Category Archives: Culture

Clarity of Accountability

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“You talked about managerial systems and organizational structure,” I started. “Those are well-worn labels, but the devil is always in the details.”

Pablo nodded. “Yes, the detail of structure is simply the way we define the working relationships between people. The success of any organizational structure rests on its effectiveness to define two things – in this working relationship, what is the accountability and what is the authority?”

“But, isn’t it second-nature, that especially in a hierarchy, the manager has the authority and the team member is accountable to carry out the decisions of the manager?”

“Not so fast,” Pablo said slowly. “Each has the authority to make decisions within an appropriate span of discretion. And it is the manager accountable for the output of the team member.”

“But, if the team member, within an appropriate span of discretion, makes the wrong decision, how can you hold the manager accountable?” I asked.

“Because the manager selected the team member, trained the team member, assessed the team member and then delegated the decision to the team member. If the team member makes the wrong decision, that outcome is the accountability of the manager.” Pablo stopped to let that sink in.

“When we are clear about accountability, behavior follows,” Pablo continued. “When we accurately define the accountability, people know what to expect and they behave accordingly. If the team member is held to account for a wrong decision or underperformance, there begins a mistrust about whether the manager was clear in their instruction, whether the training was adequate, the right tools available, the circumstance not anticipated. If the manager is held to account for the team member’s wrong decision or underperformance, there begins a supportive relationship to ensure the training was adequate, the working conditions conducive, the selected project appropriate, within the team member’s capability.

“You see,” Pablo said, “the manager cannot allow the team member to fail. In a punitive context, that is why the manager often snatches back the authority for the decision and simply assigns the task. In a trusting context, the manager has to make sure all the variables around the team member are adequate and conducive to success. And, that includes the manager’s selection of that team member in the first place. The success of the organization starts with being clear about managerial accountability.”

Exercise Best Judgement

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“All well and good,” I said. “If we want to build managerial systems based on something other than greed, status and power, where do we start?”

“All at once, and all over,” Pablo chuckled. “Look, the first place we start is by clearly defining the working relationships people have with each other. There are two types, vertical managerial relationships and horizontal cross-functional relationships. When we look at those two types of working relationships, we most often fail to define the accurate placement of accountability and exact scope of authority.”

“Accountability?” I prompted.

“All too often, we fix accountability one level of work too low in the organization, and it plays into the blame game,” Pablo explained. “Between the team member and the manager, it is the manager accountable for the output of the team member.”

“How so?”

“Simple,” Pablo said. “The manager selected the team member, trained the team member, provided the tools for the team member, selected the project for the team member, created the working environment for the team member. The manager controls all the variables around the team member, it is the manager accountable for the output of the team member.”

“But if the team member underperforms, doesn’t that point the finger at the team member?” I countered.

“See, you fell right into the blame game,” Pablo smiled. “The team member does have an accountability, and that is to show up to work each and every day, to bring their full potential, to exercise their best judgement, in short, to do their best. It is the manager accountable for the team member’s output. The first place to start is to fix clear accountability.”

Carrots and Sticks

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“People have a fair, intuitive sense of their own capability,” Pablo continued. “And, they yearn for opportunity to exercise their full potential. To do otherwise causes people to wilt. A great deal of a person’s self-esteem, even identity comes from the value they see in the work that they do.”

“So, the system in which they work has impact on how they behave?” I floated.

“It’s not just the system, it’s what people believe about the system. What we believe, our assumptions, the way we see the world is what drives our behavior. Look, the real question is, if we believe that people want to fully participate at their highest level of capability, spread their wings toward independence, that they do not need a carrot and stick to get on with their work, then what kind of managerial system would we create?”

“This sounds a bit idealistic, don’t you think?” I countered.

“Not at all,” Pablo replied. “This is about hard nosed work. Making decisions and solving problems, tough decisions and difficult problems.”

Self-Independence

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“I would assume most companies have real problems to solve, so what do you mean, if you want your team to feel high levels of job satisfaction, you give them a real problem?” I asked.

Pablo thought for a moment. “Sometimes, companies engage in contrived exercises. To build a team, they take a group to a local ropes course, or a game of tug-of-war over a mud pit. Those exercises provide only temporary relief, short-lived when the team returns to work. The work itself has to be satisfying.”

“What leads a company astray?” I wanted to know.

“Oh, that’s not so hard to understand,” Pablo replied. “First, I think we have misconceptions about why people work. And, then we base our managerial systems on those misconceptions. It’s a flywheel that eats itself.”

“Misconceptions?”

“Some companies think people work only because they have to, only in exchange for meager compensation to put food on their table. Or, more substantial compensation so they can buy a boat. They believe employees are simply self-centered and have no inherent need to work. That our labor system exists only as a commodity. It’s a scarcity mentality.”

“As opposed to?” I said.

“People have an inherent need to work. People have an inherent need to contribute, to their own self-independence, and also to the positive social systems in which we live. Look at the number of hours in a work week. It has been coming down over time, but in the US is currently settled at around 40 hours. People need a substantial, material amount of sustained work, where they can contribute their full capability to solving problems and making decisions. Managerial systems based on this understanding are much different than those based on greed.”

Hollow Acknowledgement

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“If you want to change the behavior, change the context,” Pablo repeated. “How do I want my team members to show up for work? As the CEO, I have to create the environment that encourages the behavior I want.”

