Key Performance Indicators (KPI) related with Key Result Areas (KRA)
Author: Amit Mehendale, Head Delivery, MAIA Intelligence.
With reference to my earlier post Key Performance Indicators KPI - A puzzle solved, few of the readers asked me to throw some more light on how KPIs could be related to KRAs (Key Result Areas) of the management thereby enabling KPIs to be a more precise snapshot of the organization.
In this article I shall highlight some of the key points as to how the KPI can be used in context with business functions.
KPI Definition & Attribute Template
Name of the KPI :
| KPIDescription | |
| KPI Objective | |
| KPI Benefits |
|
| KPI StartDate | |
| KPI End Date | |
| KPI Life Span & Reporting Periodicity | |
| KPI Unit of Measure & Formula | |
| KPI Target Value | |
| KPI Upper & Lower Tolerances and Anticipate Upper and Lower Limits | |
| KPI Sponsor | |
| KPI Initiator | |
| KPI Benefactor | |
| KPI Internal or Customer Facing | |
| KPI Link to any TQM | |
| KPI Data Sources |
|
| KPI Risks in Working Conditions | |
| Status of KPI Either Parent or Child with detail of relationship |
|
| KPI Relationship and Links |
KPI can be related to: 1. Enterprise wide 2. Objectives 3. Resources 4. Processes 5. External Agencies 6. KPI |
| Remarks |
|
Using KPI requires KPI definitions and attributes to set up their implementation using the above templates. For KPI implementation, there will be a number of stages that need to be addressed. The following outlines those stages. In practice, it will be necessary to undertake a scoping exercise to ensure that all items necessary are taken into consideration. The size and cost of this exercise will depend on the nature of the requirement. The scoping exercise will outline the areas under consideration. The following items will need to be addressed, either at the scoping or in the KPI set up phase:
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Identify and enumerate all KPIs
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For each KPI, establish what is to be achieved by the use of this KPI
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For each KPI, define the method of measurement
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For each KPI, define what data will be used to measure and where that data is
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For each KPI, define the algorithm that converts data to KPI
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For each KPI, define the normalization or criteria
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For each KPI, identify the organisational units to which the KPI applies
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For each KPI, define the organisational reporting hierarchy
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For each KPI, define the reporting requirements (table output, graphical output etc)
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From the KPIs, identify and enumerate all data sources
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For each data source establish how “live” the data is and define its input
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For each data source establish the connection mechanism to its KPI object
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As appropriate set up a data connection mechanism for the data source
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Define an appropriate security model that will allow appropriate personnel access to appropriate data
The user interface will need defining and implementing, but this is like putting the bodywork on a car. How it looks is important, but what the engine and unseen parts do is what makes the difference between a performance car and a runabout.
Key performance indicators (KPI) are high-level snapshots of a business or organization based on specific predefined measures. KPIs typically consist of any combination of reports, spreadsheets, or charts.
They may include global or regional sales figures and trends over time, personnel stats and trends, real-time supply chain information, or anything else that is deemed critical to a corporation’s success.
Without measurable quantities, successful management is hardly possible. They allow goals to be observed, met and perhaps exceeded. Relatively generally formulated goal descriptions are made more concrete through the use of measurable quantities. The measurable quantities can then be allocated to the strategic goals in the perspectives and organisational units. The editor allows further clarifications to be made, for example by adding a comprehensive definition of the measurable quantities, complex mathematical formulae (if necessary), specification of units, etc. This is also where the warning limits for each quantity, which determine at what values the different warning colors will be switched on, are defined, giving the user a quick view of how well or how poorly each goal is being met.
1KEY KPI, or key performance indicators, are used by companies to better evaluate their current level of business success and to help plan for the future. KPI add value to aspects of business operation that are difficult to quantify, like employee satisfaction or development, and are a critical piece of long-term business intelligence strategy. When establishing KPI it is important to identify metrics that are achievable. It’s also essential that companies measure and analyze these metrics using intelligent software. Sophisticated technology provides the framework for executing multi-level analysis about profitability, process, and other metrics that impact performance; and for companies looking to find the leading state-of-the-art solution, 1KEY KPI is the answer.
Take for example if the user wants KPI trend for Ageing Analysis which in turn will give better cash flow by controlling the credit period. I have filled the above template with the relevant attribute against each KPI definition. Likewise you can use this template for any business function that you might want to measure.
1KEY integrates KPI within its BI Suite. MAIA Intelligence has been providing innovative performance management & BI tools for companies across the verticals. 1KEY BI supports seamless linking of score-carding, reporting analysis thereby helps reveal big picture connections. Whatever the business focus is, 1KEY supports critical indicators with superior KPI models & templates.
Measure KPI with confidence: To achieve maximum financial success, companies must examine questions like: “What is our customer demographic?”, “How fast are we turning merchandise?”, and “What’s the rate of customer satisfaction?”. As part of the 1KEY Agile BI solution, Sales and Customer KPI modules deliver a configurable and easy-to-use framework to answer these questions. Organizations can perform in-depth margin analysis on customers and products, and view trends and key metrics. In addition, pre-built KPI tools manage campaigns. But this is just one slice of a powerful integrated program. Within 1KEY BI, users can link performance indicators to analysis software, creating endless possibilities for diagnostic reporting.
Manage large data sets using drag-and-drop method. Easily explore data threads and sort by different criteria. Produce high-impact reports fast.
In 1KEY KPI, user can set multiple conditions for multiple trends & measure multiple KPIs at a time based on Sales, HR, Product, Suppliers, etc.
- Multiple KPI trends under single KPI group
- Common & independent parameter
- Filtering / Paging / Sorting
- Top / bottom values
- Multiple Aggregate Summaries
- Drill down KPI to next level data
Posted on February 25th, 2008 by Amit Mehendale
Filed under: Business Intelligence, View Points & Perspective
Great!! Amit, thanks a lot for relating KPIs and KRAs and culminating to a Balanced Scorecard. This is precisely what I was asking for.
Hi
Could you guide me on how to assign weightages to the KPIs for retail, namely HR, Costing, Customer Experience, Store Layout etc etc?
Umang, KPIs can be expressed in different ways like cost, quality, time, service, etc. All these further can be expressed in time, volume, money.
KPIs can be:
Absolute numbers: today the value is X, tomorrow we want the value to be Y.
Ratio’s - today the ratio between A & B is X%, tomorrow we want Y%.
Process - today the process requires resources and has X number of steps, in the future it will have less steps and use fewer resources.
the KPI procedure was indeed a remarkable one..but could you please list down the procedure for KRA process?
Maya, KRA’s to be given in the beginning of the period. The day to day activities are alligned according to those KRA’s. Documented result areas provides a path to tread. KRAs help what exactly is expected out of a person and they can performe 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.
Here is the sample process one can use.
- Talk to individual team members, gather information
- Identify their day to day activities and hence derive key result areas
- Document them and allocate a timeline (could be a very small document)
- Communicate KRA’s to the team members
- Revisit progress of an individual on these KRA’s periodically
- Critically review performance against each of these KRA periodically
- Facilitate them in case of deviations
- Observe, measure, discuss and appraise
KRA’s help individuals align their day to day activities to overall organizational/project goals in terms of results delivered.
Any useful experiences on KRA’s that you’d like to share ?
Wonderful article Amit…My take on this subject area—
KPI’s are indeed emerging fast in todays rapidly changing business world wherein timely decision making aids in the success or failure of a business.
Today’s world of business has got abundance of data and KPI extracts the very essence of these data and prescribe the right course of action(s) in conducting the business in a much more effective manner.
Shall apply some of these KPI indicators in real world scenario and come back with queries,if any.
Thanks a lot!!!
send me some related KPI with KRA
Please mail me KPI with KRA for my present designation . I am working with a renowned Paint industry as taxation executive.
Good question Dhrubajyoti. I have an example of KRAs for a collection manager. Start with best ones like:
a) understand and redefine credit policies for all clients ie asset quality Vs strategic changes to credit policies.
b) pick delinquency for >1month, > 3 months and so on…
Make 30% of salary variable for their manager, if his team are able to achieve 80% of their targets, give him a handsome sum ie more than what he expects as a annual increment or zero. next quarter raise performance levels to 90% and so on..
The above will help your firm in getting its money within defined timelines.
Next ask collections executive to get additional business through existing clients and give them a incentive e.g .5% of sales…
Similarly you can define your KRAs depending on your work profile.
Amit, could you assist me with a format of a KPI for a call centre executive. Well basically its into a outbound process on business coaching. Though not specific, kindly do provide me with a format of a normal KPI / KRA for a call centre executive. The metrics on which the performance could be measured.
