what is kra and kpi

KRA stands for Key Result Area, while KPI stands for Key Performance Indicator. Both KRA and KPI are used by companies to set goals for their employees and measure performance based on those objectives. KRA outlines the responsibilities and roles of employees at their workplace, while KPIs analyze business performance. The key differences between KPI and KRA are that KRA is a strategic factor that requires a lot of effort to achieve the desired goals, while KPI is a financial or non-financial metric that measures progress. KRA is qualitative in nature, while KPI is quantifiable. Successful companies split the overall organization's goals into various KRAs, and KPIs are then created and mapped against the KRAs. Management needs both KPI and KRA for a fair evaluation of their employee's work. Multiple KPIs can be assigned to a single KRA, but the opposite isn't true.