KRA AND KPA
Key Result Areas
“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA. KRAs are also known as key work outputs (KWOs).
Value
Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions
Description
Key result areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
EXAMPLE
SALES [ KRAs]
-customer sales revenue
-customer servicing level
-merchandising
-accounts relationship
-key accounts / major accounts service
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KEY PERFORMANCE AREAS
These are the areas within the business unit, where an
individual or group, is logically responsible / accountable
for the results.
To manage each KRA, a set of KPI are set .
KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.
EXAMPLE
SALES
-sales target [ 15%] growth
CUSTOMER SERVICE
-raise service index by 6%
WAREHOUSING
-improve picking/ packing rate by 7%
You can have many KRAs/KPIs but 3/5 is workable
at best.
HOPE THIS IS USEFUL TO YOU.
REGARDS/ HAPPY DIWALI
LEO LINGHAM