You can’t just share the numbers and think your employees will “get it!”
In the world of business management, Open-Book Management (OBM) has become somewhat of a buzzword. It’s a term many leaders toss around, often with little understanding of what it truly entails. To tell you the truth, it drives me crazy! But that said, I suppose it is easy to forget how little I knew about the depth and influence it could have when I began transforming my business, Creative Roots Landscaping, nearly 20 years ago. At its most basic, OBM is about sharing financial information with employees, promoting transparency, and engaging them in the company’s financial health. But here’s the catch: OBM, as it’s commonly understood, is just scratching the surface. The real power of OBM lies in its ability to transform a company’s culture, and that’s where The Great Game of Business (GGOB) comes into play.
The Danger of Surface-Level OBM
The concept of OBM is appealing. Who wouldn’t want a transparent workplace where everyone knows what’s going on financially? It sounds great, but the danger lies in thinking that simply sharing the books with your employees is enough. Many companies that adopt OBM at a surface level believe they’ve done their part by making financial data available. They may hold quarterly meetings to review the numbers, but beyond that, there’s little to no follow-through.
This approach can lead to a false sense of security. Leaders might think they’ve created a culture of transparency and engagement, but in reality, they’ve only opened the door halfway. Employees see the numbers, but they don’t necessarily understand them, nor do they feel empowered to act on that information. In fact, without the proper context and education, sharing financial data can cause more harm than good. Employees might misinterpret the numbers, leading to fear, confusion, or disengagement.
The Great Game of Business: A Deep Dive into OBM
The Great Game of Business takes OBM to a level that most businesses don’t even know exists. It’s not just about opening the books; it’s about teaching, empowering, and involving every single employee in the company’s financial success. GGOB is a structured process that turns OBM from a passive practice into an active, dynamic system that drives actual results.
One key difference between traditional OBM and GGOB is the emphasis on education. GGOB doesn’t just show employees the financials; it teaches them how to read, understand, and influence the numbers. Employees learn the ins and outs of the company’s finances, from profit margins to cash flow. They’re not just spectators—they’re players in the game with a real stake in the outcome.
Empowerment Through Ownership
Another critical aspect of GGOB is the sense of ownership it fosters among employees. In many companies that practice basic OBM, employees are aware of the financials but don’t feel they have the power to make a difference. GGOB changes that by giving employees the tools, knowledge, and authority to directly impact the company’s financial performance.
GGOB encourages employees to think and act like owners. They’re involved in setting goals, identifying key performance indicators, and developing strategies to improve the company’s financial health. This level of involvement creates a deep sense of responsibility and commitment. When employees know they can influence the company’s success, they’re more likely to be engaged, motivated, and proactive.
The Cultural Shift
The most profound impact of GGOB is the cultural shift it creates within an organization. OBM, in its traditional form, can sometimes feel like a top-down directive—management decides to share the books, and employees are expected to absorb the information. GGOB, on the other hand, is a bottom-up approach. It’s about creating a culture where employees feel integral to the company’s success.
This cultural shift is what sets GGOB apart. It’s not just about transparency but trust, collaboration, and empowerment. When employees are actively engaged in the financial side of the business, they’re more likely to feel a sense of ownership and pride in their work. They understand how their actions contribute to the company’s success and are motivated to go above and beyond to achieve their goals.
The Long-Term Impact
The benefits of GGOB go far beyond the immediate financial gains. Companies that fully embrace GGOB often see long-term improvements in employee retention, job satisfaction, and overall company performance. Employees who are engaged and empowered are more likely to stay with the company, reducing turnover and its associated costs. They’re also more likely to be satisfied with their jobs, leading to a more positive work environment.
However, perhaps the most significant long-term impact is the sense of shared purpose that GGOB creates. When everyone in the company works toward the same financial goals, a sense of unity and collaboration is hard to achieve with traditional OBM. This shared purpose can be a powerful driver of success, helping the company navigate challenges and capitalize on opportunities.
About Me
Over the last 26 years, I have been fascinated by business and all it has to offer to improve the lives of the people it touches. From working on the shovel, business visioning, and everything in between to now being able to share my experiences through personalized coaching services, my goal is to help other owners work on their businesses, increase profits, have more time for themselves, and find enjoyment in the process along the way.
Need Someone To Talk To?
What’s your most significant pain point? Let’s connect and discuss your questions and how having me coach you through implementing Open Book Management can improve your business.
To schedule a time to chat with me, visit https://rmark.ca/contact/
