Why accountability is important?

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I have written this before and I am penning it down again- “Until you are serious about the things, you won’t make it.”

When I write that learn to be accountable, we mean that “Put your skin in the game”. What we mean here is that until you have your reputation at stake or your money at the table you are likely to be more dedicated to the task.

A good example here would be that of a gym. You are more likely to go to the gym than work out at home or in the park. Simply because you are paying for the gym and you want to maximise your money’s worth. Some even work on the sole incentive of that “I should hit the gym because I am paying for it.”

The responsibility when bestows upon your shoulder propels you to take up the mantle.

But Accountability is a double-edged sword. If you fail then questions are raised. You alone bear the brunt. If you succeed your credibility is applauded. Though more people come into the limelight to receive credit.

A good team or an organization will always have clarity on the roles of their players and employees.

Another important thing is that the more accountable a person is the less replaceable you are, more the money he’ll make. An employee has less accountability and thus is solely given a minimum wage. Whereas The CEO has a lot of responsibility and thus is paid more.

You should want to attain accountability. It brings the best of you. You have strong incentives. And without accountability, there is no credibility or reputation. Yes, failing is also a possibility. But that is a risk that you should be willing to take. Every worthwhile dish involves risk as a predominant ingredient.

As humans, we are hardwired to take up the easy path. That is why we run off from accountability. We want to play safe and be lazy. We look for validation from people and it provides the wrong advice and we comfortably fall for it. But we are oblivious of are that by not taking responsibility we are stealing from ourselves the chance of a huge gain.  

Don’t just blindly follow whatever is flung your way. Rationally analyze.

Taking ownership= Accountability= More gain.

Let us explain with the best example- business.

There are equity shareholders, debtholders and employees. The hierarchy of accountability is also in similar order. The equity holders are the owners of the company, thus are the most accountable. I would say they are the only ones accountable for the company. Next comes debtholders, who provide money to the company with the expectation of annual fixed payment. Then there are employees, who work for the company and perform the operations.

Now the accountability part is clear. Let’s see the upside gain part. Equity holders have huge upside potential. If the business is commercially sound and profitable moneymaking the shares go surging. The debt holders are subject to only fixed payments. Whereas employees earn a fixed salary.

An analogy I would like to make here is that of a pie. All of them working hard to build the pie. But as the pie keeps getting bigger and bigger, so does the share of the equity holders. The portion size of the debtholders and employees is *limited*. It’s people with accountability that enjoy the bigger piece.

The reason that the equity holders enjoy so much gain is because of their huge risks and accountability. They are entitled to such profits. Had the business failed they would have ended up with nothing.

Conclusion-Your life is your responsibility, so start taking it seriously. Instead of complaining and blaming others, find out what you are doing wrong. It is ultimately because of your actions that you are attracting such circumstances. Even if you fail you have gained experience and real-world values experience.

Own up your life and be accountable.

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One comment

  1. I have not checked in here for a while because I thought it was getting boring, but the last several posts are good quality so I guess I will add you back to my daily bloglist. You deserve it my friend 🙂

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