Difference Between KPI and KRA

August 18, 2017 By Surbhi S 4 Comments

Every
business enterprise has a set of proposed objective, which must be attained
within the given time frame to reach its mission. In order to determine whether
the route chosen by the enterprise is correct or not, the objectives are evaluated
against dedicated metrics, with the help of KPI. KPI stands for key
performance indicator that denotes a quantifiable metric, for a defined
objective. It exhibits the factors leading to the success of an organization.

As against, KRA or otherwise called as key result area can be described as the

major areas, that requires exceptional performance, so as to survive and obtain a
competitive position in the market. The article excerpt presented to you, explains
the difference between KPI and KRA, in a detailed manner.

Content: KPI Vs KRA

Comparison Chart

BASIS FOR
KPI KRA
COMPARISON

Meaning Key performance indicator (KPI) Key result area (KRA), alludes to
means a mechanism used to the sector of outcome within the
represent how well the company is business organization, for which the
able to reach the business goals. department or unit is responsible

What is it? It is a metric. It is a strategic factor.

 BASIS FOR
KPI KRA
COMPARISON

Nature Quantitative Qualitative

Use Evaluates the success towards Outlines the scope of the job or
goals at various levels. product.

Key Differences Between KPI and KRA

the points given below are substantial, so far as the difference between KPI and
KRA is concerned:

1. Key Result Area can be described as the essential areas of business that
requires excellent performance to obtain the favourable result, to survive
and grow in the industry. On the other hand, Key Performance Indicator,
or otherwise called as KPI is a performance metric, used by the
organization to ascertain how effectively the firm is performing.
2. Key result area is a strategic business unit, wherein great efforts are needed
to achieve success. As against, the key performance indicator is a metric
that gauges the level to which business goals are achieved.
3. KPI is a quantifiable measure, meaning that it gauges the performance of a
product, service or the business unit in the market, in quantitative terms.
On the contrary, KRA is qualitative in nature, in the sense that it
determines the areas that can help in attaining high value for the
organization.
4. The key result area is used to find out the scope of a particular product or
unit. In contrast, key performance indicator measures the success of the
organization towards goals at various levels.