We use a Key Result Area to describe an important domain of contribution for a role. We use a Key Performance Indicator to measure whether the desired performance is occurring within that area.
For example, we may define ‘delivery reliability’ as a KRA for a supply-chain role and use on-time delivery percentage, schedule adherence and order-cycle time as relevant KPIs.
We begin performance design with business outcomes and role ownership before selecting measures. Otherwise, KPI lists can become collections of available activities rather than indicators of meaningful contribution.
A sound scorecard also makes dependencies visible. If one role owns the result but several functions control the inputs, review architecture must clarify shared contribution without weakening single-point accountability.