How To Create Effective Key Result Areas - Smartsheet
How To Create Effective Key Result Areas - Smartsheet
How To Create Effective Key Result Areas - Smartsheet
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In this article, you’ll find useful information about Key Result Areas (KRAs), and expert guidance on how to create
and monitor KRAs to help your business succeed. Plus, you’ll find important characteristics of Key Result Areas
(#the-most-important-qualities-of-key-result-areas), how to create KRAs for an individual employee (#how-to-prepare-key-
result-areas-for-an-individual), how to overcome challenges in properly creating KRAs (#hurdles-in-properly-identifying-
understanding-and-using-kras), and examples of KRAs for a range of industries and job positions.
Why Is It Important to Identify Key The Most Important Qualities of Key Result Areas
Result Areas?
Key Result Areas will of course differ widely, depending on the role of an employee or the specific goals of a
How to Prepare Key Result Areas department or an organization. However, there are some primary attributes that are important in the development
of any KRA.
for an Individual
Questions to Ask Yourself to
Understand and Determine Your
Own Key Result Areas
Establishing Key Result Areas For
Employees Who Report to You
How to Determine Key Results
Dave Crenshaw, Management Expert and Author of the time management bestseller The Myth of Multitasking,
says that a conversation — or conversations — between supervisor and employee is crucial.Employees can give their
supervisors insights over what they can control; supervisors can give employees insights over what’s most important
to the organization’s goals. “That back and forth conversation is going to lead to a clear understanding of what
indicators are for appropriate KRAs,” Crenshaw says.
Alternatively, Crenshaw adds, KRAs established by fiat from the supervisor may not seem reasonable or credible to
the employee, and often fail. “People need to care about it, and they need to see the value of it,” Crenshaw explains.
“We have to have a conversation about it and explain why we’re tracking it.”
Broadly Define the Job Profile: If the KRAs are being developed for a position, they should broadly define that job
and give the employee clarity in their role and mission within the organization. The KRAs likely will include a list of
functions and activities vital to success.
Ensure the KRAs Fit the Position: KRAs can require certain objectives from an employee only when the employee
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Create SMART KRAs: Many experts believe that KRAs (for an employee, department or organization) should be
SMART (specific, measurable, aligned, relevant, and time-bound). Learn more about S.M.A.R.T. criteria at “The Log in
Essential Guide to Writing S.M.A.R.T. Goals.
”Here is an example of a well-written KRA: Launch a public relations campaign by December 2019 to improve your
organization’s brand awareness.
“You need to allocate your resources to that which is the greatest value,” he says. “From an indicator standpoint,
there’s a lot of different things to track. But only a handful are the most valuable indicators. It’s not helpful to track
10 or 15 different things because it’s just too much data.”
Tasks and Activities Grouped Together: Group tasks that are related to each other together.
Put It in Writing: KRAs must be in writing, reviewed by all relevant parties, agreed upon, and signed by people
involved — especially when the KRAs involve an employee’s role. The written format for KRAs can be relatively
simple. For an employee’s KRA, It should include the employee’s name, the department and supervisor’s name, and
a description of some of the most important duties of the employee’s role and how it serves the organization’s
strategic objectives. Then, you should include details on several areas of expected performance. Those details
should include metrics that can and will be measured to assess the employee’s performance in those areas.
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You can use this template to help create appropriate Key Result Areas for an individual within an organization. The
template has entries for KRAs and key performance indicators associated with those KRAs. The template is free to
download and you can customize it to fit your needs.
Download KRAs Individual Template — Excel (https://www.smartsheet.com/sites/default/files/2019-12/IC-Key-Result-Areas-KRA-
Individual-10721.xlsx)
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Questions to Ask Yourself to Understand Log in
and Determine Your Own Key Result Areas
Your supervisor may ask for your help in determining appropriate key result areas for your position. Here are some
basic steps to help you get started:
Set aside some time to evaluate how you are currently spending time in your job. Write down what you are doing
daily or weekly. Also, write down what you think you should be doing that you aren’t doing.
Ask yourself: Why was I hired? What am I supposed to accomplish? What are tasks that only I can do to produce
positive results for my organization? What makes my position essential to the success of the company?
Also, ask yourself: Are there tasks that I’m doing that I can delegate? Tasks that aren’t vital to me doing my job well,
or get in the way of doing my job well?
If you are in charge of a department, ask yourself: What should it be doing to show its value?
Review your KRAs frequently, and, with your supervisor, make adjustments if needed.
Bill Zeeb, Founding Partner of Infinitas (http://infinitas.eu.com/), a business and leadership consulting firm based in
Geneva, Switzerland, says he finds that large companies often have various overall objectives and KRAs among
different departments and functional areas. And they are often not aligned across the organization.
“In my view, the white space between the functional silos is where there are big opportunities to get everyone in the
company working in the same direction and on the same priorities,” he explains. “That happens by establishing a
reasonable number of important KRAs.”
When you’ve decided on a handful of areas that you believe drive an organization’s success, you will then work to
determine what can impact those areas positively to help your organization grow and succeed. That means that
each of the broad KRA will include detailed metrics that you can track to determine progress in those areas. Those
metrics are often called key performance indicators.
An organization’s Key Result Areas will vary depending on the organization. But, several broad areas are a part of
KRAs for many organizations. They include the following:
Profit and economic gain
Customer satisfaction
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Product quality
Organizational management Log in
Innovation
You can use this template to help create appropriate Key Result Areas for a department or an organization. The
Discover why over 90% of
template Fortune
has 100
entries for companies
KRAs trust Smartsheet
and KPIs associated to getThe
with those KRAs. work done.is free to download and you can
template
customize it to fit your needs.
Log in
Download KRAs Department Template — Excel (https://www.smartsheet.com/sites/default/files/2019-12/IC-Key-Result-Areas-
KRA-Department-10721.xlsx)
Key Result Area Key Perf ormance Area Key Perf ormance Indicato r
KRA KPA KPI
Organizations may create and monitor a number of goals and measures to assess their performance or that of their
employees. They are often considered part of performance management. It’s important to understand how various
components are distinct from but related to each other.
Goals: These describe the overall aim of an organization or department or employee. Goals are more often set for
an organization.
Objectives: There are measurable components that help drive the organization to its overall goal.
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Key Result Areas: KRAs are defined objectives that are vital to the performance of an individual employee, a
department, or an organization. Log in
Key Performance Indicators: A KPI is a quantifiable metric that helps assess whether an organization, department
or employee is meeting certain objectives. KPIs are often the “proof points” associated with Key Result Areas.
Company assessments (through regular surveys) of legal department as a whole (and of individual lawyers)
“I’m a big fan of weekly tracking,” Crenshaw shares. “That works especially well if we’re tracking just a handful of
numbers. That gives the organization enough of a pulse as to what’s going on, but not so much to be
overwhelming.”
Infinitas’ Zeeb says consistently doing follow-up by tracking your KRAs is vital. He says companies in some
industries “are going to daily or even hourly tracking” of some KRAs. “The more frequent the reviews, the better —
whether we’re talking about leadership or business performance,” he adds.
While much of your tracking will be of your own internal numbers, it can also be helpful to benchmark your
organization against competing organizations or industry averages, when those numbers are available.
Examples of OKRs
Examples of OKRs might include the following:
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Objective: Increase company profitability.
Key Result: Increase recurring monthly revenue by 10 percent by the end of the year.
Key Result: Increase the number of first time customers who become recurring customers by 20 percent. Log in
Key Result: Hold down cost increases by one percent below the rate of inflation.
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