Do well, keep your job; do poorly, you’re fired! This is how some executives and managers might view accountability. Negotiating consequences, both positive and negative can create strong motivation to be accountable for results and generate top performance.

Creating a culture of accountability requires these four key elements:

1. Define the area of responsibility

2. Clarify the expected results

3. Negotiate or define the consequences

4. Review performance and apply the consequences

Define the area of responsibility

Give people a defined area within which they are expected to generate results. Initially the area can be quite small, perhaps making simple decisions with low risk. As a consequence of good performance, the area of responsibility can grow – more discretion, larger budget, more staff.

Examples:

The person is responsible for:

• The final assembly department
• North American sales territory
• Office administration and management

Clarify the expected results

Knowing upfront how performance will be measured is key to creating accountability. At this point setting specific goals isn’t as important as defining the key result areas.

Accountability requires a degree of autonomy on how to achieve the desired results. The values of the organization define what behaviors are expected and accepted. There may be limits in terms of regulations and resources, and some suggested best practices, however as much as possible, the accountable individual must feel that they have control over how to best achieve the outcomes.

Examples:

• maximize the number of parts produced that exceed quality standards within budgeted labor standards
• maximize gross profit margin while optimizing selling expenses
• ensure availability of administrative resources including equipment, supplies and staffing within budget

Negotiate/define the consequences

When you hear the word “consequences”, most people think about negative consequences or punishment. Instead view a consequence as what comes after a behavior or result. Every behavior has a result and every result has a consequence. It may be positive – more freedom, more responsibility, more recognition or it may be negative – reduced authority, increased scrutiny, progressive discipline or termination.

In many cases, individuals choose how to behave based on a balance of consequences. For example, smokers report an immediate positive consequence from smoking – physical effects, social acceptance. The longer term negative consequences of smoking are a higher incidence of cancer and other health problems. The negative consequences are delayed making the decision to stop smoking more difficult when compared to the perceived short term benefits.

In a similar way, employees may perceive more severe negative consequences if they do not achieve results and relatively limited positive consequences of achieving results. This isn’t accidental as many organizations fail to articulate clearly the positive consequences of achieving desired results, whereas the fallout from poor performance is more visible.

Examples:

• Successful achievement of goals will result in maximum bonus payout for the year
• Successful achievement of goals will result in serious consideration of branch management position with next expansion
• Successful achievement of goals will result is expansion of responsibilities and higher authority limits for purchasing on behalf of the company
• Successful achievement of goals will result in additional personal development training at the company's expense
• Not achieving the goals will result in possible lateral movement to a smaller department
• Not achieving the goals will result in a decreased annual bonus payout or no payout
• Not achieving the goals will result in not being considered for immediate promotion

Review performance and apply consequences

Consequences are meaningless if they are not applied and therefore performance must be reviewed. This requires an open and specific discussion about the results achieved versus the expectation or goal and then the application of a consequence, either positive or negative.

What about special circumstances and unforeseen events outside of the person’s control?

Almost every outcome or result has an element of chance involved. In positive market conditions, it is possible to exceed targets even if personal effort is low. In tough market conditions, even the highest amount of personal commitment and effort may not be enough to hit the budget. Ideally the manager can separate the controllable elements from the uncontrollable ones. If not, the manager can still apply the consequences because chance can go either way, the results can still be relied on even though it may be at times unfair.

Why do companies view Unique Training & Development Inc. as the provider of choice for leadership training?

1. We involve managers as coaches to make sure participants apply what they learn.

2. Participants report what they have applied and the impact it has on the organization.

3. Managers verify that the leadership practices are in fact being used by the participants as a condition for graduation.

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