RACI FOR CPA FIRMS: CLARIFY ROLES, DELEGATE WORK AND PLAN SUCCESSION
Today’s topic is project management. Don’t stop reading. I promise this will be valuable.
There’s a tool called the RACI matrix. It’s been around since the 1950s. I spent almost 30 years in public accounting and had never heard of it until a couple of years ago, when my friend Rob introduced me to it. Thank you, Rob.
RACI, Explained Through Lord of the Rings
Now, this could get boring. So let’s use Lord of the Rings, one of my favorites.
Each party in that story had a distinct role.
Frodo was responsible. His job was to carry the One Ring to Mount Doom, throw it in and save Middle-earth. That’s what he had to do.
Gandalf was accountable. He was accountable for the whole thing. He had to make sure Frodo got the ring there, get all the parties together, and make sure everything was getting done.
Gimli, Legolas and Aragorn were consulted. Their job was to help however they could. “I’ll help you here. Any questions? I can give you some information. Let me guide you here.”
Middle-earth, Elrond and Galadriel were informed. They just wanted updates. “How are we doing? How’s the trip going? Any news? Did we make it? Is it done yet?”
That’s RACI:
| Role | What it means | In Lord of the Rings |
|---|---|---|
| Responsible | Does the work | Frodo |
| Accountable | Makes sure the work gets done | Gandalf |
| Consulted | Offers help, information and guidance | Gimli, Legolas and Aragorn |
| Informed | Needs to know how it’s going and when it’s done | Elrond, Galadriel and Middle-earth |
Why Every CPA Firm Should Use It
It still blows my mind that I never heard about RACI until recently, given how long it’s been around. Maybe I was in the wrong places. Maybe I wasn’t paying attention when I should have been.
Either way, in public accounting, this should be something every firm knows about and uses. Maybe you already do. And if you’re one of my clients, you’re probably rolling your eyes, tired of hearing me talk about it. Sorry. I just keep running into people who don’t know about it, just like me a few years ago.
Where RACI Helps in a CPA Firm
You can use it for almost everything:
- Sabbaticals
- Vacation coverage
- Delegating work
- Client management and client emails
- Engagement management
- Succession
Succession is a big one. A lot of people are moving out of their positions, and not just in public accounting. RACI is a great tool to help that process go smoothly, because it creates clear communication and clear expectations, and it lets you build in accountability.
How Your Role Moves Through RACI
Here’s what I mean. Think about how your role changes over a career:
- Responsible. You used to be the one doing the work.
- Accountable. Then you moved up, and you became the one making sure everything was getting done.
- Consulted. Then people started coming to you for help and advice.
- Informed. Then you just needed to know when things were done.
- What’s next. And then you either moved up into your next role or on to your next chapter.
That’s why RACI is such a useful tool for promotion, succession and training your replacement. I wish I’d had it 20-something years ago.
Make Delegation and Succession Clearer
If you’re a CPA firm partner, owner or leader, executive coaching can help you clarify roles, delegate with confidence and plan a smoother succession.
Explore coaching with The CPA Coach →
Related Perspectives
Continue exploring with How to Set Clear Expectations and Build Accountability in CPA Firms, New CPA Firm Partner? 4 Things to Do in Your First Year, and The CPA Firm Leverage Problem.
Recent Comments