We’ve been talking about KPIs for quite a while now.
Every business organisation needs to have a set of well defined KPIs that help it to gauge performance. Without monitoring a business setup using KPIs, any organisation is bound to stray from its long term goals.
However, there’s another term that has given rise to some confusion regarding the efficacy of KPIs. That term, known as KRA, is also essential to ensuring the streamlined performance of a business.
So, what exactly are these KRAs? And how can they help with taking your medical business forward? We’re going to take a look at this today. Also, in the process, we’ll compare KPIs which KRAs, and try to understand which your medical business requires.
What is a KRA?
KRA, which denotes Key Result Area, is ideally defined as one of the outcome areas for which a business is responsible. KRAs can be defined on an organisation-wide, department-wide, or even at individual levels.
In essence, a KRA helps to define the scope of work for employees. Taken on a departmental level, it can guide towards areas that require stellar performance. Long story short, KRAs enable your medical business to define where it must excel.
Now KRAs are essential in order to ensure that a business stays in line with its objectives. It’s a highly essential strategic factor that enables your medical centre to achieve favorable results.
So, now that we know about what a KRA is, let’s take a look at how they compare with KPIs.
KPIs Vs. KRAs
From the very definition of a KRA, it can be understood that it’s a strategic, qualitative factor that’s used to define the scope of business areas. This makes KRAs inherently qualitative in nature. And this is the major point of difference between them and KPIs.
That’s because a KPI is an entirely quantitative metric. KPIs can be measured, analysed, and compared on a numerical basis. This allows them to evaluate the performance of your business in the short as well as long term.
Another point in which KPIs differ from KRAs is that the former is a tool to assess whether the company is working in line with its goals or not. KRAs, on the other hand, stand to define key action areas that the business must focus on in order to thrive.
How KRAs Can Help Medical Businesses?
KRAs can play a crucial role in helping your medical business move forward. Using the concept, you can define action areas where your business needs to focus on. For instance, improving the degree of patient recovery can be one of the KRAs which your medical staff should focus on.
But how do KPIs come into the picture?
It’s actually rather simple once you put some thought behind it. Just as a KRA helps to define essential action areas, a KPI can help to assess whether that particular action area has been properly addressed or not.
A KRA, being qualitative in nature, cannot be used to derive quantitative measurements. That’s where a KPI can help. By supplementing KRAs such as patient recovery with KPIs such as patient recovery rates, your medical business stands to derive a holistic performance picture.
Which Should You Focus On?
The clear answer is – both. From the above, it’s clear that both KPIs and KRAs play a crucial role in monitoring the performance of any business.
Which means you need to pay equal attention to both these factors. Just as KRAs can help your business define the limits of performance, KPIs can help to measure the same in a quantifiable manner.
So, what’s the final conclusion we can all arrive at? It’s simply that both KPIs and KRAs are indispensable concepts for furthering your business objectives. And while KRAs is primarily a business decision, KPeyes can help you with the KPI part.
Using the latest in KPI measurement techniques that are geared towards medical businesses, we enable you to get the exact results you deserve. Through a combination of intuitive usability and data-driven insights, we aim to take your medical business to greater heights.
What are you waiting for then? Just reach out to us and let’s work together for a better tomorrow!