The Collins dictionary defines “accountability” as “the state of being accountable, liable or answerable”.

When thinking about accountability, I realise that there are a couple of proverbial “elephants in the room.”

1. The availability (or not) of a written business strategy, growth plan, goals per operational area, and an implementation plan is not a given

Most, if not all business owners have plans – mostly unwritten and loosely verbalised and defined. They will start something or delegate it to someone else, but do not put the necessary checks and balances in place to track progress and measure outcomes. This can lead to the unproductive use of limited resources and mediocre outcomes.

A written document forces the leader/manager to verbalise and structure their thinking. It brings a thought to life and, when it is written down on paper, it makes the thought more tangible. You can see it, read it, and change it.

The moment the plethora of thoughts/goals (the what?) are captured in an implementation plan, it becomes necessary to add deadlines (the when?), responsible people (the who?), resource requirements needed for implementation, and a benchmark performance expectation (the measurements of success).

Personal liability/answerability is vested the moment responsibilities are allocated to each goal/task. The burden of implementation is also shared, making it possible to “divide and conquer”.

2. Risk management is mostly seen as a compliance activity

Prudent risk management practices are a sign of a forward-thinking management team. The reality is that many business owners see risk management as a theoretical exercise and burden.

This perception can be changed as risk management puts a business in a proactive situation to address the downside should the identified risk(s) arise. The remedial action(s) have been identified before the event even took place, a responsible person has been assigned, and the evaluation of the risk log becomes a standing point on the management meeting agenda. This process vests accountability with people in the business who are closest to the identified risk environment and best qualified to monitor and address it.

3. The ultimate accountability for all elements of the business resides with the owner(s)

This is a heavy burden to carry as the livelihoods of the owner(s) and all employees are at stake.

Although most business owners will not admit it publicly, they know that they can benefit from having a person who serves as their soundboard when making tough decisions, someone who can bring an objective view to a situation where the owner is normally financially and emotionally invested. As business owners are also acutely involved in the business, they tend not to see the wood for the trees. They can benefit from someone who can speak to the facts of the matter as the voice of reason. The accountability is still present, but the burden is shared.

Many business owners make sure that there are job descriptions, critical performance indicators and performance reviews in place. This is usually not enough. If specific and designated/ring-fenced accountability is not vested, it remains a challenge to keep people committed to focus on the achievement of the goals and tasks which will propel the business forward to reach the specific results which have been envisaged.

Assigned accountability also helps the owner(s) and employees to focus on outputs achieved versus inputs provided.

Most business owners buy into this perspective. The question is therefore – where, when, and how do I vest accountability in my business?

The answer is in plain sight – we start with ourselves (as owner(s) of the business). Our example in taking accountability for our responsibilities will be a step in the right direction. Once we have mastered accountability practices ourselves, it becomes easier to guide and coach our business partners and staff to follow suit.

Do you also need any of the following services?

Speak to your SFP financial adviser who will introduce you to the designated subject matter expert on the SFP enterprise panel who would be able to address your specific business need or requirement.