Avoid the Growing Pains of a Scaling Business with an Accountability Framework
As companies begin to review and recalibrate their business plans in preparation of a new financial year, Visage Growth Partners suggest time should be spent on determining WHO is accountable for their major business functions and critical processes.
Too often during client workshops and CEO forums the groups identify how blurred accountabilities are in WHO owns the outcomes of a business function or critical company processes. It's here that CEOs share their frustration about the company's inability to get critical activities completed on-time or done well!
Comments are often made like: "that one slipped through the cracks," or "I have three people falling over each other to get something done," or "we don't know who's in charge of what in this business!".
Recently, during Visage Growth Partners’ work with a client's leadership team, the senior group thought there were three individuals accountable for the marketing department functions, four individuals accountable for Human Resources, and two individuals accountable as the head of the company.
This lack of clarity regarding accountability was impacting the company's operating rhythm, its ability to deliver services effectively, was confusing for its staff, and made decision making overly complicated. In short, getting things done well was way too hard!
BEST PRACTICES IN ACCOUNTABILITY
Best practice suggests that only ONE person can be ACCOUNTABLE for a given business function or process. For example, regarding a Customer Service department/function, everyone in an organisation should be RESPONSIBLE for Customer Service/Satisfaction, whether they are internally or externally oriented. However only ONE person can be ACCOUNTABLE. Depending on the size of the business, this may fall to the Chief Customer Officer, a Marketing Manager, or a Customer Services Manager.
The person who deemed “ACCOUNTABLE” should have one (minimum) Key Performance Indicator in place to ensure that success is being measured. Why? Using this measure that they “own”, they can rally their colleagues to ensure the necessary activities are completed, and that performance standards are met to support the company’s strategy and key objectives.
Furthermore, this measure helps anyone “RESPONSIBLE” for the outcomes, to have a gauge on the company or their own progress against the target that supports the company’s strategy. It helps support team alignment and synchronisation to best achieve the desired company outcomes.
CREATE YOUR BASIC ACCOUNTABILITY FRAMEWORK
Do you need an uplift in the accountability across your company? Are you struggling to get things done? Are you experiencing some ambiguity, or just want to review and align accountabilities across your executive team? It’s important to identify WHO is accountable for each business function and business process.
Here is a simple and practical approach you can take in your next leadership team forum.
Identify the critical business functions across your company.
Ask each leader to write down WHO they believe is accountable for each business function.
Go around the room and function by function and record the name/names of any individual they currently believe is accountable for the chosen business functions or processes. There will often be more than one name.
Review the following key points:
What functions have no one identified as being accountable? (These things probably aren’t getting done)
Are there functions with two or more people deemed accountable? (Here this a duplication of effort, and ambiguity as to who makes key decisions)
How often do names reappear? Are they over committed? (There may be a need to delegate or move around accountabilities or even hire in an additional resource if it can be afforded)
Do the assigned functions align with the person's skill, experience, and capability?
Are the right people in position to take the company to the next level of business?
Assess the questions and answers from #4 and make the necessary changes in collaboration with your leadership team. Re-aligning accountabilities can mean having difficult conversations, but this is all for the betterment of the business and its stakeholders
Applying this Accountability framework
It is reasonable for a few people to have accountability of multiple functions in the early stages of business growth. As the business flourishes and the budget provides for it, the CEO, and leadership teams should prioritize function(s) and/or critical processes that require additional resources who can account for these, and help the business reach the new levels of performance.
Based on proven business concepts, Jim Collins' global Good to Great book speaks about "first who, then what" and recommends that great companies identify the RIGHT SEATS (on the bus) and fill them with the right people.
Timing is everything in business. A decision to bring in expertise that the founder or existing leadership team does not have is the foundation of success.
By integrating Visage Growth Partner's approach to gaining greater clarity around accountability, change and improvements happen quickly. Your whole organisation will have greater clarity about who is doing what, and this often results in performance improvements and an enhanced team-oriented culture.
For More Information
Does your business have a positive culture of accountability that is driving great performance?
Do you have a simple and clear strategy that is powering your business growth and is easily understood by all your staff?
If not, we invite you to complete the free business health survey on our website—10 minutes. You'll have access to the output with a no-obligation debrief from a business growth advisor.
Visage Growth Partners' role is to demystify growth for Australian and Southeast Asian businesses looking to reach the next level of activity. For more information about strategic planning, scaling your business development, and simplifying growth, contact Visage Growth Partners to speak to a business growth advisor.