“My company has lots of potential, but I just feel my employees are not engaged. If I don’t push, nothing seems to happen. I’m working night and day and we’re still missing 40% of our targets. I once dreamed of being a firefighter, I guess that dream has come true. All I do is put out fires, I have no time to focus on my business.”
Sound familiar? CEOs and leadership teams can change this picture, it’s all about accountability. Creating a fierce culture of accountability starts with the CEO and leadership team.
Why is accountability important?
Accountability is about owning a problem. You want employees to behave as if they own the piece of business that they are running. When you are accountable for a specific result, you will do whatever it takes to achieve it – and you would like your team to perform this way as well.
Carlos Brito, the CEO of brewing company AB Inbev, summarizes his views on accountability in these words: “We always compare that to a rental car: you drive a rental car in a different way than your own car. With a rental car someone else will live with the consequences of your driving. With your car, you know that it will be yours the next days, months, and years, and you know that you will be living with the consequences of your driving. Employees who behave like owners are here for the long term, and they will live with the consequences of their decisions – good or bad – and that builds a great company.”
Why am I having accountability issues?
Accountability issues are very common among growing companies. When you founded your company, you were personally accountable for everything. As your company grew you started delegating the responsibilities for some results – e.g. production, customer service, or sales. However, you may not have created the communication channels required to hold your teams accountable. Why would you? You didn’t need any of this yourself, and yet you grew your business successfully. Why would these smart managers need anything different?
For one, your employees are not you. If they were, they would not be working for you: they would start their own business. Second, your company is now more complex than we you started: it has more people involved, and all these people now need to be on the same page. Third, when you started your company with a few employees, you could be on top of each of them and had short communication lines: you knew what everybody was doing, all the time. Now that your company has more employees it is impossible for you to manage them the same way: this would soak up all your time. This is exactly why you need to put a system in place that will achieve what you want (ie create accountability), without you spending all your time on it.
1. Lead by example
Like many aspects related to company culture, accountability starts with you and your leadership team. In order to create a culture of accountability you have to model the behaviors that you want to see in your organization. When it comes to accountability the rule is simple: when you make a commitment as a leader, you have to keep it. If you don’t, why should anyone else be interested in doing so? You can’t complain that employees miss their deadlines if you are occasionally late as well. As a CEO “all eyes and ears within your business are focused on you. What you say and what you do are invisibly and constantly observed, scrutinized and evaluated as your managers and employees are looking for clues as to how they should behave,” explains Mark Green.
Leading by example is not only about you sticking to your commitments, but also about your expectations from your team – and your behavior when your managers don’t meet your expectations. If your team members notice that there are no consequences for missing targets, why would they try their best? Similarly, if you tolerate one of your team members to produce poor results, why would other team members feel pressured to produce quality? When you hold your team to a higher standards, you are sending a strong signal across the organization.
2. Have the right people on the right seat
Without the right people on the right seat, nothing of what you can do will significantly increase accountability. The key question is: would you enthusiastically rehire everybody on your team? I advise my clients to assess employees on two dimensions; performance and adherence to company values. You will find more information on how to use this tool in this article.
Once you have the right people on your team you need to clarify their area of accountability. This is less obvious than it looks. The key question is: Who is accountable for each of the key functions in your company? As Mark Green explains “the exercise often reveals that there isn’t a single individual accountable for each function. When more than one person is “accountable”, nobody is accountable. It is easy to make assumptions that things will get done, but when there is not a designated person to account for a particular result, chances are, it is not going to happen. In this kind of environment, it is also easy to point fingers – Bob thought Mary would handle it, and vice versa. Other times, you’ll discover that a particular role hasn’t been filled by anyone at all; it is just implied that it will somehow be handled. Spoiler alert: it doesn’t!”
3. Clarify priorities
“The main thing is to keep the main thing the main thing,” wrote best-selling author Stephen Covey. “Individuals or organizations with too many priorities have no priorities and risk spinning their wheels and accomplishing nothing of significance,” says Verne Harnish in his book “Scaling Up.” Focus on a small number of priorities that will have the biggest impact on your goals, make sure that everyone on your leadership team is aligned on them – and communicate them broadly.
When employees understand where your organization is going and which role they play in it, they work less selfishly and they tend to make better business decisions on behalf of the company – simply because they can see the impact of their decisions and how they impact overall results.
