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

December 6, 2012

110 Votes
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.
-KRAs 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.
-KPAs can be inclusive of KRAs
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.
2.
3.
4.
5.

Customer Satisfaction.
Product Management.
Operational Cost Control.
Quality Check.
. Record keeping.

Key Performance Areas


1.
2.
3.
4.
5.

Maintaining good working condition in plant.


Optimum Resource Utilization.
Process Improvement.
Safety and Prevention planning and control.
Working within the companys 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 departments role is responsible.
Key Performance Areas are the areas within the business unit, for
which an individual or group is logically responsible.