KRA AND KPA

Key Result Areas

“Key Result Areas” or KRA’s refer to general areas of outcomes or outputs for which
a
role is responsible. A typical role targets three to five KRA. KRA’s are also known as
key
work outputs (KWO’s).

Value

Identifying KRA’s helps individuals: · Clarify their roles · Align their roles to the
organisation’s business or strategic plan · Focus on results rather than activities ·
Communicate their role’s purposes to others · Set goals and objectives · Prioritize
their
activities, and therefore improve their time/work management · Make value-added
decisions

Description

Key result areas (KRA’s) capture about 80% of a work role. The remainder of the
role is
usually devoted to areas of shared responsibility (e.g., helping team members,
participating in activities for the good of the organisation).

EXAMPLE

SALES [KRA’s]

-customer sales revenue

-customer servicing level
-merchandising
-accounts relationship
-key accounts / major accounts service

=======================================

KEY PERFORMANCE AREAS

These are the areas within the business unit, where an

individual or group, is logically responsible / accountable
for the results.

To manage each KRA, a set of KPI are set .

KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.

EXAMPLE
SALES
-sales target [15%] growth

Key Result Areas (KRA)

“Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the
department’s role is responsible.
Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual,
the core area which each person is accountable.
2. Importance of KRAs.
• Set goals and objectives
• Prioritize their activities, and therefore improve their time/work management
• Make value-added decisions
• Clarify roles of department or individual
• Focus on results rather than activities
• Align their roles to the organization’s business or strategic plan
• Communicate their role’s purposes to others
3. Conditions of KRAs
• Key result areas (KRAs) capture about 80% of the department’s work role. The remainders are
usually devoted to areas of shared responsibility.
• Each KRA should capture at least 5 % of work role
4. Types of KRAs:
• Training KRAs
• Management KRA
• Purchasing KRA
• RD KRA
• Administration KRA
• Finance KRA
• HR KRA
• Manufacturing KRA
• Quality KRA
• Marketing KRA
• Sales KRA
• Key result areas
5. Related documents
• Sample KPI (all KPI for marketing, sales, HR, manufacturing …)
• KPI ebooks (download free and ref all ebooks related to KPI application).
Best performance appraisal resources
1. Balanced Scorecard Toolkit and Trainings. This ebook provide top managers, CEOs and
independent business consultants with ready-to-use e-products for Balanced Scorecard, such as
Balanced Scorecard Toolkit and Balanced Scorecard Practical Training.
2. Employee Performance Appraisals Forms. Benefits of this ebook include: Make your
“fair” help good & make your “good” help great; Improve efficiency; Save hours upon hours of
time; Get what you want out of every hourly dollar you pay your employees! Even your best
employees need to know they are appreciated; Impress your boss or, if you are the boss,
motivate your staff by giving them the feedback they NEED to be a better employee etc
3. Phrases For Performance Appraisals. Benefits of this ebook include: A collection of
hundreds of ready-to-use impactful appraisal comments and phrases; Phrases to highlight your
key strengths and achievements; Phrases to downplay your weaknesses to soften the impact on
your overall performance; A comprehensive list of phrases covering most of the categories of
KPIs used by many companies; Guidebook provided in Microsoft Word softcopy for your easy
copy, paste and modify in your appraisal form; Guidebook provided in Microsoft Excel
spreadsheet so that you can use it also for your employees’ appraisals and easy moderation! etc
4. Employee Performance Review: Tips, Templates & Tactics. Contents of this ebook
include: Probation policies and templates, performance review tips, performance appraisal tips;
Performance review tips, performance appraisal tips performance review policies and
templates; Performance review tips, performance appraisal tips learning & development
policies and templates; Performance review tips, performance appraisal tipspoor work
performance policies and templates etc
5. Managers Guide to Performance. Contents of this ebook: How to deal with an employee
who displays negative behavior….help them deal with their own issues and change their
behavior; How to coach an employee to higher performance….employees want your leadership
and will follow a strong manager; How to be clear about what you expect from them….an
employee always wants to know how to best perform; How to give your employees the
opportunities to perform……if they can’t or won’t, then how to let them go.
1

===============================================================
Sponsor sites:

Key Performance Areas

In an increasingly competitive global economy where competitive differences continue to be
eroded, and where companies are now finding it increasingly difficult to create their competitive
differentiation, people are now the sole remaining source of sustainable competitive advantage.
Following is a brief look at six key performance areas common to all businesses that determine
their competitive differentiation. All six areas can be measured and analysed.
The Aspirational Index is a measure of a company or team's belief in its people as the
differentiating force of its business, and serves as an aspirational benchmark of people's potential
engagement in the business and therefore an indication of the potential financial improvement of
the business when all other Key Performance Areas are applied.
A company's fortunes lie entirely in the hands of its leaders at every level, and their capacity to
influence organisational engagement in the business. The Leadership Index is a measure of the
nature of this influence, and whether this influence is enhancing or impeding financial results.
Leadership is where everything starts, and is a measure of how well a company's Vision is being
'lived' and the Strategy translated to the people who must execute it. Leadership is also the key to
creating the environment in which people are inspired not only to deliver consistently sound
performance, but also dream with their customers and stretch themselves in pursuit of innovative
solutions to customer and business needs.
The 'H' Factor Index measures the deep-seated values and emotional intelligence of people and
how well they express themselves creatively and purposefully in solving problems and building
relationships as a means to delivering Customer Impact. It also measures the 'Mindset' and
'Behavioural' deficits that impede elite performance in a team or organisation.
The Risk/Reward Index measures the extent to which people in an organisation share in the
Risk and Reward of the enterprise in which they are engaged, revealing extent to which people in
an organisation are individually and collectively, anchored to the course and consequences of the
company's future. It is only by directly connecting individual and team performance to financial
consequence, that sustainable engagement and alignment to corporate goals is ensured.
The Innovation Index measures Innovative Intensity, this being a combination of the degree and
frequency of innovative activity. This is the extent to which new ideas are created and applied at
every level in the business.
The Customer Impact Index reflects the extent to which people are passionate and protective
about the value and impact they have created, and the extent to which your brand has become
their brand. It defines and prioritises where lack of customer impact is impeding business results,
and points to the corrective entrepreneurial disciplines that need to be addressed