“For example?” I asked.

“Personal accomplishment,” Pablo said. “Let’s just take that one.”

“Okay, are you suggesting we walk around and hand out attaboys so people get a sense of personal accomplishment?”

“Sure, people need acknowledgement, but hollow acknowledgement does nothing for the human psyche. If you want people to have a sense of personal accomplishment, give them something that challenges their capability, challenges their skill set, gets them out of their comfort zone. And, I am not talking about some contrived exercise. If you want people to feel a sense of personal accomplishment, give them a real problem to solve.”

Contribution and Culture

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“And, to promote the social good for the team employed by my company,” Pablo said, “I have to believe in the good inside each person. I have to create managerial systems that support that belief.”

“What you say is counter to many managerial practices,” I said. “In my travels, I see compensation systems, bonus and incentive programs that rely on greed and competition. I see team members with a narrow focus only on the next promotion, hidden agendas, backdoor politics, even backstabbing. I see a general mistrust of authority inside the company.”

“Yes, often that is what you see,” Pablo replied. “And, it is through no fault of employees. They engage in behavior to survive inside the system in which they live. If we create a system that relies on greed, we will get greedy behavior. If the only way we acknowledge contribution is by status, if the only thing that feeds a person’s self concept is a promotion, then you will get politics based on power. If you want to change the behavior, change the context in which they live.”

Assumptions and Blame

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“I’m done with the drama,” Ellie protested. “I try to promote a positive atmosphere around here, but all I get is bullying and backstabbing.”

“Oh, really?” I asked.

“Yes,” she replied. “Everyone seems to scatter for cover when something goes wrong, blaming other people, scooting out from under any accountability.”

“Are you sure this isn’t an isolated incident?” I wanted to know.

“No, this is more like a constant mental state of the team,” Ellie explained. “People position themselves so they always have an out, denying they have any responsibility. The air of blame is so thick you can cut it. You can feel it in the quiet whispers, the general tone of water-cooler talk.”

“I assume this is not organic evolution,” I smiled. “How did things get this way?”

“It started with our continuous improvement process. We were looking for things to improve on. We made a list, or rather I made a list. No one else could come up with anything.”

“Oh, so you’re the culprit,” my smile turned to a grin.

“Don’t lay this at my feet,” Ellie protested. “It’s the team that can’t get their act together.”

“And, you are their manager,” I nodded. “You describe the team as a group of incompetent players. And incompetence always seeks out blame. Competent people are in the game to get better. So, which do you have? Incompetence or competence?”

Ellie sat in silence before she finally spoke. “I knew you were going to pin this on me. You think my team’s behavior is influenced by the way I see them. As competent or incompetent.”

“Yes,” I agreed. “Our assumptions, the way we see the world drives behavior. If you see your team as incompetent, you will drive blaming behavior. If you see your team as competent, you will drive improvement. So, you better find out what they are good at.”

First Assumptions

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“What’s the quickest way to change your culture?” I asked.

“Great question,” Hudson replied. “Shifting culture usually takes time and intention.”

“But, there is a way,” I nodded.

“Is this a trick question?” Hudson wanted to know.

I continued to nod. “It’s not a trick, but it’s generally not where you look. The quickest way to change your culture, is to bring in new people. They bring a culture with them.”

Hudson smiled.

“Unfortunately,” I continued, “that culture they bring with them may be counter to the culture you intend. If, based on surveys, we find that most people are disengaged at work, then I assume most companies have cultures that are disengaging. In companies where people feel undervalued, underutilized, not challenged, team members will engage in coping behaviors that may be counterproductive. They quit, and get hired by you. Guess what assumptions they bring with them? And, that is where culture starts, with their assumptions, their beliefs, the way they see the world. Your initial employee orientation may be the most important time they spend to ensure they understand the new culture they will become a part of.”

A Dollar More

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“Why do people work?” I asked.

It was an innocent question, but Shari knew I had an agenda. “Okay. I’ll bite,” she replied. “I was going to say they work for the money, but I know you too well.”

I laughed. “You are correct. People work because they need the money. But, if that is all they work for, then you will be hard pressed to keep them when a competitor comes knocking on their door, and offers a dollar more.”

Shari stared at me with a half smile.

“Would it surprise you,” I continued, “to find out that people need to work, more than they need the money? Don’t get me wrong, they need the money. But, they also need the work. To lead a happy, fulfilled life, people need to work, to make a contribution to a group which they hold in high regard. And, it takes somewhere between 35-40 hours per week to create that internal feeling of significance. If you can create a safe place, where they can do their best work, and that work is valued by their most important group, now you get the beginnings of engagement.”

Who You Hang With

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“You have collected the data, what you know, from people around you?” I asked a rhetorical question.

Sebastian pursed his lips, “That’s where I get my data from,” he replied.

“So, what you know, is what people have told you?” Same question, different words. “And, not just the data you collect from your team, but what people tell you about other things. What you want, your strategy, guidance and ideas. As you look at the people around you, it makes a lot of difference who they are. You cannot pick your parents, often cannot pick your school teacher, but as we go through life, we do select the people around us and who we depend upon to share their view of the world. It’s the reverse of the old adage – if you lay down with dogs, you’re going to get up with fleas. Take care who you hang out with. Do these people have your best interests at heart? Do they want to help you get where you want to go? Do they even know, or care to find out where you want to go?”