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/ds-solaris
wireless
. 13 February 2001.