It seems as though accountability has become a "dirty word" in today's business culture. Certainly today's economy shoulders some of the blame, however the majority of businesses use the global economy as a scapegoat for their failing productivity. One does not have to look far for proof. Look at any, well every press release or shareholder letter that a struggling business puts out. You will find it loaded with phrases like "due to the nature of the current economical environment" or "given the prolonged recession". The outcry from the public regarding the various stimulus packages has certainly reached the ears of all, but not so fast complainers! These excuses for performance and productivity are on Main St as well as on Wall Street. When small business fails, these same excuses appear in the local headlines.
So who do we blame? Leaders, that's who. Corporate officers, business executives, small business owners or individual entrepreneurs that fail, fail primarily because there is, nor has ever been an accountability platform. What is an accountability platform? Simply put, a written, measurable expectation for performance along with (and here is always the missing element) the consequence if production is not met. Let's take an example that is easy to understand. John Salesperson is expected to sell 10 widgets a month to meet the revenue model of Widget's Inc. What happens if John only sells 6? Or an even tougher question what if he sells 9? Does Widget's Inc say "Well even though we wanted 10, 9 is still pretty good and we accept that." In this scenario Widget's Inc failed to set an appropriate accountability platform. If 9 is satisfactory the platform should be 9 widgets, not 10. John failed and there is no consequence. What should be the consequence for John not achieving 10? That should also be written into the Accountability Platform up front. Example: If John fails to sell 10 widgets a month a written warning will be placed in John's file. If he has another month where he does not sell a minimum of 10 widgets he is subject to termination.
Sound harsh? That depends on your perspective. Certainly if you are John you may think so, but what if you are trying to get a sales job at Widgets Inc and know you can easily sell 10 widgets a month?
Accountability platforms can certainly have variable consequences. For a small business owner, his or her consequence may be to cancel the family vacation, or lower the entertainment budget for that month. The important thing is there must be a consequence for not attaining a proper, well thought out minimum revenue expectation.
Information provided courtesty of ArrowUp Consulting, Rick Docekal Founder/CEO. ArrowUp provides consulting on business growth, sales production and operational expense control. Visit the Founder's website at http://www.rickdocekal.com to see what ArrowUp Consulting can do for your large or small business using the ArrowUp System.
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