Anitha, following points can be considered while making a KRA for a call centre executive:
- Voice quality
- Customer Feedback
- MIS
- New Initiatives
- Handling team in the absence of Supervisor(Acting Team Lead)
- Quality Scores
- Targets achieved
You need to put across the percentages against each KRA based upon the priority as per the requirement of the process
Hi,
Can you give me idea about some KRA which can be set of Project Managers in a software organisation who are handling teams.
KRA has to be related to people/ process or self improvement.
Regards
Swagata
Hi Swagata, KRA is an unit to measure the outputs for which a Role is responsible, be it people or process or something else.
KRA for Project Manager in a software organization who are handling teams could be:
1. Timely and quality delivery thereby ensuring client satisfaction
2. Ensuring Team satisfaction and managing the team effectively
3. Building resources and training them
I have listed on generic KRAs. You may vary with actual job description.
Hi Amit,
All the information that you have provided has been very helpful in enhancing my understanding about KRA’s and KPI’s. This was of great help. Thank you for your previous posts.
HI, Can you let me know how to link KPI’s to P & L account for a centre head.
Hi,
This is ravinder here, basically a Cost Accountant. I’m working in a ceramics company and i’ve a assignment to prepare a strategic MIS report, in which i want to use some ratios and performance indicators of various plants. So i need your help. Could you just tell me some perfomance indicators of plants product wise.
Thanks in advance for the same.
Ravinder, the following five steps help create & maintain effective Key Performance Indicators (KPI) for a manufacturing plant:
- Study the strategic goals of your company
- Carefully select, define, and document KPIs that will drive the desired behavior
- Create the “will” and the “way” as described above (e.g. educate, train, and listen)
- Begin using the KPIs to drive improved performance
- Do it again. Lean is a continuous improvement process. That means your KPIs should evolve as needed to best match - the current strategic goals of the company
Hi Amit,
Could you let me know the following
a. What would be the optimum number of KPIs and what factors does this depend upon?
b. How frequently should the KPIs be revisited? Does this also depend upon the dynamics of the Industry?
c. What should be the indicator which triggers the fact that a KPI has become redundant for a business?
Thanks in advance for your reply.
(Note : I work as Financial Controller for the Services businesses of our Group spread across several countries)
Sivakumar, one should not feel compelled to create KPIs to match those reported by their peers. Relevance to the particular company and its chosen strategies is paramount. Accordingly, it is inappropriate to specify how many KPIs a company should have – but our experience suggests that between four and ten measures are likely to be key for most companies.
KPIs evolve over time as strategies do. Explaining these changes aids comparability, a key principle of good corporate reporting.
Hi Amit, I want to implement KRA in our company. For that I need your help, so could you please assist me with a format of a KRA for a the position of Tech Lead, Associate Teach Lead, Sr.Software engineer, Creative herd, web designer.
Rashmita, KRA ’s are based on the job description. KRA is the results or outcome for which the job holder
is accountable. Identifying KRAs helps individuals: · Clarify their roles · Align their roles to the organisation’s business or strategic plan · Focus on results rather than activities · Communicate their role’s purposes to others · Set goals and objectives · Prioritize their activities, and therefore improve their time/work management · Make value-added decisions.
Once you have identified KRA’s (Key Responsibility Areas) then in each of these define what the KPI (Key Performance indicator is going to be. Ensure that it can be measured and weighted). Measurements and weightings on a performance contract must add to 100 points /100%.
Be sure to indicate how much each pillar contributes to the overall weighting. Also ensure that each KPI weighting adds up to the pillar weighting.
The very need of KRA’s is to measure performance , It is a measurement system where output of any person can be measured . we must remember while defining KRA’s that each one of it should be quantifiable. KRA’s change only if the role of an individual changes - a role is deffined as- responsibilities for a particular job . For eg- KRA for a sales executive will change if his role changes from Sales executive to sales manager .
Thus KRA’s can only be made and changed by immediate functional managers of that role.
Hi,
Amit, your articles provide valuable insight into BI.
I am intersted in developing a few key clinical Performance Indicators for a Hospital information system(HIS)
Can you give me a good reference point for the same .
Clinical indicators may reflect patient outcomes, safety issues, or the appropriateness of care given. Clinical indicators flag potential clinical problems that are happening, and allow to follow this up with appropriate action. For example, an increased rate of patient falls in the hospital may indicate a need to review policy and re-educate staff and families about patients’s safety and supervision.
Few other examples of clinical indicators might be:
- Number of patient who develop a particular disease
- Percentage of patient who undergo surgery who need an overnight bed (unplanned)
- Rate of medication incidents in the hospital
- Average patient waiting time at Admission
- Avg. no. of pathlab requisitions
Hi Amit,
I am a new employee at gwalia and was told to manage a project on KPI. I am hopeful that you could help me out with the basics of KPI framework creation to fit the procurement strategy for public sector/ non profit organisation focusing on Best value for money to deliver Economies, Efficiency and Effectivness to meet the Challenges like:-
1) E-Procurment / Process improvement
2) Strategic Partnerships / Collaborative Procurement
3) Sustainable procurement
4) Best Practice for Construction Procurement
5) Best Practice in Policy, Probity & Processes
6) Promoting Equalities & Diversity
7) Improve Communications & Staff Developement
I would like to know how to go about in creating a framework to fit all these in…what should I look for and target and how to capture the benefits through KPI measurement. I believe the KPI may be aligned towards possible savings generated through
i) Reduction in price:
[difference from past to current for same goods and service or chage to substitute or alternate products without compromising quality and value]
ii) Price avoidence:
[negotiating a zero price increase against supplier request or through long term contract (from short term)]
iii) Added Value / Process Change:
limiting previous liabilities by including them in future contract; whole life cycle costing; or through consolidated actions or procedure to draw benefits of reduction redundent process or activity and resources
If you can give and idea on how to go about it will be useful… more over the pilot e-procurement has been recently been launched and may have to look into areas to capture the KPI. Can you consider the [1-7] and [i-iii] be considered as KPA that you have mention in your earlier blog
Kunalan, deliver the sustainable procurement action Plan, in particular the targets of the flexible framework. Regularly review the action plan and establish KPIs to measure success; Establish KPIs to monitor future expenditure with local suppliers and on environmental products. Strategy Implementation, Sustainable procurement, time to procure, percentage of orders raised or invoices received & paid electronically, percentage of corporate spend through electronic sourcing, etc.
- orders raised via online system
- orders and value via Punch Out
- individual invoice transactions
- contracted spend (through tenders) v/s non contract
Define Measures:
- compliant spend (contracts or tenders)
- savings applied to process changes
- savings achieved from increased compliance
- savings achieved from increased collaboration
- general cost savings (Efficiency Measurement Model EMM)
Reporting strategy for procurement and related activities should allow extensive measurement and benchmarking which will be used to deliver meaningful information to support and influence positive change in Procurement.
I want to know how to prepare a KPI or KRA in KPO
Ahmed, each position in an organisation, has certain Critical success Factors . You could start the process with such factors involved for each job, leading you to arrive at Key Resilt Areas (KRAs) of the Job. This could lead you to Key activities for each and every position. This will give you clear picture for each position.
You will have to involve the concerned Job holders and their respective seniors/Dept. Heads. This has to be an organisation wide activity for which the top Management has to be with you.
Define the key performance area for a function. Allot weightage to each KPA. Total should be 100%. Define specific Targets against all KPA. Define Measurement Criteria for achievement of all targets.
All KPAs should match with Organization Quality Goals & Objectives because that is the ultimate goal we have to achieve by framing KPAs.
Hi Amit
I have struggling to find the right set of KPIs for a small company where each employee are expected to multi task. Example, the accounts executive is required to take in sales call. What would be a good set of KPI in this case?
Thank you!
Ying, you may have a list of 5 - 10 critical factors that need to be addressed to ensure that role is completed successfully. From that list you now need to select your KPI’s. You should try to have only 1 or 2 KPI’s per role.
Hello Amit
I need to define the Key Performance Indicators (KPIs) for a small size IT department in a finance company.
They have 2 developers developing an in house financial application to run their business. The department also consists of a system administartor, help desk support and an IT manager.
There are about 40 employees using this financial application and serving customers.
Could you please list the procedures of this KPI process? A format of this specific KPI? The metrics on which the performance could be measured.
