Profit, in a word, is action. Without actions that produce desired results, there are not enough profits to build desired cash reserves. This is why you need people in your employ who are responsible for assigned actions and accountable for the results of those actions.
When an employee chooses to own the results of their actions, they are more likely to press through obstacles and try different approaches when the results of their actions fall short.
Overview
Responsibility is defined as the state or fact of having a duty to deal with something or of having control over someone. In simpler terms, an assigned responsibility is an obligation to do something. It sounds good, but it doesn’t matter if it isn’t associated with accepted accountability for the results of responsible actions. Following through on commitments, answering for one’s actions, being reliable and trustworthy, using good judgment, taking care of their affairs, and not procrastinating represent a responsible person.
A responsible person is believed to do the things they are supposed to do, leading to either positive or negative outcomes. It’s this second part that is most important.
Accountability involves ownership of the results of tasks, actions, and investments of time and money. An accountable person will be responsible for their assignments and will own the results of their decisions and actions associated with completing their assignments. In contrast, responsibility is an assigned action to perform, with accountability representing ownership of the action results after its completion.
The problem with assigning responsibility without the person accepting accountability is that responsibility can be given or received, even assumed, but that doesn’t guarantee that personal accountability will be taken. Accountability is a choice. Suppose a person given a responsibility doesn’t choose to be accountable for the results of that responsibility. In that case, it is too likely the responsible person will shirk the accountability when the going gets tough and the desired results harder to obtain.
Responsibility for actions coupled with accepted accountability for the results of those actions is the best way to exceed your profit plan and build cash reserves in the bank.
