UBS

Key Result Areas (KRA)

What are Key Result Areas (KRA)?

Key result areas, or KRAs, are the broad requirements established by an organization for a certain role or position. The term refers to the scope of a job profile, which includes all of the position’s obligations.

Employees benefit from KRAs because they have a better understanding of their roles and responsibilities.

Organizational KRAs vary according to the type of business, however, there are some parallels across industries. Most executives’ key motivators are profit, customer pleasure, and workforce involvement. Key Result Areas are vital for defining and measuring critical growth areas that are consistent with the company’s strategic vision and goals.

A corporation can have numerous people and divisions, but in order to connect them with the organization’s goal, key areas must be clearly defined. KRAs make the connection between a company’s operations and goals easier to understand. For example, if the company’s goal is to raise revenue, the sales and marketing departments require clear KRAs. For example, sales should have KRAs such as increasing the number of partners or vendors. KPIs matched with brand equity in the marketing department can assist enhance sales.

Also, See: Key Performance Indicator (KPI)

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