Your help is greatly appreciated,
How can I start
Gio, IT Department KPI’s fall into the following categories:
- General IT Department
- IT Operations
- IT Help Desk
- IT Information Centre
- IT Systems Development (Application Development)
In your case, the KPI for 2 developers developing an in house financial application could be:
Success / Satisfaction Metrics:
- Project Outcome Success
- Project Deliverables Success
- % of Total Project Budget Spent on Project
Time / Schedule Metrics:
- Personnel Hours (from Timesheets) per Week
- Percentage Complete per Week
- Start Date Of Activity
- End Date Of Activity
- Number Of Man Days To Complete Activity (also known as “Estimated Time to Complete (ETC))
- Number of Milestones Completed per Month
- Time (in Work Months) to Fix Backlog of Open
- Time (in Work Months) to Fix Backlog of Open Defects per Month
Cost and Revenue Metrics:
- Value of Personnel Costs - PTD (Previous To Date) and Current Month
- Value of Personnel Expenses - PTD and Current Month
- Value of Total Project Cost - PTD and Current Month
- Earned Value Analysis (EVA)
- Value of Benefits Achieved
- Value of Project Revenues
- Amount Of Cost To Complete By Activity
- Total Cost of In-Scope Work
- Total Cost of Out-Of-Scope Work
- Project Profitability % (Margin)
- Value of Project Profitability (Margin)
Quality Metrics (for Software Testing) like Number of Defects Found, Number of Test Cases, etc.
Apart from that, Project Go-Live Dates Completed in Month can also be KPI for Developers.
For your Help desk Support the KPI could be:
- Number Of Help Desk Calls in Month
- Number Of Telephone Calls Answered in Month
- Number Of Help Desk Calls Resolved Within Target Period
- Mean Time To Repair (MTTR)
- Number of Problems: by Type, Total, by Location, by Application System, by Business Area
For IT Manager, the KPI could be IT Department Budget As % Of Enterprise’s Total Turnover (0.6%), % Of IT Department Budget Spent On Maintaining Legacy Application Systems
And for System Administrator, the KPI could be:
- Online System Availability/Uptime
- Overall Hardware Uptime
- Overall Hardware Downtime - Incidents and %
For KPI process & the format, please read my articles on this blog.
Thank you, that was very helpful
I need your help in indetifying KRA for Operations division which is responsible for the complete Chain supply of raw materials and distribution of FG. This is FMCG factory which has its own Fleet.
use of KRA & KPA in departmental store as a hr manager?
Nipun, KRA of a HR manager could be:
- Recruitment / Selection
- Workforce Planning and Diversity
- Performance Management
- Reward Management
- Workplace Management and Relations
- A Safe and Healthy Workplace
- Building Capabilities and Organisational Learning
- Effective HR Management Systems, Support and Monitoring
Rwabwogo, KPI for Operations Division who is responsible for the complete Chain supply of raw materials and distribution of FG, could be:
-remove stock shortages[ by %]
-improve inventory levels.[ 98% max]
Thanks you, now what would be the KRA for the whole Division?
hi! we are scheduled to have our planning on january, 2009. We are to fill up the following, could you please help me?What would be the KPI for a Revenue accounting department of a real estate developer. Then the startegies, action steps, and the activities/task. Our primary task is to encode the collections in the system,issue official receipts for cleared checks and update the buyers statement of account.. thank you..
Len, Team / Dept cost as % of Revenue, Revenue collections as a percentage against demand raised, Arrears expressed as average number of days of revenue can be few of the KPIs for a Revenue accounting department for collection.
hi …i want to know more about “Percentage of Orders Scheduled to Customer Request:”KPI…
Can anyone provide info with brief explaination.
Thanks in advance.
Sindhu, the percentage of orders whose delivery is scheduled to within an agreed time frame as per the customer’s requested delivery date is the Percentage of Orders Scheduled to Customer Request” KPI.
This KPI is calculated as: Orders scheduled to the customer’s requested delivery date / Total orders scheduled * 100.
Thanks for ur reply…..amit…
Can u provide me some Valuable questions to arrive at a KPI from customer…..????
Sindhu, the questions asked to marketing team for customer related KPIs could be:
- How many new customers acquired?
- What is the status of existing customers?
- What is the customer attrition rate?
- What is the turnover generated by segments of the customers? (these could be demographic filters)
- What are the outstanding balances held by segments of customers and terms of payment? (these could be demographic filters)
- What is collection of bad debts within customer relationships?
- Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections and pending numbers.
- What is profitability of customers by demographic segments and segmentation of customers by profitability?
Hi Amit,
it is just amazing to see you reply so many people at such a regular basis. I am in dire strait currently as my boss has me to create a KRA for myself. To start with I am working in a small IT Company where I handle one office and look after team of 10 developers. I maintain the office, I make sales calls (No cold calls) Now my boss wants me to create a KRA with 5 major headings which I have is as follows:
1. My Software Specialisation:
a. Application Development
b. Team Building
c. Training
d. Documentation Standard
e. Time line and task sheet management
2. Office management
3. Partnership with Software Company
4. Product Creations
5. Marketing and Business Development
6. Self improvement
Now as far as my understanding goes I have to just put one liners in them and give my targets. but my boss wants me to write essays in them. I am not sure how do I complete this KRA.
Can you please help me? If you want I can send you the KRA document which I have created.
Thanks for your help in advance.
Siddhartha
Siddhartha, you need to figure out all kind of ‘Key’ work you do which will impact your office performance. Break-up this in your team wherever applicable such that it impacts the team’s performance. Get it more specific as you decide your work area. It is not important whether it is one line or paragraphs while writing or creating KRA. The KRA should effect the performance of the employee which indirectly lead to productivity.
Start with defining the job responsibilities for each developer within team and prepare job profile of each and every individual. Then specify the KRA and set the goal depending on their responsibilities & profile. Goals Should be realistic, to the point, brief, and unambiguous. Complete demonstration of the ability being rated, not laced with jargon.
If required, you can break the KRAs into KPAs - if the KRAs are large. Then develop the KPI based on the corporate / department objectives. To manage each KRA/ KPA , a set of KPI are set . KRA and hence KPI is attributed to the person who can have effect on the business results and is self measured where applicable.
Hope this will help you in writing KRAs.
Hi Amit,
I am testing manager and my area of work is to Test mobile phones, To coordinate with clients, To manage the team etc.
I would appreciate if you can help to suggest the KRA for my profile that will show the benefit to my organization.
Thanks,
Yogesh
Amit,
The company I am working for is one of the biggest fast food retail chains in India, still in its growth stage. As a result, the processes are not in place yet. The PMS is online but not structured.
I have been working on the allignment of roles with the PMS but in search for perfection, my quest has gone haywire. Its been 2 months and I still am not happy with the final outcome.
I started by defining measurables for all HODs and unique role holders. In the process I realised measurables for many departments and roles are still not in place and their ultimate deliverables have not been put in quantifiable terms. But in this I saw an opportunity of pointing out measurables for every role that the respective HOD needs to implement, but that somehow is not clicking right.
Then I thought of putting in place a rating scale for every task/ responsibility rather than defining them in absolute quantifiable terms. But then the purpose of putting in place a framework for measuring deliverables would be lost.
I also tried making the system foolproof by defining KRAs, followed by KPAs and subsequently by their KPIs.
In the end I realise I am lost and confused….seriously doubting not only my analytical skills but also my reasoning and organising skills!!!!!!!!!
Please suggest me the most appropriate system to suit the above scenario. I am running out of time as I need to show my output in the next few days…
Thanks in anticipation…
Prateek Sircar
Yogesh, KRA for Testing Manager could be Project Planning, Scheduling, Preparing Test Cases, Defects Detection, etc.
Is it possible to list KPIs for a hospital? I am working in the quality forum of a reputed hospital and need to identify performance indicators to assess and monitor hospital service performance.
Dr. George, KPIs for a Hospital to assess and monitor hospital service performance may be:
- Ease of obtaining Appointments
- Responsiveness of staff
- Waiting time
- Quality of Physician / Doctor
- Cleanliness
You may list down the KPIs specific to your domain.
I am in a civil engineering construction company which is entrusted with a large project . We have our own batching plants and crusher plants. Company is tasked with construction of about 3000 Housing units with connected utilities. Employing about 2000 workers. My boss has given Following KRAs
Cost and Time
MIS of all activities
Planning
Value Engineering
I am confused about setting out the KPIs
Please guide
Billing
Coul
Anil, a KPI system must be used to drive improvement. A system without outcomes creates work without creating any benefit. It is useful for any post-project review to consider the KPI scores, what they mean and if there is any relevant action to be taken.
