This will help you understand key result areas. You will also be able to explain to your team in simple to understand terms what Key Result Areas are and how to apply them effectively. KRA’s are also known as performance management.
Clearly defined key result areas helps you take ownership of results in:
- your business involvement
- teams you are part of
- projects you need to deliver to
- your personal career growth
Key results areas are also known as “Key Performance Indicators” or KPI’s. In the following text we explain what exactly key result areas are and how you apply kra’s in performance management. We aim to give you simple and practical answers in the form of a “Question and Answer” style of writing with some more in depth explanations and notes as we progress through the conversation.
I often hear people in the company talking about Key Results Areas. What are Key Results Areas and what can I gain from it?
- Performance management (Managers and HR professionals) use key results areas to measure employee performance
- To business managers kra’s mean business results dash board or key performance indicators.
- People in careers manage their careers by understanding and reporting on key results areas.
All key performance areas focus on how business generates value to clients, the processes and your roles or functions.
The answer is KRA is an acronym for Key Results Area in business or projects. Having clearly defined Key Results Areas enables you to take ownership of your business, team, career or job and to accept responsibility for those areas where achieving business and career results are your responsibility.
Key Results Areas enable you to
- Have clearly defined and achievable goals or dashboards. (See: Smart Goal Setting)
- Measure and communicate your progress during the year in terms of identified targets.
- Manage your skills development. Identify areas for development (skills gaps which exist).
- Contribute to the company’s wealth creation.
- Obtain timelycommunications and feedback that will allow you to stay aligned and change direction when needed.
- Promote an environment of alignment and self-management.
Key Results Areas enable you to maximize the Contribution Zones (overlap) between yourself, the company and the customer, as well as the customer’s clients. Furthermore, it matches your individual aspirations with the company and customer requirements.
The diagram below indicates the all-important area of overlap in which you can make Key Results Areas work for you.
You need Key Results Areas to determine your EVA (Economic Value Add).
VENN Diagram of KRA's
I’m a bit confused.
What’s the difference between my position in the company, my roles and my tasks?
Your function is your job title i.e. Sales Manager.
Your roles are your different areas of responsibility.
(KRA’s – Key Results Areas), for instance:
- Managing your team and their performance;
- Applying selling skills to meet targets;
- Providing technical skills training for other team members etc.
Your tasks are the activities that you have to perform in order to carry out your roles, for instance:
- Product presentations and demonstrations;
- Sales calls;
- Proposals, quotations etc.
Your function is defined by the key roles you play in terms of agreed success factors.
Your roles tend to remain constant while your tasks may change in line with changing circumstances and targets.
Ok, how do I go about defining my Key Results Areas?
Defining your Key Results Areas:
Ask yourself: My job exists to do what for whom?
For Value Added?
Writing your Key Results Areas
Write down your Key Results Areas using the SMARTM process:
|S – Specific
What must be done?
|M – Measurable
When is it done?
|A – Achievable
Why can I do it?
|R – Results
What’s in it for me?
|T – Timing
When must it be done?
|M – Monitor
Having your goals clearly defined makes it easier to change something along the way if this should become necessary.
How do I go about managing my performance?
Managing your performance will be no headache if you make the steps below a personal ritual that you follow conscientiously at regular intervals.
Managing your performance
- Review regularly – Keep a copy in your diary.
- Has your job focus changed?
- Has the company changed focus?
- Drop unfocused Key Results Areas and add new ones.
- Regularly check progress.
- Are you on target to reach your goals?
- What can be done to assist you?
- Obtain your manager’s feedback.
- Manage your relationship with your mentors.
What would really help me is a tool that I can carry with me that will constantly remind me of what my roles are for the year, as well as the tasks they encompass. Oh yes, also the gaps that I have to work on to increase my competencies.
To ensure that your Performance Management stays on track, keep a copy of the SMARTM process in your diary and refer to it regularly.
When reviewing your KRA’s consider applying the White Hat and Black Hat thinking processes and don’t forget to inform others of changes.
My roles for the year
Once you understand personal goals determine your roles for this year:
Please insert this into your diary
ROLE 1: ……………………………………..
ROLE 2: ……………………………………..
ROLE 3: ……………………………………..
ROLE 4: ……………………………………..
That’s exactly what I need to manage my contribution.
Here are some additional tips:
- Review your KRA’s at staff meetings.
- Review your KRA’s with your mentors.
- Having your goals clearly defined makes reaching them easier.
- It also enables you to identify areas of change.
- Take responsibility for receiving and giving input; this reduces management involvement.
- Faster growth with less management involvement results in increased effectiveness.
My team leader said that Key Results Areas are central to an integrated growth plan and compensation.
What did he mean by that?
Let me explain.
Some of the concepts I will mention are explained elsewhere in this book. At this stage only understand the big picture.
Your integrated growth plan, and corresponding compensation is closely connected to managing your Contribution Zone. This zone is essentially the area of overlap between yourself, the company and the customer.
There are three focus areas that are especially relevant to monitor:
- Career focus: What represents your interests? Where are you going in terms of your chosen career path?
- Results focus: What represents the interests of the company? What results are expected from you? Are they agreed and communicated?
- Customer focus: How effective are you? How satisfied are your customers?
The diagram below illustrates some of the mechanisms that will contribute to an integrated growth path.
The process of arriving at your Key Results Areas contribute to clarifying and communicating the agreed results expected from you. Thereafter your Key Results Areas help you stay on track in terms of the results expected from you: your roles, functions and tasks.Tools mentioned here to measure your effectiveness, like the Balanced Scorecard and the Order Cycle, are explained elsewhere in this book.
Key Result Areas