Dear Seniors, Kindly help me in framing KPI & KRA's. And please clear what is the actual difference between the two.
KRA are key result areas and KPI are key performance indicators. But how to frame them for employees and for an organization.
Looking forward to your support!

From India, Jaipur
Dear Sanjogita,

The subject comes for discussion time and again. You could have checked this forum before raising the query.

Key Performance Indicators (KPIs) and Key Result Areas (KRAs) are part of Performance Management System (PMS). Instituting PMS takes time. Stabilising it further takes anything between two and five years. To institute PMS it requires great exposure across the spectrum of industries. If mishandled it may do more harm than good.

To know more about instituting PMS in the company, you click here to refer my past post.

There is lot of misconception on the concept of KPI and KRA. To remove this misconception, I have uploaded my presentation on Youtube. To refer that video, you may click here.

Recently, I have given my reply to the post titled Subjectivity in Performance Appraisal. You may click on the link to refer it.

I handle consulting on PMS. To know more about my services, you may click here. Talk to your management and if they are ready then we may work together. If you hire my services, I will do deep study of each department and design new measures which hitherto you had never thought of.


Dinesh Divekar

From India, Bangalore
KRAs and KPIs of individuals should be linked with corporate objective of any company. Corporate objective should be divided into departmental objective, which shall frame departmental KRAs which down the line should be divided into individual KRAs.
KRA-Key Result/Responsibility Areas-It decribes the responsibilities one will handle during the tenure with the company. Let say...Your KRAs are:
1) Conducting Campus Interviews
2) Imparting training to the employees.
3).....etc etc.
KPI-Key Performance Indicator- Its a measurable value that shows how effectively one is fulfilling his assigned KRAs. For effectiveness a performance standard/target is set in KPI. Lets describe KPIs for above mentioned KRAs....
1) 1 campus interview in a month.
2) 2 training should be imparted every month.
3)......etc etc.
So to frame KRAs and KPI linked with them, one needs to understand your corporate/departmental objective and then only would be able to do so.
Hope this will be helpful for you. ..

From India, Delhi

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