The purpose of the Key Performance Indicators (KPIs) is to enable measurement of project and organisational performance throughout the construction industry. This information can then be used for benchmarking purposes, and will be a key component of any organisation’s move towards achieving best practice.
Once the requirement and core purpose for the KPI system has been put in place it is important to determine what to measure. There are several issues that need to be addressed at this stage:-
- Limit the number of indicators to about 8-12; more than this and the exercise becomes onerous. The application of any system will become very difficult if there are too many measures and too much data to collect.
- Identify key measures. The measures must be collected for a reason, if they are not used or no action is taken if they are high or low, then they are not key for the project or organisation.
- Consider what data you are already collecting. Some of the headline KPIs, such as safety, or productivity may already be collected. It is important to check that you are not collecting data that someone already has.
The majority of systems will have a mixture of external, KPIs and internal benchmarks. An internal benchmark will allow you to compare between your own projects, but not at the broad level.
KPIs need to be used intelligently. Do not just consider the score, but discuss why a particular score is high or low.
Construction companies will be able to benchmark their performance to enable them to identify strengths and weaknesses, and assess their ability to improve over time.
Few of the KPIs could be:
Cost and Time - Time for Construction, Time to Rectify Defects
- Cost for Construction - Design, Construction, Operational, Client Diagnostic Change Orders, Project Diagnostic, Leader Change Orders
- Cost Predictability – Design, Construction, Operational, Client Diagnostic Change Orders, Project Diagnostic Leader Change Orders
- Cost of Rectifying Defects
- Cost In Use
MIS of all activities – Profitability, Productivity, Return on Capital Employed, Return on Value Added, Interest cover, Return on Investment, Profit Predictability, Ratio of Value Added, Repeat business, Outstanding Money, Time taken to reach final project
- Quality
Defects, Quality Issues at Available for Use, Quality Issues at End of Defect Rectification Period
Dear Amit,
I am looking to develop KPI for IT Infrastructure Department. This consists of projects involving Designing, Installation & Supporting Servers, Network , Security and Desktop equipments.
Can you please guide me on the same.
Thanks
Shialesh, typically KPI for an IT Infrastructure department could be:
- percentage of total IT Budget spent on maintainence, time lag between detection
- reporting and acting upon security incidents
- percentage of security-related service calls
- average time period (lag) between identifying a discrepancy and rectifying it
- % of problems with a root cause identified for the failure
- number of business disruptions caused by (operational) problems
- percentage of problems resolved within the required time period.
- number of open problems older than 28 days (or any other given time frame) relative to all open problems
- average amount of time (e.g. in days) between the registration of problems and their closure
- percentage of service requests resolved within an agreed-upon/acceptable period of time
- support costs of all software based on their support contracts
- monetized value of the hardware assets
- percentage of actual uptime (in hours) of equipment relative to the total numbers of planned uptime (in hours)
You can create your own KPIs surrounding your actual profile.
Tks very much for your useful post.
rgs
Let me have the KRAs and related KPIs for Total Quality Mgmt function
Dear Amit,
Can you please guide me how to measure the KPI for school teachers? Do we measure them by the teaching hours and amount of students? What else can be accumulated to their contribution?
Please help, thanks!
Vience, for school teachers you should consider KPIs like:
- Teaching skills satisfaction rate
- Average course experience
- Student / teacher ratio
- Median techer experience
- Percentage of students passing
- Quality of teaching
- Student evaluation of teaching
Likewise, you may define your own KPIs.
Badri, measuring output trends, identifying process defects and taking corrective actions can be few steps for improving quality. Refer to your business strategy and goals to prioritise and inform your choice of KPIs.
Amit,
I am suggesting the following KRAs. Hope it is fine..
Awareness creation
Process Improvements leading to cycle time reduction, throughput increase etc
Process Improvements leading to improvement in Business Metrics
Introduction of new processes
Compliance to various applicable standards
Badri
Hi,
I’m heading a team of designers in IT (Information Technology) industry. Can you please suggest what could be mine MBOs (Management of Objectives) or KRAs
Thank you in advance
Sandhya
Hi Amit
I look forward to your valuable guidance on my above post
Dear Amit,
Could you suggest KPIs/KRAs for a sourcing (contracting) team in the travel industry — we interact with suppliers abroad, get rates for itineraries and determine the price at which we give the product to the end user
Would you suggest a KRA/KPI for a finance team, such as the Cost, Financial, Management Accountant and the Chief Finance Officer in a manufacturing firm
In Finance and Accounting, KRAs may include
- Credit referencing
- Management information
- Capital expenditure
- Security
- Financial analysis
- Cost control
- Internal audit
- Regulatory reporting
- Credit control
- Financial records
- Payroll
- Cashflow forecasting
- Budgeting
- Costing
-Cost of Capital Used
- Receivables leveL / against sales
- Bad Debt Level
-Debt Equity Ratio
KRA for Management Accountant could be:
- budget management
- Maintaining financial and accounting standards, principles, and practices
- Development of appropriate management and other reports for internal and external customers
- undertaking research and analysis.
KRA for CFO may include:
- managing financial, business and/or accounting projects
- organise information, monitor progress and meet deadlines
- provide professional/specialist/technical financial, business and/or accounting expertise and knowledge
- Formulation Financial strategy consistent with organisational vision, purpose and business objectives;
- Lead and manage people in Finance team
- working effectively and making contribution to both the formulation and achievement of team, business and corporate goals.
- Developing innovative and creative approaches to addressing issues and challenges in the work group/business unit/organisation;
- manage own ongoing learning and development.
- Communication clearly verbally and in writing and Presentation
- Representation of the Comcare with credibility and professionalism on financial, business and/or accounting matters.
KPI of a Finance department could be:
- Accounts out on time
- Number of credit notes issued to correct errors
- Debtor days within target
- Accuracy of stock data
- Good relationships (ie low contacts) and low error rates with HMRC
- Avoiding penalties for tax and accounting
- Audit fee budget under control
- Timely supply of data requested by other departments
- Staying within financing limits
- Achieving target for cost savings from creative use of finance, eg saving audit fee, cutting bank charges, using alternative funding, outsourcing where appropriate etc.
For a Group Financial controller KPI’s could be Monthly MIS, Networking & relation building with Banks & Insruance company etc.
Hi Amit,
could you pls suggest KPI for the finance department for a mining industry, im the finance manager and given the task of identifying the performance indicators for me and my departemnt.
kindly advice
best regards,
aman
Dear SIr,
In the KRA form which i needed to fill,there is a column as self remarks…
pl advice
Hi Amit,
I am working on the KRA of our Resource Mobilization Department. They also handles our special projects (i.e. small grant, etc). Can you please suggest what is the best KRA for the Resource Mobilization Department? and Research & Development Department also.
Thank you so much
Joy
Joy, KRA for R&D department could be:
- New Product development & Testing.
- Value engineering & innovative solutions
- Preparation of SOP’s. Authorize all documents for development of new product. Preparation of technical documentation and resolve product problems.
- Define specifications of all the instruments & research materials for conducting the experiments.
- Evaluate competitors offerings technically & commercially.
- Working out on budget (manpower and machineries required for department).
Cost analysis.
- Analysis of customer requirements.
- Plan and estimate development activities. Hold reviews to validate designs & analysis.
- Coordinate with the factory and suppliers for product development
Resource Mobilisation department may monitor:
- strategic resources management including planning of available resources
- tracking allocation / utilization (spending) of financial resources
- maintenance of a strategic reserve, proposing cost savings and (administrative) resource-mobilization strategies including cost-recovery initiatives
Senthil, the Self Remarks column in KRA form is employees’s Self-Perception (you may call it as an Self-image) on the key performance and results.
Amit,
what will be kras for Accounts function and Marketing function?
Hello -
Can you give me some additional informaiton on developing Quality Scores
Hi Amit
Your explanations are tremendously helpful. I am shortlisted for a new position as Children’s Services Transport Mngr responsible for transport of children with special educational needs to and from school. Would you be kind enough to suggest the KRAs and KPIs for this area.
Thank you so much
Justine
Hi Sir,
I’d like to seek your help regarding key areas, key result and key indicators samples of a person heading the accounting, admin & warehouse of a toll manufacturing company.
Hope to hear from you.
Thanks a lot
tyam
Dear Amit,
1) What are the KPI can be for IT Business Continuity Plan Testing?
2) wanted to know about the IT Services Quality Improvements, If could possible list out few..
