Effective RACI Matrix as a Key Control for Integrated Project Controls (IPC)

Over the years, I have had many opportunities to help organisations defining and implementing practical ‘key controls’ and assurance frameworks for developing and delivering capital works portfolio and major projects a bit more confidently!

One of my lessons learnt is the importance of the efforts required to clearly develop and communicate practical RACI Matrices with stakeholders in alignment with organisation/project governance and its internal key controls. Most recently our team supported a client by developing a RACI Matrix for their Integrated Project Controls (IPC) function on a major project.  

RACI Matrix (derived from the four key responsibilities most typically used: responsible, accountable, consulted, and informed), also known as Responsibility Assignment Matrix (RAM) or Linear Responsibility Chart (LRC), is a good tool which describes the participation by various roles in undertaking activities or deliverables for a process. RACI Matrix is also useful for clarifying and defining roles and responsibilities in cross-functional or departmental projects and processes. While developing a RACI Matrix might looks an easy exercise but for developing a practical and effective RACI, you need to consider few critical factors:

• Governance and organisation / project org chart
• Existing Internal Controls & Key Controls
• Current maturity levels, competencies, and any roadmap in place
• Quality of Information Management System
• Quality of relevant processes, procedures, and tools  

The key question is ‘what is the best level that a RACI Matrix should be developed for?’ I usually recommend aligning the RACI Matrix with a ‘Process’ which should be also supported by ‘Key Control/s’. RACI Matrix is NOT a ‘procedure’ to define all activities that need to be done.

COSO defines ‘internal control’ as ‘a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance.’

Internal control is:

• geared to the achievement of objectives
• a process consisting of ongoing tasks and activities - a means to an end, not an end in itself
• effected by people
• able to provide reasonable assurance
• adaptable to the organisation’s structure and governance     

Key Control activities should be incorporated in your policies, procedures and practices. Key Controls can be classified as those before the event as preventive, or after the event as detective or corrective. Examples below – hence, RACI Matrix is a ‘preventive key control’ for a defined ‘process’.

Ref: Audit Office of New South Wales

Back to our recent RACI Matrix for an IPC function of a major project – (only a sample, not the complete RACI Matrix - the key challenge is to have it at the right level of details!

The feedback from the team – the undertaken process for developing RACI Matrix, applied to the assigned lead for each discipline within their project controls function, could help to create (or clarify) accountability and communication as well as encouraging open, forward thinking, collaborative culture the organisation seeking to achieve accurate and reliable project control. RACI Matrix could also enhance the understanding and entrenching of a risk mindset into the culture of the project.

Let me know your experiences (useful or waste of time!, good or bad!) with RACI Matrix. Let's discuss, debate, share lessons and learn together.

Disclaimer:

The views expressed in this presentation are those of Pedram Danesh-Mand and do not reflect or represent the official policy, position or recommendation of the KPMG Australia, Engineers Australia (EA) or Risk Engineering Society (RES). Any written or verbal recommendation has a general nature and should not be used for any decision making without further assessment for specific project and organisation requirements.