According to Rockhart CSF is described as "The limited number of areas in those results, if they are satisfactory, will ensure successful competitive performance for the organization. They are the few key areas whereas things must go right for the business to flourish. If output in these areas is not adequate, the organization's efforts for the period will be less than desired".
He also concluded in which CSFs are "areas of activity which should receive constant and careful attention from the management".
The major focus of CSFs is on the most significant areas and to get into the details of what is to be achieved and how it is to be achieved.
Let us take a hypothetical instance to understand the concept. We will take the example of an organization dealing in distribution of power. Figure display the elements included in strategic implementation.
Figure: Relationship of CSF with Mission and Goals
We must understand here in which a limited number of CSFs should be used to prevent complications.
The stepwise process of identifying the CSFs:
Identifying the CSFs and implementing it as a strategic tool includes five step processes. These steps are as follows:
Step 1: Establishing the mission and strategic goals possible.
Step 2: Identifying the CSFs to achieve the set goal.
Step 3: Evaluating the list of possible CSFs to absolute essentials.
These are the actual CSFs.
Step 4: Monitoring and measuring each CSF.
Step 5: Continuous monitoring and re-evaluation of CSFs to ensure in which the right track is being followed to achieve the set goals.