RACI Key Success Factor overview

The RACI business health below this example chart you will find detail of color
code meaning relating to each of the 10 Key Success Factors

1. Industry
GREEN Business operates in a well-established and stable industry
Areas for improvement will exist in the subcategories indicating red
or yellow

YELLOW There may be underlying issues that can be addressed through a RACI
business health and strategic review and actions to minimise impact of industry
restructuring,
negative global trends and future industry trends that may positively or
negatively impact future business profitability and growth.

Areas for improvement will exist in the INDUSTRY subcategories indicating

red or yellow

RED Urgent attention is required to ensure industry risk is minimized

Strategies should be implemented to minimize risks associated with each red
area of the business.

2. Business performance
GREEN Indicates the business has been performing well.

Areas for improvement will exist in the subcategories indicating red or

yellow

YELLOW Setting and monitoring of KPIs to match business goals may further
increase performance.
Use the RACI charting tool to minimize duplication and increase
efficiency within the business.
There may be underlying issues that can be addressed by reviewing each
underperforming subcategory.
Setting and monitoring of KPIs to match business goals may further
increase performance.

Areas for improvement will exist in the subcategories indicating red or

yellow

RED Urgent attention is required to ensure business performance is maximized.

Setting and monitoring of KPIs to match business goals may further increase
performance.
 Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

3. Business Growth
GREEN Indicates the business has growth potential and this area of the business is
performing well.

Areas for improvement will exist in the subcategories indicating red

or yellow

YELLOW There may be underlying issues that can be addressed by reviewing each
underperforming subcategory.
Having a formal strategic plan in place with a vision and goals is essential
for a business to obtain maximum growth potential.

Areas for improvement will exist in the subcategories indicating red

or yellow

RED Urgent attention is required to ensure future business growth is maximized.

Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas through the RACI business health model is essential.

4. Business Risk
GREEN Indicates the business is managing risk.

Areas for improvement will exist in the subcategories indicating red

or yellow

YELLOW Monitoring of key risk areas is an important part of managing risk

RED There may be underlying issues that can be addressed by reviewing each
underperforming subcategory.
Setting up a risk committee to assist in the management of risk across the
business can ensure risk is minimized.

Areas for improvement will exist in the subcategories indicating red or

yellow

Urgent attention is required to ensure business risk is minimized.

Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

5. Competition
GREEN Indicates the business is managing its risk in relation to its competitors.
 Areas for improvement will exist in the subcategories indicating red
or yellow

YELLOW A strategy to improve your position against your competitors will improve
your overall position and in turn your customer retention and profitability.

Areas for improvement will exist in the subcategories indicating red

or yellow

RED Urgent attention is required to ensure you remain competitive in the market.
Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

6. Management Information Systems

GREEN Indicates the business has a quality system in place or is working toward
the same.

Areas for improvement will exist in the subcategories indicating red

or yellow

YELLOW Working towards continual improvement through a RACI business health

systems approach will increase business efficiency and profitability.

RED There may be underlying issues that can be addressed by reviewing and
putting in place strategies and actions to improve underperforming subcategory.

Areas for improvement will exist in the subcategories indicating red or

yellow

Urgent attention is required to ensure management has its finger on the pulse
of the business.
Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

7. Owners
GREEN Indicates the business is not over reliant on the owners or their presence
within the business. When looking to sell a business this is a healthy position
as it provides a level of comfort to incoming owners that the business will
not be overly impacted by the departing of the incumbents.

Areas for improvement will exist in the subcategories indicating red

or yellow

YELLOW Theremay be underlying issues that can be addressed through the RACI
business health model, reviewing the management structure and ensuring
 business critical management tasks are being managed at the right
levels. RACI charting is a great way to ensure this.

Areas for improvement will exist in the subcategories indicating red

or yellow

RED Urgent attention is required to ensure owner reliance is minimized where it

has a negative impact on the business performance.
Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

8. Customers and Market Demand

GREEN Indicates the business manages customer risk by not relying on only a few
customers to generate most of its income.
By ensuring customer revenue is spread over a larger number of customers
minimizes risk to the business should a major customer cease purchasing from
you.

Areas for improvement will exist in the subcategories indicating red

or yellow

YELLOW You may be rely on only a few customers for most of your revenue the risk
associated with this can be reduced by growing your
customer base and ensuring you do not have to many eggs in one basket.

Areas for improvement will exist in the subcategories indicating red

or yellow

RED Urgent attention is required to ensure revenue risk through key customer
reliance is understood and reduced. If you are overly
reliant on a few customers they also have greater power to enforce price
reductions seriously impacting business profitability and value.
Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

9. Staff
GREEN Indicates you manage staff well and have systems in place to ensure staff
are not looking elsewhere for employment opportunities.

Areas for improvement will exist in the subcategories indicating red

or yellow

YELLOW There may be areas relating to Employee engagement you are not
currently aware of or paying attention too.
Forbes reports show that at any time up to 70% of your employees may
not be satisfied with their current position and looking for other opportunities.
 Areas for improvement will exist in the subcategories indicating red
or yellow

RED Urgent attention is required to ensure staff retention and loss of key staff is
minimized.
Urgent analysis of subcategories indicating red and implementation of actions
to improve these areas is essential.

10. Succession and Estate planning

GREEN Indicates you have planned for the future. Succession is important and
planning well ahead is critical.

Areas for thought and implementation will exist in the subcategories

indicating red or yellow

YELLOW Success planning may not be on your radar at this time.

Areas to address or at least think about will exist in the

subcategories indicating red or yellow

RED Attention is required to ensure you have an understanding of what succession

means.
Our recommendation is that you seek advice from a succession planner to
obtain an understanding of what the future will bring.

Summary
The 10 KEY Success Indicators do provide a position of a business relating to
business value, risk and business potential.
Try the RACI business health and Business Analytics tool on several
businesses and compare the results.
The RACI business health Change Manager platform has been built to
provide its users with business improvement tools and strategies.