Creating a Master KRA: How Do I Set Goals for Different Departments in a Broking Firm?

Dear All,

I am working in a broking firm and I am asked to create a master KRA which would include functional details of all departments. In order to compile the same, I need to list goal settings of each designation.

Can anybody guide me for the same? What I think I need to list down is:
- Goal settings of marketing personnel
- Goal settings of back office and front office personnel
- Goal settings of trading personnel (Dealer)

But I am not sure how and what? Could any of you please give me some understanding of the same and guide me further?

Thanks.

Each position in an organization has certain Critical Success Factors (CSF). You could start the process with CSF involved for each job, leading you to arrive at Key Result Areas (KRAs) of the job. This could lead you to key activities for each and every position. You could do this in Excel format, which will give you a clear picture for each position.

You will have to involve the concerned job holders and their respective seniors/department heads. This has to be an organization-wide activity for which the top management has to be with you.

Praful

Dear All,

I am working in a broking firm and have been tasked with creating a master KRA that includes functional details of all departments. To compile this, I need to list the goal settings for each designation.

Can anybody guide me on this? I believe I need to list the following:
- Goal settings of marketing personnel
- Goal settings of back office and front office personnel
- Goal settings of trading personnel (Dealer)

However, I am unsure about the specifics. Could any of you please provide me with some insight and guidance?

Thank you.

In KRAs, there are four perspectives that can generally be used in all departments:
- Financial
- Customer Orientation
- Operational Excellence
- Learning & Growth

You can create a format that includes the above four points and circulate it among your employees. Have them fill it out. I am attaching the format for your reference. Please review it; it should be helpful for you.

Cheers!

Prash..!!

Areas
Sl No Action/Goals Target Measurement Timeline % Weightage Financial
1 Minimize recruitment cost 10 - 10 Customer Orientation
1 Reduce recruitment cycle - outsourced labors 10 Days - 20
2 Reduce recruitment cycle - Technician 18 Days - 10
3 Reduce recruitment cycle - Supervisor 45 Days - 20
4 Reduce recruitment cycle - Management levels 75 Days - 20
5 Meet recruitment target 90% - 6 Operational Excellence
1 Job description 100% - 5
2 Recruitment system documentation 100% - 5 Learning & Growth
1 Key positions in succession planning NA% - 10
2 - - - Total Weightage & Difficulty = (A) + (B) + (C) + (D) 100

Thank you for your inputs, Praful.

I have been given the responsibility to gather the necessary information and details for the assignment. I may not involve Management directly; however, I can collect information, job descriptions, and tasks from the Executives and Office staff we have here. My plan is to start by completing the assignment for the branch where I am based and then potentially have it circulated or approved for other branches as well.

Do you think this approach would be effective?

Gentleman,

You must use SMART tools for preparing KRA's:
S - SPECIFIC
M - MEASURABLE
A - ATTAINABLE
R - REALISTIC
T - TANGIBLE/TIMELY

Hope after applying this tool, you can easily define KRA's.

O.P. SINGH

Dear Praptim,

Balanced scorecard is the right technique for you. However, you have assembled your top team in one place for this. The process can be structured as follows:

1. Ask the top team to collaborate and prepare the Balanced Scorecard for the CEO. It should cover Financial, Customer, Process, and Capability perspectives.
2. Each Key Result Area (KRA) should be linked to a critical/strategic objective, measurable, and actionable.
3. Number all KRAs for clarity.
4. Subsequently, allocate these KRAs among the functional Directors/VPs in a way that assigns each a distinct area of responsibility. Overlapping responsibilities can be reflected in multiple VP's scorecards.
5. Ensure that no residual KRAs remain in the CEO's scorecard that have not been delegated to other directors.
6. Exceptional items relating to administrative powers/leadership responsibilities will remain with the CEO.
7. Based on the KRAs provided by the CEO's Balanced Scorecard, each functional director will create their own.

It is crucial for each functional director to participate in this process, as agreement on their BSC measures should result from a thorough collective negotiation. Without this negotiation, accountability for the KRAs will be lacking, leading to potential blame-shifting.

Compensation packages can also be tied to the achievement of KRAs at regular intervals such as monthly or half-yearly reviews.

I am enclosing a model for your reference.

Please let me know if you need any further assistance.

Best regards

Dear Pratim,

Key Result Area defines the ethos of the firm. Go to your boss, the boss of all bosses, and ask what his or her vision is for the firm in the next 1/3/5 years. Now, go to the Responsibilities and Charter of Duties (or information on similar heads) of each department/section and tailor-make the focus for the firm/department/section. I assume that you are representing the entire firm; now, you have to guide and encourage the departmental heads and section heads to do the same. Obviously, you are the coordinator to ensure that all these section/departmental and, finally, the entire firm's KRAs converge and pave the way for the realization of the Vision or Dream of the Big Big Boss.