Understanding The Open Book Management Style

Juggling all your financial management resources takes a lot of — well, management. And if you’re trying to keep it all to yourself and the C-level suite, you might be missing out on a lot of opportunities.

What’s this golden ticket, you ask?

Enter open book management, a financial reporting strategy that turns the whole triangle on its head. It’s fast, it’s efficient, and better yet, it costs nothing but a little time.

Let’s take a closer look at open book management and how to implement it successfully into your growing company.

How to define open book management

Sometimes referred to as OBM, open book management is the process of engaging employees in and informing them about a company's wealth and financial growth. This involves sharing quarterly reports, shareholder information, and net profit gains. In other words, everyone has access to complete and utter financial transparency!

Think of open book management as a meeting where all employees are members of the board. Make sense? Accordingly, open book meetings with your employees occur on a regular basis and discuss financial specifics like:

• PBT and PBT percent
• Total sales
• Gross profit
• Total cost of sales
• Quarterly bonus goals
• Gross profit percentage

What are open book management benefits?

Hey, glad you asked! Open book management is kind of a big deal, and now that it’s getting so much attention, CEOs are starting to see some big impacts.

• Open book management is efficient. When everyone understands what’s going on, everyone can make a difference.
• Open book management is proactive. You can work toward stopping disasters before they happen (and not blindsiding employees in the process…).
• Open book management helps to engage employees. If everyone feels like they have a stake in the company, they’re more likely to work harder.
• Open book management provides opportunity. The more people have a say in financial problem-solving, the more solutions can be found.

Open book management isn’t some crazy newfangled idea; it’s just a better way of doing something that has to get done. And isn’t that what we’re all looking for these days?!

How to implement an open book management style

While we can’t promise that you can easily adopt an open book management style overnight, we can tell you that it’s achievable with intentional choices. Use these helpful pointers to move toward a more transparent financial umbrella!

1. Chat with employees

What sort of financial details do employees need to know about? Have they asked about anything in particular? Recognize the specifics of your team as you begin the planning process.

2. Connect with managers

Provide all team supervisors the information they need to lead open employee discussions about finances, cashflow, and more. If possible, set up monthly or quarterly finance meetings for employees to participate in.

3. Implement an open door policy

Listen to your employee’s questions about current finances, and answer them to the best of your ability. Remember, your team should feel comfortable approaching you about finances. Encourage honest feedback!

4. Plug into internal socials

Allow your employees to access and connect with public financial records in one single location, preferably cloud-based or internal social software. Post all open-source information for employee viewing, and welcome any feedback or acknowledgements.

With some time, intentionality, and a pinch of authenticity, achieving open book management is easier than ever.

Make open book management happen with Motivosity

So open book management is a really wonderful thing, but trying to implement it on your own? A little less wonderful. We know you’re an awesome manager, but we also know you’re strapped for time. Most organizations choose to partner with some sort of third party to help streamline the process, especially when it comes to sharing financial forms and docs. So let’s back up a sec.

Hey. We’re Motivosity.

In case you haven’t heard, we’re one of the leading providers of employee engagement software in the world. We love passionate managers just like you, and specialize in helping organizations all over the world find the perfect balance in their open book management style.

See how our tools can make a difference for your company with a free demo. Have a couple of questions first? Just dial up (801) 758-7188, or chat with an online team member for ASAP answers.

Sources:

• https://www.forbes.com/sites/fotschcase/2017/07/25/the-business-case-for-open-book-management/?sh=6a75e70c5883