Tuesday, July 26th, 2011
Top Six Great Game No-Nos: What NOT to do if you (really) want to play The Game
During the time that we’ve been helping others implement The Great Game of Business, we’ve seen the ups and downs and are often surprised by the number of people who are “fair-weather Great Gamers”, meaning they have passion and intent to play the Great Game of Business, but are missing the mark in one or more areas. Here are the top six (because five just wasn’t enough) Great Game No-nos:
Don’t forget to Huddle. Consistency is the key to success. Your team needs to be meeting frequently, and that means more than once a month (even if it’s just in small groups). Also, set a time and stick to it. If you have a consistent, set time, it will help eliminate ‘conflicts in schedule’ because everyone should be in a routine of blocking that time off on their calendar.
Don’t just share the numbers. If you’re playing the Game, your team should be driving results and providing the numbers at your staff meetings. You should not be simply giving them a spreadsheet at month-end detailing your accounts. That’s history, and you can’t change it. (PS: This means your employees will have to be educated about your business)
Don’t pick the wrong trainers. Who knows the numbers better in your company than your own accountants? Probably (hopefully) no one. That’s why they are most qualified to teach your folks the financials, right? Wrong. While there are certainly several accountants out there who will make excellent teachers, learning financials from a trained accountant would be like having Lady Gaga teach your grandmother about fashion: frightening and frustrating.
Don’t use the book as a how-to guide. Too often, people treat inspirational books like The Great Game of Business as a text when really, it’s a memoir. The book doesn’t detail the methodology it takes to really implement The Game successfully. Put bluntly, reading The Great Game of Business makes you no more of an expert in implementing Open-Book Management than the next guy. Would you read a book about medicine and then try to perform surgery; I sure hope not. If you want to learn “how-to” attend a seminar or talk with a coach (shameless plug).
Don’t forget to involve your people in planning. Recently Jack told us that High Involvement Planning is one of the first practices a team should take on. So what is HIP? It’s a bi-annual process where your team gathers the information necessary to make an educated plan for the next year. Don’t miss the opportunity to gather valuable information, opinions and buy-in from your entire staff; you never know who might have a golden idea.
Don’t underestimate the power of first impressions. Implementing the Game is typically a big cultural change and should not be taken lightly. Make sure your team is given the training and tools they need to do their part. Also make sure they understand why you’re making this change—we want them to feel excited and empowered; not burdened. Bottom line: Do it once, do it right. If you’re team gets a positive first impression of OBM, they’re less likely to go rogue if/when something doesn’t go as expected.
So, what’s the biggest no-no you’ve encountered with implementing the Game?
Thursday, July 14th, 2011
Craig Durosko, Founder & Chairman of SunDesign, Inc., recently gave his perspective on Open-Book Management to “Housing Zone”.
Read the excerpt below and click the link to see the full story.
If you arrived at work and found that there was a fire and everything was gone, there would be nothing you could change. If you were to know in 30 days there was going to be a fire at your office, there are so many things you could do to change the outcome.
Although the example may be extreme, that is what forward forecasting your financials does: It empowers your team to make changes and affect the outcome. It’s better than the alternative of feeling powerless looking at historical numbers they can’t change.
View the full story
Thursday, June 9th, 2011
Unusual in business and especially among call centers, Telisimo International Corporation practices Open-Book Management (OBM) to improve business communication, productivity and performance. It is an important practice that distinguishes us from a traditional call center or contact center and truly elevates us to a dynamic Customer Communication Center .
Our success has lead others to ask us about our practice. We’re asked to explain what it is, why we use it and, in particular, what value Telisimo’s practice of OBM has for our customers.
Open Book Management
Open Book Management was a phrase originally used by John Case of “Inc. Magazine” in 1993. The basis of the concept is that information received by employees should help them do their jobs effectively and also help them understand how the company is doing as a whole.
Case believed that a company performs best when its people see themselves as partners in the business rather than merely hired hands. The process provides employees all relevant business and financial information about the company so that they can make better business decisions about the actions they take.
The focus of information shared includes revenue, profit, cost of goods, gross margin, cash flow and expenses. But the power of the process comes from understanding the business messages from the numbers and what each person can do to positively impact that message.
