The Continuing Quest for Accountability Part III - Starting Down the Path to Greater Accountability

[Editor's Note: True Accountability can be the biggest impediment to strong results in a company. In Parts I and II in this series , we asked the questions: "Is a Lack of Accountability a Problem in My Organization?" and "Am I Part of the Accountability Problem in My Company?" In this issue, we explore how to start down the path to improve accountability at your company. I hope you find this useful. -dpm]

 

The Continuing Quest for Accountability -Part III

Starting Down the Path to Greater Accountability

Over time, as organizations grow, certain norms become ingrained into the culture. In early stages, decision-making can be centralized in a few hands with key people wearing many hats. This is essential to being successful in small early-stage organizations. As organizations grow and people are added, decision-making, "ownership", and accountability need to change as well.

A culture of losing - If decision-making, ownership of decisions, and accountability doesn't change, it can lead to a culture of losing. What happens if decision-making, ownership of decisions, and accountability doesn't change? We see this with many Mead Consulting clients. Many times the senior people (including CEOs and business owners) have difficulty letting go. They are the "smartest guys (gals) in the room." They continue to want to influence all decisions, not trusting those lower in the organizational structure. Over time the middle managers and employees become conditioned to "delegate decisions upward." Decisions, projects, new products, etc. are not owned by individual employees, but become the province of the senior managers. Some of the symptoms are micro-managing, lack of commitment to goals, missed deadlines, poorly designed products, missing sales forecasts, and a general apathy among employees. 

Performance in these companies suffer, strong performers leave. In a number of these companies, a fatalistic culture of losing ensues. No one really feels that they have the power to change things. Ouch!

Cultures take about 3 years to become reinforced. We saw this during the 2008-2013 period when companies hunkered down, rewarded cost-cutting, and became risk- averse. When the economy started to rebound many company cultures had become so risk-averse that they missed opportunities - or were too timid to take advantage.

When belief biases have set in, it can be very difficult to get employees to buy into change. With companies with a culture of a lack of accountability, there are significant headwinds encountering change. Some of this is related to "Belief Bias." Because people have not seen positive change, they do not believe it is possible. Certain negatives have become accepted beliefs or truths over time. Some examples of belief bias in product companies are: "you can't accurately predict what customers want in a new product - it's a crapshoot"; "You can't plan production;" "Downtime is a fact of life"; "Management doesn't care/doesn't listen"; "We can't make money doing this"; "Oh Boy. Here comes yet another initiative"; "We don't know how what we do matters." When belief biases have set in, it can be very difficult to get employees to buy into change.

Changing Beliefs How can you begin to change a culture of a Lack of Accountability? It isn't about words, or slogans. You have to begin to change beliefs - with positive experiences that actively demonstrate a new way of operating. It starts at the top - with you - and the senior leadership. Pick a couple of problem areas and get started (Some of these are listed in Part II- Am I Part of the Accountability Problem in My Company?). You have to create new, positive experiences that build the accountability culture. It requires commitment and repetition, repetition, repetition. Remember, they have probably heard hollow words or seen abandoned programs or initiatives before, so it will take time before the employees believe in the new ways.

Don't waste time strategic planning or planning for next year. It will do little good to establish strategies, action plans, and metrics. Without accountability, the results will be more of the same - disappointing results. The data shows that companies with true accountability greatly outperform those with a lack of accountability. Don't let another year go by. Neglecting the next steps in your company's growth and maturity can be very short-sighted. You need to have your company firing on all cylinders.

We can help. The Mead Consulting Group has helped many companies achieve greater accountability...and better results.    Contact me to discuss how we can help you do things a bit differently this next year.

The Continuing Quest for Accountability Part II: Are You Part of the Accountability Problem in Your Organization?

 Editor's Note: True Accountability can be the biggest impediment to strong results in a company. In this issue, we continue to explore why accountability may be lacking in your company. -dpm]

The Continuing Quest for Accountability -Part II 

Are You Part of the Accountability Problem in Your Organization?

As leaders of businesses and organizations, we typically think of ourselves as ultimately accountable for the results and success of the organization. We likewise think we hold managers and other leaders in our organizations accountable as well. But...is it possible that the culture we have created actually results in a lack of accountability?

Consider the following behaviors and ask yourself, not only how well you do these, but also, how well you encourage these behaviors in your business?

• Do you actively obtain the perspectives of others?
• Do you communicate openly and candidly?
• Do you actively ask for and offer feedback?
• Do you learn from both successes and failures?
• Do you act on the feedback you receive?
• How well do you align each employee's work with the key results?
• Do you value loyalty or tenure more than performance from employees?
• How is the collaboration across functional boundaries in the organization?
• Do you always do the things you say you'll do?
• Do you track progress with reporting that is proactive and transparent to the organization?
• Do you actively build an environment of trust?

