KRA Process Note - aptalk.inaptalk.in/phocadownload/KRA Process note.pdf · KRA Process Note. KRA Setting ... • KRA to be set after mutual discussion between the Appraiser and Appraisee.

KRA Process Note

KRA Setting Guidelines

• Before setting KRA ; focus on why the job exist and not on what the employee does.

• KRA decided should align with Organization's Vision , Mission and Business Goal.

• KRA to be set after mutual discussion between the Appraiser and Appraisee.

• KRAs are to be reviewed bi-annually.

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What will happen if financial objectives are met, BUT

• Customers are not satisfied / delighted

• Processes are not streamlined

• Organization is not building its capability

It is of utmost importance to focus on non financial objectives (Customer, InternalProcesses & Learning), along with Financial objectives. As…

Now Let’s create our KRAs on these Perspectives.

Learning & Growth

Better Processes

Increased Customer value

Improved Financial

Performance

Defining KRAs

KRA Framework(Perspectives & their descriptions)

• Shareholder view of performance.

• Effective Cost Management. Financial

• Customer Service

• What does the organization need to do to remain a customer's valued supplier?

• New Markets

• New Products

Customer

How do customers see the organization. Particular area of

focus will include :

• Critical internal processes in which organization must improve for satisfying customers & shareholders.

Processes

• How can we continue to improve & create value forcustomers & stakeholders?

• Self DevelopmentLearning & Growth

• How can we build high performance teams?Team

Sample Goals in each Perspective

Financial

•SAMPLE GOALS:

•Sales Revenue

•Profitability

•Operating Cost management

•Growth

•Return on investment

Customer

•SAMPLE GOALS:

•Customer Satisfaction

•New Customer acquisition

•Customer Profitability

•Responsiveness

•Customer Retention

•Average time to process orders

Processes

•SAMPLE GOALS:

•Quality performance

• Inventory Management

•Streamline Processes

• Improvement in technology

•Efficiency improvement

•Productivity / capacity improvement

Learning & Growth

•SAMPLE GOALS:

•Product diversification

•Competitor's tracking

• Improvement in strategic / operational skills

•Self Development

Team

•SAMPLE GOALS:

•Team Capability development

•Developing Successor

•Team Recognition & Retention

S.M.A.R.T. is an acronymfor the 5 steps of Specific,Measurable, Achievable,Relevant, and Time-basedgoals.

Specific

Measurable

Attainable

Relevant

Time Based

Key attributes of KRA's


Specific

Measurable

Attainable

Relevant

Time Based

The statement describing the desired result

has to be clear and concise.

Objective should clearly specify who will

achieve what, when and under what

circumstances.


Specific

Measurable

Attainable

Relevant

Time Based

Goals need to be such that the desired result can

be clearly measured or observed.

Statement of objective should state how success

will be measured, which may involve cost or time

constraints.


Specific

Measurable

Attainable

Relevant

Time Based

Desired results must be realistic.

The objective should include some element of

challenge and it should not be so overwhelming

that the achievement seems hopeless.


Specific

Measurable

Attainable

Relevant

Time Based

Achievable business goals are based on the

current conditions and realities of the business

climate.

Objective should have direct relevance to the

individual.

Statement of objective should have an impact

on work performance now or in the future, or

that they will have some influence on the

trainee’s personal development.


Specific

Measurable

Attainable

Relevant

Time Based

Objectives need to have a time frame in which

the desired result is expected to be achieved.

Business goals and objectives just don’t get done

when there's no time frame tied to the goal-

setting process. Whether your business goal is to

increase revenue by 20% or find 5 new clients,

choose a time-frame to accomplish your goal.

For any Questions / Support

Please contact your HR BP

THANKYOU


KRA Process Note - aptalk.inaptalk.in/phocadownload/KRA Process note.pdf · KRA Process Note. KRA Setting ... • KRA to be set after mutual discussion between the Appraiser and Appraisee.

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