Showing posts with label Three. Show all posts
Showing posts with label Three. Show all posts

Wednesday, September 29

The Accountability/Alignment Process: Three Steps to an Accountable Organization


The Accountability/Alignment Process: Three Steps to an Accountable Organization

Generating genuine accountability and functional alignment into your workplace cannot be left to vague ambitions and abstract statements. Well designed processes must be embedded into the heart of an organization to ensure that each employee's goals and expectations are clearly defined and that the resources to bring about specific measurable results are in place.

In our recent book, Aligned Like a Laser, we outline an effective three step process for ensuring managers and employees are mutually accountable and that the entire organization is aligned toward specific goals.

The Accountability/Alignment process has three fundamental steps:

(1) Accountability

(2) Alignment

(3) and Achievement

These steps shape the essential foundation for the practice of accountability and workplace alignment.

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Step 1: Accountability

Accountability is articulated through a document called an Accountability Agreement. This document forms a context for success by making each individual's contribution visible within the organization. It is a brief - 2 to 3 page - overview of the outcomes that an individual is promising to deliver which also outlines the support and resources that he or she needs from others in order to achieve these results.

Seven Elements of an Accountability Agreement:

(1) Business Focus Statement

(2) Operational Accountabilities

(3) Leadership Accountabilities

(4) Support Requirements

(5) Goals

(6) Sustainment Plan

(7) Positive Consequences

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Step 2: Alignment

Alignment requires a constructive business dialogue focused on end results. After completing Accountability Agreements, a workgroup negotiates responsibilities and forms an understanding of each member's contribution to the team.

The alignment process involves resolving gaps and overlaps in the team's accountabilities, and it ensures that each member agrees to provide the critical support needed to fulfil the team's purpose.

Alignment clarifies the practice of accountability; it focuses energy and eliminates distractions across the entire organization. It also provides a renewed sense of confidence and interdependence based on a publicly declared promise to deliver business results.

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Step 3: Achievement

The Accountability/Alignment process brings immediate results, but lasting achievement is gained through maintaining the discipline fostered by the process.

There are several ways to ensure that Accountability/Alignment brings long term achievement.

Keep Accountability Agreements Visible

Post progress reports in prominent locations.

Provide a forum for people to comment on progress.

Put Accountability Agreements Online

A company's intranet can provide easy access to all Accountability Agreements.

Or, use our Align Online tool. Visit http://www.alignonline.com for more information.

Model Accountability

Leaders must set an example and share Accountability Agreements widely.

Also, references should be made to Accountability Agreements in reports and presentations.

Synchronize the Process

Link accountability to related processes such as goal setting and performance management.

Use accountability to prevent duplication of effort.

Ensure Business Results

Accountability is not about shifting blame; it embraces a process of mutual support and learning to ensure that goals are achieved.

Accountability Agreements can be modified according to past lessons and to better adhere to new circumstances.

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The Accountable Workplace

The alignment process legitimizes raising difficult conversations, creates a positive context for resolving disagreements, and builds an environment of mutual support. Improving an organization can be a gamble, yet successful organizational effectiveness initiatives have proven to be invaluable relative to the time invested. The Accountability/Alignment process can revitalize a workplace, focus attention on shared goals, and sustain a new way of working across an organization.

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Shaun Murphy, Ph.D. and Bruce Klatt, M.A. are senior partners in Murphy Klatt Consulting and authors of Aligned Like a Laser (2004) and Accountability: Getting a Grip on Results (1997). They are internationally recognized experts in the field of Organizational Effectiveness whose books have sold over 100,000 copies internationally. For more information please go to http://www.murphyklatt.com or try their online Accountability Alignment tool at http://www.alignonline.com.


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Wednesday, September 8

Accounting - Three Major Areas




There are three major functional areas in accounting, which need to be considered in novel day accounting for any business. The three are financial, cost and management accounting.



The first region, namely financial accounting, is primarily useful for ascertaining the results of the business on a periodical basis; for example, one year. This will assist to settle the future course of action in the long term. In economical terms, financial accounting treats money as a factor of production.



Cost and management accounting are tools to enable management to recall decisions on a day-to-day basis. Cost and management accounting are not useful for their believe sake. These two functions attend management in the conduct of the business along with other key factors keen in running of the business. Key factors could be interrogate, supply, competition, availability of raw material, logistics etc.



The second place, namely cost accounting, seeks to ascertain the value of relate costs and indirect costs interested in production . From this value, management can form an informed decision regarding the improvement of production performance. In economic terms, cost accounting is a measure of economic performance. This information gives management a positive indication of economic performance of the production resources of the business.



Costing also helps the sales manager in setting prices. But since costing is a measure of economic performance, it cannot be considered as an absolutely proper basis for setting prices. This is because selling prices are more of an economic decision. It would not be amiss to mention here that prices depend basically on market factors. Prices depend more on seek information from, supply and competition and less on costs. For example, high inquire of coupled with lack of competition would mean that business could charge higher prices for its products, well above the costs.



The third station, namely management accounting, is closely interrelated with costing accounting. Although it has evolved from cost accounting, management accounting has a broader role to play in management decisions. It measures economic performance of the business enterprise as a whole, vis-a-vis the economic environment in which the business operates. This function of accounting seeks to combine the financial and cost information in a broader aspect.



Finally, management accounting is instrumental in assisting and advising management in making valuable business decisions. It makes management aware of the economic implications and consequences of their decisions. In economic terms, it implies a cessation observe of money as an economic resource, while simultaneously treating it as a measure of economic performance. This enables management to measure it as an economic factor of production, e.g. the rate of return on capital employed.



It is thus seen that accounting has a obvious role to play in three different areas, which are equally primary. With the advent of computerised accounting, it has become very easy for management to monitor the accounting information on the tips of its fingers. Financial accounting programs enable financial statements and various cost and MIS statements to be produced almost instantly at push of a button. Now, only the laborious fraction of accounting is data entry. Financial managers must ensure that meaningful data is input into the system to gain meaningful information. agreeable categorisation must be done and keying errors avoided at all costs, ensuring providing proper financial information to management.
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