It also involves a philosophy of mutual trust and support. As information about the company’s performance is shared, everyone becomes part of a working team with mutual goals for improvement and ultimate business success. We say it creates a business of business people.
Powerful Unifying Force
One core value Telisimo holds dear is continuous process improvement. We are constantly evaluating our methods of doing business and looking for ways to do things better. As a part of this continuous improvement process, we conducted a number of management and employee surveys. A common theme that emerged was challenges with internal communication.
After evaluating underlying issues that generated this concern, we recognized that it was based in a lack of clear and consistent direction of the business goals within the company. We reviewed ways we shared information throughout the company. And, we experimented with a number of management theories like those from the One Minute Manager to Quality Circles to Six Sigma. We saw some improvement but it was fleeting. And the new management approaches too often felt like artificial processes imposed on the organization.
Our discovery of OBM was a completely different matter. We knew it was the “right thing” from the start. Making financial literacy the focus of our business communications rallied everyone around the same goals. And, when everyone understood how a basic income statement worked, they began to see which components each of them could impact for positive change. People felt individually empowered and we saw major signs of positive change throughout the company. It was a breath of fresh air!
The Value of OBM for Our Customers
The value to Telisimo as a business was quickly apparent. Revenue growth was tackled more aggressively by Sales and Marketing. The Technology Department recognized that “response time” was critical to keep services working at optimum so revenue flow would not be disrupted. The Accounting Department identified and implemented a number of Cost Savings initiatives.
But, where is the benefit to our customers?
Using open-book management, Telisimo has seen dramatic improvements in service delivery and our ability to synchronize our efforts with our clients’ business objectives. OBM is the foundation for a whole host of performance management initiatives that are custom designed for our clients.
The identification of business critical numbers that drive our clients’ businesses allows Telisimo to design specific programs focused on improvement.
For example, some significant statistics that reflect the value of our practice on services for our clients are:
- First Call Resolution that increased by 40%
- Cost Per Customer Transaction that was reduced by 45%
- Customer Satisfaction Scores that increased by 200% and
- Revenue that was increased by over$30,000 per month with the introduction of a new program that focused on “going the extra mile”.
Complementary to Open-Book Management, is our practice of servant leadership and pledge to help make our customers as successful as they can be. Whether this is from increasing positive perceptions about customer care or technical support, increasing revenue from the sales of complementary products, or reducing costs to the customer by increasing Telisimo’s performance, Telisimo is dedicated to doing all that it takes to ensure success for our clients and customers.
To learn more about Telisimo, visit their website at Telisimo.com | Facebook | LinkedIn | Twitter | YouTube
Wednesday, June 8th, 2011
After reading this blog on the NY Times Website, GGOB practitioner James Mauch wrote the author with the following response; we thought our GGOB community would enjoy his thoughts as well:
Your column today on loyalty in the workplace left me wanting. You positioned well an often discussed issue in business these day but offered very little by way of solutions. I have a suggestion.
Perhaps workers remained “loyal” to an employer 50 years ago because the culture didn’t support serial workplace monogamy. In fact, loyalty in the workplace, like the personal kind, means commitment despite periodically difficult times. Like the psychologist you mention, I believe that loyalty is a character trait of a lot of people. In a work context, those people are looking for an employer who is worthy of their personal commitment. I agree with you that fulfillment in the workplace is what most people you want desire for themselves. I also agree that a long-time employee who is productive and motivated is of “enormous value.” In my calculation, those employees have 3 times the economic value of a short time employee, regardless of skill and motivation. Just knowing the organization makes long-term employees more fluid in their work and interactions inside and outside of the organization, and therefore more productive. This calculus does not include the enormous cost of employee turnover itself.
So what is the answer? My company is an open book management company. That means that we view all of our employees as individual professionals. Our respect for their professionalism means that we ensure that they know what is going on in the place where they will spend more than half of their waking day, Monday through Friday (and some of the weekends when necessary.) Knowing what is going on starts with financial literacy training, continues with bi-weekly and monthly ‘huddles’ in which we continue to train and share detailed financial information about what we have accomplished against the plans that everyone helped create, and whether we are on track to reach the goals in front of us.
