Key Result Area(KRA) and Key Performance Area(KPA)

Key Result Area(KRA) and Key Performance Area(KPA) , though the terms hold different meaning but   are often used interchangeably and more or less assumed to have same applicability . The purpose of this post is to underline the basic differences between the concept of KRA and KPA.

In relation to a job role, KRA defines the outcome or end result expected to be delivered while KPA defines all the activities, not always result oriented,  an individual has to perform being on job.

Key Result Area

Key = crucial/main

Result = outcome/end/consequence

Area = space/range

KEY RESULT AREA = crucial outcome space

Point to note

-KRA is not the result.

-KRA is  the area identified as important or crucial where a result will assist in the achievement of the set  objectives or goal.

-KRA defines what a job is expected to accomplish.

-KRA’s might fall within the scope of Key Performance Areas (KPA)

Key Performance Area

Key = crucial/main

Performance = Achievement/Attainment

Area = space/range/field of operation

 KEY PERFORMANCE AREA = Main achievement space

Point to Note

-KPA is the overall scope of activities that an individual on a job role has to perform.

-KPA is not always result focused.

-KPA’s can be inclusive of KRA’s

In organizations, each role or job has a “Job Description (JD)” which consist of all the responsibilities the person on job has to perform. All the activities listed in JD falls in two categories:

Category A – List of functions and activities crucial or critical for the job role. These activities form the KRA  of the job.

 Category B – List of functions and activities associated with the job role but not truly critical for the role. These functions are important for overall performance of the team, department or organization as a whole and form the KPA for the job

Example :

Role – Product Manager

Goal – Ensuring delivery of quality product within schedule.

Key Result Area

1. Customer Satisfaction.
2. Product Management.
3. Operational Cost Control.
4. Quality Check.
5. . Record keeping.

 Key Performance Areas

1. Maintaining good working condition in plant.
2. Optimum Resource Utilization.
3. Process Improvement.
4. Safety and Prevention planning and control.
5. Working within the company’s SLA(Service Level Agreement), GRC(Governance, Risk Management and Compliance) policies

Business Definitions

 Key Result Areas refer to general areas of outputs or outcomes for which the department’s role is responsible.

Key Performance Areas are the areas within the business unit, for which an individual or group is logically responsible.

.Hope the post is  able to explain the concept of KRA and KPA.