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I t is widely understood that uniform tracking of operating results is the fundamental function of all business reporting systems. That is never more important than in the middle of a crisis. You must know where you are and keep working on getting to where you want to be!

This function provides assessments of the results and reports the changes and balances in various accounts. There is always some delay in this monthly reporting. To assure that you are making progress, it is important to track a few key indicators. Make a short list of the drivers that deliver the desired results for customers and assess them daily or weekly. (Use a trending reporting system for every critical operating measurement. A trend reporting discussion can be found in Appendix A.)

Management accountability should be based on the variance of operating results from the original targets. This should be accomplished with uniform measurements. This approach is required to systematically recognize success and failure in a manner that immediately prompts analysis, acceptance of responsibility, and actions to foster improvement in real time.

When times are difficult, you do not want nor can you accept substandard performance. For example, if a company’s total sales or regional sales do not meet its objectives, someone must be “accountable” for the actions or lack of actions that should have been taken to mitigate the variance from the sales for the period. There should be no attempt by managers to assign poor results to a declining economy or to a competitor’s introduction of a new product. They should accept responsibility specifically for the variance from the planned sales results. Management’s job is to produce the needed (planned) results … period! (In bad times, management should step up and find solutions!)

Reporting on the circumstance of any variance is just that—it is not an analysis and not a way to off-load responsibility. If any part of your management team does not fully recognize and accept the responsibility for the company’s results, they will always be looking for ways to assign away the variance instead of aggressively and creatively seeking corrective actions.

Never view management’s job in such a manner that any performance gap can be ascribed to “uncontrollable forces” outside the company. Justification dilutes accountability and hinders the development of required new knowledge. One cannot view management’s job as partly passive when it is convenient.

What counts, and the only thing that matters in the end, is the answer to this: Were the required objectives, especially in planned weekly cash flow, met or not? If not, why not? And what has and is being done to ultimately achieve the target performance objectives and recover the variances?

It must be understood that the lack of timely actions or the wrong actions is too often the basis for performance deficits. In the discussion here, if management knew or should have known that the economy, market, or customer preferences were changing, then it was their responsibility to react and act to still realize the planned objectives. True accountability comes from the knowledge of and the acceptance of responsibility for poor outcomes. Failure to step up for the company and the other employees is not acceptable, regardless of the reason(s).

It is this embracing of overall responsibility without “justification for poor results” that will deliver consistent, optimal performance. This is the type of management problem that can turn a difficult business disruption into a bankruptcy.

Conversely, a management team that always accepts responsibility and tailors actions accordingly can stand proudly on all outcomes in varying economies or competitive environments. It is the complete acceptance of responsibility that fosters continuous learning by management and ultimately makes the difference in strategy development and execution.

Management’s (and the business owner’s) ability to adapt to rapid and/or hidden changes will ultimately control the company’s success or failure. Do not expect this attribute to be in place unless you highlight its value and reward actions accordingly.

A disciplined use of project responsibility assignment and tracking will help create the preferred management mindsets. Get a “buy in” from every team member on all project steps and objectives. Then help your team succeed each and every time.