Thanks
Sathish
Hi,
Need to come up with KPIs with KRA for Business Development / Sales for a hospital. Kindly help me on this. Thanks
Sathish, KPIs for IT Business Continuity Plan Testing could be:
- Proportion of areas which have business continuity plans that have been updated within the last six months
- Proportion of identified IT services which have business continuity plans that have been updated within the last six months
- Number of live exercises tested in the last three years
- Number of drill exercises done in over the last 12 months
- Number of process cascades undertaken in the last six months
For IT Service Quality Improvement KPI could be % of service requests resolved within an agreed-upon period of time.
Evelyn, KPIs with KRA for Business Development / Sales could be:
- Percentage of new revenue - The percentage of new revenue generated for the company in a month
- Percentage of new customers (patients) - Percentage of new patients within measurement period
- Number of initiatives taken to be generate and achieve new-revenue goal
- % of revenue due to addition in services - Percentage of revenue due to services launched in previous period (e.g. the past year)
- Average new appointments generated per sales rep - Average number of new appointments generated per sales representative
Hi Amit, I have just come across your blog which has proven quite useful. However, I would like your help please. I have been given the task to come up with some KPI for library services within a SE London borough. We are looking to save money and increase membership. Can you please give me an idea of possible KPI to use in this regards as well as how to assess these to measure with suitable KRA - showing whether these goals have been achieved.
Tresha, KPIs to increase membership of library services could be Target rate - Converting enquiries into orders, repeated lost revenues by individual, Revenues by Membership Category, Time taken to turn round Region, Revenue Costs, Lost to competitors, Salaries and commissions, Average Revenue per 100 Members and so on. Monitor financial reports periodically to ensure appropriate expenditure of allocated funds.
Hi Amit,
I am incharge of a division which include departments of IT, Accounts, General Affairs, Legal. We have completed the first phase of set up of the organization and are now in the second year and have to set up the KRA & KPI for these department. Need your assistance for the KRA & KPI of the respective departments
Sanjeev, KPI’s for Legal Department could be:
Results: The extent to which planned results are attained by legal counsel (measured using a 5-point index).
Cost of Legal Activities: Total legal spend per primary corporate indicator (e.g. product, revenues, and so on) before charge backs and recoveries. Inside and outside counsel costs and disbursements are included.
Budget Performance: The extent to which approved budgets for total legal spending are met (measured on a 3-point scale – meets at 1, beats by 5% at 2 and beats by 10% or more at 3. No points for exceeding budget).
KPIs for General Affairs could be:Correspondence, Record Management, Facility Management, etc. You can choose from them as per the applicability.
For IT & Accounts department KPIs, you may refer my comments above on this article.
Hi Amit. Could you pls suggest KRAs and KPIs for a DTP artist and Art Director in a communication and advertising department?
Hi Amit. Could you pls help me in making KRA AND KPI. I am a real estate agent. And my director is asking me to make a KRA and KPI.. The template has 7 columns which are Perspective/KRA/KPI/Standard/Goal/Objectives/Actions. We have to double our sales for the year 2009 and we have to recruit and maintain quality manower. Manpower attrition rate must be 1%. Sales production must be 80% closed sales and 20% forecast. my plan is to assign my seller to have 2 focus project. And to have repeat customer. We also have to improved our documentation process.
I need your help. Thank you very much and God Bless.
Delia
Hi Amit,
What an excellent contribution! Appreciate your patience.
Amit, I manage cluster of support services for a Hospital group, recently we outsourced catering service to a international renowned company , I need some guidelines to set KRA’s and KPI’s for these contract can you please advice me on this.
Kind regards,
Amar
Hi Amit,
i am totally impressed with the concept you have developed and the thoughts put accross.
can you help me with some KRA’s and deliverables for a CFO position in a Real Estate company in India. Also can you put across the relevent KPI’s for these KRA’s
Regards
Joseph
Amar, while setting the KPI’s for contract for catering services, define objective like Monitoring Operational Performance, Management, Quality, Safety, etc.
Relevant Key Performance Indicators, will allow measurement of the actual performance of the catering contractor. Monthly reviews should be held between your company and the contractor not only to discuss and resolve problems and concerns but also to present relevant performance metrics and Key Performance Indicators (KPIs).
Typical KPI categories include:
- Delivery
- Product/Service Quality
- Service
- Best Practice & Continuous Improvement;
- Asset/ Service Availability
- Customer Focus
The sample KPIs for Catering Service Contractor could be:
- % of user complaints due to contracted services
- General meal uptake (Annual average number of meals sold / Average employee roll)
- Average meal cash spend per employee
- Subsidy or profit / Average employee roll
Wow !!!, Thanks a million , shall get started …..
Cheers
Amar
I am really really happy when i found this blog. Right now I’m working for IMC. It’s a human resources consultant. And this blog very inspiring me about KRA and KPI which is related with my job. Thank you.
Hi Amit,
Kindly need your help with some KRA’s and KPI’s for Office Manager / General Affair.
Thanks A lot. Regards.
KPI’s for General Operations or Administration could be Department / Location / Employee / etc. wise Productivity Analysis and likewise.
Dear Mr. Amit,
This blog is very interesting and helpful for me. I am currently developing KRAs for my department. Your sample KRAs are very helpful.
Thanks and keep up the good work.
Dear Amit,
This is good stuff.
I am a MBA student and one of my case study require to define KRA and one KPI against each KRA for following performance area. Hope you can help me on this regard
1. Production
2. Marketing
3. Innovation
4. Competing
5. Finance
6. HR
7. Capacity Development
8. Governance
9. Management
10. Corporate responsibility
Thanks in advance.
Praneeth, the objective for:
Production - can be improve plant performance and reduce time. (Power consumption per hour production)
Marketing - can be Market Analysis, Lead generation. (Quality of Presentation, Marketing Budget Ratio (MBR), lead generation costs, Number of Junk leads, No. of new leads per month, Success rate of campaign, delays in addressing new leads, new product / service launch adoption)
Innovation - can be monitoring the innovation process, continually revise and design products, monitor technology change and development, monitor competition, customer preference (% of sales due to launched product/services, Time-to-market of changes to existing products/services, R&D spend as % of revenue, Ratio of number of concepts to actual products, Number of new techniques/innovations patented and pending
Competing - can be monitoring competition (Perceived degree of competition)
Finance - can be Return on Investment (ROI), Profit per employee (FTE), Return on Equity (ROE), Profit per staff
HR - can be Workforce attitude surveys, performance appraisals, HR headcount, Organization profile, Administration, Remuneration, Employee relations, succession planning, training and development, exit interview, recruitment, productivity & utilization, equal employment opportunity, workers compensation, absenteeism, employee headcount, worker turnover (Average number of training hours per employee, Staff turnover, % of employees gone through training, % of HR budget spent on training, Number of Full Time / Part Time Employees)
Governance - Percentage of strategic objectives achieved (Percentage of strategic objectives achieved within a given period. Depends on annual or pluri-annual management plan high-level objectives)
I have tried to give few of them for your reference. Similarly, you may develop the KPIs & KRAs for the required function based on the objectives.
Dear Amit,
Thanks, this is good and I can continue.
Thanks again for your support.
Cheers
Dear Amit,
This is simply amazing. I would really appreciate your help. I have been given the Key Result Areas 1) Plannng & implementing results 2) Operational results and Excellence 3) Managing Resources 4) Project Management and Participation - Innovation and Growth. I have to fill in the Key Performance Indicators (The HOw and Why) My job tasks are HR Focal Point /Coordinator, Membership, Getting Quotes for Non-consumable equipment and equipment that needs repairs, Administration and Managing staff i.e. Maintenance. Security, Laundryman, Gym and Fitness Instructors, Chargehand (driver), followup on citiledgers, arranging travel plans and tickets etc etc. Request your help with a little description and where does each task fit in relation to the KRA. Also require the measures Time, %, Cost, Quality.
I have to submit this within 2 days. Appreciate your help.
Can you please suggest KPI/KRA for Business Operations team for Telecom company
@KK, please visit http://blog.maia-intelligence.com/2009/02/27/kpi-for-telecom-industry/ for KPI’s for Telecom Industry.
Hi
I need you help in identifying KRA and measurables KPI for the following profiles in a leading Retail - Apparel industry
Manager - Logistics
Manager - Distribution
Thanks in advance!
Rajani, KPI for Logisctics and Distribution in Retail Industry could be:
- Percentage of orders delivered with damaged products/items
- Damages as percentage of throughput
- Optimize Load Fulfilment (OLF) %
- Sales per storefront - This metric yields the productivity per storefront. It gives an indication of how effective the distribution is in relation to overall sales.
