The Great Game of Business:

Revealing company finances to employees may seem scary, but CEOs who practice open book management swear by its ability to lower costs and boost profits.

“Commercial aircraft supplier Tracer was in trouble last November. The 27-employee Milwaukee company, founded in 1993, saw sales fall 20% below already lowered projections. With inventory stuck in the warehouse, Tracer’s entire staff knew exactly how much they needed to drive sales to hit their monthly target. Founder and CEO Bill Morales, 52, was on the road, but in his absence his team negotiated a deal that would move some 747 parts out of inventory at a deep discount. Morales approved the price, and his staff did the rest. It was the kind of ground-up effort that has helped Tracer avoid any layoffs, even though 2009 sales are still down 30% from last year.”