The Value of Open-Book Management
For this shop, it helped motivate employees to work more efficiently because they can readily see how their performance affects the company’s bottom line.
Ogden, Utah’s LeanWerks practices open-book management (OBM), a management style in which a business’ financial information is regularly shared with all employees. In fact, Reid Leland, who started the company in 2003, says it represents the cornerstone of his company’s culture.
OBM as it is applied at LeanWerks has three primary elements: financial training, feedback and profit sharing. That said, Reid says this management style is not a panacea. Learn more.