Setting up and Tracking Metrics is not enough. Some business owners think that setting up and tracking metrics from their managers is accountability and do not acknowledge the importance of the above list of attributes. Some business owners or CEOs we have worked with respond with automatic "Yes" responses to these questions. Some suggest that this is "Management 101." The truth is that we find at least several of these behaviors or attributes lacking in many companies and in many business owners or CEOs. In order to get the best results in your organization, every employee needs to feel personal responsibility and accountability for the results. Can you say that exists in your organization?

Submit yourself to some self-reflection. Ask your managers how they honestly think you score on these questions. You might be surprised that others perceive you differently than you perceive yourself.

If you want to change the results in your business, you need to change to a culture of accountability. How does that change start? 

In the end...it all starts with you.

Don't let another year go by. Neglecting the next steps in your company's growth and maturity can be very short-sighted. You need to have your company firing on all cylinders. The Mead Consulting Group has helped many companies achieve greater accountability...and better results.   Contact me to discuss how we can help you do things a bit differently this next year.

 If you would like to have a conversation about this, please contact Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.

Best regards,

Dave Mead      

The Continuing Quest for Accountability Part I – Is a Lack of Accountability a Problem in Your Organization

 [Editor’s Note: The last article focused on Barrier#6 to successful planning and execution – Lack of True Accountability. With issues related to remote work, reduction of middle management at many companies, employees feeling disconnected, accountability has become a bigger concern. I thought it might be useful to address accountability in a series of articles. A lack of accountability may impede your progress.              – dpm]

 The Continuing Quest for Accountability

Part I – Is a Lack of Accountability a Problem in Your Organization

Speaking with a new client recently, the CEO asked me to identify the most frequent problem we see with our new clients. I responded, “Lack of true accountability.”  He seemed skeptical and suggested that we wouldn’t find that to be true at his company. So, I asked him, “Does every employee feel responsible for the company’s success and know what their role is in ensuring that success?”

It occurs to me that people have become numb to the meaning of the word, accountability, and that it always seems to apply to everyone else, some other department, etc.  –“They need to be more accountable for results.”

Look closer. Do any of the following look familiar?

· Unclear Vision and Direction: Employees do not know the keys to company success –or they all have different views as to what they are.

 “We keep adding initiatives, projects and never take anything off the list.”

· Micromanaging or Command and control: Employees do not feel they have control over how to deliver results

· Lack of Job Understanding or Training: “I have never been shown what is expected”; “I didn’t receive any training”; “I don’t know where to go for help”

·  Undervalued: “No one cares about my opinion.” Employees do not feel their opinion is valued – that is, every employee

·  People do not feel comfortable delivering bad news: "The project is behind schedule.” “We have a major quality problem.” So, they ignore or sugarcoat things.

·  People do not feel trusted:   

“I am not confident my efforts will be rewarded”

“I suspect that my manager (the company leader) may take advantage of me”

“I question my manager’s (the company leader’s)motives”

“I am sure they will take credit for my accomplishments”

· Departments do not cooperate with each other; "We constantly practice the blame game”

· Employees are Not Engaged - Employees do just enough to get through the day

Be honest. Do you recognize any of the above in your company? On the long personal and organizational “to do” list, accountability should be at the top of the list.  

 

Impact on an organization: A lack of accountability can paralyze an organization and prevent it from moving forward.  Establishing strategies and action plans is a waste of time without a team that is accountable for results.

 

Take action: If you recognize any of the above in yourself, your current leaders, or your organization, you should address it immediately. A lack of accountability is like a cancer in an organization.

 

We can help: The Mead Consulting Group has helped many companies identify and address accountability issues, developing recommendations for improvement and coaching the company through execution.

If you would like to have a conversation about this, please contact Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.

Best regards,

Dave Mead      

Don't miss the opportunity to sell during the next upturn

 [Editor's note: The boom market for sellers may be over. Interest rates are climbing, the stock market is down. The good, experienced Investment bankers and M&A professionals tell us that unless you have a high-performing company in a highly desirable market, this is NOT the time to sell your business, as valuations continue to fall for companies other than those top performers. They advise companies to spend the time during 2022 and 2023 getting the company in the best shape so that you are ready for the next good M&A market in 2024 -2025.

Some folks believe we are already in a recession. If not yet, many economists expect the next downturn as early as 2023. No one knows for sure. However, there is one thing for sure - if you missed the favorable opportunity to sell once, do not let it happen again.   -DPM]

 Don't miss the opportunity to sell during the next upturn

The full exit sales process may take several years. With credit markets tightening, the economy likely heading into recession, and uncertainty everywhere, it may seem counter-intuitive to be writing about preparing your company to be ready to sell during the next economic upturn.

