Plain Simple Management

Thoughts on keeping things simple

PSM #33: Accountability

This podcast, "Accountability", derives a lesson on trust from Wall Street. 

(download)

There are several lessons to be learned from the recent issues in the financial markets. One lesson that comes to mind deals with accountability.

Recall from an earlier podcast that I mentioned successful accomplishment of an objective requires three things: responsibility –the ability to respond, authority, and accountability.  Often we find ourselves where we may be held accountable but not have either the responsibility or the authority to perform.  But such is not the case with recent Wall Street.

Too many in power had the responsibility and the authority but not the accountability for their actions.  They took actions that made them millions of dollars and, even though those actions failed, they were not held accountable.  It seems that the boards of directors did not hold them accountable.  And I think most significantly, they did not hold themselves accountable.

It seems to me that what one stands for, one’s character, one’s core self, is defined by what one is accountable for.  I think one has to be accountable to self to define one’s self and one’s worth.

So in our practice of management we must ensure that we have the responsibility and the authority to accomplish our objectives, and we must be accountable to ourselves certainly, and to our stakeholders.

PSM #32: Trust

This podcast, "Trust", derives a lesson on trust from Wall Street. 

(download)

Another lesson from Wall Street.

Trust is a fundamental aspect in all of our relationships, both business and personal.

It is interesting that one of the fundamental underlying issues precipitating a failure in the financial markets is the lack of trust between lending institutions.  It seems liquidity was not the main issue, it was the fact that these institutions did not trust each other.  It seemed that the institutions did not know what the others’ situation was.

This lack of trust seemed to suggest that the institutions were questioning each other’s judgment, honesty, and/or character.

As I mentioned earlier, trust is essential in relationships.  As a manager, trust is vitally important. How do we establish and maintain ourselves as trustworthy?  I offer the following list.

  • Be honest.
  • Understand who you are, your character, your values, and consistently use these features to guide your interactions and decisions.
  • Say what you will do and do what you say you will do.
  • Form and demonstrate good judgment.
  • Avoid drifting in the winds of politics and demands.

Trustworthiness takes time to build but can be destroyed in a instant.