Workshop On KRA - KPI
Workshop On KRA - KPI
Introduction
• KRA's are Key Result Areas which are the main objectives of the employee in an organization.
• Key Result Areas or KRA's refer to general areas of outcomes or outputs for which a role is responsible.
shared responsibilities
80%
20% like
Most roles include 3 to 5 key result areas. If individuals are accountable for more than
this, they may be overloaded
How KRA’s are derived ????
Strategy
Organisation Objective
Individual Individual
KRA KRA
Individual
KRA
Key Performance Indicators
What are KPIs?
KPIs are measures to understand performance that almost always quantifiable, comparing and tracking
performance regularly over a time frame. ( Measurement to see if KRA is met)
• Meeting KRA’s
“ Honoring our past by creating a “ Delivering exceptional value to our customers through the
future characterised by stimulated engagement of our talented people, the application of best
growth, development and the practice thinking in everything we do, the emphasis on quality
incessant practice of excellence in and excellence and the focus on delivering superior
everything we do ” performance that preserves our future ”
Business
Group MD CFO
Services
Real Estate Investment
Company L3 Organization Structure (R.E. PILOT)
Hospitality Industrial
L1 L2 L3
Project Plan, L1 BSC L2 BSC L3 BSC 2019
6 SBU Budget 2019 2018 Q4
Framework Strategy
Draft ** Draft Draft Programs Alignment Strategy QPR
& Tools BOD Mtg.
Current State L2 Workshop L2 L2 Init. Strategy L3 Workshop All Staff All Staff 2019 Jan
Assessment & /Meetings & Program Draft & Perf. Training Training MPR
/Meetings
L1 Workshop L3 Training Draft Guide
** Pending on 5 Years Business Plan completion * Pending on available time and resources
Company Strategy
Visi
As illustrated on the right, Company on
used (L1-L3) to strengthen alignment,
strategy execution, and simplification
Strategy & Performance Framework Mis
includes Company's vision, mission, sio
values, common objectives (holding, SBU, n
and department), programs, initiatives, Target
and KPIs. 1 Corporate
KPIs
(~14)
Actual
Company
Objectives (8)
L1 Scorecard
Target
6 SBU
KPIs
L2
es
(~100)
Val
Actual
Progress 6 SBU
& Budget Programs
KPIs 6 Programs & ~61 Initiatives ~61 Initiative
(~100) Charters
Actual
3
Strategy Map - BSC
4 Perspectives in Balanced Scorecard
Financial Perspective
The Strategy If we succeed, how will we
look to our shareholders?
Customer Perspective
To achieve our vision, how
must we look to our
customers?
Internal Perspective
To satisfy our customers,
which processes must we
excel at?
Learning & Growth Perspective
Customer Acquisition
• Innovation Process
Customer
Customer
STRATEGIC
KPI NAME KPI DESCRIPTION FREQ. UNIT D / I 2018 Q1 Q2 Q3 Q4 2019 2020 2021
OBJECTIVE
Controlling the operational cost of the
OPEX budget organization is crucial to achieve the best
Quarterly % D 90 90 90 90 90 90 90 90
performance * possible financial result and to limit
Optimize capital accumulated losses.
& operating
expenditure It is crucial to control the CAPEX spend to
CAPEX budget
ensure a timely and cost-efficient Quarterly % I 100 100 100 100 100 100 100 100
performance
progression of Company CAPEX projects
Finance
STRATEGIC
KPI NAME KPI DESCRIPTION FREQ. UNIT D / I 2018 Q1 Q2 Q3 Q4 2019 2020 2021
OBJECTIVE
STRATEGIC
KPI NAME KPI DESCRIPTION FREQ. UNIT D / I 2018 Q1 Q2 Q3 Q4 2019 2020 2021
OBJECTIVE
Complying with audit observations is important
% of Timely closure of for Company’s success and should be handled,
Quarterly % I 20 40 50 50 80 90
audit observations * addressed, and closed by each division and
Build effective department.
organization
governance To track outstanding unpaid
Total revenues (AR) outstanding
revenues > 180 days Quarterly Mill SR D 16 10 8 3 0 0 0 0
overdue >180 days
(Account Receivable)
Internal Processes
L1+L2+L3 BSCs
met target or better (>= 100%)
From the perspective of the business owners / investors, 3 of the most important overall KPIs are
Output: Quantity of value created / per time period e.g., Cars made / month
Inventory: Money tied up in material (capital employed), that affects the business’s overall ROCE.
