Gospel according to GaaS (3/25): The Trinity — Accountability
Tell the world who you are and allow them to hold you up to your standard. Nonso Okpala.
In the early days of VFD Group, we made a strategic investment in an insurance company named NEM Insurance. As part of our investment strategy, we sought a Board seat but were greeted with stiff resistance. To be fair to the company, they knew little of us and struggled to define us and our objectives. They even alluded to the fact that we were fronting for unseen investors.
As time passed, it became clear that we were suffering a great disadvantage; we were not known and defined, and as such, any definition, no matter how mischievous, could be hoisted on us. Ultimately, we reached a point where we had to divest from the company and dispose of our shares. That experience drove our need for GaaS, with the fundamental objective of defining “who we are” and how we engage with our key stakeholders, including investee companies.
The first step in fulfilling the principle of accountability is to openly define who you are in terms of values, purpose, and strategy. This definition does three things: firstly, it serves as a beacon to consistently remind you of your identity and, as such, guide your decision-making accordingly. Secondly, the public pronouncement serves as your accountability manager.
The fact that you have defined yourself publicly creates an expectation in the minds of your target audience. This expectation drives engagement and relationships. For instance, if you promise fairness in all your dealings, you will attract people who require fairness in their engagement and interactions.
The second step to fulfilling the principle of accountability is adhering to the promise of your definition. If you openly define yourself as fair and attract people who desire that principle, you have created a basis for expectation. Your ability to be above board in all your interactions with stakeholders fulfils the principle of accountability; if not, a brand crisis will arise.
In summary;
1. You can’t be accountable if you are not clearly defined
2. Self-definition produces a promise and expectation
3. Consistently delivering on that promise is the hallmark of accountability because it establishes a strong bond between you and your stakeholders.
Accountability is tough. It is the basis for a lasting reputation in a marketplace and can only be achieved with a great degree of discipline. Imagine if you have a weight problem and you go on to social media and state that you intend to drop 20kg. As part of that commitment, you committed to post your daily weight to achieve 20kg in 2 months. You have basically invoked the public to be your accountability partner. That puts a huge burden of adherence on you with reputation implications.
The design of the VFD Group publication and our publication of GaaS are our detailed definitions of self with respect to governance. In the proposed document, we make promises and communicate expectations. Central to that expectation is that we will always be “Fair,” as defined in the last article (2/25). Subsequent articles and the ultimate publication will also state other promises.
Sometimes, delivering on your promise can require a bit of time. In such a situation, effective communication is required. In other situations, the need to be accountable puts a great strain on leaders ‘ability to make tough calls. The ability to make a call on people who fail to deliver on your governance promise.
When put in such a tough situation, remember that “accountability” is why you are compelled to make that call; if you don’t, you break your promise to stakeholders with a higher level of associated risk and cost.
I have faced many such decisions. They never get easier, but accountability makes them imperative. As a leader, you have no choice but to make the tough call.
Happy reading!