- Numeric product distribution - Measures the number of stores carrying the product.
I need to write KPI for the following departments:
Business development executive
Reporter
Production
Accounting department
Corporate services
Distribution
Would really appreciate if you could help out.
@Sunmisola, please find below few examples of KPI for various functions:
KPI for Business Development Executive:
Percentage of new revenue generated for the company in a period.
KPI for Reporter:
Column-inches (centimeters) of articles appearing in business/trade publications.
KPI for Production:
Manufacturing cycle time - Measured from the Firm Planned Order until the final production is reported. It usually takes into account the original planned production quantity verses the actual production quantity.
Average production costs of items - Average production costs of items produced within measurement period.
KPI for Accounting
% accuracy of periodic financial reports - Financial Reports should be prepared in a timely and accurate manner. Accuracy of financial reports can be measured against the draft financial statements prepared by the accounting department, divided by the absolute value of adjustments pushed through by the external auditors. Alternatively, the number of adjustments prepared by the external auditors can be used to establish accuracy.
KPI for Distribution:
Inventory replenishment cycle time - Measure of the Manufacturing Cycle Time plus the time included to deploy the product to the appropriate distribution center.
Dear Amit,
By chance, i came across your Blog. It is very interesting.Some of your reply is superb and very pertinent.
Kindly let me know, what are the KPIs and KRAs for the Hospital Revenue Management / Hospital Financial cycle.
Regards,
Ravi
Thanks a ton. Would need you help as well in developing KRA’s for warehousing team ..
Thanks in advance
Rajani
@Ravi, the KPIs for the Hospital Revenue Management / Hospital Financial cycle could be:
- Percentage (%) of patients treated as day cases
- Percentage (%) of time that hospital beds remains occupied
- Throughput per bed - Average number of ordinary admissions treated in each available bed each year
- Percentage (%)of first attendances in emergency room
@Rajani, key performance indicators (KPI) for Warehousing team are as follows. You can define the KRA’s based on these KPIs.
- Percentage (%) of Inventory items incorrectly located
- Percentage (%) of inventory items with incorrect stock balances
- Percentage (%) of Warehouse shrinkage
- Percentage (%) of correctly picked line items
Dear Sir,
I Require KRA /KPI for Warehousing and Logistics Manager - Position in Retail Apprel Industry
@Moinuddin, KPI for Warehousing and Logistics Manager in Retail Apprel Industry could be:
- Percentage (%) of Inventory items incorrectly located
- Percentage (%) of inventory items with incorrect stock balances
- Percentage (%) of correctly picked line items
Hi!
Can you help me define a KRA/KPI for Information Security Officer? Thank you in advance!
@Jasmine, KPI for Information Security Officer could be:
- Number of Detected Network Attacks
- Number of occurrences of loss of strategic data
- Percent of incidents classified as security related
- % of downtime due to security incidents
Likewise you can define other Key Performance Indicators as per the job role.
A very helpful blog. The list prepared is a good work done.
Hi All,
I operate a catering contract at an International school and need KPI’s that define quality, service, food hygiene and safety and portion size. How can you do this in an enviroment when 90% of the consumers think the price could always be cheaper, the choice greater and the quality better! I’m judged mostly by children and some teachers.
I’m completely puzzled - can anyone please help!!!
Trevor
@Trevor, KPI’s for Catering Contractor that define quality, service, food hygiene and safety could be:
- Number of customer complaints due to quality of services: Customer complaint is a key that mirror quality of products and services.
- Average value of ideas / suggestions implemented
- Average lead time to respond to ideas / suggestions
- % of corrective actions closed out within specified timeframe
Hello:
I am Accounting Manager in our company, please help me formulate KRA’s for my department. I have 18 staff and we are in a money transfer business. My concerns are payroll preparation, F/S preparation, liquidation of advances, replenishment of petty cash fund and check issuance for our supplier and to our business partner.
Thank you.
@ Priscilla, Key Performance Indicator (KPI) for Accounting Manager could be:
- Payment errors as percentage (%) of total payroll disbursement
- Percentage (%) of manual payroll payments
- Cycle time (e.g. in days) to process the payroll
- Cycle time to resolve payroll errors
- Percentage (%) of untimely payroll payments: Number of payments that are not made or made to late to employees as % of total payments to employees
- Accuracy of financial statements
- Cycle time in days to perform monthly / quarterly / annual close (at site level)
- Percentage (%) of financial reports issued on time
- Delay (in days) in production of financial reports, based on target for production/delivery
Based on the above KPIs you may prepare KRAs as per your role.
@Amit Mehendale,
Hi
I want to set up the KRA for one of the OPS manager working on our company.
He handles the e-commerce business of our company and reports directly to the client.
His team takes cares of order processing (credit card charging), returns, refunds, Website designing, Internet marketing.
What should his KRA?
@Prit, Key Performance Indicator (KPI) for Operations Manager in e-commerce business could be:
- Shopping cart abandonment rate: Percent of sessions where item was added to cart but the order was not completed
- Order session %: Percentage of sessions in which users completed an order
- Average Days to Purchase: Average number of days from first website interaction to Purchase
- Average Visits to Purchase: Average number of sessions from first website interaction to Purchase
- Frequency of sales transactions: Frequency (e.g. in days or hours) of sales transactions
- Checkouts per cart : The number of Carts created divided by the number of Checkouts
- % of canceled checkouts: This measures the number of times a person indicates wanting to Checkout but then doesn’t follow through beyond the Billing and Shipping page
- Average lifetime value of customers: Average lifetime value of customers
- % of returning customers: Percentage of returning customers within measurement period
- % of new customers: Percentage of new customers within measurement period
- Cart conversion rate: Cart conversion is the percentage of customers that complete an order after visiting the shopping cart
- Average order size: The average amount spent by a customer per order. Many companies have goals of increasing average order size through marketing
- Conversion rate of marketing/sales campaigns: The conversion rate is a metric to evaluate the effectiveness of a conversion effort (accepting a free gift, setting an appointment), reflecting the percentage of people converted into buyers (or subscribers, or whatever action is desired) out of the total population exposed to the conversion effort
Hi,
Could you please help me with KPIs of the pharma industry.
Thanks
@Samriddha, the mission for KPIs for the pharma industry should be to use tools, technology, and supports provided to offer the utmost service
(outputs) for the smallest cost (inputs) possible; offering safety, reliability, and affordability. The goal while defining KPIs for pharmaceutical industry should be to save money by reducing inventory and maintenance expenses while making money by increasing throughput.
Dear Sir,
I am working with automobile parts manufacturing industry in a internal audit department.
Could you please give me the format of my related KRA & PMS form.
Please revert.
Regards,
Mukesh
Hi,
Could you please explain me about team-based KPI, individual KPI, evaluated KPI and monitored KPI. These terms make me confused for setting up KPI to team. Please also suggest other KPIs that head of company should be measured besite PBT and Revenue.
Thanks
The subject of KPAs & KPIs discussed in these coloumns is encouraging.
I needed to know more about the KPAs & KPIs relevant for Construction Safety Industry. Please advice on this.
Regards
M.S.Rao
Hi, I would like to know the KPIs of chemical process industry related to supply chain. It would be very helpful if you guide me. Thank you.
Dear All,
I am looking or KRA and KPI for the position of Project Manager- Software Services. Can somewhere share the format as well as KRA Points.
Best Regards,
Shalini
@Shalini, Key Performance Indicator (KPI) for a Project Manager in Software Services could be:
- Delivery Targets
- Cost Targets
- Quality Targets
- Project Deliverables Target
- Timeliness of Project
- Number of Projects Planned / Actual
- Project Objectives Achievements
- Project Milestones Achievements
- Resources Management (Actual / Planned)
- Budget (Actual / Plan)
- Quality Achievements
- Control Systems Effectiveness
- Best Practices Achievements
- Task Allocation Effectiveness
- Risk Management Effectiveness
- Conflict Resolution Effectiveness
- People Management Effectiveness
Hi Dhiren,
Thanks so much. Can you pls share any kind of fomat also. It woud be a great help.If Possible, pls forward it to shalinikpr@yahoo.in.
Best Regards,
Shalini
Dear All,
I am looking or KRA and KPI for the position of Internal Audit Officer ( Automobile Sector). Can anyone share the format as well as KRA Points.
Regards,
Mukesh
Dear All,
I thank to all of you for providing the infomation on KRA. It is really helpful but I am still finding it difficult to frame it with Measurement.
I would request all of you to pls share any format of KRA realated to Software/IT Industry.My email ID is shalinikpr@yahoo.co.in
Best Regards,
Shalini
Dear all
Can someone help me with KRA’s and KPI’s for a sales trainer?
