“You have 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.”