Difference Between Kra And Kpa

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.