Originally published under the title “Going Open Book – Bringing Finance to the Front Line!” here
The Denison Consulting group, who know a thing or two about the organizational culture of successful business, concluded in a 2010 survey that:
- Companies that use Open Book Management consistently rank in the top 10% of all companies surveyed.
- Zingerman’s was in the top 10% amongst companies that practiced Open Book.
So what is Open Book Management? A radical approach to running a business, Open Book management is about empowering every single employee in your business with the tools, education and data they need to act (and take responsibility) like owners.
Open Book is not a spectator sport – it’s not just about showing people all the numbers.
Transparency is great but this is about actually taking charge, not just taking time to look at some financial spreadsheets that management was nice enough to share with you. Open Book is about everyone participating in running the business – it’s about people understanding how the whole organization works and their role in it, it’s about accountability, collaboration, and taking initiative. It’s about looking forward and working together to win.
…Open Book is about everyone participating in running the business – it’s about people understanding how the whole organization works and their role in it, it’s about accountability, collaboration, and taking initiative. It’s about looking forward and working together to win.
It’s more fun, it’s more interesting, and the bottom line is it just plain works.
