Why do we need Goals?

 Alignment and focus: Establish clear accountabilities

for all employees and direct organizational resources
towards the right results

 Clarity and big picture understanding: Gives employees

clarity on what is expected of them and how their goals
are aligned with organizational goals

 Development:Helps create a roadmap to identify and

address development needs for employees
Process Of Cascading KRAs
Strategy Formation
“What are the Organization
Organization
Consolidated
Organization’s Goals
Goals and
and performance
business objectives?” objectives
objectives requirements of the
business
Business Requirements Departments
Departments
“What must the Business goals
Unit deliver to enable the
goals and
and
objectives
objectives The few most
Organization objectives to
be met?” important
performance
Department/Team drivers for the
Departments
Departments team, department,
Alignment
“Given these strategies,
KRA’s
KRA’s function or
business
what must we deliver to
enable the business to
achieve its goals?”

Individual Objectives are

Detailed Work Plans Individual meaningful
“How can I influence the KRA’s
KRA’s and
deliverables being met?” actionable
2
 Guidelines for Effective KRA/KPI -Goal Setting
Balanced: All goal sheets must strike a fair balance between different perspectives (financial, customer, process,
capability)

Focused: Number of KRAs should be 7-8 and each KRA should have weightage of at least 8%

Vertical Alignment: Goal sheets must be derived from the corporate / functional scorecards and be aligned to the overall
strategic objectives of the company

Horizontal Alignment: Goal sheets should capture the ‘inter-dependencies’ between different functions

Measurable: Each KRA must have a clear and specific measure of success

Job responsibilities: Goal sheets must reflect all critical job responsibilities of the employee. Typically, responsibilities
where employees spend >=10% of their time are included in goal sheet.

Stretch: Managers must ensure a fair and consistent level of stretch in the targets of all employees

Employee Involvement: Goal sheets must be created through detailed discussions between managers and employees
around corporate / functional goals, past performance and future expectation of the employee
 Goal Setting Process
Finalization of
Organizational and
Department scorecards
Start

Communicate the Collect the copy of filled

HR launch of Performance up scorecard and
Planning process development plan from the
Managers
End

Finalize the scorecard and

Build your own
development plan through
score card and
a mutual discussion with
share with Direct
M Reports
the Employee and share
with HR

Copy

Refers to the Prepare a first cut of

E Manager’s the scorecard and
scorecard the development plan Manager Employee HR Dept.

M E HR
Learning Goal Setting through exercise

1
Read you previous year goals and feedback
Recap

2
Alignment Go through your Manager's Goal sheet

3
Discuss the Analyse and discuss your goals with your Manager; and fill up
Goals in the goal setting template provided
Goal Setting Template - KRA

PMPL Ltd. Scorecard 2019-2020

No. KRA KPI Unit of Measure Weightages Targets

Goal to be The basic The priority Level of

Measures explains
achieved unit that is output /
the factors through
by the role: in which the assigned to result to be
which the goal will
what is to be measure is the particular achieved by
be tracked and
done? tracked in. goal relative the end of
measured
For example, to the other the
% of Project goals performa
completion Total must be nce period
100%
 Sample Template for Projects Employee
Weightage Actually Comments Final
Sl. No. Key Result Areas Key Performance Indicators Measure of KPIs Target Achieved Score of Assessor Score

10%
above
BD for bagging High a.Indification of Potential Projects Percentage 10% of        
1 previou
Way Projects
s year

b.Bagging of Order for N R Road Projects Amount 10%          

a.Within Time Limites Number 10% 2        
2 Execution of Projects
b. Witn Revised PCA Limits Number 10%          
Min. 1
a.Maintaining Required O & m standards Percentage 5% No.        
3 O & M of Toll ofProjects
b.Minimizing O & M Expenditure Number 10%          
a.designs optimization at execution level Number 5% 2        
Designing of EPC
4 b. Standardization of designs for optimum
Contracts Number 5%          
utilization of resources
5 Top Line Achivement To achieve a Turn of ___ crores Amount 10%          
Minimum 10% profitability to be achieved overall Percentage 5%          

Bottom Line Minimum 5% to be achieved through claims &

6 Amount 5%          
Achivement contracts deviations, arbitrations

Indirect Cost to be within PCA limits Amount 5%          

Adherence to IMS Percentage 2.5%          

Process Compliance & Skills Upgradation n Develoment Number 2.5%          

7 People Development Succession Planning /Mentorship Number 2.5%          
Organization Growth & Development Text 2.5%          
100%
Feedback Process

Step Appraisee Appraiser 1 Appraiser 2 Reviewer

Who Individual Functional Project/ Regional Corporate
Manager Admin Head Head

Type Appraisee Appraiser 1 Appraiser 2 Reviewer

1 Y Y Y Y Individual
Employee
2 Y Y Y Functional
Lead
3 Y Y Y Admin Lead
4 Y Y Group Head