Ashesh,
You have raised the question of whether KRA/BSC is as effective as claimed.
I can share my experience with the KRA system.
KRA was introduced into our organization in 1998. Initially, it was implemented for Managers and above, and the following year for all other employees. Initially, as you mentioned, everyone found it boring, designed primarily to limit financial incentives (especially for sales staff). An external facilitator conducted four explanation and training sessions of five days each for managers. The facilitator made the dry subject more engaging. Unfortunately, I do not have his presentations as most were done using transparencies. As the first year passed, managers themselves recognized the benefits of the system and began training other employees. Over a span of 2 - 3 years, it was rolled out for everyone.
However, there was a downside to it. People became so focused on KRAs that other important aspects were neglected. For instance, sales became solely "number-driven," and factors like order quality and customer relationships were overlooked. It took some time to realize this, as everyone, including the bosses, was content with the significant improvement in the company's performance metrics.
Now, six years later, a corrective process has been initiated, and the Balanced Scorecard (BSC) has been introduced this year. We are yet to witness significant changes.
Training, training, and more training is crucial for successfully implementing these systems in any organization, preferably facilitated by an external expert.
Thanks,
Bala