How to Set KRAs Without a Mission Statement? Seeking Advice from HR Experts

Hi Everyone,

I am working with a construction company in Pune. We are in the process of setting KRAs for every employee. However, we do not have any mission statement.

As far as my understanding of setting KRAs goes, the formation of a mission statement is the first step. In this process, the mission statement becomes the KRA of the CEO/CMD of the company. This mission statement is then broken down into individual KRAs, and every employee becomes a part of the team working towards the achievement of the mission or the KRA of the CEO/CMD.

Currently, we are setting KRAs for every employee without having any mission statement. I don't think this is the right way of doing things. However, my boss does not agree with me on this.

Can anyone explain to me what the KRA setting process should be?

Thanks and Regards,
Preeti Bhatnagar

Dear Preeti,

It's not necessary that you have the mission statement. Your company is basically a construction company, so you can also give this statement: "We want to expand our business and become a leader in the market." It's helpful to motivate employees and also useful for the Key Results Area (KRA).

Thanks & Regards,

Dipali Lakhani

Dear Preeti,

The mission statement is a useful document. It helps the company to set long-term directives, shape corporate objectives, devise corporate strategies, and more. However, it is not compulsory to have a mission statement.

Even without a mission, you can work out the KRAs. But you need corporate objectives, job descriptions (including all individuals, including the CEO), then design the KRAs for each department, followed by the KRAs for the individuals, and then the KPIs for the individuals (KPI = Key Performance Indicators). The "job description" is a must.

Regards,
Leo Lingham