‘HOLDING OTHERS ACCOUNTABLE,’ AN EXERCISE IN FUTILITY

One of my Google alerts led me to a Huffington Post blog by Robert Brand, which asks two questions I found provocative:

  • Before the start of any project, do you ask yourself, "Are my team members held accountable?”

  • “Do they feel a personal responsibility to deliver the goods?"


 

The first question reflects a traditional view of accountability, and in reality, actually erodes individual commitment and true accountability.

 

Brand outlines steps for ensuring accountability with reminders and consequences. It speaks to an underlying assumption that if someone wielding authority didn’t “make sure” workers were following orders; work would grind to a halt.  This creates a parent-child environment and sets a default standard of compliance. By definition, compliance requires conformity, which squelches qualities such as diversity of thought, creativity, critical analysis and independent decision-making that could serve and strengthen the organization.  Compliance won’t get you commitment, and commitment is what fuels true excellence.

 

The organizational myth of “holding others accountable” is strong and persistent. In reality, how does one person really hold another person accountable against his or her will?  And think about how much time and attention is devoted to figuring out ways we will hold them accountable. When this is the topic of another meeting, the focus at the beginning of a project, or the goal of a performance evaluation, it becomes a distraction to the task at hand. This thinking and the associated actions exemplify what University of California professor Phil Tetlock calls the “falsity of the conventional wisdom — often born out of frustration at irrational, insensitive, or lazy decision-makers — that accountability is a cognitive or social panacea. ‘All we need to do is hold the rascals accountable.’ “

 

The second question, “Do people feel a personal responsibility to deliver the goods?" is more relevant, and has more potential. It gets to the heart of how people contribute at work. An even more potent question would be:  How can conversations about accountability be framed so that they make visible the critical importance of individual contribution to the business?




Accountability is essential to the survival and success of any endeavor. It’s almost impossible to imagine any kind of consistently good result that doesn’t have accountability at its core. But accountability is always a choice people make, and talking about “holding others accountable” obscures this fact. Many modern thought leaders have shown how organizations benefit when leaders let go of the illusion of “control” and begin developing a workforce characterized by self-direction, autonomy, and learning. This fosters engaged, committed employees. It is the antithesis of “holding others accountable.”

 

Robert Brand writes: “When you establish accountability, it leads to great benefits to you, such as being able to trust in your team, freeing up time to concentrate on strategy, and getting to lead a team that is confident and motivated.”

 

All true. But it’s the HOW of establishing accountability that will help you reap those rewards.

SEMCO: A case study in distributing organizational power, Part Three

(Continued from Part 2)

 

Synopsis: Ricardo Semler, inherited his father’s company in 1982. He was 24 years old. After his singular focus on work created a serious health crisis, he decided something had to change. Over several years, he dismantled the hierarchy of his traditional organization to create an adult culture of empowered workers.  Today Semco employees decide when it makes the most sense for them to work and where. They choose their own leaders, define their own schedules, and set their own salaries.




The purpose of work at Semco, Ricardo insists, “is to make workers, whether the working stiff or a senior executive, feel good about life.”

 

Sounds crazy? Here are a few facts about Semco so you can judge for yourself:

  • The company that employed 100 employees in 1982 as of 2007 has 3,000 workers

  • Semco now represents diverse ventures including manufacturing, mixing equipment, making cooling towers, technology, managing Latin American properties, and environmental consulting.

  • It experienced a 900 percent growth in 10 years.

  • In Brazil, Semco increased its ranking from 56th to 4th in machinery operations.

  • It ranks No. 1 in the service industries in which it is active.

  • Turnover has been less than 2 percent over 25 years.

  • Operating this way has generated a 27 percent growth rate for 25 years, without public investment and in spite of Brazil’s erratic economy.

  • The $4 million company Ricardo inherited is now worth more than $220 million


 

Semco is an unparalleled example of how abandoning traditional management strategies and widely distributing organizational power can lead to phenomenal business results — and create meaning and purpose at work.

 

Says Ricardo: “People want to work when work is not the enemy of personal freedom and legitimate self-interest. Our [organizational] ‘architecture’ is really the sum of all the conventional business practices we avoid. The purpose of work is to make workers, whether the working stiff or a senior executive, feel good about life.”

 

Treating his employees like adults, helping them understand the marketplace they live in and trusting them to get results has been a remarkable success formula t Semco.