4. Define clear action plans and metrics
Once you have identified who on the leadership team is accountable for each function and what your top priorities are, the next step is for each of your leaders to answer Mark Green’s key question: “What are the 3 most important results the company expects you deliver in exchange for paying your salary – and how should these results be measured? This step determines the results and metrics for each of your leadership functions. As we all know, you can’t manage what you don’t measure. If you want to increase the speed and quality of a particular service you offer, you should establish specific metrics to gauge those factors and identify metrics and targets for them. You may determine if you reach or surpass a target for three months in a row, you have achieved that objective.” Pick specific metrics, make sure that your leadership team is on the same page and that everybody aims for the clearly defined results – so that the rest of your organization can follow your lead.
Similarly, once you have defined top quarterly priorities, the question becomes: what do you and your team need to do in each of the next 13 weeks in order to achieve priorities? There are only 13 weeks in a quarter – if you do NOT view your quarter as a 13-week race, you will lose weeks and time which you will NOT get back. A weekly plan clarifies what can be expected every week, in order to meet expectations at the end of the quarter. It also makes it much easier for your leadership team to hold people accountable to their own 13-week plan.
5. Establish a metronome-like meeting rhythm
Just as a metronome calls time and sets tempo in a musical performance, so do a small set of consistently executed meetings to hold you and your team accountable, and keep everyone on the same page. The essential regular meetings are:
- Daily huddles (no more than 10 to 15 minutes) to evaluate progress on the very short-term priorities and identify any blocking issues.
- Weekly huddles (no more than 90 minutes) to review the status of the 13-week plan and course-correct if needed.
- Monthly and quarterly meetings to review progress on the priorities, take corrective actions when needed, and identify new priorities for the upcoming quarter.
I often notice that the most impactful meetings to drive accountability are the daily and weekly huddles: they create peer pressure and hence take the heat off your shoulders as the leader. They also improve communication: You won’t need to have the same water-cooler conversation three of four times, as is the case when you rely on chance hallway meetings for communication. And finally they enable collective intelligence to solve problems.
In the end, how much difference do these tools make on accountability? Pretty big, as this example from another Gravitas Impact business coach, Glen Dall, demonstrates in Mark Green’s book “Creating a Culture of Accountability”: “I worked with the CEO of a multi-location dental practice. The CEO had started with one practice that they grew very successfully – and then began expanding. At one point employee turnover rates increased to 200%. The leadership team would plan and set goals, but frequently failed to achieve them. The growth rate was declining. The CEO felt over-extended, frustrated and stressed.”
With the leadership team Glen Dall leveraged these tools to have the right people on the right seat, set priorities and targets, as well as establish a proven system to follow up on them. The result? “After our first 6 months of working together, the CEO told me, “You should be proud of how far you’ve brought the team. I feel that we have accomplished more in the past 6 months than we were able in the last 7 years.” That is the power of accountability.”
As a business growth coach, I work with founders of mid-market companies who are frustrated because their business is not growing the way they want; my passion is to help them identify and remove the growth roadblocks they have been hitting so they can grow faster and with less pain. Often their roadblocks include a lack of accountability: they have no system in place to regularly follow up on their team’s many commitments, or their teams don’t have clear priorities and metrics. I would like to learn about your growth roadblocks; contact me to discuss at Xavier@AmbroseGrowth.com.
What about you? How accountable is your team? How has Covid impacted accountability? Over the past couple of years, how many quarters has your company reached and missed their targets? What were the consequences of hitting targets, and what were the consequences of missing them? Do you have clear metrics and regular meetings in place to follow up on each of your priorities?
Let me know your thoughts in the comments section.
Remember when you started your business? You had an initial idea, which client feedback helped you rapidly improve. Your ability to creatively come up with new solutions greatly contributed to your initial success. You didn’t need any formal vision to stay on the right track: you breathed your vision.
However, as your team grows, the scattered creativity that made your initial success becomes a liability that slows down your business growth – because it confuses your team. The larger your team, the more painful the lack of clear long-term goals.
Not formalizing your long-term goal has painful consequences
- You prevent your team from making strategic decisions on their own. Due to the lack of clarity about your long-term direction, they have to guess your thoughts about the ideal path to lead wherever – giving you the (false) impression that they can’t work without you – or even worse they don’t make decisions at all.
- You are not building a long-lasting legacy. You go from short-term goal to short-term goal like a butterfly exploring flowers, but you don’t build a hive full of honey that can thrive and sustain the test of time.
