Alok Kejriwal is passionate about explaining Business Ideas and Startup Concepts!

In this episode of the A-Z #Dhandhekibaat (Business talk) video series, Alok talks about KRAs and KPIs

KRAs and KPIs are the basic tools for any business that employs people. Measuring what needs to be done and how much it has been done starts with identifying it first. That is what Alok explores in this video!

The A-Z series of #Dhandhekibaat are designed to cover the most important aspects of Business and Entrepreneurship. While Alok has decided on the topics for the next Alphabets, he invites you to suggest ideas that he could review! Visit - http://bit.ly/dkb-a-z to add your suggestions!

#Dhandhekibaat is a series of vlogs, posts, and discussions to make Business and Starting Up - Simple!

If you have a question, just ask it as a comment and Alok will answer it!

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Full transcript:

Welcome to Dhande ki baat.

Dhande ki baat welcomes you!

Today we are going to talk about the 'K' alphabet
in A-Z series.

K for KRA and KPI.

Now, when you hear this word you
get all worried that Alok is going

to talk about something high-tech.
Not at all.

KRA means Key Result Area and

KPI means Key Performance Indicator.

Now, where do we use this KRA and KPI?

See, when you hire someone; when you
get someone and make them an

employee or a consultant, there
has to be a way to measure

what they do and how efficiently they do it.

Right?

So, for example, if I have hired any sales
member and said “Boss, your job is to sell.”

That is a key result area.

But how much to sell, how much
percentage you should increase

the sales by, that is a KPI
or Key Performance Indicator.

These two are very very important
in my opinion in any company,

in any startup, in any business you do.

Because, when you hire people and
when you keep people, there is an

understanding between the employer
and an employee that you have to

do this work.
But, very often, it is not understood.

When you hire someone you say
something, 2 months later,

you keep writing emails to everybody
and say, do this also and that also.

The employee gets confused.

In the end, at the time of appraisal,
you find out, Sir my KRA was something

else and I was assigned something else.
And it is very unfair.

So, I think KRA and KPI are a very fair, equitable
way of measuring, recording and

making sure that both the parties are
on the same path as far as what

they had hired each other to do.

See, we have to also remember, an employee
hires an employer, as much as an

employer hires an employee.

So, just a little more detail, in KRA,
you also have to write the detail.

So for example, if I say you have to
increase your sale, that is not enough.

You have to also say “Boss you have to
increase your sale in all these 4 geographies”

or “you have to focus on the western market” or

“in my business, all the product managers
have to increase not the advertising

revenue but in-app revenue”.

That is a very important KRA.

So listen, if I say increase revenue that
is a broad context, but if I say

increase revenue from in-app that is
a narrow definition of a KRA.

And KPI measures the KRA.

For example, if you have to increase the
in-app revenue of your apps XYZ on the quarter,

then at the end of the quarter, we say,
last month your revenue was 12 thousand dollars,

this month it is 15 thousand dollars.
So, you have increased the in-app by 25%.

So, KRA and KPI are husband-wife,
spouse, whatever you call it!

A very beautiful relationship!
Keep making them clear.

To write is hard work. Writing drives you crazy.
People are like, “Do this, we will see later”.

NO.

Discipline yourself! Sit, wait, understand
what the KRA and KPI is and then start.

And if you are an employee, I
would say, don't take any job

or project unless the KRA and
KPI are absolutely carved out in stone.

Thank you for watching Dhandhe ki baat!

Keep watching and telling us
what you liked or didn't like

about this episode and program.

Thank You!