SEMCO: A case study in distributing organizational power, Part Two

(Continued from Part I)

SYNOPSIS:After inheriting his father’s company, Ricardo Semler worked so hard and long at building the company that he began exhibiting serious symptoms: dizziness and fainting, chronic sore throat, shaking hands and constant heartburn. He checked himself into a clinic for exhaustive medical tests, and braced himself for bad news.

“Ricardo,” the doctor told him gravely after three days of every conceivable medical test. “There is absolutely nothing wrong with you.” His symptoms were the result of a serious case of stress.

This diagnosis led to serious self-reflection about what his life had become.  It marked the beginning of what would become a lifelong habit of asking the question, “Why?”

  • Why had he stopped making time for the things he used to enjoy, like music and reading?

  • Why was he killing himself for work?

  • Why should he be making decisions about how his employees did their work when they had more expertise at their work than he did?

  • Why was he treating adults like children, mandating all aspects of when, where and how they got the job done?

  • Why was he the only one who got to make important decisions when they would affect everyone in the company?

  • Why shouldn’t the people who worked at Semco have an equal voice in creating the future?

  • Why didn’t he take more advantage of the collective wisdom of the people he hired?

  • Why wasn’t he educating workers about every aspect of the business so they knew how to make good decisions?

These kinds of questions lead to the transformation of Semco. The first thing to accomplish, Ricardo decided, was to “rid the organization of hierarchy.”

It was a constant work in progress, but throughout the years, Ricardo kept asking “Why?” And the answers would lead to a further dismantling of the policies, procedures and processes of a traditional organization.

Semler eventually was running a company where “CEO” was nothing but a title, and he had little more power than any given worker. Today’s Semco is a place where employees decided when it makes the most sense for them to work and when. They choose their own leaders, define their own schedules, and set their own salaries.

They order their own equipment and supplies, without purchase orders. All meetings are open — show up if you’re affected or interested, leave when you lose interest. Projects get a green light only a when critical mass decides to make it happen. Leaders are situational – the staff determines when it needs one. When a leader’s role is no longer necessary, it goes away, without anyone losing pay or status. Nobody is entitled to the corner office, the premium parking spot or an executive dining room.

Those who are interested in who gets hired do the hiring, regardless of their position in the organization. People choose their own titles based on what the customer needs. The HR department consists of one person.

Semler says he exchanged the traditional system “hire, then manage” to a company that tells its employees: “Let’s do what you think you need to do in a way you’d like to do it. “

Sounds like a recipe for disaster? Well…. You can decide after next week’s installment.

CONTINUED NEXT WEEK…

SEMCO: A case study in distributing organizational power, Part One

In 1982, a Brazilian man who had built up a small company called Semco reluctantly retired. His son, Ricardo, inherited the pump manufacturing enterprise. Ricardo had carte blanche from his father to run the company as he saw fit. He was 24 years old.

Ricardo describes his father as “rigid as an I-beam.”  As the founder, his authority was absolute, and the workers were his to command and control.  The elder Semler harbored a deep distrust of unions and employees. For example, workers — including their cars — were subjected to random searches as they entered the factory and again when they left. Managers were installed on the factory floor to“make sure” people were working. No deviation from established processes was allowed. Information was dispersed on a “need to know” basis. Everyone was required to wear a laminated ID.

Young Ricardo had big dreams for transforming the little company. He wanted to diversify and expand. He created new rules and regulations, established his own policies and procedures, required different budgeting processes and new spreadsheets. Employees filled out myriad forms designed to track information, which generated hundreds of statistical reports, which were filed away in color-coded folders. He was determined to remake his company into a model of the modern American companies he admired. Like IBM. Like Xerox. Like General Electric.

In the first several months as the Semco’s CEO, Ricardo flew around the globe with his sales director, making deals that would generate the cash he needed to fulfill his dream of acquiring new companies. He worked 16-hour days, lived out of a suitcase, ate a lot, drank a lot, smoked a lot, and slept a little. Exercise consisted of taking a flight of stairs to his office.

In time, Ricardo developed a chronic sore throat and blinding headaches. He frequently grew dizzy, and had even fainted as he toured a company he was preparing to acquire. He slept too much, or he couldn’t sleep at all. Either way, he was constantly exhausted. His hands shook, his heart sometimes galloped and he suffered from painful gastritis.  The young CEO became convinced he had a horrible illness.

The symptoms were so persistent he thought he was dying. He checked himself into a world-renowned clinic and after three days of undergoing every conceivable medical test, he steeled himself for the bad news.

CONTINUED NEXT WEEK….