The Top of the Toll

‭ he top of the toll‬ T ‭The principles and priorities for management information provision are derived from the‬ ‭analysis of the mission, critical success factors and strategy.‬ I‭n short, it means that the mission, critical success factors and goals indicate what the‬ ‭organization wants to achieve. The strategy reflects how the organization wants to‬ ‭achieve.‬ ‭Mission‬ ‭ he mission is the starting point of the strategy formulation process. At the level of the mission,‬ T ‭it is hardly meaningful or possible to define the related information needs. Naturally,‬ ‭management is interested in the extent to which the mission is achieved. About the process‬ ‭feasible and to make 'progress' measurable, however, it is necessary that the abstract mission‬ ‭is made concrete. The information needed is then derived from the concrete implementation of‬ ‭the mission. This concrete interpretation is determined by the following concepts: objectives,‬ ‭critical success factors and strategy.‬ ‭ ritical success factors‬ C ‭Critical success factors -sometimes also called „do-wells‟ –are those areas that are‬ ‭decisive for the success or failure of an organization.‬ ‭Organizations are often inclined to recognize a multitude of critical success factors.‬ ‭However, practice shows that there are often only between three and eight really crucial‬ ‭factors.‬ ‭Goals and objectives‬ ‭ ased on the mission and the critical success factors, an organization defines organizational‬ B ‭goals that contribute to achieving the mission. Goals are therefore a more concrete‬ ‭interpretation of the mission and can be a concrete interpretation of a critical success factor.‬ ‭It is important when formulating the goals and objectives that not only the mission and critical‬ ‭success factors are seen as a conceptual framework, but that the objectives are also made‬ ‭as concrete as possible. Thinking about 'measurability' forces the organization to think very‬ ‭carefully about what exactly the objective is. The goals and objectives must be clear,‬ ‭concrete and measurable.‬ ‭ general framework that can serve to define critical success factors and goals is‬ A ‭the so- called Balanced Scorecard (BSC). With the BSC, performance is viewed‬ ‭from different perspectives and shown in relation to each other. An organization‬ ‭must perform on each of these perspectives. The perspectives are:‬ ‭-‬ ‭Financial perspective;‬ ‭-‬ ‭Customer perspective;‬ ‭-‬ ‭Internal perspective;‬ ‭-‬ ‭Innovation and learning perspective.‬ ‭The balanced scorecard is mainly aimed at profit companies.‬ ‭ trategy‬ S ‭Strategies or policies are formal guidelines that relate to how the mission, critical‬ ‭success factors, goals and objectives will be achieved.‬‭A strategy indicates the path‬ ‭along which the‬‭mission, the critical success factors, and the goals are to be‬ ‭achieved (it‬‭how‬‭).‬‭Use this definition during exams (not definitions from other books).‬ ‭The literature contains many strategy typologies. One of the best-known typologies‬ ‭is that of Porter's competitive strategies. He distinguishes between three types of‬ ‭strategies, namely:‬ ‭-‬ ‭Cost leadership strategy (competing on the basis of the lowest price); Differentiation‬ ‭strategy‬ -‭ ‬ ‭(competing on the basis of unique (properties of) products); Focus strategy (compete‬ ‭-‬ ‭through concentration on a specific product, specialized on a small segment in the‬ ‭market or on small markets).‬