Results Areas

key results area

Take ownership of your own and/or your teams KRA’s or KPI’s (KRI) to grow your returns on effort. Choose the right effort, get agreement and learn to say NO!

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 or communication and informing to maximise your INCOME!.

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.

key result area Ask

I often hear people in the company talking about Key Results Areas. What are Key Results Areas and what can I gain from it?

key responsibility areas Answer
  1. Performance management (Managers and HR professionals) use key results areas to measure employee performance
  2. To business managers kra’s mean business results dash board or key performance indicators.
  3. 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.
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  • 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).

what is key result area VENN Diagram of KRA’s

 

key result area definition Ask

I’m a bit confused.

What’s the difference between my position in the company, my roles and my tasks?

key responsibility areas Answer

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.

key result area sample Ask

Ok, how do I go about defining my Key Results Areas?

key performance areas example Explain

Defining your Key Results Areas:

Ask yourself: My job exists to do what for whom?

What?
For Value Added?
1
2
3
4

Writing your Key Results Areas

Write down your Key Results Areas using the SMARTM process:

What?
Value Add?
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
Monitoring
key results Advise

Having your goals clearly defined makes it easier to change something along the way if this should become necessary.

key results area Ask

How do I go about managing my performance?

key result areas examples Answer

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

  1. Review regularly – Keep a copy in your diary.
  2. Has your job focus changed?
  3. Has the company changed focus?
  4. Drop unfocused Key Results Areas and add new ones.
  5. Regularly check progress.
    • Are you on target to reach your goals?
    • Who can help?
    • What can be done to assist you?
  6. Obtain your manager’s feedback.
  7. Manage your relationship with your mentors.
key performance area Ask

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.

what are key result areas Explain

To ensure that your Performance Management stays on track,  keep a copy of the SMARTM process in your diary and refer to it regularly.

key performance areas in performance management Advise

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: ……………………………………..

key result areas of ntpc Ask

That’s exactly what I need to manage my contribution.

key performance area Answer

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.
key result areas sample Ask

My team leader said that Key Results Areas are central to an integrated growth plan and compensation.

What did he mean by that?

key result Answer

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:

  1. Career focus: What represents your interests? Where are you going in terms of your chosen career path?
  2. Results focus: What represents the interests of the company? What results are expected from you? Are they agreed and communicated?
  3. 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.

kra Key Result Areas
Career councelling traps
Beware of falling into unintentional communication and perception traps
Chapter 8 p.5
During my recent assessment interview, my team leader referred to a blunder I made three months ago. Though I learnt a lot from that mistake and never made it again, I feel that his perception of me has remained stuck on that incident. How can I persuade him that his idea of my competency is wrong?
It appears as though your team leader stepped into a career counseling trap called a “splodge”.
In our every day dealings with others, especially with regard to performance management, we should beware of falling into certain unintentional communication and perception traps.
Could you explain some of those counseling traps?
Contrast effect
Rating a team member against other team members, rather than against the criteria of identified Key Results Areas. Ratings should be based on the expectations the evaluator communicated to the team member when reviewing Key Results Areas criteria at the beginning of the assignment.
First impression / Latest behavior effect
A tendency to make an early positive or negative judgement of the team member and then to ignore or distort additional information. Ratings must be based on performance throughout the appraisal period rather than on initial or most recent impressions.
Halo / Horn effect
Generalizing one aspect of the team member’s performance to other aspects of his or her performance. This may result in an inaccurate results assessment.
Similar to self effect
Judging in favour of those team members who are seen as similar to the evaluator.
Central tendency effect
Consistently rating a team member as average rather than making the effort to give valid ratings. Such ratings fail to distinguish good and bad performance and may delay work on areas for development.
Spill-over effect
Allowing the team member’s past performance ratings, whether good or bad, to unjustly influence the evaluator’s current ratings of team member’s performance. The Key Results Areas for the most recent period is the cornerstone.
Generalization / Third party effect
Making generalizations rather than using sentences such as: “I noticed this when you did …” This lets the team member know specifically what you mean when you are praising or coaching.
Splodges
Retaining a memory of a negative incident pertaining to the team member and allowing yourself to be influenced by it, even long after it has become irrelevant. It remains in the relationship and is like a “splodge” on a white shirt. The splodge will always be there and will accumulate until the shirt is black or it is washed.
Thank you to: HP wisdom and Chuck Bonza
Some of the concepts discussed earlier in the book such as Emotional Awareness (Elephant Behaviour) and Information, will be helpful when learning how to sidestep these traps

Beware of falling into unintentional communication and perception traps

Chapter 8 p.5

w&t_question

I Ask

During my recent assessment interview, my team leader referred to a blunder I made three months ago. Though I learnt a lot from that mistake and never made it again, I feel that his perception of me has remained stuck on that incident. How can I persuade him that his idea of my competency is wrong?

w&t_exclamation

I Answer

It appears as though your team leader stepped into a career counseling trap called a “splodge”.

