Opening Up The Company Books
HVACR Business magazine published a thought provoking article in its November issue about the benefits a company can realize by opening its books – to a limited extent – to its employees.
Like an archer shooting an arrow without a target in sight, explains the article’s author, so is the employee who tries to provide value to the company without understanding its finances.
Open book management requires patience, trust and education, but can result in increased employee motivation and a more profitable bottom line, the article contends. Sharing financial information allows employees to see the large-scale effects of small inefficiencies, the cost of safety breakdowns and other factors that affect the bottom line but are often ignored by ground floor employees.
Further, the risk a company exposes itself to is usually overstated, the article claims. Even if an employee were to take the company’s financial information to a competitor, it doesn’t necessarily give the competitor an advantage.
“I say, ