Difference between KRA & KPI (Required Format how to design it) - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Meera Pathak
It Recruiter

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Dear All,
Need advice on Difference between KRA & KPI (Required Format how to design it), i have gone thru many option in format recommend by senior HR but it's complicated to understand any body can help me out to make it easy ???

Dear Meera,
Earlier I have uploaded KPI and KRA Manual for the convenience of the members of this forum. Click the following link to refer it:
To know the difference between KPI and KRA, you may watch my video on the subject. To get the link of this video as well as other material on PMS, scroll down webpage of the above link and refer my Post Sl No. 6
[i]Dinesh Divekar/i]

KRA is Key Result Area, and KPI is Key performance index / indicator. With out KRA fixed at the beginning of the financial year, the KPI can not be measured.
For example you are fixing a KRA of 20% more profit to be achieved, and KPI could be 10% from the 'new customer' and another 10% from the 'existing customer'.
Another example is, on cost reduction of 20% KRA fixed at the beginning of the year, out of which the performer KPI could be fixed 10% from existing supplier, and 10 from the new supplier.

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