Over the last few decades, more and more organizations have been switching to open-book management, believing it to be a financially smart move. But what, exactly, is open-book management? And how do you know whether it’s the right choice for you?
What Open-Book Management Is
Essentially, open-book management is the practice of actively sharing all of your business’ financial information with everyone who works for your company. It’s founded on the belief that an organization works best when people who work for your company are considered partners, rather than merely employees. The idea is that employees are trusted with all of your crucial financial information, such as profits, revenue, costs, cash flow, and more. They are then able to use this information to make better decisions on their own.
Wondering whether switching to open-book management might be a financially smart move for you? Here are a few things to consider:
Talk to others who’ve already done it.
Rather than dive right in, take the time to talk with other business leaders who’ve already made the switch to open-book management. Ask them what’s worked and what hasn’t. Find out whether it was financially viable for them. This will not only give you additional know-how, it will also help you feel confident when making your own decision.
Don’t worry about being perfect.
Making a big shift in your company — like moving to open-book management — requires the willingness to take a risk. You’ll want to take the time to plan the change, but then, you must remember that no matter how well it goes, the change won’t be perfect. Don’t let that stop you! If you wait for the perfect moment and the perfect situation, you’ll wait forever.
Take baby steps.
While switching to open-book management does require taking a risk, you can always make the transition through baby steps. First, discuss the idea with the rest of your business leadership team. Then, integrate it into a small work group or perhaps one department in your company. This will allow you the opportunity to make adjustments before you implement it throughout, as well as scrap the plan altogether if it isn’t right for you.