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5 Great Ways to Use Key Result Areas or KRAs to Improve Team Performance and Ownership · Enhance.training

• 0:00
  SPEAKER_00: Key result areas are a very useful framework or tool to increase employee understanding and accountability for the results they are being asked to deliver.
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  SPEAKER_00: Better performance by each employee, when aligned to the wider team, means better team and business performance overall.
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  SPEAKER_00: KRAs or key result areas are used to firstly better align everyone's work with business goals.
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  SPEAKER_00: Secondly, to increase clarity of expectation for employees and teams.
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  SPEAKER_00: Third to create fair and objective performance measurement.
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  SPEAKER_00: Fourth, to better focus the use of resources into the most critical areas, and then fifth to help translate strategy and goals into practical day-to-day activities and initiatives to achieve those goals.
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  SPEAKER_00: Per Gallup, only 50% of employees clearly know what is expected from them at work.
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  SPEAKER_00: How can any employee do a great job if they don't know what great looks like or how this will be measured?
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  SPEAKER_00: For example, using key result areas instead of a lengthy job description helps a manager to set clear results-oriented expectations, and these expectations can be updated regularly and quickly.
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  SPEAKER_00: Today you'll be learning firstly what are key result areas or KRAs and why are they used differently from objectives and goals.
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  SPEAKER_00: Secondly, six steps to take for setting KRAs for employees.
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  SPEAKER_00: And third, great ways to use KRAs to improve team results and performance.
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  SPEAKER_00: I view using key result areas for teams is a vital part of setting clear expectations and direction for the team.
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  SPEAKER_00: How you use KRAs is more important than setting brilliant ones.
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  SPEAKER_00: Use key result areas to improve team and individual performance.
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  SPEAKER_00: My name is Jess Coles, and if you're new here, Enhanced.training shares people management expertise, resources and courses teaching you how to build high performing teams.
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  SPEAKER_00: We have lots of free resources and webinars available to add more depth to your knowledge or save you a ton of time.
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  SPEAKER_00: So do visit us at enhanced.training to make use of these.
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  SPEAKER_00: So firstly, what are key result areas or KRAs and why are they used differently from objectives and goals?
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  SPEAKER_00: Key result areas or KRAs are the broader areas crucial for accomplishing business strategy or hitting team targets.
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  SPEAKER_00: KRAs are often served as a high-level categories or themes under which specific objectives and goals are then formulated.
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  SPEAKER_00: Key result areas are typically up to five areas of focus for the business or the team.
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  SPEAKER_00: The less you have, the more focus you get.
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  SPEAKER_00: Don't use more than five as a general rule.
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  SPEAKER_00: For example, your business strategy might be rapid sales growth.
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  SPEAKER_00: The KRAs might include these four key areas.
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  SPEAKER_00: Firstly, new product category developments, secondly, product range extensions, third, entering new markets and territories, and fourth, selling a bigger range of current products to existing customers.
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  SPEAKER_00: Then you would create specific objectives and goals within each of these categories.
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  SPEAKER_00: Another example, the team might be tasked with increasing the cash in the business, so the KRAs for the team might be firstly increasing average contract profitability, secondly, invoicing customers as early as possible, and third, minimizing invoice queries and client excuses to delay payment.
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  SPEAKER_00: KRAs are higher level, have more stability and longevity, and help keep teams and individuals aligned to the direction of travel and the strategy of the wider team and business compared to specific goals and objectives.
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  SPEAKER_00: So next, here are six steps to take for setting KRAs for employees.
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  SPEAKER_00: First is to understand the strategy and direction of the company and what results your functional business unit will need to deliver to meet company strategy.
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  SPEAKER_00: It is super important to get the best alignment you can between your team KRAs and the wider business KRAs.
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  SPEAKER_00: Second, decide over what periods you want to set the team's focus.
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  SPEAKER_00: Is it quarterly or annually or some other time frame?
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  SPEAKER_00: The quicker the business growth or the more change happening, the shorter these periods should be.
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  SPEAKER_00: Keep your key result areas as long term as practical.
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  SPEAKER_00: Third, set three to five KRAs that the team should be focused on.
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  SPEAKER_00: These should be those that create the most valuable results to enable the wider function or business goals to be achieved.
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  SPEAKER_00: Work with your boss and the team to choose and set these KRAs.
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  SPEAKER_00: Fourth, on one page, write the KRAs for each employee.
