Critical Success Factors (CSFs) I Key Performance Indicators (KPIs) I Balance Score Card I Ch 7 I PM

Chapter 7 — Strategic & Performance Management Tools (concise description)

Chapter 7 of the ICAN Case Study (2025) study text teaches the frameworks you’ll need to analyse a company’s strategic position and to measure how well strategy is being delivered. The chapter is split into two clear parts: strategic management tools (external and internal analysis, and strategic choice) and performance management tools (how to monitor, evaluate and improve strategy execution).
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Strategic analysis (external & industry)
You are shown how to scan the macro-environment (political, economic, socio-cultural, technological, ecological and legal — PESTEL) and how to assess industry structure using Porter’s models (Five Forces and Diamond). The text also highlights industry-level matrices such as the BCG growth/share model for portfolio analysis. These tools are tied to exam technique: identify opportunities/threats and link them to practical strategic options in the case scenario.
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Internal (position) analysis and strategic choice
The chapter covers position-audits (strengths/weaknesses) using value-chain analysis, gap analysis, benchmarking and other internal diagnostics. Guidance is given on synthesising internal and external findings to generate feasible strategic choices (e.g., cost leadership, differentiation, diversification) and on assessing capability and resource implications for implementation.
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Performance management tools
This section explains how to convert strategy into measurable performance:

Critical Success Factors (CSFs) — the few areas where things must go right for strategy to succeed.

Key Performance Indicators (KPIs) — metrics tied to CSFs and objectives (financial and non-financial).

Balanced Scorecard (BSC) — the multi-perspective framework (Financial; Customer; Internal process; Learning & Growth) that links strategy to KPIs and initiatives; used in the text as a practical way to report and align measures. (See classic BSC principles by Kaplan & Norton).
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Value and economic measures
Chapter 7 discusses Value for Money (VFM) principles and shareholder-value metrics with emphasis on Economic Value Added (EVA) as a residual-profit measure (NOPAT less capital charge) to assess whether company actions truly add economic value above cost of capital. The text stresses choice of measures that match case-context (capital-intensive vs. service firms).
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Application to the Case Study exam
Throughout, the chapter repeatedly links tools to exam technique: quickly select the most relevant models for the pre-seen/unseen facts, show structured analysis (headings: external/internal/strategic choice), quantify where possible, and convert findings into prioritized, actionable recommendations and KPIs. The emphasis is on integrating financial and non-financial evidence to support your conclusions.
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Practical tips (from the text)
Focus on: 1) choosing only a few well-applied tools rather than many shallow ones; 2) mapping strategy → CSFs → KPIs → targets; 3) using EVA and other value metrics where capital decisions matter; and 4) always tying recommendations to implementation constraints and measurable outcomes.