Why do I share my story about OBF? Simply stated, it works! Even the most cursory look at our D.O.R. boards tells me that our Net Operating Profit (NOP) has grown since we started huddling because of the collective work of the entire staff, and the individual line owners. The benefits of OBF go beyond transparency with numbers. Open Book Finance fosters creative and expansive thought for both management and, perhaps more importantly, front line employees. It creates great energy. And, it makes people really feel like they're contributing not just their sweat energy to our success, but by fostering heightened teamwork, camaraderie, and a sense we can achieve goals we previously thought were way beyond our reach.
Open Book Management
Going Open Book - Bringing Finance to the Front Line!
The Denison Consulting group, who know a thing or two about the organizational culture of successful business, concluded in a 2010 survey that:
So what is Open Book Management? A radical approach to running a business, Open Book management is about empowering every single employee in your business with the tools, education and data they need to act (and take responsibility) like owners.
Open Book is not a spectator sport - it’s not just about showing people all the numbers.
Transparency is great but this is about actually taking charge, not just taking time to look at some financial spreadsheets that management was nice enough to share with you. Open Book is about everyone participating in running the business – it’s about people understanding how the whole organization works and their role in it, it’s about accountability, collaboration, and taking initiative. It’s about looking forward and working together to win.
It’s more fun, it’s more interesting, and the bottom line is it just plain works.
Leadership Development Series
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Harvey P. Sackett, Attorney, Sackett & Associates, San Jose, CA