Presenter: ProfessorDr.

Mohammad Thoufiqul Islam

09/10/2020 KPI,KRA and KPA 1

APPRAISAL BASED ON KPA

Discussion Topics
KPI- How difficult to make it?
KRA vs. KPA
KRA – its influencing factors
KRA flow chart
Strengths and limitations

09/10/2020 KPI,KRA and KPA- Prof Dr. Thoufiq 2

What IS A KPI
A KPI (Key Performance Indicator) is simply a metric
that is tied to a target.
Most often, a KPI represents how far a metric is above
or below a pre-determined target.
KPI’s usually are shown as a ratio of actual to target
and are designed to instantly let a business user know
if they are on or off their plan without the end user
having to consciously focus on the metrics being
represented.

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SMART is an abbreviation for the five conditions
of good KPI’s:
* Specific – It has to be clear what the KPI exactly measures. There has

to be one widely-accepted definition of the KPI to make sure the
different users interpret it the same way and, as a result, come to the
same and right conclusions which they can act on.
* Measurable – The KPI has to be measurable to define a standard,

budget or norm, to make it possible to measure the actual value and to
make the actual value comparable to the budgeted value.
* Achievable – Every KPI has to be measurable to define a standard

value for it. It is really important for the acceptance of KPI’s and
Performance Management in general within the organization that this
norm is achievable. Nothing is more discouraging than striving for a
goal that you will never obtain.
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SMART is an abbreviation for the five
conditions of good KPI’s:
* Relevant – The KPI must give more insight in the
performance of the organization in obtaining its
strategy. If a KPI is not measuring a part of the
strategy, acting on it doesn’t affect the organizations’
performance. Therefore an irrelevant KPI is useless.
* Time phased – It is important to express the
value of the KPI in time. Every KPI only has a
meaning if one knows the time dimension in which
it is realized. The realization and standardization of
the KPI therefore has to be time phased.
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 Is your H&S management good?
How do you know?

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 Current Position?
“We don’t have many accidents”

“Operatives get loads of training”

“We do regular H&S inspections”

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 Establish Current Position....
No. of accidents

No. H&S inspections

Frequency of inspections

Average inspection score

DASHBOARD
APPROACH
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 Meaningful...
Strategy
Aims/Objectives
Policy
Regulatory requirements
Industry standards
Moral
Health
Social

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 What has been asked of us?
Strategic
Aim

Continuous
improvement
in health and
safety
management
performance

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 What are we doing?
Strategic Initiatives
Aim
New inspection regime,
introducing quarterly
Continuous
inspections.
improvement
in health and Destination Zero
safety Poster, email and
management leaflet campaign aimed
performance encouraging staff to
think what if...not if
only.

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 Lets introduce our KPIs.....
Strategic Initiatives KPI
Aim
New inspection regime, Number of
introducing quarterly H&S
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time
performance encouraging staff to
Accidents
think what if...not if
only.

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 Our benchmark or baseline...
Strategic Initiatives KPI Last
Aim year
New inspection regime, Number of
introducing quarterly H&S 3
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time 5
performance encouraging staff to
Accidents
think what if...not if
only.

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 What is our target?
Strategic Initiatives KPI Last 2020
Aim year Target
New inspection regime, Number of
introducing quarterly H&S 3 4
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time 5 2
performance encouraging staff to
Accidents
think what if...not if
only.

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 Lets measure how we actually did..
Strategic Initiatives KPI Last 2020 Actual
Aim year Target
New inspection regime, Number of
introducing quarterly H&S 3 4 4
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time 5 2 2
performance encouraging staff to
Accidents
think what if...not if
only.

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 Points of note
Quantity does not equal quality
Measure what’s most important
Don’t let the cost of measuring exceed the value of
the results

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 KEY RESULT AREA

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Key Result Area
 Key = crucial/main
 Result = outcome/end/consequence
 Area = space/range
 KEY RESULT AREA = crucial outcome space
 What Not?
 -KRA is not the result.
 -KRA is  the area identified as important or crucial where a result will
assist in the achievement of the set  objectives or goal.
 -KRA defines what a job is expected to accomplish.
 -KRA’s might fall within the scope of Key Performance Areas (KPA)

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 KEY PERFORMANCE AREA = Main achievement space
 Point to Note
 -KPA is the overall scope of activities that an individual on a job role has
to perform.
 -KPA is not always result focused.
 -KPA’s can be inclusive of KRA’s
 In organizations, each role or job has a “Job Description (JD)” which
consist of all the responsibilities the person on job has to perform. All
the activities listed in JD falls in two categories:
 Category A – List of functions and activities crucial or critical for the
job role. These activities form the KRA  of the job.
  Category B – List of functions and activities associated with the job
role but not truly critical for the role. These functions are important for
overall performance of the team, department or organization as a whole
and form the KPA for the job
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 Example :
Role – Product Manager
Goal – Ensuring delivery of quality product within
schedule.
Key Result Area
1. Customer Satisfaction.
2. Product Management.
3. Operational Cost Control.
4. Quality Check.
5. Record keeping.
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Key Performance Areas
1. Maintaining good working
condition in plant.
2. Optimum Resource
Utilization.
3. Process Improvement.
4. Safety and Prevention
planning and control.
5. Working within the
company’s SLA(Service
Level Agreement),
GRC(Governance, Risk
Management and
Compliance) policies
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