Understanding the Leadership Accountability Gap: Study Findings

As is shown in Figure 3.1, 72 percent of the global respondents believe that leadership accountability is a critical issue in their organization. Only 31 percent of them were satisfied with the degree of accountability demonstrated by their leaders.

The consistency of these survey findings (shown below in Figure 3.2) is surprising, noteworthy, and ultimately quite telling. Based on the data we collected in North and South America, Asia, and Europe, it's also clear that the leadership accountability gap is a critical business challenge that knows no borders.

Take a moment and reflect on your own organization. To what extent do you believe it sees leadership accountability as a critical business issue? How satisfied are you with the degree of leadership accountability demonstrated by leaders in your organization?

Our survey explored other high-level aspects of leadership accountability, including the extent to which companies:

• Have set clear expectations of their leaders
• Believe their leaders are fully committed to their roles as leaders
• Have the courage to address mediocre leadership
• Believe they have a strong leadership culture

The results (see Figure 3.3) show that nearly half of the surveyed companies believe they've set clear expectations. Very few admitted to failing to be deliberate or explicit in setting expectations for their leaders. Based on our client work, we are finding that this is a critical practice for organizations to put in place as it creates the foundation for leadership accountability to take hold. I will come back to this later in the chapter.

One stark finding is that less than half of survey respondents believe their leaders are fully committed to their roles. In my discussions with many senior executives, they believe that many of their leaders are committed to the technical aspects of their roles; however, fewer of them are committed to actual leadership—managing people, inspiring teams, addressing performance issues, and building culture. Using the language that I presented earlier in this book, it's clear we have people in leadership roles who do not own their entire role. Many are part-time leaders and only pay attention to a small part of what they must do in their roles.

One extremely concerning finding for me is that only 27 percent of the respondents believe they have a strong leadership culture in their organizations. This is particularly alarming considering how many organizations need to transform themselves and need strong leadership cultures to help them be successful. This finding suggests that there is a lot of work ahead for companies to build the leadership cultures they need to transform their organizations. I have come to learn through my years of consulting that if a company has a weak leadership culture, this creates risk. The organization will not be able to effectively drive change, achieve long-term sustainable success, or attract the best talent.

A particularly fascinating finding from the study is the meager number of companies (only 20 percent) that believe they have the courage to address mediocrity among their leaders. Respondents openingly acknowledged that they know exactly which leaders are unaccountable and mediocre. However, they also admitted they typically do not deal with these leaders in a proactive manner. The unfortunate impact is that in turn breeds further mediocrity, increases the lack of accountability, and exacerbates the core problem that companies face.

The Satisfaction with Leadership Accountability by Level of Leader

Satisfaction with leadership was explored at three levels: demonstrable accountability from executives, mid-level, and the front-line leaders. Figure 3.4 presents the findings. While the data points to greater satisfaction with executive-level leaders, it's far from an overwhelming endorsement. Taken collectively, these findings suggest there is quite a lot of work ahead for organizations to develop strong leadership accountability across all levels.

As one senior human resources executive shared with us in France during a customer event, “Senior management must be accountable. If there is an accountability gap there, then there will also be one among their direct reports and other leaders below them. An organization will not be successful.”

As you reflect on these particular findings, how would your organization stand up against these results? Will satisfaction by level be stronger than the above or weaker?

The Relationship between Leadership Accountability and Company Performance

My team and I were curious to see if there was any connection between strong leadership accountability and the performance of a company.

We asked survey respondents to self-identify whether their organization was an industry-leading (top quartile) performer, an average/above-average performer, or a poor performer (bottom quartile) relative to competitors in their industry. Twenty-nine percent of respondents self-identified their companies as industry-leading performers; 47 percent were average performers (not industry-leading, but not low performers); and 14 percent self-identified themselves as below-average or low-performing companies.

Although leadership accountability is seen as critical among all respondents regardless of their performance, clear differences arise between industry leaders and the rest (see Figure 3.5). Industry leaders reported a higher overall degree of satisfaction with leadership accountability, invest more time in communicating clear expectations, and report having a higher overall proportion of accountable leaders. It's clear these companies do not become leaders in their field by accident - strong leadership accountability appears to be part of their formula for success.

