Difference Between a KPI and a KRA?

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Ahmad Sultan Abdulla
Consultant, Malaysia

Difference Between a KPI and a KRA?

Can anyone tell me the difference between a Key Performance Indicator (KPI) and a Key Result Area (KRA)?
There seems to be a confusion between the two. Any thoughts?

  Amit Ballal

KRAs for Individuals versus KPIs for Organization, Dept. or Individual

KRAs are generally considered to be applicable to individuals. Generally they are used to define how the performance of a person will be monitored.
KPIs can be KRAs if used to monitor performance of individual. KPIs can be used to measure the performance of organization, department or individual / any level.

  Jaap de Jonge
Editor, Netherlands

Key Performance Indicator versus Key Result Area

  • A key result area (KRA) is an important/essential area of business that requires good/excellent performance of a firm or department to achieve good profitability, to survive or to grow in its industry. Can also be used on individual level.
  • A key performance indicator (KPI) is a performance metric, used by organizations to measure how good the firm is performing. Can also be used on individual level.
  • @Amit Ballal: Indeed we can also find the word KRA (Key Responsibility (!) Area). This is mostly used at the individual level, to indicate something a staff member must absolutely, positively do to fulfill his/her responsibilities and achieve his/her business goals. It is a tool to help align employee responsibilities with higher-level targets of the organization.
Unfortunately you can also find a lot of variations in how these terms are used.

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