Learning about open-book management is one thing; putting it into practice is quite another. Because it’s such a big business strategy change, many business owners are hesitant to take the plunge. To help you envision how to get started with open-book management (OBM), here’s a Q&A with a real-life practitioner who recently implemented OBM at her company:
Open-book management is the practice of creating transparency around how your company makes money and loses money. It also provides a format for each employee to impact those things.
Yes because of two reasons:
We try to share as many numbers as we can — tool costs, revenue from clients, other expenses, etc. — with the exception of individual salaries. The more transparent you can get, the better. It builds trust.
We don't know yet how it will impact the bottom line, however, once our team understands how we make money as a company – as well as what each person's upside is if we meet our profit goals – I suspect everyone will be more aware and engaged on reaching the goals. They'll realize that if the company wins, we'll all win. All for one and one for all!
No one said implementing open-book management was easy. But neither is riding a bike for the first time. If you want to experience the thrill of conquering something new that will invigorate you and your company, you have to take the first step. So what are you waiting for? Get started with open-book management today!
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