MARAOverview

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Step 1 - Business Critical Positions

Management Audit andRisk Assessment

MARA helps you make the distinction between:

Strategic Positions which shape the future direction of the enterprise

Stress Points which expose the ogani-sation to high levels of risk if a job holder leaves a position unexpectedly

Pivotal Positions where further invest-ment provide clear returns

In order to determine whether a job is a Stress Point, it is necessary to review two sets of factors. These are related to the Impact that the role can have in the organisation and the Elapsed Time from when a role holder leaves the position to when effective coverage is achieved.

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High Risk. All High Risk jobs should have a risk mitigation plan

Medium Risk Low Risk

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MARAOverview

Management Audit andRisk Assessment

Step 2 - Talent Assesment

This involves:

Classifying people according to a performance/ potential matrix

Identifying the likely risk that a person in a critical position will leave the organisa-tion

Identifying successors

All of this is captured on an integrated database and represented on a matrix.

This aggregated data enables ratios to be developed which allow for internal com-parisons to be made.

Individuals is at high risk of leaving

Individuals is at medium risk of leaving

Individuals is at low risk of leaving

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MARAOverview

Management Audit andRisk Assessment

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Step 3 - Structural Analysis

This involves identifying the gaps and over-laps in the organisational structure.

Generating specific job profiles along key spines of accountability provides a clear measure of structural efficiency.

Job compression occurs when more than one job along a spine of accountability is provid-ing a similar core contribution. Where this occurs, accountability is likely to be diffuse. This means that the cascade from strategy to the undertaking of the fundamental work of the organisation will have within it waste and inefficiency.

MARAOverview

Management Audit andRisk Assessment

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Step 4 - Risk Assesment

MARA provides the basis for decision support as it generates a series of measures, ratios and indices which help address the key questions posed by senior executives. These metrics include:

Organisation Efficiency index

Succession Contingency Ratio

Organisatiomal Effectiveness Ratio

MARAOverview

Management Audit andRisk Assessment

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Step 5 - Context

This involves assessing the demands of the external context (and the strategy to deal with this) in order to tackle risk mitigation.

Risk mitigation is aided by answering the follow-ing questions:

Structure

Does the organisational structure enable or hinder the strategy?

Individuals

Could the loss of job-holders in Stress Points severely impact the business?

How could the risks be reduced?

Are individuals matched to the roles undertaken?

What can be done to ensure the highest potential people or those occupying critical positions stay with the organisation?

Talent Pool

What are the likely consequences of under-utilised or over-stretched resources?

Is there a bunching of talent with a number of people capable of working at a higher level where opportunities are limited?

Could this lead to a loss of high potentials?

Does the Succession Contingency Index indicate that there is sufficient internal cover should a position become available?

Is their sufficient internal resource to meet the growth ambitions?