Log-In
Beyond Open-Book Management: The #1 misconception about Open-Book Management
‘It’s not just sharing numbers.’
Companies that experience the real power behind Open-Book Management go far beyond simply opening up the books.
People are not handed the numbers, they’re asked to help create them and improve them. They’re given a chance to act and take responsibility for the success of the company and rewarded for it, rather than just ‘doing their job as hired hands.’
The Front Line Drives the Bottom Line
If you approached an everyday employee from any company and asked them ‘who creates the financial numbers in your company?’ What would they tell you? The accounting manager? The CEO?
Nine times out of ten they would tell you it’s the financial guy…, right? When in all reality they do! Your people create the financial numbers – by the decisions they make and the actions they take every day.
There are many other misconceptions of what Open-Book Management is and what it isn’t. It goes far beyond simply opening the books.
| Is | Isn’t |
|---|---|
| How we do business | A fad, Program-of-the-Month |
| Sharing of information that is relevant | Complete disclosure |
| … simple | … easy |
| Fun and engaging | Boring and uninteresting |
| A management system | A glorified bonus plan or motivation ‘scheme’ |
| Business education | Turning everyone into accountants |
| Communicating reality | Sharing only positive information |
| Treating people like adults | A right or entitlement |
| A discipline that develops over time | A ‘silver bullet’ |
| Sharing rewards & recognition | A ‘must share equity’ program |
| Sharing real-time, forward looking info | Sharing past-time, historical information |
Common Sense isn’t so Common
You’ll also discover that Open-Book Management is just plain common sense. It wasn’t theorized in a business school or dreamed up at some consulting think tank. It was created by everyday business people much like you. Through a handful of breakthrough companies and years of innovative practitioners a whole new way of thinking about business was born. These pioneers of Open-Book Management didn’t always share the same language or use the same techniques, but they did operate according to some remarkably similar principles. They discovered first hand that when you harness the collective wisdom of your people, great things can and do happen.
The Original Pioneer
Our approach to Open-Book Management was born in the Ozarks in 1983 out of sheer necessity. Jack Stack and 12 other managers at Springfield Remanufacturing Co. had a choice… either teach everyone to think like business people, or kiss 119 jobs goodbye. It was then that employees first learned to play The Great Game of Business.
The Great Game of Business has become the most celebrated approach to Open-Book Management. It’s a unique and well-proven strategy, based on a simple, yet powerful belief; ‘The best, most efficient, most profitable way to operate a business is to educate everyone on the business, give them a voice in saying how the company is run and provide them a stake in the financial outcome, good or bad.’
Since then, SRC is one of thousands of companies worldwide that have implemented Open-Book Management and The Great Game of Business with phenomenal results.
Open-Book Management isn’t for everyone
If you have something to hide, or want to use the numbers and information to manipulate and control people, find another approach. If you are not prepared to learn, teach, share and be involved, Open-Book Management will not work for you. However, if you are interested in making more money while improving the lives of the people who help you drive those results, then Open-Book Management is the answer.
Is this approach right for you? What are your beliefs?
- True or False: People at all levels of the company have the ability and desire to learn the business and actively contribute.
- True or False: By teaching people the business; I can trust them to make the right decisions.
- True or False: I can teach people what I know about the business.
- True or False I don’t have all the answers to improving the business.
- True or False: People should share in the wealth that they help create.
- True or False: Being open and transparent with information creates benefits that way outweigh the drawbacks or risks.
“In addition to the company-related benefits, there is a personal benefit that trumps all the others: hiding data and holding information close to the vest takes no minor amount of energy. I love the liberation I feel running the company in an open and transparent manner. There is a sense of pride. I sleep well at night and that adds to my quality of life, which is no small thing.”
– Jeff Metzger, President, Kids First Sports Center & Gym Club
Owners Boot Camp