Best Regards,
Kalpalatha.V
@Kalpalatha, KRAs and KPIs for a trainer are given below are bit generic. You can take the job description and tailor it to your requirements.
Key Result Areas (KRAs) capture about 80% of a work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g. helping team members, participating in activities for the good of the organisation).
- Deliver instructions to sales people (KPI = How many sales person trained) in 12 months
- Schedule & Conduct training sessions (KPI =how many training programs conducted) in 12 months
- Create, Develop, Support and participate in continuous improvement initiatives. (KPI = how many in 12 months)
- Identifying individual training needs
- Designing and preparing the training module
- Setting standards for improvement
- Coordinating with other trainers regarding availability and session timings
- Preparing, distributing and checking assessment sheets
- Giving individual feedback
- Counselling candidates regarding their need for training
Dear All,
Request you again to send the Format for KRA. this would be a great help. Pls send it to shalinikpr@yahoo.co.in
Thanks,
Shalini
Dear All,
Anybody who could give samples of KPI related to manufacturing industry particularly on Product Quality, delivery, cost-effective of process, optmization of our resources, promoting QEMS awareness and compliance of all applicable and other requirements in each of sections in manufacturing setting. Please help. You can send to chandrina_acebu@yamashin-filter.co.jp. Thanks a lot.
Can you help me with KRAs for Testing team Quality Assurance team in an IT firm.
Regards,
Snigdha
@Snigdha, Metrics and measurements for Testing team could be:
A. Defect Related:
1. Product Quality:
a. Defect Containment Effectiveness
b. Age of open defects
c. List of Open Defects
d. Residual Defect Density
2. Test Execution Progress
a.. Defects Holding Maximum Test Cases
B. Test Related:
3. Test Quality
a. Causal Analysis
b. Defects Rejected
c. Test Cases Per UNITSIZE
d. Test Coverage
e. Test Effectiveness
f. No of new test cases added
C. Productivity Related:
4. Schedule
a. Productivity
b. Schedule Slippage
c. Testing Progress
d. Testing Execution Status
e. Defect Turnaround Time
f. Percentage test cases automated
D. Cost Related
a. Effort Slippage
b. Defect Detection efficiency.
I am Suvarna working in a medicum sized software company at Pune, Maharashtra as a Incharge - Admin/HR. My work involves Total Administration and basic HR activities as I do not have any degree in HR. But currently I am doing distance MBA-first year. As I am new to HR activities and we do not have HR specialist, I have lot of difficulties while working.
My management told me to do a complete performance appraisal system for all the employees. I have started for myself as I know some of my KRA’s. But I am not able to understand how to prepare KPI’s.
Below are the few KRA’s and KPI’s for Administration/HR dept. (As per my company).
KRA 1 - Correspondence
KPA 1 - E-Mail Correspondence
KPI 1 - Provide Word Processing (mails) support
KPA 2 - Facsimile Corr
KPI 1 - Provide Facsimile Corr Support
KRA 2 - Filing / Records Management
KPA 1 - Filing Sysyem
KPI 1 - Maintain the general filing system and file all aorrespondence.
KRA 3 - Administrative support ((inhouse and branch offices)
KRA 4 - Equipment Management (AMC for equipments)
KRA 5 - Travel Scheduling or Management
KRA 6 - Consumable - purchasing and supply
KRA 7 - Telephone Coverage (making of calls/receiving of calls)
KRA 8 - Project Support
KRA 9 - House Keeping Management
KRA 10 - Time Keeping Management - Attendance and Leaves
KRA 11 - Statutory payments of vendors
Am I going on right direction?
Kindly help me in seting the KPI’s. So I can develop myself for other departments.
Thanks in advance.
Suvarna Paranjpe
Pune
Dear Amit,
This is Great. I really appreciate your patience and wilingness to help. I would appreciate if you could help me out with the Key Result Areas for a Franchisee Manager in Education / Training Industry, if you could list out clearly this roles KRA’s & KPI’s it would be of great help to me.
Take Care….Thanks in advance
Dear Amit,
I have gone through your article. I had undertaken a Dissertation Project to identify KPI affecting the performance of Construction Managers. I wanted to know that can we formulate any mathematical model considering critical KPIs for HR specially Technical and managerial level and help to sustain and enhance their performance in todays recessionary phase.
regards
Abhijeet S. Gandage
I am very interest in KPI’s for Material Support and Control Group, (MRP, Warehousing & Inventory, Shipping & Rec,Warranty & Claims) for support of a Aviation Department for major oil company.
The requisitons are actually transmitted through SAP to buyers in Europe and USA for processing there.
The two articles on KPI would be bolstered by first defining what KPIs are for. As “Key Performance Indicators”, what do they “indicate”?
To this reader, they are indicators of health of business processes. A business process can be for manufacturing (of products) or transactional (for services).
(There are many more transactional processes since there are many more service industries. Even in manufacturing companies, the majority of business processes may very well be transactional, such as those for plant maintenance, finance, procurement, transportation, inventory control, information services, etc.)
Also, for every “effect” - in this case the “health” of a process- there is/are “cause/s” - typically developed with tools such as Ishikawa diagrams and FMEA*. When the KPI denoting the “health” is out of whack and not within expected tolerances, to put it back in shape requires identification of and information on “cause” KPI. The cause KPI can then be worked on.
The effective use of BI/KPI in any business is the Holy Grail. Ineffective KPIs can run any business to the ground. The identification and subsequent design of presentations of KPI for routine use is therefore crucial.
There is lot more in developing effective KPIs. Please also keep in mind that the development of effective KPIs has to be business focused. It must NOT be focused on IT. IT simply provides an enabling platform for these KPIs or so-called BI. IT - as always - is subservient to various other business functions in an organization.
*Failure mode and effects analysis
I am interested in finding out if there is any best practise / empirical study which has assigned weightings the four BSC perspectives (Finance/Business Partners/Internal Processes/People).
I am particularly interested in how this could be applied to performance measures for senior executives in a mining company.
We are oil palm based company, we are running oil palm plantation and palm oil mill, i would like to seek your kind assitance to give some example of KRA and KPI for our estate manager and mill manager, thanks a lot.
@Mukesh, Key Performance Indicators (KPI) for Automotive Industry are listed here: http://blog.maia-intelligence.com/2009/08/03/kpi-for-automotive/
We are a trader and manufacturer of glue. Please advice how to set KRA n KPI for my sales, marketing, and corporate manager. Thank you very much for your kind assistance and help.
Does any one have KPI for an Internal Audit Department in a telecoms environment? Any sort of KPI for an Internal Audit Department would suffice.
Dear Amit, Please provide me KRA and KPI for Administration. Thanks in advance for your cooperation and support. Please do the needful. Eagerly waiting for your reply. Thanks, Rambabu
What are the KRA and KPI in a publication - newspaper industry for a Product Manager/ Marketing Manager?
I am looking for a pattern of Key Result Areas (KRA’s) and Key Performance Indicators (KPI’s) for engineering and maintenance. Anyone could help me . Thanks
I am looking for KPIs for a Chief Information Officer - large focus on infrastructure development, plus operations and risk management. Any advice would be greatly appreciate
@Gio, Key Performance Indicators KPI for IT Department / Industry are listed here: http://blog.maia-intelligence.com/2009/08/20/kpi-for-it-department/
@Chan, Key Performance Indicators KPI for Manufacturing are listed here: http://blog.maia-intelligence.com/2009/09/14/kpi-for-manufacturing/
Hi anybody,
Can someone help me with KRA in Procurement?
What is the KRA?
@Patric, KRA stands for Key Result Area. They are the results or outcomes of general areas for which a particular department is responsible. A particular job roles entails may be about 3-4 KRA’s.
KPI stand for Key performance indicators. KPI’s are attributed to the individual job role or department. they can have effect on producitvity or business. They can be measured ( usually self measured). For, e.g KRA of H.R - Performance Management KPI= Performance Appraisal to be done once in a year atleast.
At first the BOD (Board of Directors) decides upon the Objectives of the company and set a period specific target. This Target becomes the KRA of the CEO.
Then it gets divided still it reaches the bottom most rung. KRA of each person is linked and fulfillment of KRA will lead to fulfillment of objective set by BOD. Hence, if one person fail it will hamper the attainment of the desired result.
