Key Business Factors

1
Key Business Factors

• Steven Thorne

2
Overview

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

3
Introduction

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

4
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

5
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.

6
Understanding KBFs

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

7
Cross-Functional Teams

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

8
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

9
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

10
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

11
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

12
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

13
Georger Steiner

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

14
Japanese Approach

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

15
Business Results

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

16
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

17
Corporate Flexibility

• Top 5 business factors positively contributing to
  Company flexibility
• Employee Morale
• Ratio of RD expenditure to sales
• Overseas strategies
• Presidents Type
• Business Goals (3 years ago)

18
Solaris Wireless

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

19
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

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U.S. Army KBFs Contd

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

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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.

22
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.

23
Bibliography contd

• www.mvs.usace.army.mil/stra_plan.pdf. 15 February
  2001.
• www.sun.com/solaris/ds/ds-solariswireless. 13
  February 2001.