Every organization works towards achieving a larger vision. This vision of expansion and strategic growth is supported by mission that involves the role of every employee, department and section of the organisation. To determine whether the chosen path to achieve the mission is right or productive, certain assessments are run.
The assessments may revolve around project management or employee working capabilities. Sometimes, data is used and dedicated metrics are utilized in understanding the path covered to reach the goal and overall current performance. These entire analyses to understand productivity, efficiency, employee satisfaction, issues are a part of KRA and KPI.
KRA is Key Result Areas and KPI is Key Performance Indicators. Both are a major part pf comprehensive Project Management and Organisation Evaluation. A thorough KPI training and KRA training helps organizations appropriately implement and use these tools for better output and efficiency.
KPI is a quantifiable metrics of a defined objective. It encompasses the factors that lead to the success of an organisation. KPI provides ways and measures to periodically asses the performance of orgnisations, employees, divisions, departments etc.
The defined norms under KPI are mostly achievable, measurable and have a specific purpose. For an appropriate evaluation, KPIs are linked to target values. Thus, one can measure its relevancy with expected targeted objectives. These are usually non-financial measures that has no monetary value yet they contribute to oragnisation’s profitability through productivity.
KRA is a strategic factor, implicit or explicit to the firm, which shows the road covered to achieve the mission and vision. It is the fundamental areas of outcomes, for which a department is accountable for. Key result areas are sometimes referred to ‘critical success factors’ or ‘key drivers of success.’
KRA can be defined as essential areas of business that require an exceptional performance to obtain the favourable result and the competitive position in the market. These are strategic business units where the respective departments or employees are expected to put in more efforts to reach the desirable result.
|Basis for Comparison||KPI||KRA|
|Definition||A mechanism used to represent how well the orgnisation is able to reach the business goals.||It alludes to the sector of outcome within the business organization, for which the department or unit is responsible|
|Feature||A metric||A strategic factor|
|Use||Evaluates the success towards goals at various levels||Outlines the scope of the job or product|
|Meaning||A metric, used by the organization to ascertain how effectively the firm is performing||The essential areas of business that requires excellent performance to obtain the favourable result, to survive and grow in the industry|