KRA Setting Guidelines

Transcription

1 KRA Process Note

2 KRA Setting Guidelines Before setting KRA ; focus on why the job exist and not on what the employee does. KRA decided should align with Organization's Vision, Mission and Business Goal. KRA to be set after mutual discussion between the Appraiser and Appraisee. KRAs are to be reviewed bi-annually. 2

3 Defining KRAs What will happen if financial objectives are met, BUT Customers are not satisfied / delighted Processes are not streamlined Organization is not building its capability It is of utmost importance to focus on non financial objectives (Customer, Internal Processes & Learning), along with Financial objectives. As Learning & Growth Better Processes Increased Customer value Improved Financial Performance Now Let s create our KRAs on these Perspectives.

4 KRA Framework (Perspectives & their descriptions) Financial Customer How do customers see the organization. Particular area of focus will include : Processes Shareholder view of performance. Effective Cost Management. Customer Service What does the organization need to do to remain a customer's valued supplier? New Markets New Products Critical internal processes in which organization must improve for satisfying customers & shareholders. Learning & Growth How can we continue to improve & create value for customers & stakeholders? Self Development Team How can we build high performance teams?

5 Sample Goals in each Perspective Financial Customer Processes Learning & Growth Team SAMPLE GOALS: Sales Revenue Profitability Operating Cost management Growth Return on investment SAMPLE GOALS: Customer Satisfaction New Customer acquisition Customer Profitability Responsiveness Customer Retention Average time to process orders SAMPLE GOALS: Quality performance Inventory Management Streamline Processes Improvement in technology Efficiency improvement Productivity / capacity improvement SAMPLE GOALS: Product diversification Competitor's tracking Improvement in strategic / operational skills Self Development SAMPLE GOALS: Team Capability development Developing Successor Team Recognition & Retention

6 Key attributes of KRA's Specific Measurable Attainable S.M.A.R.T. is an acronym for the 5 steps of Specific, Measurable, Achievable, Relevant, and Time-based goals. Relevant Time Based

7 Specific Measurable Attainable Relevant Time Based The statement describing the desired result has to be clear and concise. Objective should clearly specify who will achieve what, when and under what circumstances. 7

8 Specific Measurable Attainable Relevant Goals need to be such that the desired result can be clearly measured or observed. Statement of objective should state how success will be measured, which may involve cost or time constraints. Time Based 8

9 Specific Measurable Attainable Relevant Desired results must be realistic. The objective should include some element of challenge and it should not be so overwhelming that the achievement seems hopeless. Time Based 9

10 Specific Measurable Attainable Relevant Time Based Achievable business goals are based on the current conditions and realities of the business climate. Objective should have direct relevance to the individual. Statement of objective should have an impact on work performance now or in the future, or that they will have some influence on the trainee s personal development. 10

11 Specific Measurable Attainable Relevant Time Based Objectives need to have a time frame in which the desired result is expected to be achieved. Business goals and objectives just don t get done when there's no time frame tied to the goalsetting process. Whether your business goal is to increase revenue by 20% or find 5 new clients, choose a time-frame to accomplish your goal. 11

12 For any Questions / Support Please contact your HR BP

13 THANKYOU 13