Everything is important: but some things are more important than others

Abstract

Did you ever wonder why Nestle is so concerned with its image? And why IBM focuses . so much on service (installation, client coaching and after-sales)?-Or why Scandinavian Airlines System puts such a strong emphasis on the punctuality of its flights? In fact, each of these firms focuses on the key success factors (KSF) of their environments that is, they focus on those tasks which must be performed particularly well for an organization to outperform its competition. In the baby food business, a good image is critical for success since it decreases the risk perceived by mothers when buying the product for their children. In the computer business, the client's information processing depends more on service (installation, teaching, repairs) than on things such as hardware and distribution. Scandinavian Airlines which concentrates on the executive segment, has found that punctuality is one of the critical factors for success in such a market segment. It so happens that all these organizations, distinguish between what is more and less important in their competitive settings and focus on the former. Paraphrasing George Orwell they discovered that in the market everything is important but some things are more important than others. In spite of its importance, the empirical evidence of the key success factors has been, up to the present, based upon case-studies and anedoctes. No large survey .has ever been conducted.