Open-book management: the Pros and cons of sharing financials
Many companies make it a point to keep employees updated on the firm’s latest moves, but some take it a step further by showing them why.
Open-book management is a system some companies use to help employees really understand the business — where it stands now and where it’s going — by sharing the firm’s financial info.
Advocates of open-book management swear the system helps to foster unique employee ideas and makes companies more cost-effective and easier to manage. But there are certain aspects many firms have trouble with, namely:
- how much info to share with employees, and
- how to make that info easily understandable.
Plus, there’s always the danger of hurting morale when your company is struggling.
If you’re interested in open-book management, experts suggest easing in to it. Example: Only share one or two key metrics in the beginning — sales, shipments, etc.
To help the numbers make sense, some firms hold weekly, company-wide meetings to explain the financials, as well as a few refreshers throughout the year on reading balance sheets or income statements.
- Share on
Free Training & Resources
Webinars
Provided by Insightsoftware
Further Reading
It’s December, and month-end still isn’t closed. Day six drags on with bank recs unfinished and support scattered across spreadsheets w...
Companies are now complying with the Securities & Exchange Commission’s (SEC) cybersecurity breach rule. Or maybe over-complying ...
The Financial Accounting Standards Board (FASB) is calling on publicly traded companies to report employee compensation. And that’s n...
How did a diversity, equity and inclusion (DEI) program manager defraud Facebook and Nike of more than $5 million? With the help of crooked...
Formulas are the backbone of Excel’s functionality, enabling you to perform calculations, analyze data, and create dynamic reports. Maste...
Brace yourself: About a third of accountants are making multiple errors every week. Fifty-nine percent are goofing up on a monthly basis, i...
