RACI Business Health Assessment tools can assist in engaging a business and senior management.
RACI Consulting's Business Assessment tools are designed around key business risk and value driver assessment similar to those used by financial institutions when valuing a business. They provide an analysis and solid base for increasing business value and assist in lifting business health & profitability by providing a set of key performance indicators and Q&A to quickly highlight where a shift from poor performing to performing can substantially increase business value and efficiency
Test the RACI Business Health and Operational Analysis on your business by downloading and completing the free assessment tools found on out support page.
Key Success Factor overview
The RACI Business Health Assessment below provides a detailed review of the 10 Key Success Factors of any business
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.
RED Urgent attention is required to ensure industry risk is minimised
Strategies should be implemented to minimise 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 minimise 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.
RED Urgent attention is required to ensure business performance is maximised.
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.
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 under performing subcategory.
Having a formal strategic plan in place with a vision and goals is essential for a business to obtain maximum growth potential.
RED Urgent attention is required to ensure future business growth is maximised.
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 under performing subcategory.
Setting up a risk committee to assist in the management of risk across the business can ensure risk is minimised.
Urgent attention is required to ensure business risk is minimised.
Urgent analysis of subcategories indicating red and implementation of actions to improve these areas is essential.
5. Competition
GREEN Indicates the business is managing competitor risk.
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.
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 and benefits from quality systems.
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 under performing subcategory.
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 reliant on owner presence in the business.
Areas for improvement will exist in the subcategories indicating red or yellow
YELLOW There may 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.
RED Urgent attention is required to ensure owner reliance is minimised 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 is managing customer risk.
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.
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 staff engagement is a focus within the business.
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.
RED Urgent attention is required to ensure staff retention and loss of key staff is minimised.
Urgent analysis of subcategories indicating red and implementation of actions to improve these areas is essential.
10. Succession and Estate planning
GREEN Indicates there is an understanding of the value of succession planning.
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.
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 provides a way of bench marking your current business state/position. By running this assessment every few months will enable the business to assess its its progress along the path of continued improvement and increase in value drivers.
The RACI Business Health assessment has been developed to provide users with business improvement tools and pinpoint areas of the business requiring improvement.