What are KRA and KPI? What's the difference between them? (2024)

When it comes to measuring success, then KPI and KRA are two key measurable values that help business to gauge their success and progress.

The most important activity of a business could be to measure both growth and goals. Measuring and tracking success is important because it gives you a clear picture of your journey.

When it comes to measuring success, then KPI and KRA are two key measurable values that help business owners to gauge their success and progress. KRA is Key Result Area also known as the Key Responsibility Area and KPI is Key Performance Indicators.

Today we will try to learn the fundamentals of both metrics.

What is KPI or Key Performance Indicators?

KPIs are quantifiable and measurable values, which are used to evaluate and measure the success of a company or employees. Depending upon the business objectives, KPIs for different companies and organizations can be different, and unique.

What is KRA or Key Responsibility Area?

KRA or Key Responsibility Area are quantifiable and measurable tasks and responsibilities for employees in an organization. Depending on the job profile, experience and expectations, different employees can have different KRAs within the same company.

Difference between KPI and KRA

While KPIs focus on the performance metrics of the entire organization and employees, KRAs focus on the key activities and responsibilities of the employees and teams.

KPI and KRA are interlinked and heavily dependent on each other: By defining and measuring KRAs for all employees, they get better clarity about their roles and responsibilities, which in turn help the organization to achieve their KPIs.

At the same time, by defining and documenting KPIs for the organization, the employees can understand their roles and expectations in a better way. Higher KPI and KRA translate to success and growth for the organization.

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