These findings suggest there is a strong connection between leadership accountability and company performance. This makes perfect sense. If you have a weak leadership culture with unaccountable leaders, you will have a difficult time driving industry-leading performance in your company. Mediocre leaders will never get you to your desired outcomes. They never have, and they never well.

The Three Dimensions of Leadership Accountability: Behaviors, Organizational Practices, and Culture

Our study also explored three key dimensions of leadership accountability (Figure 3.6):⁴

1. The behaviors that truly accountable leaders demonstrate day to day
2. The organizational practices that help create strong leadership accountability
3. The attributes of leadership culture that cultivate and sustain accountability among leaders

The pattern I shared above continued in these findings: industry-leading companies consistently outpaced the average and low-performing companies in each of these three dimensions.

The Behaviors of Truly Accountable Leaders

When asked about the leaders in their companies who are truly accountable, respondents considered the frequency of ten key behaviors. We found a high degree of consistency among the key behaviors identified, regardless of the performance of the company. In other words, real leadership accountability looks the same no matter the performance of a company.

However, as shown in Figure 3.7, there are some very interesting net differences in frequency of behaviors between the industry-leading companies, average and below average performing ones.

The most notable net difference among industry leaders and the average and low-performing companies were revealed in the following top five behaviors of accountable leaders (Figure 3.8).

These five behaviors tell the story about how accountable leaders behave differently than other leaders. During our customer events we also engaged in some meaningful discussions with our clients. Here's a closer look at the findings from those discussions:

• Holding others accountable for high standards of performance. Real leadership accountability is built on a foundation of strong standards and clear expectations. Respondents revealed that the leaders in their companies who were truly accountable never settled for merely “good enough.” They always challenged their teams and colleagues to aim for higher standards of performance. While in many ways this could be considered an obvious point, the data indicates that it isn't as common a practice as many organizations would like it to be.
• Tackling tough issues and making difficult decisions. The largest net difference in the results was in the ability of leaders in industry-leading companies to deal with tough issues and make difficult decisions—a key marker of truly accountable leaders (as discussed in Chapter 7 of this book). In the discussions with our customers, we learned that this was viewed as the most observable and tangible behavior seen in leaders deemed to be truly accountable. At the same time, it was also the behavior most glaringly absent among more mediocre leaders.
• Effectively communicating the strategy throughout the organization. Accountable leaders can effectively communicate their company's strategy. This behavior is important because it helps teams and employees understand how their work contributes to making the company successful, in turn making each task more meaningful and rewarding. A clear vision on strategy that can be expressed by leadership helps every team member “buy in” and stay motivated in their roles.
• Expressing optimism about the company and its future. Accountable leaders express optimism about the company and the future. Leaders viewed as unaccountable seem to merely go through the motions in their day-to-day work without personal investment in the direction of the team. Many appear disengaged or unenthusiastic. This undermines the ability of the company to fully engage employees. As one client said, “If leaders are not excited about what we are trying to do as a company, then our employees will never be.”
• Displaying clarity about external trends in the business environment. The final behavior that revealed a large net difference was in the ability of leaders to be aware of trends in their business environment. We heard many customers at our events lament the fact that many of their leaders seem to lead with their “heads stuck in the sand,” or are seen as being too internally focused. In contrast, accountable leaders assess their environment for opportunities or identify threats and risks they can manage. This proactive nature contributes to stronger accountability overall.

The five behaviors described above begin to create a profile of what a truly accountable leader pays attention to and shows which behaviors have the greatest impact. Take a moment to consider whether you consistently demonstrate these five behaviors of truly accountable leaders.

Now let's shift our focus to the other behaviors we explored: collaborating with peers to break down silos and align efforts, acting in the best interest of the whole organization, and building the capabilities of their teams. It was revealed by many of our customers that, increasingly, these behaviors are becoming more important in the culture of many organizations—particularly those with matrix structures. The nature of work in most companies today is horizontal, requiring leaders to collaborate, act in the best interest of the whole organization, and develop their teams to engage effectively with other departments.

Minimizing unhealthy politics was low for all three segments of companies, suggesting that all leaders struggle to address these behaviors within their teams. This reveals a pervasive accountability issue throughout an organization, underscoring the importance of leaders to be accountable and lead by example.