While some business owners may believe they can pull the string when they are ready, the truth is, for many business owners, the exit sales cycle may take several years to execute. Professionals will tell you that in order to sell at highest value, the process includes 1-2 years to get ready, up to 1 year for the transaction, and then you may have to spend another 3 years with the company after the sale.

Much of the preparation can be accomplished during a down cycle. Companies can focus on making fundamental improvements to their business during the downturn that will help them emerge faster and healthier than their competitors.

1. Focus on customer net profitability

2. Upgrade management

3. Cleanup business processes

4. Develop a strategic growth and execution plan

5. Position the company for the upturn

6. Never waste the opportunity of a good downturn

Customer net profitability.

The tendency during a downturn is to cling to any customers and revenue no matter the profitability level. A common comment is that "at least they absorb overhead." The notion of unprofitable business absorbing overhead may be one of the greatest false beliefs in business. In many cases, overhead that has been viewed as fixed, is really a cost that can be minimized or shed. Carrying unprofitable business will be a continuing cash drain that may inhibit your business' ability to grow as the economy improves.

Upgrade management.

There may be a better supply of good talent available in the marketplace as the economy sours. In many cases, this may be talent that has not be available in better times. Take advantage of the opportunity to improve. This is also a great opportunity to review all of your employees and weed out those with below average performance, poor potential, or unrealized potential. Our clients use a simple tool to rank all employees in terms of potential and performance - the results make it very clear which ones have been a drag on the company.

Cleanup business processes. During boom times, many companies claim they are too busy to scrutinize business processes to make improvements and streamline to increase throughput. That "excuse" typically does not apply during a downturn.

Develop a strategic growth and execution plan. You need a plan not only to help you survive the downturn, but also that will allow you to be agile enough to take advantage of opportunities in the recovering marketplace. There may be market segments that will be slow to come back; some may never come back the same way. Other market segments, however, may present huge new opportunities. Your organization needs to develop a plan and be prepared to execute.

Position your company for the next upturn.

The most significant competitive gains are made during a downturn. Companies that are prepared and well-positioned can accelerate very quickly as he markets healthy. Competitors that are under stress during the downturn will actually be under greater stress as the economy improves. Cash demands can be low when demand is low. Cash needs, however, will increase as the economy improves. Companies will need cash to hire more people, invest in inventory and equipment, etc. 

Never waste the opportunity of a good downturn

During downturns, companies have the opportunity to examine everything, reduce unnecessary expenses, trim those under-performers, examine unprofitable business, streamline business processes, etc. 

Take a lesson from the Boy Scouts: Be prepared.

These steps can add value to your business - even during a downturn. When the economy improves, your business can accelerate faster and be well- positioned. The market for selling a business will be ripe in late 2010 and 2011. Those businesses that are ready will find a hungry group of buyers and investors who have been sitting on their hands during the recession.

_______________________ 

What's the old saying - "Miss your chance once, it's a shame; Miss twice, shame on you!"

We can help. If you have not yet prepared your company ready for sale, we can help. The Mead Consulting Group has been helping companies prepare to maximize value for exit for many years. We have helped over 60 client companies successfully sell outright or recapitalize their business to take "chips off the table." See what some clients have said about their experience with Mead Consulting.

Barrier#6: Lack of true accountability - Overcoming Barriers to Planning and Execution

 [Editor's Note: In Issues for Growth Vol. 31, No.11, we asked the question, "Are there barriers blocking your successful growth and execution?" We then listed the Barriers to successful Planning and the Barriers to successful Execution. We are continuing a series of Issues for Growth where we will tackle each of these barriers and identify ways to overcome each. We continue with Barrier #6. -dpm]

Overcoming Barriers to Planning and Execution -

Barrier#6: Lack of true accountability

Over time, every organization will create barriers to success. The very things that made you successful as a startup or growing organization may prevent you from being successful at the next level.



Barriers to Planning Success

•          History of only partially developing plans
•          History of unreasonable expectations and unachievable goals
•          Lack of internal understanding about customers, competitors, and the market

 

Barriers to Execution Success

•          Gaps in management depth
•          History of abandoning projects
•          History of lack of openness and poor communications
•          History of poor delegation and leadership development
•          Lack of true accountability

Barrier#6: Lack of True Accountability

We have a saying at Mead Consulting: " A good plan flawlessly executed beats an excellent plan poorly executed every time"

What are the characteristics of this barrier in an organization? Do any of these look familiar?

• Unclear Vision and Direction: Employees do not know keys to company success- or they all have different views as to what they are.
• Goals may be unclear, confusing, or there are too many different goals
• "We keep adding initiatives and projects and never take anything off the list."

