Why Strategy Execution Falters: Eric Partaker on the Power of Critical Success Factors

In a recent LinkedIn post, Eric Partaker, founder of thedatacamp.com and Y Combinator alum, highlights a fundamental reason why many business strategies fail to translate into tangible results: a lack of clarity around core priorities, particularly among middle management.

Partaker, drawing on research and his extensive experience coaching over 650 CEOs, points to a significant disconnect between top-level strategy and its execution on the ground. He states:

“Only 50% of middle managers could name ANY of their company’s top priorities. These are the people you’re counting on to deliver the plan.”

This statistic underscores a critical issue: if the individuals responsible for implementing a strategy are unaware of what the company is striving to achieve, execution inevitably falters. Partaker suggests that a common culprit is the sheer volume of stated priorities, which can dilute focus and create confusion.

The Overlooked Importance of Critical Success Factors (CSFs)

To combat this strategic drift, Partaker advocates for the adoption of Critical Success Factors (CSFs). He explains that CSFs are the essential, limited set of actions or areas where a business must excel to achieve its strategic objectives. Originating from concepts discussed by D. Ronald Daniel at McKinsey in 1961 and later named by John Rockart at MIT Sloan in a 1979 Harvard Business Review paper, CSFs have a long-standing theoretical basis.

Despite their proven longevity, Partaker observes a widespread failure among leaders to implement them effectively. He contrasts the common visibility of Key Performance Indicators (KPIs) and Objectives and Key Results (OKRs) with the relative obscurity of CSFs.

“I’ve coached 650+ CEOs. Nearly every one can show me a KPI dashboard. Most can show me their OKRs. Very few can tell me their CSFs.”

This observation suggests a misordering of strategic priorities, where leaders focus on measuring outcomes (KPIs) or setting broad goals (OKRs) before defining the foundational elements that will lead to success.

Reordering Strategic Priorities: CSFs First

Partaker proposes a clear hierarchy for strategic planning and execution, emphasizing the foundational role of CSFs:

1. Critical Success Factors (CSFs): These are the foundational 3 to 5 things the business MUST do well to win.
2. Objectives and Key Results (OKRs): Goals set to achieve success in the identified CSFs.
3. Key Performance Indicators (KPIs): The metrics that track progress towards OKRs and, by extension, the success of CSFs.

He argues that many organizations start with KPIs, leading to a situation where metrics might look acceptable, but the overall strategy remains stagnant.

“Many companies I’ve worked with start backwards with KPIs. Their numbers look fine but their strategy still goes nowhere.”

By contrast, Partaker asserts that when leaders first identify and focus on their CSFs, the subsequent selection of meaningful OKRs and relevant KPIs becomes a more straightforward and effective process. This approach ensures that measurement and goal-setting are directly aligned with the core activities that drive business success.

Partaker concludes by inviting engagement on the topic and offers resources for leaders looking to implement this framework, underscoring his belief in the power of focused, well-defined strategic elements to drive execution and achieve business objectives.