Designing KRAs for Marketing Executives: Can Total Weightage Exceed 100?

Dear Team,

I have a clarification. I am designing KRA for Marketing Executives. Against each field/activity, weightages are given, like 50, 20, etc., totaling to 350 marks. Is there any restriction to give total weightage only to 100, or can it be more than 100? Please clarify.

Thanks,
Narasimhan S

Dear Narasimhan S,

Why do we assign weights to KRAs?

The total of all the weights (it is not "weightage," though the word has been widely used in India) should be 100, as the percentage is calculated on 100. We assign weights to KRAs to distinguish the degree of importance. The higher the weight, the higher the degree of importance. The formula for calculating each KRA is as follows: (score attained / score for the KRA) * weight.

If you keep the total of all the weights as 350, then the question arises: why 350, why not 250 or 450 or some other number? While you may come up with logic for the number 350, someone else will have his/her logic for 250, 300, and so on. It will only create chaos. Therefore, the total weight of 100 is scientific and proven too.

Thanks,
Dinesh Divekar

Hi Dinesh,

Thanks. I do agree. But my question was, can it be more than 100? Is there any limitation to set the weightage.

Dear Mr. Narasimhan,

Please review Mr. Dinesh's response, specifically regarding the statement "the total weight of 100 is scientific and proven too." You have not provided clarification on the reasoning behind maintaining the total weight at 350.

Thank you.

If you want to take forward a total of 350 only, then consider 350 as 100% and divide the KRA score accordingly. But we didn't understand why it's 350? Maybe you are calculating more number of KRAs.

The aggregate weightage of KRAs can be more than 100; it depends on the needs of the organization. The higher the score, the finer the distinction between one executive and another. However, the universal method is to aggregate to 100, and comparison on a percentile basis is easier and facilitates benchmarking.

Let the scorecard aggregate be 350. I suggest that the interpersonal comparison be made by reducing the score to a percentile basis, allowing one or two decimal places. This will render the exercise more meaningful while retaining your uniqueness.

Dear Narasimhan S,

I do agree with Mr. Dinesh. I think you have doubts in understanding the Key Result Areas (KRAs) in totality. Key Result Areas define the main job responsibilities of an individual within the organization. KRAs are decided by the organization to assess an individual's quantitative and qualitative analytical abilities for a specific job assigned to them. The individual sets targets against each key area with a weightage, and the sum total is 100%. This calculation is presented in percentages.

Thanks,

Dear Narasimhan S,

Please follow Mr. Dinesh's advice as the total weightage sum cannot exceed 100. It should be distributed according to the focused areas of the organization.

Thanks,
V K Sharma

Hi Narashiman,

When designing Key Result Areas (KRA) for any position, the end result is represented as a percentage. Therefore, if you choose 350 as the target, it will translate to 350%/100. What Mr. Dinesh mentioned has been thoroughly proven.

Thank you.