KRA AND KPA

Key Result Areas

“Key Result Areas” or KRA’s refer to general areas of outcomes or outputs for which a
role is responsible. A typical role targets three to five KRA. KRA’s are also known as key
work outputs (KWO’s).

Value

Identifying KRA’s 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 (KRA’s) 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 [KRA’s]
-customer sales revenue
-customer servicing level
-merchandising
-accounts relationship
-key accounts / major accounts service
=======================================
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 KRA’s / KPI’s but 3/5 is workable

at best.