Need help with a brief understanding of key performance indicator (KPI) & key result area (KRA) !
A key result area (KRA) is an strategic factor either internal to the organization or external, where strong positive results must be realized for the organization to achieve its strategic goal(s), and therefore, move toward realizing the organization’s longer term vision of success.
Also, key result area can be described as the major areas, that requires exceptional performance, so as to survive and obtain a competitive position in the market.
It is a strategic factor. Its nature is Qualitative
It’s used in outlining the scope of the job or product.
Key Performance Indicators (KPIs) on the other hand are high level measures or metrics, for one particular objective, which (when measured and reported) give the leadership team an “indication” as to whether the organization is making progress towards achieving that particular objective. Key Performance Indicator acts as a tool to determine the achievement of an objective, while KRAs are those areas that require a high level of performance to gain a competitive position in the market.
KPI stands for key performance indicator that denotes a quantifiable metric, for a defined objective. It exhibits the factors leading to the success of an organization.
It is a metric.
It’s nature is Quantitative
Its used in evaluating the success towards goals at various levels.
Pls feel free to revert if you need any other clarification.
Nikhil K N