• Micromanaging or Command and control: Employees do not feel they have control over how to deliver results

• Lack of Job Understanding or Training: "I have never been shown what is expected"; "I didn't receive any training"

• Employees don't know where to go for help

• Employees feel Undervalued: "No one cares about my opinion." People do not feel their opinion is valued - that is, every employee

• People do not feel comfortable delivering bad news such as the "project is behind schedule" or "we have a major quality problem." So they ignore or sugarcoat things.

• People do not feel trusted.
• "I am not confident my efforts will be rewarded"
•  "I suspect that my manager (or the company leader) may take advantage of me"
• "I question my manager's (or the company leader's) motives"
• "I am sure they will take credit for my accomplishments"

• Departments do not cooperate with each other. We constantly practice the "blame game"

• Employees are Not Engaged - "People do just enough to get through the day."

• Loyalty and seniority are valued higher than performance

The impact on an organization - A lack of accountability can paralyze an organization

Overcoming this barrier - Strategic Planning and establishing action plans is not worth much in an organization that lacks accountability. Why spend time and resources developing strategic initiatives if you can't hold the organization accountable for achieving them. The Mead Consulting Group doesn't start strategic planning and execution in an organization without a clear path to accountability.

Additional Resources -We ran a series of articles in 2018 on Accountability

 

·    Is a Lack of Accountability a Problem in My Organization

·     Am I Part of the Accountability Problem in My Organization

·   Starting Down the Path to Greater Accountability

·   Top 5 Accountability Pitfalls

Identifying the barriers to planning and execution is critical. Companies that have addressed the barriers are amazed at how much more their management teams are engaged and how the process energizes the entire organization. CEOs of companies that have had years of poor planning and execution history, find that their organizations are far more capable than they ever imagined of achieving superior results.

The Mead Consulting Group has helped many companies identify and overcome the barriers to successful planning and execution.

Our Customer Forward TM Strategic Growth & Execution process is simple and effective at uncovering the key obstacles and barriers and developing recommendations for improvement - then laying out the best strategic path. Finally, validating that strategic growth & execution plan with customers and the market.

If you would like to have a conversation about this, please contact Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.

Barrier # 5: History of lack of openness and poor communications - Overcoming Barriers to Planning and Execution

 

[Editor's Note: In Issues for Growth Vol. 31, No.11, we asked the question, "Are there barriers blocking your successful growth and execution?" We then listed the Barriers to successful Planning and the Barriers to successful Execution. We are continuing a series of Issues for Growth where we will tackle each of these barriers and identify ways to overcome each. We continue with Barrier #5. -dpm]   Over time, every organization will create barriers to success. The very things that made you successful as a startup or growing organization may prevent you from being successful at the next level.  Barriers to Planning Success ·              History of only partially developing plans ·              History of unreasonable expectations and unachievable goals ·              Lack of internal understanding about customers, competitors, and the market  Barriers to Execution Success ·              Gaps in management depth ·              History of abandoning projects ·              History of lack of openness and poor communications ·              History of poor delegation and leadership development ·              Lack of true accountability  Barrier#5: History of lack of openness and poor communications Solid execution of a strategic plan ultimately comes down to each member of the team doing his/her part to support the key strategic imperatives. To accomplish that each team member must have a clear understanding of how they fit. Companies with a history of a lack of openness and poor communications typically fail to communicate to all levels of the organization in simple, direct terms, and to follow-up to ensure that goals and objectives at each level align with the key strategies. They also fail to reinforce these key strategies with constant communication - using multiple means - to keep the important direction in front of all employees.  What are the characteristics of this barrier in an organization? ·     Ask various employees what the top three goals of the organization and you will get the following responses: "I don't know"; "To make money" or a mixed bag of other responses that do not match those developed at the top of the organization.  The impact on an organization ·     Disengaged employees, or those with oars rowing in different directions. Overcoming this barrier ·     Change your planning and execution process to include: ·     Involve multiple levels in the planning process ·     Align strategies with company vision ·     Communicate strategies in understandable language ·     Integrate strategic plans, annual performance plans and goals, and other relevant budget, finance, and acquisition plans ·     Contain measurable and observable performance targets ·     Establish means for frequent communication, reinforcement and feedback  Identifying the barriers to planning and execution is critical. Companies that have addressed the barriers are amazed at how much more their management teams are engaged and how the process energizes the entire organization. CEOs of companies that have had years of poor planning and execution history, find that their organizations are far more capable than they ever imagined of achieving superior results.  The Mead Consulting Group has helped many companies identify and overcome the barriers to successful planning and execution. Our Customer ForwardTM Strategic Growth & Execution process is simple and effective at uncovering the key obstacles and barriers and developing recommendations for improvement - then laying out the best strategic path. Finally, validating that strategic growth & execution plan with customers and the market.  If you would like to have a conversation about this, please contact Dave Mead at (303)660-8135 or meaddp@meadconsultinggroup.com.