WHAT IS KRA AND KPI

Performance management can get complicated. A list of things need to be kept in

mind while reviewing an employee’s performance and providing feedback. For this
reason, KRAs and KPIs are designed for every employee to measure their
performance in a mannerly form. Here’s what you need to know about what is KRA &
KPI and how to write KRAs & KPIs:

WHAT IS KRA?
KRA, or Key Responsibility Areas, are based on the job description of a person and
are used when assigning tasks that they are expected to perform. Employees are solely
responsible for the specific KRAs assigned to them. KRAs are a larger goal. For
example, as a content writer, your KRA would be to produce content that performs
and ranks well.

What is KPI?
KPIs, or Key Performance Indicators, are a subset of KRAs. This would mean that a
person’s performance would be measured based on the results shown. KPIs can be
exactly measured. Following up to the previous example, a content writer’s KPI
would be when a particular feature or article about their company ranks in the top 3
search results. If you offer coworking spaces, your KPI would be your space showing
up in the top 3 results for something like “coworking spaces in Mumbai”.

How to write KRAs?

While writing a KRA, here are some things to keep in mind:

1. Since these are based on job descriptions, go through the JD of the employee
thoroughly. Discuss with their manager and them if need be.

2. Find out exactly what the employee is supposed to achieve and how they would
contribute to the organization’s progress.

3. Note down all measurable critical responsibilities to be carried out on the job.
These include things that can be measured in numbers, percentages, etc.

4. Set goals based on these responsibilities, and write self-explanatory descriptions

of every goal.

5. When describing these goals, ensure that measurable and realistic targets and
timeframes are set.

How to write KPIs?

While writing a KPI, here are some things to keep in mind:

1. As mentioned previously, KPIs are subsets of KRAs. Once you have a KRA in
place, you can get a definitive and measurable KPI.

2. Supposed you have a KRA of bringing in the 1cr worth of revenue in a year.

3. To achieve this, your KPI could be bringing in revenue through 60% of new
business, 30% renewals, and 10% via other methods.

4. After having a large goal, smaller goals to contribute to the achievement of the
larger goal will be your KPI. Thus, your KPI depends on your KRA.

Timely reviews can help in improving an employee’s performance. The shorter the
period between reviews, the better it is. Performance reviews and generally conducted
on a monthly, quarterly, half-yearly, or annual basis, based on the company policy.
Keeping track of every employee’s review cycle can be tricky. Managing these via
email and setting reminders is time-consuming, and can result in complications.

To solve this issue and make performance reviews easier, performance management
systems were introduced. With a performance management system, you can automate
the entire process. Review cycles can be customized and created as per policies and
the requirement. These systems also provide you with feedback forms and generate
reports and graphical analysis of the review.