Identify the CSF to be measured by choosing one among the various CSFs you had initially set out to achieve. Measure one factor at a time to have clear results about the progress of each CSF.
List the goals and objectives that were attached to each CSF. Go back to the list of CSFs and establish what the aims of performing that specific CSF were. Note that CSFs must have accompanying goals and objectives.
Define performance metrics by applying elements such as: operating income, revenue growth, and customer service performance, the profitability of the company's products or services and the reliability of the products or services. Collaborate with the managers or supervisors of each department to develop performance metrics that are applicable to your company.
Evaluate the worthiness of the performance metrics you have developed. Use a checklist as a guide to answer affirmatively to questions such as: Can the metrics be measured objectively? Are they appropriate to your industry? Will they allow for easy statistical analysis?
Gather data that will enable you to measure whether you have effectively carried out the CSF in question. Do this by preparing a data gathering form or spread sheet which can be distributed to the various departments for the managers to fill in progress or performance data in their departments. In the spread sheet or data gathering form, include columns to be filled under the titles: "Metrics," "Target," "Performance Data" and "Notes."
Analyze data by comparing the actual performance (as indicated in the data gathering reports) to the targeted performance set out when you were developing your CSFs. If the targeted performance tallies with the actual performance, this is an indication that you performed the CSF effectively. Reevaluate your business processes and CSFs if the actual performance does not measure up to the targeted CSFs.