3 KRA Traps Every Credit Union Must Avoid

Most credit union leaders can confidently reference their org chart. But ask them what success looks like for each role – and how it's measured – and the conversation often gets murky.

That’s where Key Result Areas (KRAs) come in.

Unlike job descriptions that list responsibilities, KRAs clarify the results that matter most in a given role. They define what winning looks like so your team can aim higher, stay focused, and make meaningful contributions to your credit union’s mission.

But KRAs are only effective if they’re used the right way. When they become too rigid, too generic, or too tied to outdated KPIs (Key Performance Indicators), they stop empowering your people and start boxing them in.

Let’s unpack the real role of KRAs and how to avoid some common traps that can stifle your credit union’s potential.

Trap #1: Confusing KPIs with Laws of Nature
Metrics are helpful. Until they aren’t.

If someone hits the desired outcome – even without checking every KPI box – celebrate it. That’s not a failure of the KPI; it’s a success of the individual. Maybe the metric missed the mark. Maybe it’s time to revise or eliminate it.

KRAs are about clarity on outcomes, not blind adherence to process.

Trap #2: Scoring Systems That Create Fear, Not Growth
If your performance conversations feel like pass/fail tests, you’re doing it wrong.

Credit unions thrive on trust and service. Overly binary reviews can reinforce rigidity. Consider a more conversational, flexible style. Dialogue reveals nuance – like when a missed KPI still led to a major win. That insight? Worth more than a spreadsheet.

Trap #3: Copy-Paste KRAs for Different People
Imagine two branch managers at your credit union.

Maria is exceptional at community outreach. She builds trust in local partnerships and drives new membership through word-of-mouth. Jason, on the other hand, is a process optimizer. He has a knack for identifying inefficiencies and improving in-branch workflows.

Same title. Two very different strengths.

Should their KRAs look identical? Definitely not.

KRAs aren’t job descriptions. They’re priorities tailored to each person’s unique value. If we treat roles like templates, we miss the opportunity to activate individual strengths. Worse, we may create frustration and disengagement when someone feels forced to chase someone else’s version of success.

Customizing KRAs gives your people permission to lean into their best contributions, while still aligning to what matters most for your credit union.

Use KRAs to Clarify, Not Constrain
When used wisely, KRAs can bring focus, alignment, and freedom. They allow your team to know what matters most and give them space to use their judgment in how to achieve it.

That’s not only effective leadership. That’s the kind of purposeful, people-first culture that makes credit unions shine.

If you haven’t revisited your KRAs and KPIs in a while, maybe now’s the time. Schedule a conversation. Invite feedback. Refresh the metrics so they serve your outcomes – not the other way around.

Because at the end of the day, success isn’t just about hitting the numbers. It’s about becoming the organization you’re meant to be.