We use Jack Stack’s flavor of open book management called “The Great Game of Business,” the third leg of which is encouraging people to act like owners. Today, that part of the practice consists of agreed upon company-wide bonuses based on the financial results we work toward every day and track in the huddles. This process continually evolves as we move closer to providing our team members a “stake in the outcome” as Jack calls it.
Clearly our culture has changed and my children may be more serially monogamous with their employment than I have been. Their view of work may also have changed. But most people’s sense of loyalty has not changed in my estimation. The people most employers want as employees are people looking for purpose in their work and for employers who will earn their loyalty. Once those age old conditions are in place, the loyalty is freely given by those with the insight to recognize the value of that bargain.
I encourage you to do a little research into open book management systems in the workplace as a follow up to your inquiry into loyalty in the workplace. I would be happy to introduce you to the folks at Great Game of Business.
James Mauch
Tenmast Software
Monday, May 23rd, 2011
We’ve had almost a full three-weeks to unwind after the 19th Annual Gathering of Games. Everyone here at GGOB had a great time, but I thought I’d share my personal “Top Ten” from the 2011 Conference:
10) The awesome staff at The Hyatt. Special thanks to Deandre; with his help we managed to unload our truck in ONE load (the usual is 6+) and Sondra “The Iced Tea Queen”.
9) Our dinner at Caleco’s with the ladies of SRC and our special guests Linda from Telisimo and Tammy from Creative Roots.
8) The super-smooth Skype address from Verne Harnish; hooray for no technical mishaps
7) The debut of the “Unleash the Entrepreneur” manifesto video; so glad to share it with our community after all of the hard work from The Canopy Collective.
6) All of our fantastic keynote speakers; what a diverse bunch!
5) Smooth-sailing break-out sessions; only a couple little hiccups—some of those sessions were more popular than we had anticipated.
4) The All-Star Awards Ceremony. My highlight was Steve Baker coming to ask for more drink tickets every five-minutes (don’t worry, he was giving them away…I hope).
3) Yummy meals and snacks; I was assured it was all calorie-free.
2) Our awesome, fabulous & wonderful Practitioner Council; couldn’t ask for a better group of helpers, mentors and advocates.
1) The super-fantastic group of participants. Seriously, everyone was in such a good mood; we didn’t have to put one person in time-out!
Monday, February 28th, 2011
Are you playing The Game to your full potential? Without a doubt, The Game is a process that should be adapted to your company’s environment, not adopted or replicated. However, there are a few key questions you should ask yourself to determine if you are missing a critical step in playing The Game.
(more…)
Wednesday, January 19th, 2011
We hear it all the time. So much, in fact, that we made it the tag line for the “
Experience It” portion of the Great Game process. Open-Book Management might sound like common sense, but let’s be honest, the fastest way to make any project go haywire is to assume it’s too simple to mess up. As a victim of the ‘do-it-yourself’ complex, I’ve learned the hard way that sometimes there are tasks that aren’t quite as easy as they look (specifically anything that involves a blow torch or a chainsaw).
Thankfully, Open-Book Management doesn’t require the aforementioned tools of doom, but it certainly isn’t a quick and easy fix. To paraphrase one of our favorite Jack Stack quotes, some people think that ‘if they open the books, doves and rainbows will fly out of them.’
While seeing doves and rainbows sound like a possible outcome if you are on some sort of hallucinogenic, the fact is, that opening the books is a process; a process that’s simple, it’s just not easy.
Almost everyone who has tried opening the books has probably encountered this lack of simplicity firsthand. So to you OBM pros out there, please share: What is the one thing you wish you would have known/done when your company started playing The Game?
Wednesday, January 19th, 2011
Over the past few months, the team at Great Game has had the opportunity to chat with several different folks in the Open-Book community. During my own conversations, I made a surprising finding; on more than one occasion, the person let me in on one key activity they were neglecting: forecasting.
Many of you would agree that forecasting is a vital part of your Huddle and annual planning. However, there are probably others that would share that you don’t forecast at all.
This prompted me to dig up a classic Q & A with some fantastic advice on how (and why) you should shine up your crystal ball in 2011. Take a look at the questions below!
Q: “We have a plan, but we’ve never done any forecasting. Where do we start?”
