Accountability

Accountability

Accountability Jonathan Poland

Accountability refers to the responsibility of an organization or individual to provide explanations for their actions and accept responsibility for any failures. When an organization or individual is held accountable, they may be required to answer for their actions and the outcomes of those actions. Accountability is an important aspect of good governance and helps to ensure that organizations and individuals are held responsible for their actions and are held accountable to their stakeholders. By accepting accountability, organizations and individuals can demonstrate their commitment to transparency, honesty, and integrity, which can help to build trust and credibility. The following are illustrative examples of accountability.

Actions

A customer service representative cancels a customer’s account out of spite after they perceive the customer as being rude. The customer publicizes their experience. The customer service manager is called upon to account for the incident to executive management. In this case, the customer service manager is accountable for the incident and the customer service representative is responsible for the incident.

Work Products

A creative director leads a team of 50 creative individuals and is accountable for all of their work products. If a particular work product is perceived as low quality by a client, the creative director may be called upon to account for the perceived failure.

Strategy

A Chief Information Officer develops and executes a strategy to outsource processes to a partner. If this strategy fails to achieve the benefits outlined in its business plan, the CIO is to blame.

Decision Making

A salesperson decides that a firm is not serious about making a purchase and neglects following up on the opportunity. It is soon discovered that the firm makes a large purchase from a competitor. The sales manager is called upon to account for the practices that allowed such a large purchase to go to a competitor without contest.

Policies

A bank has a de facto policy that all branch staff need to upsell 50 products a month or risk dismissal. This leads to a variety of aggressive sales tactics on the part of branch staff. The bank attempts to cast blame for these practices on individual employees and fails to take accountability for the policy that is the root cause of these practices.

Sourcing

A fashion brand outsources manufacturing to a developing country with low environmental and employment standards. The firm remains accountable for its environmental and community impact and can’t outsource this accountability.

Delegation

An IT manager delegates a highly political and risky project to a junior team member as they can predict the project is likely to fail. When the project fails, the manager attempts to avoid accountability by stating they were not involved in the project. This is a poor practice as responsibility can be delegated but accountability remains.

Culture

An airline pushes maintenance, operations and pilots to avoid delays despite an overly aggressive flight schedule and a fleet of aging equipment. Teams are rewarded for meeting the schedule but not rewarded for highlighting and addressing safety risks. These practices lead to a poor safety culture whereby it becomes normal and expected to prioritize cost and schedule over safety. When a safety incident occurs, the airline attempts to blame human error when it was the culture of the airline that caused the human error.

Accountability vs Responsibility

Accountability is the duty to govern or manage. Responsibility is the duty to complete work. When a work product or decision fails, both those who are accountable and responsible are to blame. The accountable individual has greater blame and may take all the blame if they so choose. For example, if a creative director assigns a design to an associate designer that ends up disappointing the client it would be common for the creative director to take the blame as they should have managed the quality of work outputs. It is a poor practice for leaders to attempt to avoid accountability by assigning all blame to responsible individuals.

Accountability vs Authority

Authority is the power or right to direct, control and command. Authority always implies accountability. An system that grants authority without accountability is essentially broken. For example, a corporate executive who is protected from accountability by the terms of their contract may have little incentive to make decisions that are in the best interests of stakeholders.

Employability Jonathan Poland

Employability

Employability refers to the value that an employee brings to an employer. It is the collection of attributes, skills, and…

Venture Capital Jonathan Poland

Venture Capital

Venture capital is a type of private equity financing that is provided to early-stage, high-risk, high-potential companies. Venture capital is…

Small Business Jonathan Poland

Small Business

A small business is a privately owned and operated company with a small number of employees and relatively low volume…

Inherent Risk Jonathan Poland

Inherent Risk

Inherent risk is a term used in the field of auditing to describe the risk that a company’s financial statements…

Inferior Good Jonathan Poland

Inferior Good

An inferior good is a type of consumer good for which the demand decreases as the consumer’s income increases. In…

What is Design Risk? Jonathan Poland

What is Design Risk?

Design risk refers to the potential negative consequences that a business may face as a result of problems or issues…

What is Marketability? Jonathan Poland

What is Marketability?

The marketability of a brand, product, or service refers to its competitiveness within a market. It is the likelihood that…

Business Services Jonathan Poland

Business Services

Business services are a type of service that is primarily provided to businesses and organizations, rather than to individual consumers.…

Sales Quota Jonathan Poland

Sales Quota

A sales quota is a target for the revenue or units sold that a sales department, team, or individual is…

Learn More

What is Supply? Jonathan Poland

What is Supply?

Supply refers to the amount of a product or service that is available for purchase at a given price. In…

Unknown Risk Jonathan Poland

Unknown Risk

An unknown risk is a potential loss that is not recognized or identified. In the context of risk management, unknown…

Settlement Risk Jonathan Poland

Settlement Risk

Settlement risk is the risk that a trading counterparty will not deliver a security or asset as agreed upon in…

Segregation of Duties Jonathan Poland

Segregation of Duties

Segregation of duties is a principle in internal control that aims to reduce the risk of fraud or errors by…

What Is Management? Jonathan Poland

What Is Management?

Management is the process of overseeing and coordinating the activities of an organization in order to achieve its goals. This…

Team Management Jonathan Poland

Team Management

Team management involves directing and controlling an organizational unit. Some common team management functions include setting goals and objectives, assigning…

Cost Variance Jonathan Poland

Cost Variance

Cost variance (CV) is a project management metric that measures the difference between the budgeted cost of a project and…

Modular Products Jonathan Poland

Modular Products

Modular products are products that are made up of standardized, interchangeable parts or modules that can be easily assembled and…

Bias for Action Jonathan Poland

Bias for Action

Bias for action is a mindset or approach that emphasizes the importance of taking action quickly, without extensive thought or…