I have 2 clients who are focused on “accountability” this year, and it’s proving a hard row to hoe for both of them. Why?
Well, first of all, accountability is a somewhat scary term. If someone is saying we need it, then that must mean that we are not being accountable, and that sounds like someone’s not happy with people’s performance.
Worse, if there’s not a way to gauge performance, then people are likely to take a need for accountability as a judgment on their dedication. They’ll confuse accountability with work ethic.
It’s unfortunate that accountability gets this reaction. In Stage 2 companies, accountability is more about making things that used to be managed intuitively into things that are managed objectively. It does make a judgment about how people are working, but not in the way they think – accountability focuses on working on the right things, not the level of effort.
In fact, most of the time I work on accountability, people have a clearer sense of direction and less stress in their jobs.
I can spend lots of time talking about how to make your organization more accountable, but for now, let me finish by answering the question, “How do you overcome the initial resistance to accountability?”
I recommend 3 steps. First, before you bring up accountability, praise the team’s work ethic (assuming it deserves praise…if it doesn’t, that’s a deeper problem…), so that they know that you know they are dedicated. Second, give them an example of people spending more time in an area than they should. (Serving the bottom 20% of your customer base is a fairly typical area.) Finally, ask the team, “Do you have a way of quickly seeing whether the other people on the Leadership Team are succeeding?” If you don’t, then you’re probably spending more time than you should simply understanding how you’re doing, instead of diving into the issues that will make your business better.
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One of the first things that I look at when designing a strategic conversation is the horizon in which our decisions will have to produce results.
Sometimes (remember 2008…), the horizon is as short as 3 months.
Sometimes (remember the times before 2008…), the horizon is as long as 5 years.
WHAT DETERMINES YOUR STRATEGIC HORIZON
How do you tell what your strategic horizon should be? I look at 2 factors
- How substantial and dependable are the resources we’ll have? The more of a war chest we have to work with, the less we need to worry about short-term needs, and the more we can focus on long-term goals. If we don’t have a war chest, then how confident are we that we’ll be profitable into the future.
- How healthy is the business model? Are we generating a good profit? If not, that’s a sign that we may not be delivering what the market values, or something internally is not working as needed. And it suggests that we’ll need to use resources to fix things before we can use them for building things.
WHAT DIFFERENT STRATEGIC HORIZONS LOOK LIKE
Once I’ve done that assessment, I know whether we need a short-term, medium-term, or long-term discussion.
- Short-term = 0-6 month horizon: tactical initiatives that can capitalize on existing assets, or address existing problems, with the goal of generating revenue or cutting costs. For example, cross-selling to existing customers, or consolidating 2 internal departments whose work has changed.
- Medium-term = 6-18 month horizon: evolutionary initiatives that capitalize on adjacent opportunities and needs – things that are new but close to what we’re already doing. For example, selling an existing product into a new (similar) market, or upgrading an antiquated order-management system.
- Long-term = 18-36 month horizon: transformational initiatives driven by a strong internal or external driver but with major work to be done. For example, launching a new product that needs technical development, or expanding the strategic role of a department (we’re seeing this a lot in IT departments that are being asked to drive digital transformation).
For most small businesses, most of the time, the strategic horizon is 1-2 years. But the horizon can vary from quarter to quarter. So, as you prepare to talk with your leadership team, take into account the resources you have and the health of your business as you outline the agenda for your strategy meeting.