What then is the accountability? Accountability is a combination of rules and responsibility (accountability = + liability rules). This implies a definable and measurable commitment to deliver a particular result. In other words, to paraphrase Harry Truman, which defines the buck stops " ", which is in all levels of responsibility. Much of the confusion stems from a lack of distinction between responsibility and accountability. Responsibility concerns the functions to perform, describing what should be done, without specifying how well or how timely tasks must be carried out. Responsibility is an action, accountability is the result (compared to standards).
The logical next question is: Who are accountable to us? Responsibility and accountability, by their nature, to infer a relationship. The answer is; our stakeholders. Interested parties are individuals or organizations involved in or may be affected by the company& 39;s activities. There is a diversity of stakeholders in any business or organization. Each shareholder has a different perspective and only need to be satisfied by the organization. For example, an employee has a need for security, a paycheck and a safe working environment. Moreover, an investor has a need for a reasonable rate of return on your investment. A customer has a need for a quality product or service that provides value. The local government has a need for tax revenues and on.
The by the business community has failed at the point of the party concerned, because it has taken an unbalanced approach to meeting the needs of stakeholders. For companies to succeed, must be held accountable at all levels for all the various stakeholders. For many years, business has focused on meeting the needs of investors rather than meet the needs of all stakeholders. For example, a company decides to reduce costs to drive up its perceived value for investors, and sets-off 1700 employees. What is the impact on the actors? Investors will see improved cash flow and reducing liabilities, bringing the perceived value of company stock higher. The Director-General realizes greater value to their assets (shares and stock options). The dismissed employee is out of a job and she realizes decline in value of its assets. The worker realizes maintained greater demands on their time, declining quality of working life and family life, greater stress, etc.
The impact on the organization is higher turnover (voluntary and involuntary) that drives costs Increases waste, reduces efficiency, and often loses customers. The myopic view of stakeholders is a threat to the long-term viability of the company or organization.
Business needs a fresh look at how they are being carried out in order to restore the confidence of its stakeholders. A few arrests not, the new laws is not enough, and the words of our politicians is not enough. We must rethink our business structures in terms of genuine accountability to our shareholders - all interested parties of ours! This requires reinventing our business in such a way that is responsible at all levels. Accountability must be linked throughout the organization to its strategic goal, his vision and values, as well as all stakeholders.
Accountability requires a commitment from all parties. That commitment must be based on the obligation to obtain predetermined results in a given activity. Such a commitment will come only when both sides have something to say in the construction of accountability. That responsibility not just happen, we need a system.
Any such system must take into account the obligations that all companies or organizations that have their interlocutors. Without an obligation, there can be no accountability. In business there are five fundamental obligations, including: * *
Survival obligation
essential work obligation
* Main markets obligation
* Main products obligation and
* Main obligation.
These territory obligations exist at all levels of the organization, although it can affirm little different at each level or department to department. They lead the company& 39;s mission and its strategic purpose. The five basic obligations are the basis for defining the work in terms of " The continuation of vital activities. " These activities, if that were not done according to certain standards, could harm overall operating results.
Continuing vital activities (CVAs) is the framework within which realistically achievable goals and develop. They help focus the work so that the goals reflect what needs to be done (results-based goals), rather than what will ensure that premiums are obtained (permissive goals).
We need to change the system permissive of the goals that many organizations have fallen victim to one that binds concrete results to the obligations that the organization has for those interested. These objectives require that standards be applied to ensure that the necessary results are obtained. The biggest obstacle to effective results-oriented objectives is a resistance of managers and subordinates alike to define appropriate standards. Standards development must be part of any system of accountability if it is to succeed.
There is a program available for the construction of a true system of accountability within an organization - which is called the " Reporting Management accounts " guidance system provided by the eaves Consulting Group, Inc. The " Accountability Management " guidance system provides a systematic structure based on five fundamental obligations. It creates a climate of mutual commitment to the obligations of both the management and staff. It helps organizations to analyze the work to identify Continuing activities vital to the success of its day to day operations. Once the CVAs have been identified for a position, " Accountability Management " guidance system requires managers and subordinates to sit down and discuss the nature of work depending on the results the manager has to reach from the subordinate. The subordinate then defines the standards you& 39;re willing to or able to achieve the deadlines. The discussion between the manager and subordinates produces a " Results " commitment for each of the identified CVAs.
The accountability orientation changes in the system of management attention from the responsibility to accountability.
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