Open-Book Management

                I just finished reading a book called Open-Book Management, by John Case, which I originally figured I would read the first chapter and decide I already had a lot of the ideas that the book would have to promote.  I was wrong.  When I first selected it, I saw it as keeping open with employees, and keeping a clear goal and vision.  While that is important, this book is actually about Money. 

                It taught me several things about how to keep employees driven at all areas.  I’m about to describe part of the book, but by all means, not even close to covering it.  If you find any of this helpful, GO BUY THE BOOK.  You won’t regret it.  If you are trying to exist as part of a company, run one or are starting your own, you have a responsibility to make that company successful.   Especially if you are running it. 

                While there are many who want their companies to be successful, there are few who actually make companies that want to be successful.  The difference is small, but very clear.  Think of any random gas station, or fast food place.  At the corporate level, you have lots of people who are running around trying to make the company succeed, and exceed in its industry.  Now imagine the cashier, or the person who made your sandwich.  What do they care if the company is thriving or not.  If they only get 25 people in that day, instead of 500, they’ll be happy, because its less work for them.  They get paid the same whether they serve 10 or 100 people an hour. 

                Now think of the customer.  Does the customer care one bit about how much the corporate layer’s are doing to try to keep the company afloat?  No.  They care about the service they get.  They care about the quality the sandwich was made.  They care about the speedy handling, and the accuracy of their order.  Corporate can do all they want to “streamline” and provide the fastest method to deliver the service, but it really is the employees that give the customer their clear feelings regarding the quality of the company.

                So what can you do?  How can you make all the different people, EVERYONE that is part of your company, interested in making the company succeed?  Open-Book Management starts with opening the books, the financial books.  Exposing the numbers for all to see.  Then training the different areas to be able to clearly understand how certain parts of it affects them.  As well as starting some kind of profit sharing. 

                There is no part of any company, that is there without having some effect on the bottom line of the finances.  If you can show them how they have a direct impact on the success of the company, and give them goals to improve their area, and if their area improves, then they can get bonuses from it, suddenly it is not just a job, but a goal.  The average employee will see that they can have a real effect.

                If the person doesn’t care how the company does, no more than guaranteeing their paycheck anyway, it is only a job.  If they want more jobs, there is a section for that in the news paper, online services dedicated to finding new ones and networking to find more.  But if your company provides them with a strong feeling of connection with the success and failure of the company, then you’ll be able to retain employees longer, there will be more open communication, more areas will be found that can improve.

                There is another key to this Open Book Management though, empowerment.  You need to give people the power to actually make change, at least in their own areas.  You need to keep open communication between all layers of management about ideas that could improve the company.  Honestly, who is going to know better about how to save money at the customer service level, the employee who is working it every day, or the VP sitting 3, or more, layers up? 

                The higher a person is on the management ladder, the more power they should have at shaping the company as a whole, and primarily deal with keeping communication up with those that report to them.  It is more often that management thinks that the lower levels of the company need to be directed, told what to do, when more often than not, they just need the initial training, and someone to help keep their obstacles cleared. 

                If you get the chance, I recommend reading it, as the author explains through many stories, how this can be applied, and what issues people went through to get there.