Business Growth: RACI Analysis

This continues our exploration of strategic tools you may use to grow your business

A RACI analysis can help improve your efficiency whether you 1) work alone, 2) hope to add employees later, or 3) already have employees working for you. A RACI analysis allows you to divide responsibilities appropriately within your organization.

RACI stands for

• R=Responsibility for a process or responsibility for improvement
• A=Accountability for the process
• C=Consulted prior to decisions about improvement in processes
• I=Informed after the decision about improvement in processes

How to Conduct a RACI Analysis

The following steps will help you analyze the division of responsibilities. (Refer to the graphic above to better understand these instructions). To conduct the analysis you will

1. List all the functions you wish to assign to others (either currently or in the future) down the left side of the table
2. List all the people (either current or in the future) you may assign tasks to perform along the top of the table
3. Compare each function with each employee
1. Record the appropriate score depending on the responsibility you wish to assign them: R, A, C, I
2. Leave the cell blank if the person has no assignment for that function
4. Evaluate your scores
1. Horizontally to verify that every function has someone responsible, accountable, consulted, and informed
2. Vertically to verify that nobody receives too many responsibilities and that responsibilities are not spread among your staff
3. Overall to enhance the number of people consulted and informed about decisions, identify changes in the division of responsibilities, and to ensure that someone is accountable for decisions
5. Make changes to improve your organization
1. Ensure you have the right people doing the right activities
2. Move people away from the activities they cannot perform well
3. Consult with the right people before making decisions

RACI analysis can help you even though you may be working alone. It can highlight potential problems if you try to do too much. It can ensure a better division of responsibilities. It can allow you to plan for future growth and employees.

Join me on Tuesday when we explore the Porter 5 Influences test