LOI vs RACI
LOI (Letter of Intent) and RACI (Responsible, Accountable, Consulted, Informed) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: LOI refers to letter of intent, while RACI refers to responsible, accountable, consulted, informed — they describe different things even when they show up in the same sentence.
LOI — Letter of Intent
A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in.
RACI — Responsible, Accountable, Consulted, Informed
A matrix that assigns one of four roles to every person involved in a task. RACI exists because most missed deadlines come from ambiguity about who actually owns the decision.
When to use LOI
Reach for "LOI" when the conversation is specifically about letter of intent. A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in.
When to use RACI
Reach for "RACI" when the conversation is specifically about responsible, accountable, consulted, informed. A matrix that assigns one of four roles to every person involved in a task. RACI exists because most missed deadlines come from ambiguity about who actually owns the decision.
FAQs
What is the difference between LOI and RACI?
LOI stands for Letter of Intent — A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in. RACI stands for Responsible, Accountable, Consulted, Informed — A matrix that assigns one of four roles to every person involved in a task. RACI exists because most missed deadlines come from ambiguity about who actually owns the decision.
Are LOI and RACI the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. LOI = Letter of Intent. RACI = Responsible, Accountable, Consulted, Informed.
When should I use LOI vs RACI?
Use LOI when you're specifically referring to letter of intent. Use RACI when the topic is responsible, accountable, consulted, informed.