When people at all levels understand that they can make a difference, they’re more apt to work smarter and accept their accountability. By demystifying your firm’s budget and income statements, you engender trust and make it easy for employees to commit to improving the bottom line.
Take these steps to apply open-book management:
Share key ratios. You and may use certain benchmarks to measure your unit’s operations. Examples include occupancy rates for hotels, loss ratios for insurers and load factors for airlines. Share these vital numbers with all your employees.
Explain why these numbers matter. Then show how each person’s job can influence whether the company meets its goals. When a file clerk realizes that his accuracy can lead to increased client satisfaction— and that in turn can generate a higher retention rate—the worker will seek ways to do a better job.
Host round-table discussions. Schedule regular informal meetings in which senior executives discuss the firm’s financials with about 20 employees at a time. Provide ample time for participants to ask questions. At each discussion, introduce at least one new concept such as the cash-flow process or the difference between revenue and profit.
Keep score. Create visual reminders so that everyone can track bottom-line progress. Examples: Post the weekly figures on a central bulletin board, send e-mail updates or circulate the latest numbers in a newsletter.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/6704/open-the-books-to-educate-your-team "