14 Mar 2008 02:10:56 | Shaun Murphy and Bruce Klatt
b>Accountability and Mega Projects
The past few years have seen an increase in the number of
petroleum mega projects being proposed and executed. Record oil
prices have given rise to increasingly ambitious and complex
international alliances in the energy industry. These large,
long term and capital intensive projects carry a great deal of
cost and schedule risk which is very challenging to mitigate. We
have found that some of this risk can be managed through an
emphasis on accountability at all levels of the project
organization. Results-based accountability strategies create
clarity throughout these complex projects; they ensure that
everyone from the senior managers to casual labourers are
working together for the same organizational goals.
Using a tool called an Accountability Agreement we start with
the project's owners or the management team to create a clear
understanding of the project deliverables and success factors.
An Accountability Agreement is a document which asks each
employee to clearly state the specific results that he or she is
accountable for bringing about and the support he or she
requires to get there. By using this tool, we get public
commitment to the kind of working culture that will most likely
lead to a successful project. What starts as a complicated
combination of interests, skills, and backgrounds is gradually
transformed into a unified alliance with a clear sense of
purpose.
Committing to organizational alignment makes a noticeable impact
on all departments involved in a major project. In addition to
operational functions, Accountability Agreements play a part in
how people approach their jobs and the satisfaction they expect
to receive in return. In a time when companies are in
competition for talented people, having a clearly defined
project culture can be a strong competitive advantage.
Accountability agreements allow for employees to publicly state
what they would like to receive in return for achieving their
stated goals. Job satisfaction can never be entirely guaranteed,
but mutually agreeing upon expectations and positive
consequences reassures employees that their efforts will be
recognized. This open and reciprocal relationship enhances
employee satisfaction and allows more key talent to be retained
in the long term.
An Accountability Agreement distinguishes between operational
accountabilities and leadership accountabilities. These terms do
not exclusively refer to employees working at the operational or
leadership level. Rather, we use these terms to emphasize that
all employees have accountabilities in their operational
activities and their approach to leadership. Operational
accountabilities refer to the specific results that an employee
is expected to bring about. Some examples of operational
accountabilities agreed to at the project management level are:
* "A safe work site"
or
* "A workable three-year business plan for construction"
Leadership Accountabilities refer to individual actions which
make a direct impact on the organization's culture and working
relationships. Every individual involved in a project must be
partially accountable for the strength of its business culture.
Some examples of accountabilities that lead to the desired
climate for a successful project are:
* "A positive image of the company in all the communities where
we build."
or
* "Leadership behaviours that contribute to an entrepreneurial,
high-performing work environment."
With a commitment to a strong organizational culture, the
achievement of specific results, and the promise of recognition
in exchange for individual initiative, the people side of the
project has been set in motion. Clear results-based
accountability at this level creates the 'north star' for the
rest of the project which makes it possible to orient new people
to the project and helps to refocus efforts if and when things
go astray. With all accountabilities publicly available for all
to see, finger pointing and blaming can finally be set aside.
Mega projects often begin with confusion and uncertainty as
project managers struggle with an abundance of disparate
resources. Through a commitment to results-based accountability,
we have been able to transform this uncertainty into an
unprecedented level of clarity, cooperation, and long term
success.
About Author :
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 Accounta