How To Create A KRA (Key Result Areas)
Setting Key Result Areas (or KRAs) is all about increasing productivity on your team because everyone knows what winning looks like in their role when you have a proper KRA in place.
The major goal of a KRA is to improve communication between leaders and team members.
If you’re not using KRAs, you and your team members are most likely being more reactive instead of proactive.
You need a tool that helps foster greater accountability, clearer communication, and the results that you expect to see in each role on your team, without members being hounded, manipulated or controlled.
As business leaders and owners, you want to see RESULTS from every position you hire!
But, until team members understand AND take ownership of their roles, the results will be poor and sporadic.
What’s a KRA?:
A KRA defines and clarifies what success looks like in any job role.
It’s NOT a list of tasks or a job description.
Rather, a KRA documents the key results a team member is expected to achieve as a results of the tasks and work they perform.
- A good KRA documents how the job role aligns with the Mission, Vision, and strategy of the business
- Whatever is expected must be in writing, reviewed, agreed upon, and signed by both the team member and the leader so there’s no confusion when something isn’t getting done.
What do TEAM MEMBERS experience without a KRA?
- Wasted time and efforts
- Lack of communication
- Fog of confusion
- Lack of clarity
What do LEADERS experience when there are no KRAs?
- Lack of communication
- Lack of accountability
- Missed expectations
- Wasted resources
- Wasted money!
How To Develop a KRA:
If you’ve never created KRAs, here’s a step-by-step process we teach to all of our business coaching clients.
Step 1: Align and Cost Justify The Role
A. Answer these questions:
Will the role create more revenue than it costs to employ?
If not, will the role remove tasks from another team member or leader so they can focus on creating more revenue than the role costs to employ?
B. Create a summary of how this role aligns with and accomplishes the organization’s StratPlan (aka. business strategy).
C. Answer this question:
Does the role align with the organizational Mission?
If the role aligns with the organizational Mission (purpose for existence) and StratPlan (how we get to vision), then cost justify the role.
Not every role has to cost justify immediately, but every role should cost justify eventually.
Step 2: Clarify Responsibilities of The Role
D. Create a detailed job description of all the tasks and responsibilities required in the role, then break the job description into the greatest Areas of Focus.
Here are examples of Areas of Focus:
E. List the most important Areas of Focus for the KRA you are working on.
F. List the tasks and responsibilities by highest priority within each Area of Focus.
Step 3: List The Key Result Areas
G. List all of the Key Result Areas that if executed on, will mean success for the team member and the Area of Focus. Start with the highest priority Key Results.
Here is a Key Result Area contrasted with a Key Performance Indicator and Job Description to give your further clarity on developing your list of Key Result Areas:
Job description:”Execute social media”
KRA:”Increase audience engagement”
KPI:”Grow Facebook following by 30%”
Step 4: Set The Role up for Success
H. Once you have completed the list of Key Results for the most important area, ask these questions:
If all of the Key Results on this list were executed properly, is this role a success?
(If not, what’s missing?)
Are there any Key Results listed that aren’t necessary for success?
Continue this process until all Areas of Focus are completed.
I. To the best of your ability, evaluate the completed KRAs to ensure you have set up the team member for success in the role.
Step 5: Include a Growth Plan
J. When possible, include a plan for each team member to grow in their role.
Every growth plan should also be included in the accountability process and measured.
Want to learn even more about KRAs?