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  SPEAKER_00: The format should be their name, their title, etc., then a short description of their job, role, and then up to five KRAs.
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  SPEAKER_00: These need to be results oriented rather than focus on activity.
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  SPEAKER_00: A couple of sentences for each outlining exactly what the result is and how it'll be measured is perfect.
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  SPEAKER_00: For example, collecting£5 million in cash over three months is a result.
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  SPEAKER_00: Chasing customers for payment is an activity.
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  SPEAKER_00: Don't share your version of the employee's KRAs with the employee yet.
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  SPEAKER_00: Fifth, ask your employee to write their own KRAs.
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  SPEAKER_00: The reason for asking them to write their own is to gain their inputs and ownership of what they write.
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  SPEAKER_00: They have thought about it, written about it, and committed to achieving those results.
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  SPEAKER_00: Then you can compare notes and make adjustments so you end up with one version both of you are happy with.
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  SPEAKER_00: And then sixth, the most important, focus on planning the activities, actions, initiatives and projects the employer will have to undertake on their own or with colleagues so they can deliver the results set out in their KRAs.
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  SPEAKER_00: This is a super important stage.
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  SPEAKER_00: If you have a map and a compass, you're far more likely to arrive at your destination on time than if you don't have either.
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  SPEAKER_00: Get the individual to write down the plans agreed upon.
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  SPEAKER_00: Using KRAs in this format is so much more useful than a traditional job description, and it is also quicker and easier to keep up to date.
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  SPEAKER_00: This is a great way to use key result areas to improve team performance.
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  SPEAKER_00: Keeping these KRAs front of mind with employees is an even bigger challenge, so here are five great ways to use key result areas to improve team performance.
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  SPEAKER_00: Having invested the time and effort to align the team to the wider business strategy and capture each team member's KRAs, you want to maximize the impact your efforts make on the team's results and performance.
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  SPEAKER_00: Keep the KRAs front of mind for each team member.
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  SPEAKER_00: Here are five great ways to achieve this and maximise the performance improvement you get.
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  SPEAKER_00: Firstly, share all individual KRAs, including your own, with all team members.
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  SPEAKER_00: This creates visibility and helps drive accountability for everyone.
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  SPEAKER_00: Peer pressure is a very powerful motivator.
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  SPEAKER_00: Use it.
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  SPEAKER_00: Secondly, use the one-page individual KRA summary in your one-on-one meetings.
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  SPEAKER_00: Review progress every couple of meetings with your team member.
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  SPEAKER_00: The constant reminders and your focus on KRAs will keep them front of mind with each of your team members.
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  SPEAKER_00: Thirdly, use the KRAs to guide your decision making.
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  SPEAKER_00: For example, in how you spend the team's time and effort, in how you prioritize resources, etc.
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  SPEAKER_00: Explain how you're using the KRAs in your decision making to the team.
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  SPEAKER_00: This will encourage them to do exactly the same in their day job.
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  SPEAKER_00: This creates even more focus on the key result areas.
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  SPEAKER_00: Fourth, communicate and talk about direction as much as practical.
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  SPEAKER_00: Talk about it in team meetings, reference KRAs and email updates on progress.
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  SPEAKER_00: Set up planning meetings with the team to work out the best activities and projects to support achieving the KRAs.
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  SPEAKER_00: Put them on the wall, use everything you can to keep the message clear, these are important.
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  SPEAKER_00: Fifth, create games around the KRAs.
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  SPEAKER_00: If, for example, the person to achieve one KRA first gets a bottle of champagne and their picture on the wall.
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  SPEAKER_00: Think about all the mini games that you could create around achieving KRAs on a team and individual level.
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  SPEAKER_00: Keep the KRAs clearly in everyone's mind and ask your team to make decisions and prioritize work based on the team's KRAs.
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  SPEAKER_00: So in summary, key result areas are a very important bridge between high-level business strategy and direction and the specific goals and objectives needed to achieve that strategy.
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  SPEAKER_00: KRAs provide better clarity of expectation, have more stability and longevity, and most importantly are focused on results rather than activity.
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  SPEAKER_00: Use KRAs to maximize the engagement by an understanding and ownership of the work that your team members do, which will in turn improve team performance.
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  SPEAKER_00: If you have any questions on five great ways to use key result areas to improve team results, please email me at support at enhance.