KRA Vs KPI - Balanced Scorecard
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KRA Vs KPI - Balanced Scorecard

psharlene Started The Discussion:

I have been doing some research on the internet on KRA and KPI. Someone told me that...

KPI are a bunch of measurements focused on Finance, Customer, LearningGrowth, Internal Business Process and is a SUBSET of KRAs
It's used to indicate progress of Tactical/Operational (Short term) plans.

Key result area (KRAs) = a series identified important outcomes formulated to deliver upon organisational business plans and is linked to
Strategic plan(Intermediate/Long term).

Is the above accurate? I always have the impression that KRA and KPI is the same thing, just different terminology.

poojabansal - Member Since: Aug 2006
Hi,

In very simple language KRA'a describes the roles & responsibilities a person perform in a position.

KPI's means the performance indicators to prove that the defined roles are met satisfactorily.

For ex: For a HR Manager KRA'a will be
Recruitment & selection
Training & development
Handling employee grievances
etc...

KRI's for the above shall be
Recrutiment of a new candidate in case of new vacancy, exit or new position should be completed in 25 man days.
Need of training is properly identified before placing the person on job.
Employee complaints & grievances should be resolved in 7 man days.
etc.

So, KRA'a & KPI's go hand in hand.

Regards,
Pooja

psharlene - Member Since: Aug 2006
I know Balanced Scorecard focus a lot on the KPI. I do not see it mentioning KRA. Or does it cover KRA as well? How long has KRA and KPI been around?

poojabansal - Member Since: Aug 2006
KRA & KPI have been used from very long. Without them Appraisals in any form will not be successfully. Any well managed company will use KRA & KPI as performance evaluators & finally to check whether this position is contributing to the final growth of the organization.

dmurugan - Member Since: Feb 2008
KRA (Key Result Area)is the output of an individual or section or department that will serve as an input for another or contributes toward organization success. It is a task or activity that must be done to ensure success (primary job responsibilities).
KPIs are quantifiable measures used to measure the critical success factors within an organization to determine the organization's performance level. KPI is a measurement or indicator that provides information on how far the company has succeeded in achieving its strategic objectives. Thus, KPIs are critical for the measurement of organization performance.

Regards,

Durai

consultme - Member Since: Nov 2008
instead of KRA & KPI you may call it as KPA & KPI i.e Key Performance Area and Key Performance Indicator. See the attached specimen sheet to get clear idea on KPA/KPI


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