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MBA 09

Many Managers (Including HR managers responsible for writing

others Goals) often ask to help them on creating Goals (Key Responsibility Areas) for
different designations, which they can use for setting Goals and/or conducting
performance appraisals. While most of these managers are completely aware of their
job profile, they find it difficult to shape it in a written form.

Knowing your Goals and writing them effectively is an all-together different game. To
describe your Goals (KRAs) you need to have effective writing skills and sound
knowledge of terminology. Unfortunately, some executives/ managers may not have a
flair for writing and thus unable to write their Goals (KRAs). This is true for HR also.
So here are some tips that will help Talent Junction users to write Goals (KRAs) from
the Job Descriptions.

How to WRITE SMART Goals (KRAs)?

Here are the steps how anyone can write Goals (KRAs) from Job Descriptions:

1. Go through employee’s Job Description. If Job Description is not updated talk

to employee and his/her Manager or many be manager’s manager also.
2. Try to find out exactly what the employee is supposed to achieve.
3. Based on your reading and discussions, make a list of the functions and
responsibilities which are critical to the employee’s job.
4. Categorize these critical functions and responsibilities in two categories:
o A : Which can be measured whether in numbers or percentages or
o B : Which cannot be measured in numbers and cannot be calculated.
5. ‘A’s are the one which can be be converted to Goals (KRAs).
6. Make a list of all critical functions.
7. Write a self explanatory (1 sentence ) definition of each Goal (KRA).
8. If you plan to follow BSC (Balanced Score Card) Pattern, then categorize each
goal into one of the following categories: Customer, Financial, Internal
Business Process, Learning and Growth.
9. There after describe each Goal (KRA). Make sure you mention a measurable
target to be achieved and time frame for achievement of the Goal (KRA).
The Goal Setting Process
1. Set SMART goals

Begin by generating a list of potential goals. Writing down goals makes them tangible
and gives them more force. However, it is important that the goals are well thought
out. To ensure this, set SMART goals. These are goals that are:

S - Specific

M - Measurable

A - Achievable (yet challenging!)

R - Relevant

T - Time-based

2. Determine how to measure goal achievement.

A good goal has a definable endpoint that can be easily measured. Identify measures
that indicate when the goal has been achieved (e.g., good attendance might be
measured as “less than 1 absence per quarter”). Depending on the goal, there might be
several measures that can be used to evaluate achievement—select those that are most

3. Establish a deadline for achieving the goal

Determining the amount of time needed to reach the goal and setting a deadline help to
create a realistic sense of urgency and provide the motivation necessary to attain the
goal. When establishing a deadline, it might be necessary to break an “overall” or large
goal into several smaller ones to make it easier to manage the goal-setting process. In
addition, some goals may not be achievable until other goals have been reached (e.g.,
training for a specific skill before achieving a promotion), so the deadlines that are
established should reflect this. When setting deadlines, consider: Priorities,
Prerequisites, Reality, Measures.

4. Identify obstacles to achieving the goals.

Obstacles to goal achievement can come in the form of people, expectations,

knowledge, skill, or resources. For example, it may be difficult to reach goals because
others will stand in your way (people), you don’t have the existing capability to reach
the goal (knowledge/skill), or you don’t have the time to reach the goal or the funding
to make it possible (resources).Likewise, obstacles can be internal or external to the
goal seeker

5. Identify how to overcome obstacles.

Once you have identified and listed the obstacles that may prevent you from achieving
the goals, create a plan to address these obstacles.

6. Review the list

Review all the goals to ensure that they are reasonable.

7. Monitor progress and continue to set goals

In order to determine whether the goal has been reached, measure the progress towards
the goal. Use the measures that have been identified to track progress to determine if
you are falling behind or are on target with deadlines. If you are ahead on your goals,
recognize this accomplishment. If you are falling behind, find out the reasons for it.

Following is the overall goal setting process in Mahindra N Mahindra Ltd

Strategy, vision, Mission and Budget

Business goals

Organization’s objectives

Departmental/ functional objectives

Role/individual objectives

Key Result Area (KRA’s)

An Example
Here are the functions mentioned in the job description of a sales manager.

Functions of a Sales Manager:

• Develops a business plan and sales strategy for the market that ensures
attainment of company sales goals and profitability.
• Responsible for the performance and development of the Account Executives.
• Prepares action plans by individuals as well as by team for effective search of
sales leads and prospects.
• Initiates and coordinates development of action plans to penetrate new markets.
• Assists in the development and implementation of marketing plans as needed.
• Conducts one-on-one review with all Account Executives to build more
effective communications, to understand training and development needs, and
to provide insight for the improvement of Account Executive’s sales and
activity performance.
• Provides timely feedback to senior management regarding performance.
• Provides timely, accurate, competitive pricing on all completed prospect
applications submitted for pricing and approval, while striving to maintain
maximum profit margin.
• Maintains accurate records of all pricings, sales, and activity reports submitted
by Account Executives.
• Creates and conducts proposal presentations and RFP responses.
• Assists Account Executives in preparation of proposals and presentations.
• Controls expenses to meet budget guidelines.
• Adheres to all company policies, procedures and business ethics codes and
ensures that they are communicated and implemented within the team.
• Recruits, tests, and hires Account Executives based on criteria agreed upon by
senior management.

After going through the above list I identified the following six functions that are
critical to a Sales Manager’s job and can be measured quantitatively:

Critical Measurable Functions of a Sales manager

1. Improvement in Financial Performance of Account Executives

2. Development of Sales Action Plans
3. Reporting to Management about Performance of Sales Team
4. Negotiates with prospective customers in order to maximize the profits
5. Create and conducts proposal presentations and presentations
6. Adhere to company policies.
Writing Goals (KRAs) for Critical Functions:

Here are the KRA (/Goals) based on above functions. First the definition for the KRA
is given and then gave a description along with measure and time line.

Goal Definition Goal Description

Improves Financial Performance of To ensure that all sales executive under
Account Executives him meets/exceed the sales targets
provided to them. Track the performance
of sales and guides the salesmen to
improve their skills to ensure more sales.

Target: US$ 500,000 per quarter for

the whole team

Development of Sales Action Plans Conducts market research and develops

solid sales plans. Sales plan must be
reported every quarter to management
team for analysis and approval.

Target: Renew and Renovate the Plan

every quarter.

Target: Conduct 2 Sales Training per


Reporting to Management about Create and send the monthly reports with
Performance of Sales Team. accuracy and time to management.
Reports should clearly indicate the
strengths and weaknesses of the sales

Target: Complete Reports to be send

by 7th of Every Month.

Negotiates with prospective customers in Sales manager should ensure that all
order to maximize the profits. salesmen are pitching most competitive
and profitable rates to the clients.

Target: Average Selling Price: US$

10,000 or above
Create and conducts proposal Reply to Request for Proposals, Tender
presentations and presentations. Notices, and Price Quotations in Time.

Target: All Proposals to be submitted

to management for review 2 days prior
and to customer as on date

Collections of Due Revenues Sales Manager should assist the Accounts

Receivables manager in collecting all due
invoices in time. He should ensure that
customer has accepted the delivery of the
product and the Invoice.

Target: 80% of the due invoices to be

collected within 30 days/ ad agreed in
Purchase Order.

Adhere to company policies and Ensure that all teams’ members attend the
procedures weekly sales meet and present their

Target: 90% attendance in Sales


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