How to set up KRA’s/KPI’s (Performance Management using KRA’s)

“Performance Management using KRA’s” has been one of the top posts on this blog. Well defined KRA’s act as a scale to measure performance of a team member.

Here is an excerpt from my earlier post:

Documented result areas provided us a path to tread. We knew what exactly is expected out of us and we performed accordingly. KRA’s deal with results and not with day to day activities and hence more quantitative the KRA’s are the easier they are to track.

In this regards, one of the readers of this blog, Gireesh Sharma pointed me to his article “Writing SMART Goals (also called KRAs) from Job Descriptions” which made for an interesting read.

Here are 9 steps suggested by Gireesh for setting up KRA’s/KPI’s:

1. Go through employee’s Job Description. If Job Description is not updated talk to employee and his/her Manager or many be manager’s manager also.
2. Try to find out exactly what the employee is supposed to achieve.
3. Based on your reading and discussions, make a list of the functions and responsibilities which are critical to the employee’s job.
4. Categorize these critical functions and responsibilities in two categories:
   1. (4.1) Which can be measured whether in numbers or percentages or yes/no.
   2. (4.2) Which cannot be measured in numbers and cannot be calculated.
5. Ones in 4.1 are the can be be converted to Goals (KRAs).
6. Make a list of all critical functions.
7. Write a self explanatory (1 sentence ) definition of each Goal (KRA).
8. If you plan to follow BSC (Balanced Score Card) Pattern, then categorize each goal into one of the following categories: Customer, Financial, Internal Business Process, Learning and Growth.
9. There after describe each Goal (KRA). Make sure you mention a measurable target to be achieved and time frame for achievement of the Goal (KRA).

The article is very insightful and has very relevant examples to demonstrate how this 9 point process works. Read the full post here.

How do you manage results from your team?