Key Business Factors

Steven Thorne

Overview
What are Key Business Factors Understanding Key Business Factors George Steiner Japanese Approach Examples in real world

Introduction
Key Business Factors ?
Measures or indicators that are significantly related to the business success of a particular firm.

Understanding Key Business Factors

If you dont know where youre going, you probably will not get there. (Yogi Bera) Contribute to the overall improvement of a firms business results. Each firm is unique

Understanding KBFs
Factors that all firms must address from the beginning.
Good Products and Good Service Marketing Satisfaction Minimization of costs Managing of Assets Cash Flow Etc.

Understanding KBFs
Example
A key business Factor for an organization may be getting the deliveries out fast and reliably

Cross-Functional Teams
Teams that enlist people from a variety of Functional groups within the firm
(Dr. Thomas Foster)

Exercise
Form Groups of four to six people
Should include a secretary (note-taker) Brainstorm some key business factors that would be relative for a financial firm or institute

George Steiner
Study on the Strategic Factors of Business
Survey to 700 executives, treasures, planners, and others of many Financial Institutes Provided a list of Factors Asked to rank the importance of each 1-5, 5 being of most importance

George Steiner
Factors for Todays Performance
Most important factor was to Raise Short-term Capital 2nd was to Raise debt at low cost Raise equity at low cost Get High quality Top Management

George Steiner
Factors For Future Importance
The most important factor for the future was to Get High Quality Management Others included
- Managerial Drive for Profits - Train future Domestic Managers - Better Long-range Planning

George Steiner
Top 10 factors listed by Chief Executive Officers
Get High Quality top management Managerial drive for profits Train future domestic managers Vigor in sales organization Service to customers

Georger Steiner
Top ten Contd
Better employee relations Better overall control Better long-range planning Competitive stockholder return Maximize stockholder return

Japanese Approach
Use three variables to determine Key business Factors
Business Results Employees morale Corporate Flexibility

Business Results
Ranking of the top 5 Business factors contributing to Business Results
Ratio of R&D expenditure to sales Ratio of new equipment New-product ratio Channel of distribution Employee Morale

Employee Morale
Top 5 Business factors contributing to Employee Morale
Wage Levels Level of basic research Computerization Human Resource Development for rank and file employees Level of applied research

Corporate Flexibility
Top 5 business factors positively contributing to Company flexibility
Employee Morale Ratio of R&D expenditure to sales Overseas strategies Presidents Type Business Goals (3 years ago)

Solaris Wireless
Key Business Factors
Retaining Existing Customers Cost Efficient and Rapid Delivery of services 24X7 Grow With Your Business

United States Army

Key business factors
Rate of deterioration of our infrastructure Political Support for studies and projects Demand for products and services in our areas of expertise Reputation of the District for delivering quality products and services, on time, within budget

U.S. Army KBFs Contd

Safety Record on corps projects Funding availability and authorities Environmental consciousness of the public and the Corps

Summary
Key Business Factors are not easily defined, they often involve team decisions and non bias goals for an organization. The overall objective for identifying Key Business Factors is to improve business results. These results will improve the companies profitability and market share.

Bibliography
Shimizu, Ryuei. Success Factors. Tokyo: Chikuro Shobo, 1989. Steiner, George. Strategic Factors in Business. New york: Financial Executives Research Foundation, 1969. Resnik, Paul. The Small Business Bible. New York: John Wiley & Sons, 1988.

Bibliography contd
www.mvs.usace.army.mil/stra_pla n.pdf. 15 February 2001. www.sun.com/solaris/ds/dssolariswireless. 13 February 2001.