ROI: Measurable Accountability

For years, employees have been accountable for defined operating policies and procedures but the accountability hasn't been measurable. As a result, few organizations have successfully bridged the gap between their employees and their defined operating procedures which is why, to use a popular add campaign, the cost savings associated with the measurable accountability derived from could be quantified as "priceless."

When employees know their accountability is being measured, they are much more likely to comply in a more timely manner and needless time isn't wasted trying to explain, convince, follow-up, or communicate reasons why employees should comply. Operations run more smoothly and with less incidents because employees are in synch with the organization's defined policies and procedures.

But, everything doesn't always go as planned. So on the other side of the coin, when a disruption to service, a violation of security, a breach of contract or failure to meet a regulatory obligation is caused by a poorly defined procedure or an employee's failure to comply it isn't misfortune–-it's negligence. And in these cases, management's ability to quickly and accurately access the measurable accountability and identify who was accountable for the negligence is again, "priceless".

Employee Performance & Execution
Let's say you are a senior executive responsible for a team of employees. The reason organizations define their operating policies and procedures in the first place, is to affect employee behavior - in other words, to coral people into performing in a standard and consistent manner. But rarely will the majority of employees change their behavior in a timely manner simply because a defined policy or procedure has been communicated.

Because the accountability of each employee is measurable in , the value of senior management being able to lead and govern in a manner whereby employees are accountable for adhering to the organization's defined operating policies and procedures is priceless in that it eliminates the micromanagement activities (meetings, employee follow-up, emails, etc..) otherwise required to change the behavior of each and every employee. And perhaps more importantly, it enables the organization to respond more effectively to change – an organizational strength most senior management figures are currently striving to achieve. For an average organization that includes 15 - 20 employees, the annual cost for salaries could easily exceed $1,000,000. A 3% increase in productivity and performance could be quantified as a $30,000 savings and an opportunity for the organization to do more with same or perhaps even do more with less.

Employee Lawsuits
Consider the employee who is terminated for violating a department-specific operating procedure and files a lawsuit against the company claiming he was unaware of the procedure. Mostly likely, eliminates the likelihood that an employee would ever file such a claim. But, if he does, the measurable accountability tracked in is precisely what senior management needs to respond effectively to the claim - a priceless position of defense when the average employee lawsuit can cost more than $250k.

Outsourced Management
Or, consider the organization that has a sizeable contract with an outsourcer. It's common for meeting after meeting to be held to discuss standard operating procedures whereby the organization clearly defines company policies and procedures yet the outsourcer continues to struggle with the execution. Using to manage and measure the outsourcer's accountability significantly strengthens the organization's position of authority and power – a priceless strength to have when managing service level agreements and/or negotiating contracts. On a $2m contract, a 2 - 3% savings ($40,000 - $60,000) can quickly start to add up.

Insurance Policies Taken out on Technology Solutions
It's not uncommon for organizations to invest significantly in technology solutions to automate key processes such as Incident and Problem Management, Change Management, Asset Management, CRM systems, and/or other key processes. These sizable investments hold promise that they will dramatically increase efficiencies gained through the associated automation which in return warrents the investment.

But in reality, it's often times the employees who are to blame for the sub-optimal results frequently associated with these types of technology solutions. In a nutshell, they fail to adopt the new technology and as a result, the orginal cost savings is never realized.

Using , management can easily measure each employee's accountability to not only use the technology but to use it in a consistent manner throughout the organization based on defined operating procedures. Senior Management can think of as an insurance policy that guarantees employees will be held accountable for quickly adopting the new technology - a challenge many organizations face and few actually overcome. On a $1,000,000 investment an insurance policy costing 3% of the actual cost ($30,000) would certainly be worth the guarantee that employees will comply.

Fines & Penalties
And of course, there are those organizations that are subject to fines and penalties if they fail to satisfy their regulatory obligations. PIC violations can result in fines of up to $500,000. HIPAA violations $250,000 and SOX violations can be up to $5,000,000 in fines and even include criminal prosecution.

The return on investment whereby Senior Management can avoid fines and penalties of this nature is certainly "priceless."

But as mentioned, the value proposition associated with extends well beyond just Measurable Accountability and also includes Employee Compliance and Increased Efficiencies.



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