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Accountability Frameworks drive performance

7/25/2005

This news release is an excerpt from Volume 1, Issue 3 of the Capelle Associates quarterly eNewsletter. Major projects that fail to meet performance, time and cost expectations….. Mergers that don’t deliver the expected results..... These are common problems that many organizations face. Why? Dr. Ron Capelle, president of Capelle Associates Inc., believes that major causes are accountability frameworks that are weak, unclear and often inappropriate. “Most accountability frameworks, and the organization designs on which they are built, are significant handicaps. They are often improvised and certainly have not been built using consistent and scientifically based principles,” says Dr. Capelle. Accountability and authority start at the top of the organization and are delegated down. Each manager (from the CEO on down) should be accountable for doing stratum appropriate work himself or herself; setting context and prescribed limits for direct reports; delegating appropriate accountabilities; and ensuring appropriate resources and authorities. Each level in the organization needs to provide unique added value, said Dr. Capelle. “There is so often a lack of clarity of accountability among levels of the organization because there is not an appreciation that there are different levels – or strata, to use a more technical term - of work,” he said. Each stratum, he said, should have a prescribed range of time spans (accountability with the longest target completion time). This can range from five to ten years (or more) for a CEO down to one day for some first line employees. Longer term accountabilities can include product development, territory development, integration of mergers and acquisitions, and implementation of major systems across an organization. These should be specified and measured. Due to the short-term orientation of many organizations, these longer accountabilities are not properly specified - to the long-term detriment of the organization. “An organization capable and committed to developing a robust and flexible accountability framework will help everyone perform the right work, at the right level, in a consistent direction, “ said Dr. Capelle. This commitment to accountability is fundamental to driving superior organization performance. It’s a sentiment echoed by Claude Lamoreux, President and CEO, Ontario Teachers’ Pension Fund. “CEOs should be accountable for developing, implementing and maintaining superior organization designs. Boards of Directors should be accountable for ensuring that this happens,” he said. View the full issue of the eNewsletter Register to receive the newsletter every two months Email us at info@capelleassociates.com, or call us at 416-236-3044 to learn more about how you can use Organization Design to further enhance your business success. Capelle Associates Inc. Driving the success of your business through optimal organization design.

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