Methodology for determining key internal business processes based on critical success factors: A case study in furniture industry

Abstract

Purpose

The purpose of this study is to develop a methodology to help manufacturers determine and rank key internal business processes based on critical success factors (CSF).

Design/methodology/approach

First, company CSF and key performance measures were determined based on vision, mission and strategic objectives statements. Second, most important CSF were prioritized according to rating scores such as cost savings, necessary improvement, and own discretion using a balanced scoreboard procedure and a prioritization matrix. Third, CSF were related to internal business processes based on “strength of relationship” in order to define the most critical internal processes. Fourth, possible differences in the perception of CSF and strategic objectives among different management levels were compared. Fifth, the methodology was validated in three furniture manufacturing companies.

Findings

It was found that when a firm is missing vision or mission statements, it is imperative to define them before CSF can be identified. The CSF found through this case study were related to customer service, manufacturing management, quality and price of the products. The key internal business processes identified for the companies in this study were customer engagement, product operations and supply chain management. Conclusions show that better results were obtained when this methodology was applied to highest‐level of management.

Originality/value

This study has proved to be a useful tool to determine a strategy based on CSF and their relationship to internal business processes. Plant managers in our case studies were able to prioritize the critical internal business processes for their plants based on the most important CSF.

Citation

Quesada, H. and Gazo, R. (2007), "Methodology for determining key internal business processes based on critical success factors: A case study in furniture industry", Business Process Management Journal, Vol. 13 No. 1, pp. 5-20. https://doi.org/10.1108/14637150710721104