- You are gradually losing your team’s commitment, who feels at the mercy of whatever new shiny object you set your eyes on.
- Your A-players will end up investing their creative energy somewhere else. They want to contribute to something bigger than themselves, not be short-lived butterflies.
So how do you avoid these pitfalls?
Set your Big Hairy Audacious Goal
Formalizing your long-term goals sheds clarity, helps streamline your team’s effort, and galvanizes their energy – so you can grow your business faster and with less pain.
Imagine that you are surrounded by hundreds of mountains. You can climb whichever one you want. The thing is: climbing any of these mountains takes a lot of time, effort, and teamwork. As a result, you can only pick one. Which one excites you most? Which one is your definition of success?
A long-term goal (or BHAG – Big Hairy Audacious Goal) is “clear, compelling and serves as a unifying focal point of effort,” describes researcher Jim Collins in Built to Last. Based on his research companies that formalize and bring to life an audacious long-term goal tend to achieve greater results, regardless of industry.
A long-term strategic goal acts like a guardrail: it prevents you from veering right and left to pursue tempting (yet distracting) opportunities. It makes it easier to say “no” to strategic temptations. President Kennedy’s “We choose to go to the moon in this decade” set a very clear direction in the early 1960s – it was not about building satellites or going to Mars – which made it much easier for everybody at NASA to make the strategic decisions necessary to achieve this ambitious goal.
Its clarity makes it easier to identify strategic priorities year over year to move closer to your goal – and make these conversations about priorities among the leadership team more objective. A good illustration is Henry Ford’s long-term goal: “I will build a motor car for the great multitude,” which gave a clear direction toward cost-efficient mass-production systems.
What makes a good BHAG?
A good long-term goal:
- Describes your company’s tangible achievements in 10 to 30 years – long enough that you are not constrained by the day-to-day realities of today’s business
- Relates to your present and future strengths. Setting a long-term goal is not an ego trip: “Bad long-term goals are set with bravado; good long-term goals are set with understanding,” clarified Jim Collins.
- Inspires you and your team. Your team members have to get goosebumps when they hear your goal. It has to give them energy so that they remember why they keep working at your company when things are bad and stressful. A simple, bold, inspirational vision can feel almost magical: it brings people throughout the company together around a common goal and provides a focal point for developing strategies to achieve a better future, according to this HBR article. That makes financial targets horrible long-term goals: except for you and your CFO, few people get inspired by millions of dollars or euros.
- Leverages your economic engine – in other words: journeying towards your long-term goal will make you more profitable along the way.
- Has a 50% to 70% chance of success – it has to stretch your current capabilities, without being completely impossible to achieve. You won’t know how to get there – and that is fine (in fact, it may sound a bit ridiculous because it is so ambitious). Once you have defined your BHAG, you will identify your initial next steps on your journey in the form of your annual and 3-year goals and priorities.
Practically speaking, how do you develop your long-term goal?
What does your success look like 10 years from now?
Start with the end in mind. Imagine that we are 10 years from now and that your company has been greatly successful. What does your company look like?
This HBR article provides a good analogy with parenting: “The classic question would be: How do I raise good kids? Asking it may help you navigate some uncertainty — you can research child development or listen to the advice of experts — but it won’t solve your problem. Ultimately the definition of a “good kid” is ambiguous. Is it one who’s academically successful? Who’s close to their family? Who’s good at team sports?
To find your answer, you need to start at the end with your vision of success: What does a good kid look like for me and my family? What’s empowering about this approach is that you’re able to answer the question even without knowing how you’ll get to that successful place. Your answer will help you identify what has to happen to get to the outcome you desire. And your answer will be rooted in your values. All of these components give you agency and a kind of control.”
What does YOUR success look like 10 years from now? Let me know!
Want to learn more about BHAGs? Read this foundational HBR article.
I work with growth-minded CEOs who are frustrated by the way their business is growing. Often they spend their days fighting fires – typically a sign that their company has outgrown their management approach – and are not clear on their (long-term) goals – which creates confusion and a waste of energy. In short, they feel stuck. I know the feeling: I have been in their shoes when I was running a business that we turned around from sales decline to double-digit business growth.
As a business coach my passion is to help leadership teams define their actionable business growth strategy, create a culture of accountability and effective strategy execution, and become better leaders – so they can grow faster and with less pain.
If you too want to grow faster and with less pain, contact me now: Xavier@AmbroseGrowth.com.