A: “Forecasting is like any other organizational skill; it needs to be learned,” says John Case, author of Open-Book Management. “Often the best way to learn is to plunge in.”
His advice: First get together your management team and make a list of the key variables in your plan—sales, margins, whatever. Assign responsibility for each number to one or two people. Talk over where people can get the information they’ll need to make a good forecast. Ask them to come to the next meeting with a forecast for the following week or month, depending on what makes the most sense for your business. “When we started forecasting, we did it weekly so people could get used to preparing the numbers,” says Mike Kudryk of ACuPowder International. “Once people got the hang of it, we moved it out to twice a month.”
Q: “We have no plan. Should we start forecasting anyway?”
A: Sure. “A forecast without a plan is like a compass without a map: it tells you where you’re headed, but you don’t really know whether it’s the right direction,” explains Case. “But you have to learn to forecast at some point anyway, and the experience will prove useful when you do sit down to prepare a plan.”
Q: “We’ve started forecasting, but our forecasts are usually way off; what should we do?”
A: Practice usually makes perfect, or at least leads to some improvement. If it doesn’t, you have to analyze where and why the discrepancies are arising. “Maybe people aren’t understanding the numbers,” offers Kevin Ruble, who runs an open-book transportation company. “Maybe they’re misreading historical data, or missing trends. Maybe your assumptions need to be worked on.” Alternatively, Ruble adds, people may be just “tossing out the numbers” knowing that senior management isn’t really listening and isn’t going to do anything with them. “Then you have a morale problem: there’s no reason for anybody to care.”
Q: We have a feeling our people are sandbagging their forecasts by giving us numbers they know they can hit. What can we do?
A: It’s a time-honored trick of corporate maneuvering: give management a forecast that’s worse than you expect, so that when you exceed it you’ll look like a hero. Salespeople are usually the worst offenders. But plenty of other people—plant managers, accounts-receivable supervisors, whoever—indulge in a little sandbagging now and then. It isn’t a big problem in companies where forecasts are compiled and promptly forgotten. But open-book companies typically involve employees throughout the organization in creating and tracking forecasts. If someone is consistently off, it doesn’t really matter whether they’re over or under. It screws things up.
Case’s advice: Hold people accountable for what they say they’ll do, and don’t reward them for doing better. Sure, unforeseen opportunities will crop up. If they do, they need to be discussed among all the relevant departments. What are the costs of deviating from our plan? Is this particular opportunity worth it? This discipline can save companies from going off half-cocked after new business.
Q: Any other useful techniques for forecasting?
A: It’s wise to start forecasting initially in a group setting, so that people can learn as they go. Start with the management team, and involve other people gradually. Keep the meetings tightly focused on the key numbers. “Forecasting meetings should be highly disciplined,” advises Bill Fotsch. “They should be at a specific time of day, the same day, every week or two weeks. You’re making a commitment: no matter what, all the numbers will be covered.” If forecasts are inaccurate, he suggests meeting more frequently until people get the hang of it.
Once they do get the hang of it, watch out: the numbers will begin moving the way you want them to. “It’s one of the most powerful management processes I’ve ever seen,” says Fotsch.
Monday, October 25th, 2010
How many times as a child (or even recently) have you been given the advice to ‘face your fears’? Surely we’ve all received motivational advice from someone who urged us to conquer our fear by actually looking it right in the eyes.
With Halloween just around the corner, I thought it would be appropriate to discuss three little words that are known to scare business-people all over the world: Open-Book Management. There, I said it; are you scared? 
A person being afraid of an innocent little concept sounds a little crazy, huh? Well it happens, and you might have been a little afraid of it yourself at first. However, you utter the words “Open-Book Management” in front of the wrong crowd, and you’d think you’d accidently proposed practicing some sort of witch craft.
So what is it about transparency and open communication that is so utterly terrifying to some people? We’ve heard some pretty good excuses over the years; one of the all-time favorites being:“My employees will want a raise…” Well, duh; what employee in their right mind doesn’t want a raise?
As we approach the spookiest night of the year; I’d like to ask our community: What is the craziest fear of Open-Book Management you’ve ever heard (or maybe felt yourself at one time)?
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