An intriguing finding was that among low-performing organizations, leaders focus a lot of their energy on developing their own leadership capabilities. While conventional wisdom suggests it's important for leaders to invest in their own development, this behavior didn't factor in a significant way in the industry-leading companies.

After a deeper exploration of the findings in discussions with customers and survey respondents, three hypotheses emerged to try to explain the data. The first hypothesis suggested it is possible that unaccountable leaders may spend too much time developing themselves, at the expense of engaging in some of the other behaviors; personal development may become an avoidance strategy employed by some leaders. The second hypothesis was that leaders in low-performing companies know that they are struggling to meet the demands of their role and, as a result, are trying to improve themselves by investing in their development. Finally, some argued that truly accountable leaders develop themselves on the job by engaging in the more difficult leadership behaviors—they challenge themselves to grow every day.

There was no clear consensus to explain the finding; however, it suggests that companies should take a second look at how much time leaders are spending developing themselves and whether this investment is warranted.

The Organizational Practices to Build Strong Leadership Accountability

The study revealed some striking differences between industry leaders and the other companies when it came to the organizational practice put in place to build strong leadership accountability (see Figure 3.9).

Industry-leading organizations considerably outpaced average and low-performing companies across every organizational practice we examined. In two key areas—“ensuring that leaders understand what matters to customers” and “defining leadership expectations”—the gap was even greater, suggesting these are critical practices that companies must seriously consider addressing in their organizations.

During our discussions with customers and survey respondents, some valuable insights emerged regarding each of the organizational practices.

• Ensure that leaders understand what matters to our customers. This practice helps bring clarity to the leaders of the organization. When leaders truly understand the voice of the customers and what matters to them, it creates tremendous focus on key priorities. These then establish a mechanism to drive real accountability.
• Have practices that foster diversity within the organization. In many companies, leadership often is molded from a traditional male model. However, industry leaders do not typecast leaders to fit one mold of characteristics; they focus on driving accountability as the primary expectation. Customers shared that this enables a more diverse group of individuals to move into leadership roles.
• Cascade the business strategy to create strategic clarity among leaders. Industry leaders spend considerable time ensuring leaders understand the strategic priorities. This also brings clarity to the organization and provides the foundation for accountability.
• Establish formal succession management programs to identify high-potential leaders. Industry leaders are continually looking to groom the next generation of accountable leaders. Demonstrated accountability is a key marker of future leaders.
• Define and articulate leadership expectations to leaders. Industry-leading companies make it clear what they expect from their leaders. Often, these messages are presented in a straightforward manner and embedded in the fabric of how the organization operates.
• Share employee engagement data with leaders to help drive a stronger culture. We heard that industry-leading companies are very transparent with their employee engagement data. The data is shared broadly so that leaders with highly engaged teams are recognized, while those with low engagement scores are also made apparent. There is essentially no hiding. This helps drive leader accountability for employee engagement.
• Implement development programs that effectively build the capability of leaders. Industry leaders put programs in place that do not merely build skills and capabilities, but also foster strategic clarity and drive accountability.
• Bring leaders together in forums to help them network and build relationships. Industry leaders understand that building a strong culture is critical to their success, so they find ways to facilitate relationship-building among their leaders through forums and other mechanisms.

As you reviewed this list of organizational practices, which ones are currently strong in your organization? Which need to be strengthened further in order to build strong leadership accountability?

The Attributes of Leadership Culture

As presented earlier in this chapter, only 27 percent of companies surveyed believe they have a strong leadership culture. When looking specifically at culture, stark differences arise among industry leaders, average performers, and low performers in seven of the ten attributes explored in our research (see Figure 3.10).

Ultimately, when an organization has truly accountable leaders that are supported by key organizational practices, then a strong culture of leadership accountability will emerge. One client, an executive VP of business development based in Singapore, really summed up the key point nicely when she said, “The senior leaders create the culture and set the tone for the organization. It's imperative that they drive the set of behaviors which influence the behaviors of the next line leaders.”