Inventory comes with many types of costs. (Operational, Holding, Financing etc.)
Delivery: Getting the goods to the customer fast. Delivery is still part of output and affects inventory
levels
Customer Satisfaction : Essential for long term revenue and profit success
Safety: -Also, not directly financially related but essential for happy, productive employees, legal
compliance and minimizing risk
Key Performance Indicators
Business Perspective – Metrics
From the perspective of the business owners / investors, 3 of the most important overall KPIs are
L1 & L2 BSC Tracking Having Monthly Operational Meetings Means Quarterly Meetings Will Have Greater Impact
30% Discuss
Implications
10%
L3 BSC Tracking Review
Performance
SBU CEO/CFO
Time Allocation
Managing the
Monthly Performance Review (MPR)
10% Actions MPR
Initiatives Tracking 40% Quarterly Performance Review (QPR)
Meetings
Discuss
Implications
50% Review
Performance
1 2 3 4 5 6 7 8 9 10 11 12
Q Q Q Q
1
Company strategy 2022-2024
2 3 4 68
Determine Performance Status Reporting
It is worth noting that targets could have disadvantages in Once KPIs and their respective targets have been set and agreed, it is important, over the following weeks and months,
terms of setting direction to employees. Employees could to monitor performance against them. In order to do this, it is necessary to have well-studied and carefully set ranges for
focus on what is expected and not necessarily on what needs targets if an organization’s strategic plan is to be successful. The figure below shows some universal target ranges that
to be done. Each department should consider the expertise could be used by any business.
behind the target-setting and how employees concerned will
behave.
The
PERFORMANCE terminologies
THRESHOLDS
Maximum acceptable variances for a
selected KPI/ metrics
PERFORMANCE
BASELINE
Average level of performance that
you are currently at, and compare
the future performance levels with,
to evaluate change
The
PERFORMANCE terminologies
BENCHMARK
The best performance- being achieved
by a competitor: a different unit, a
different company or a different industry
• Minimum or starting point used for comparisons
• A baseline for your performance measure is the average
level of performance that you are currently at, and that you
will compare future performance levels with to test if
performance is really changing. Baseline
• when production
volume is very low
• cycle time to
build a product is
long
• cost of sampling is
high
XMR Chart
•or
getIMR
individual
Chart data
points only after
certain period of time
XMR- https://docs.google.com/spreadsheets/d/1zF-E3hAWyRVUOl7AhFlmEwJSIujYmxbV/edit#gid=1096385507
OULINER- https://docs.google.com/spreadsheets/d/1OM2b1_5X1HIUmZTRCg59wwa8xQmTF9Ud/edit#gid=1763567093
https://docs.google.com/spreadsheets/d/1i_Kmb-vDAYWcSORVNK6KBDwVKOtjqLPB/edit#gid=1700757165
Power BI dashboards
XMR XML charts
Sigma XL
Performance
Performance:
• “Performance” is a deliberate and purposeful
action or set of actions that an individual
takes in order to achieve a desired result or
output of some kind that has got value to the
individual.
Competency
• Competency:
• “Competency” can be thought of as the tools
that individuals use for successful or
exemplary or best-in-class performance. The
‘Best Performer’ is always called a ‘Competent
performer’ and not vice versa.
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The five types of competencies affecting performance are:
Motives
Traits
Self-concept
Knowledge
Skill
Let us look at each in detail.
• Measure the degree of characteristics required for adequate
performance of the job.
High Low
360-degree feedback
Self-managed teams
90- 720°
Feedback
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