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RACI Matrix
Performance measurement systems monitor the behaviors and results of the organization’s workgroups and, in some cases, individuals; providing periodic reinforcement of the achievement of desired outcomes. This reinforcement can only occur when an individual understands his/her role as associated with a metric and receives and understands the associated performance information. Such role designation and communication is fostered through development of a RACI matrix specifically associated with each performance measure within the system.
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Additional Resources
Individual RACI assignments can be difficult. Several other StrategyDriven articles provide additional insights to help in this decision-making process including:
- Organizational Performance Measures Best Practice – Map Performance Measure Ownership
- Organizational Performance Measures Best Practice – System Approval by the CEO
- Organizational Performance Measures Best Practice – Broad Communication
- Organizational Performance Measures Best Practice – Annual Alignment Review
About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
Organizational performance measurement systems are complex structures cascading vertically from the executive suite to the shop floor and stretching horizontally though many different functional workgroups. Consequently, the design of a performance measurement system takes on a high degree of complexity because of the numerous interrelationships between various organizational levels and workgroups and the cross-functional sharing of common metrics. Thus, it is important to employ a multidiscipline team to design the measurement system, one that includes representatives from all levels of the organization as well as each functional area.
A performance metrics system is, in part, a communications mechanism conveying the organization’s performance against stated goals and in doing so reinforces leadership’s commitment to stated behaviors and results. To effectively achieve these objectives, performance measurement system communications must reach their intended audience. Too often, the organization’s metrics remain largely unobserved; residing on desktop computer dashboards or in binders tucked away in filing cabinets. Broad, direct, routine communication of performance measurement system’s output to those affecting the results is therefore necessary to achieve the reinforcement desired.
Data, data everywhere…
Top executives set the behavioral tone of an organization. These leaders, particularly the Chief Executive Officer (CEO), are not only responsible for establishing the organization’s vision, mission, values, and goals, but through their decisions, actions, and communications convey to the workforce their commitment to the achievement of these expectations. Such conveyance demands that these expectations also be programmatic embedded within the organization’s policies, procedures, standards, and performance measures. Therefore, it is crucial that the executive team approves, buys-in to, and reinforces the organizational performance measurement system so to ensure its credibility with the workforce at large.
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