Some of the KRA in Procurement are given below with their objectives:
IMPROVED ACCOUNTABILITY IN PROCUREMENT: To put in place and maintain appropriate accountabilities to ensure that the principles of value for money, probity, fair competition and transparency are observed by all persons in the agency undertaking procurement of goods and services
PROCUREMENT COMPETENCIES: To develop and enhance the competencies of staff to foster a culture of professionalism and ethical behaviour in procurement and for the supply market to recognise by behaving in this manner
STRATEGIC PURCHASING: To effectively identify and undertake the acquisition of strategic goods and services to ensure that better value for money is obtained and processes are streamlined to reduce the cost of tendering
WORKFORCE DEVELOPMENT: To develop a high-performing team by maximising the intellectual capital and professional capacity of people through deliberate and planned personal development programs that support the achievement of business objectives
PROCUREMENT INNOVATION: To enhance and accelerate the introduction of procurement innovation to generate better buying and improve supplier access to government procurement opportunities
COMMUNICATION & CUSTOMER SERVICE: To advise stakeholders of activities and achievements and to deliver quality and continuously improved services to customers in an efficient, effective and timely manner
Hi Amit,
I have been tasked to create a set of KPIs for job roles specifically under the Training and Quality Assurance department of a call center. I hope you can provide me with a sample of kras and corresponding kpis.
Thank u amit for clearing so many doubts. It s really worth keeping material to people like us. I really appreciate your knowledge. You have been really patience in answering so many Queries. This was really a good site to watch out for. Actually i was searching for KRA’s and KPI’s in HR but i got the answer from one of u’r replies. Keep up the good work.
@Vibha, Key Performance Indicators KPI for Travel Agency are listed here: http://blog.maia-intelligence.com/2009/10/21/kpi-for-travel-agency/
Hi. May you please assist me with KRAs and KRI for Clinical Risk Management. Am so confused.
Octavia
Please mail me KPI with KRA for Security Officer and Medical Staff.
Thank you.
I am in the look out for KRAs as well as KPIs for an internal audit manager. Please advise as to how I can get a sample of this. Thank you.
Hi Amit!
Could you help me to find out the KPI of an Brokerage Firm? I am a broker. I have to write an assignent with related to your topic. Many thanks!
Regards,
Duy Nguyen
Amit,
Excellent Work. I have recently joined an airport free zone in the ME and have been asked to define some key KPIs for their core & support depts. Their mission is to be the investor’s top choice and are looking for 100% occupancy and have expansion plans as well.
Their functions are
Sales & Marketing
Lease & Licensing
Commercial Operations
Projects ( Engineering, Facility Management & Interior Design)
Hi Amit
Could you provide reasonalbe KPI’s for college teachers? I have read the post on school teachers but I ned KPIs that are measurable. For example how does one measure the Quality of teaching? Secondly who would be the one to provide the answers….an expert, HR, the Dean? Help! Thanks
Please update me on KRA’s AND KPI’s of a SALES TRAINER.
Regards,
Vishal
Looking out for a training scorecard. Please update asap.
Hi. May you please assist me with KRA’s and KRI for maintenance and construction personal who is holding the positions :
mechanical section maintenance supervisor, senior mechanic, mechanic I and mechanic II. Also, HVAC section maintenance supervisor, HVAC senior technician, HVAC technician I and II, electrical maintenance supervisor, senior electrician, electrician I and electrician II.
Thank You.
Excellent information on KPI.
Hi. please assist me to make KPI’s for maintenance and construction staff who is holding the positions :
mechanical section maintenance supervisor, senior mechanic, mechanic I and mechanic II. Also, HVAC section maintenance supervisor, HVAC senior technician, HVAC technician I and II, electrical maintenance supervisor, senior electrician, electrician I and electrician II.
Thank You.
Dear Amit,
Your articles are very impressive. Please advise KPI for a Vice President (Business Development) at Project Level and General Manager (Business Development) at HQ both belonging to a Construction company having Government as well as Private Sector Customers.
Regards,
Neeraj
@ Neeraj,
KPI for VP or GM, Business Development could be:
- Percentage of new revenue generated for the company in a month
- Number of new customers per month/year
- Business development Lead to Pipeline conversion Rate - number of leads to number of opportunities in the pipeline. A healthy ratio will depend from industry to industry but there has to be several leads to one opportunity.
Likewise you may define more KPIs in Construction Industry.
Hi Amit,
Can you please assist me with the KRA’s for a Software testing Engineer in an automotive domain.
Please do the needful as earliest.
Thanks in advance.
Best regards,
Prashant
Hi Amit,
could you pls assist on some examples of KPI to measure the lesson given by teachers have been comprehended by students. APart from the % passes in tests, or % correct homework submission… what other ways are there?
thanks in advance
Hi Amit
Could you pls help me for the KRA & KPI for an academic institution resource library where they have many schools subjects to manage and purchase and with a team of 5 people to handle
Hi Amit,
What is the KPI for Executive Assisstant?
Hi Amit,
I would like to pick your expert brain on 2 items:
–1stly is could you kindly provide me with an exhaustive list of KPI’s for an Complaint Managment in the Telecom Industry related to Field Operations (telecoms environment)?
–2ndly could you tell me how to cost the creation of KPI report or template in man hours?
Kind Regards,
Mohammed
Hi Amit
Can you help me with an exhaustive list for KRA and KPI of Operational Risk Manager?
Thanks & regards
Amreen
Hi, would like to know examples of Key Performance Indicators (KPI) for technical, finance and legal departments.
I have been asked to create my own KPIs. I am working as a Monitoring and Evaluation Officer for an NGO in Malawi, Africa and the NGO is involved in projects like Food Security, Water and Sanitation, HIV&AIDS, Microfinance and Education. What could be some of the KPIs for a Monitoring and Evalution Officer for such an institution.
Dear Amit,
I am trying to define KPIs for IT department of a Microfinance Company.
The work in the IT department typically comprises of Hardware support, networking support, IT helpdesk, providing customized reports, maintaining database( MySql).
What KPIs we can use?
Your help will be appreciated.
Thanks,
Parikshit
Hi, would you please furnish me with KRAs / KPIs for a Sales & Marketing Manager
Please advice on standard and common KPI of Internal Audit Manager.
Thanks.
I want to know how to prepare a KPI or KRA in Hotel business and how to benefit from it as a General Manager.
Best regards
Need KPIs and KRAs for manufacturing units and for cash flows.
Hi, I hope you can help me figure out what would be the better KPI for my department which is Accounting.
Thank you.
M.L.
I want to know how to prepare KPI or KRA in retail (garments) of merchandiser.
Thanks for sharing this info about KPIs and KRAs.
I am relieved finnally found this blog site. It is of great help to me as I had been tasked by my GM Finance to prepare KPI & KRA for our IT department.
Dear Amit,
You hav done a really gr8 work….!!! certainly gonna help enormous ppl.
Well, I want to design KRAs for my all managerial level Employees.
Well, I m into business, we are Authorised Dealer for Cummins India Ltd. with all Industrial clientele. with overall 200 employees. so I want 2 design KRAs for My Service Manager, Sales Manager, Warranty - Admin Manager, Finance Manager .
Plz help me for the same. Kindly revert back .
Thanking u in advance….
Regards,
Shruti
Wonderful Evening, thanks for putting the KPI KRA information on this BI Blog. Have a Great day!
Hi.
can you help me guys? What are the proper arrangement of KPI in material management? we are alligning at warehouse.
tnx.
mizael
Hi Amit / Dhiren,
Thanks for sharing this useful information abt KPI with the KRA of business.
I will appreciate any assistance in order to have a sample for KPI / KRA for a fitness health club operations. (fitness instructor/receptionist/manager).
Dear Sir,
kindly suggest the KRA for my position GM construction and KPI for my level.
Regard
Lokesh Malhotra
Dear Sir,
After understanding the KRA model, its still difficult to set the KRA for techincal person.
Can you please help me out in setting the same. My job profile is to -
1. Management of all Kind Editing machines, Video Servers, Networking units including day to day toubleshooting.
2. Handling different new projects to set up new machines & central machine room. Which includes - Requirement capture, planning, designing, product comparision, vendor negotiation, implementation & user training.
3. Workflow management.
4. New technology testing & implementation.
5. Technical incharge of headoffice, other sister concern
& regional offices. And have to perform the above mentioned activities here also.
This is Iam doing multipurpose work & handling all these alone. so need to set my KRA which can include all such funtions. Please help ..
Thanks n Regards
Prasant
Dear Amit,
I am a retail store manager large format and for store success it is important to understand the KPI, KRA and its drivers and deliverable theory.
Will you help me in understanding the theories with clarity?
Thanks
Rakesh