how to achieve the delivery, where, when, and who will work on the detailed plans and how to do the work and so on.
3) Communication – Communication is the key to any project, one should deeply look into this success factor. Projects come in various shapes, sizes, scope, risks, and benefits. Moreover, the projects as seen in the above factors consist of people who work on the project and make the delivery to the customer. To make it a successful project various communication channels must be opened such as the customer relationship, account ownership, customer engagement, team management, team engagement, project monitoring, etc.
There are a lot of documentations also created such as
So who will create and who will read this, different stakeholders create and different stakeholders that read it. One of the important things is how we will communicate with each other such as team meetings, project meetings, and customer meetings, etc.
4) Managing Risks – No project is perfect and no project is there without issues and risks in it. The risk is defined by threat with treating actors’ exploits vulnerabilities with the probability of occurrence affect assets and causing an impact. At minimum Prince2 recommends the creation of risk register and risk management plan. The risk register consists of parameters such as assets, threats, vulnerability, CIA (Confidentiality, Integrity, and Availability) values for probability and occurrence, risk score, risk statements, risk treatment plan, year, residual risk, qualitative and quantitative risk analysis etc.
The risk management plan consists of
The negative risks are treated in the following ways, avoid, transfer, accept, mitigate, share, and prepare for contingencies. One must prepare for this uncertainty in the projects and assess them, treat them, monitor them, and finally communicated and reported. One must have a thorough communication channel for highlighting the risks to the top management.
5) Project Closure – There must be strong project closure such as obtaining the sign off for the deliverables. One of the most important things is to release the resources of the projects so that there is no cost incurred and resources can be utilized for other purposes. So strong project closure is one of the critical success factors.
Understand the above five to have a clear picture of What is critical success factor? After this, we will move on to know its importance in projects.
For example, we can evaluate the construction company and see what the critical success factors are.
Constructions of House is the deliverable
Conclusion - Get ready to implement critical success factors in project management
Are you ready to implement the CSF? Prince2 strongly recommends the implementation of the CSF for the successful delivery of the project. We recommend you to take up the online training in Prince2 Foundation and practitioner with StarAgile and plan for the certifications. To register click on the link provided and keep reading other blogs from StarAgile.
>4.5 ratings in Google