In our every day dealings with others, especially with regard to performance management, we should beware of falling into certain unintentional communication and perception traps.

w&t_question

I Ask

Could you explain some of those counseling traps?

Contrast effect

Rating a team member against other team members, rather than against the criteria of identified Key Results Areas. Ratings should be based on the expectations the evaluator communicated to the team member when reviewing Key Results Areas criteria at the beginning of the assignment.

First impression / Latest behavior effect

A tendency to make an early positive or negative judgement of the team member and then to ignore or distort additional information. Ratings must be based on performance throughout the appraisal period rather than on initial or most recent impressions.

Halo / Horn effect

Generalizing one aspect of the team member’s performance to other aspects of his or her performance. This may result in an inaccurate results assessment.

Similar to self effect

Judging in favour of those team members who are seen as similar to the evaluator.

Central tendency effect

Consistently rating a team member as average rather than making the effort to give valid ratings. Such ratings fail to distinguish good and bad performance and may delay work on areas for development.

Spill-over effect

Allowing the team member’s past performance ratings, whether good or bad, to unjustly influence the evaluator’s current ratings of team member’s performance. The Key Results Areas for the most recent period is the cornerstone.

Generalization / Third party effect

Making generalizations rather than using sentences such as: “I noticed this when you did …” This lets the team member know specifically what you mean when you are praising or coaching.

Splodges

Retaining a memory of a negative incident pertaining to the team member and allowing yourself to be influenced by it, even long after it has become irrelevant. It remains in the relationship and is like a “splodge” on a white shirt. The splodge will always be there and will accumulate until the shirt is black or it is washed.

Thank you to: HP wisdom and Chuck Bonza

w&t_elephant

I Advise

Some of the concepts discussed earlier in the book such as Emotional Awareness (Elephant Behavior) will be helpful when learning how to sidestep these traps.

Planing and taking ownership for ones career
Chapter 7
p.4
How do I take ownership of my own career? I’d like to plan my career journey in such a way that I make the best choices for my development. I want to proactively choose resources that will assist me on my journey.
I suggest you take the initiative and use the Ten Key Questions and Guidelines from the Walk and Talk Guide to help you plan and manage key elements of your career.
Ten Key Questions and Guidelines
What are your key job roles for customer value contribution?
Can you write down your Key Results Areas (KRA’s) and tasks?
What were your activities and involvements for the previous period?
Obtain input from your mentors and colleagues and compile an inventory of your abilities and job, life and transferable skills.
How does the way you behave match up with the behaviourial expectations of your team members and your job?
What is your ten year vision and have you set SMART goals to get there?
What career options apply to you presently:
Growing in your present job?
Moving horizontally or moving vertically?
Seeking outside opportunities?
Who do you mentor, who are your mentors and what contribution do you need from them?
What have you done about succession planning recently?
What value have you added to your company’s sustainable wealth creation ability?
Without feedback from colleagues and mentors you cannot track your progress on your Journey. Remember that you are also part of another support team and your input will be required to enable others to assess their progress.
Did you know that the Performance Management Process is a powerful tool in helping you to reach your career goals?
You will undoubtedly benefit from studying those pages.

Planing and taking ownership for one’s career

Chapter 7 p.4

w&t_question

I Ask

How do I take ownership of my own career? I’d like to plan my career journey in such a way that I make the best choices for my development. I want to proactively choose resources that will assist me on my journey.

w&t_exclamation

I Answer

I suggest you take the initiative and use the Ten Key Questions and Guidelines from the Walk and Talk Guide to help you plan and manage key elements of your career.

Ten Key Questions and Guidelines

  1. What are your key job roles for customer value contribution?
  2. Can you write down your Key Results Areas (KRA’s) and tasks?
  3. What were your activities and involvements for the previous period?
  4. Obtain input from your mentors and colleagues and compile an inventory of your abilities and job, life and transferable skills.
  5. How does the way you behave match up with the behaviourial expectations of your team members and your job?
  6. What is your ten year vision and have you set SMART goals to get there?
  7. What career options apply to you presently:
    • Growing in your present job?
    • Moving horizontally or moving vertically?
    • Seeking outside opportunities?
  8. Who do you mentor, who are your mentors and what contribution do you need from them?
  9. What have you done about succession planning recently?
  10. What value have you added to your company’s sustainable wealth creation ability?
  11. Are you considering midlife career changes, then read this post.
w&t_binoculars

I Explain

Without feedback from colleagues and mentors you cannot track your progress on your Journey. Remember that you are also part of another support team and your input will be required to enable others to assess their progress.

w&t_elephant

I Advise

Did you know that the Performance Management Process is a powerful tool in helping you to reach your career goals?

You will undoubtedly benefit from studying those pages.