This seems to be what many organizations struggle to establish. In our customer events with leaders around the world, the topic of leadership culture generated the most lively and spirited conversations. It is clear to me that leadership culture is a top-of-mind business issue with senior executives globally. Below is a summary of the key themes discussed related to the attributes of leadership culture that we explored in our research. As you read through each one, consider the extent to which these are evident in your own organization's leadership culture:

• Leaders demonstrate a common passion and drive to execute our business strategy. This was a highly variable attribute of leadership culture. Most customers wanted it to exist, but few felt confident that it did. In my sense, this is an important area of focus for companies—to create an environment where leaders do feel passionate about the strategy.
• Leaders demonstrate a high degree of personal maturity. Personal maturity was seen as a critical cultural element required for real accountability. However, it is lacking in many companies. I had fascinating conversations while exploring why personal maturity is critical to leadership accountability. Many described their desire to have leaders who are “adults.” Which meant having individuals who could address difficult issues objectively, not react emotionally, and take ownership for issues, rather than making excuses or blaming others.
• Leaders have clarity about what our customers value. The themes here were similar to the discussion around organizational practices—the voice of the customer is critical to establishing a culture of accountability. To what extent do the leaders in your company have clarity about the voice of your customer and what matters to them?
• Leaders model the values of our organization. There was widespread agreement that this is a common expectation in most companies; however, it seems few reinforce this culturally. In other words, they tolerate leaders who do not model the values, largely because they may drive high performance. This pattern needs to change.
• Leaders are committed to the idea of “one company. ”We heard many times about the desire for companies to have leaders who live up to this cultural attribute. While it is an expressed need, current organizational structure and performance metrics reinforce silo behavior among leaders. However, through my own client work, I see more and more CEOs, expecting and wanting this in their organizations. In Chapter 8, we will discuss these ideas in more depth.
• Leaders are clear about the leadership expectations of the organization. This attribute falls largely to the organization. If clear expectations are not set, leaders will not know what to be clear about. They will be aimless or begin to lead in a way that is inconsistent with your organization's values.
• Leaders regularly celebrate success in achieving key milestones of the organization. This attribute was identified as the largest missed opportunity in many companies. Many do not create a culture in which this is valued. But they believe that if they did this more consistently, it would be a powerful way to reinforce leadership expectations while recognizing the leaders who are stepping up.
• Leaders promote a culture where internal politics are kept to a minimum. This attribute generated a lot of interesting discussion. Some shared with us that many of their leaders are consumed by internal politics. Others have addressed this issue head on and promote and hire leaders who put the company first and are largely apolitical.
• Leaders create a common leadership experience for employees across the organization. This was an attribute that few customers paid attention to. As a result, they were not surprised that it was rated lower. It's a desire that many executives expressed, but one that seems difficult to drive at present.
• Leaders have the courage to give candid and constructive feedback to one another. Peer-to-peer feedback is lacking in almost all organizations. This represents a challenge since many organizations today are matrixed. In many others, work is increasingly done across departments and functional silos. Leaders must work together. Yet, a cultural barrier will limit the ability of leaders to be successful if they can't or won't challenge one another.

Final Thoughts—Building Strong Leadership Accountability: The Road Ahead

The findings from our global study reveal important insights on a critical business issue that companies worldwide are facing—the leadership accountability gap. Not only do the study findings provide a deeper appreciation of what leadership accountability is and what's required to build it, but they also demonstrate the strong connection to company performance, namely that industry-leading companies outpace average and below-average companies regarding their commitment to building leadership accountability.

Collectively, the findings of our global study are extremely relevant today, especially as companies contend with an ever-changing business climate, disruption on all fronts, and the need to transform themselves to remain viable and relevant. One global head of human resources based in the United States summed it up best when he shared with me his perspective: “We are going through quite a bit of change in our company. We need our leaders to be truly accountable if we have any chance of successfully navigating through it all.” This is the challenge facing all leaders and their companies today. What is the way forward? I believe it involves understanding the idea of a leadership contract. This is the basis of real leadership accountability, and this is what the rest of the book will be focused on.

We will start by exploring why we need a leadership contract. Then we will examine each of the four terms of the leadership contract and how they apply to leaders at all levels of an organization. Finally, we will conclude the book by looking at how you can live up to the four terms of the leadership contract in your own role and how you can embed the ideas into your organization. Let's begin your personal and organizational journey to creating strong leadership accountability.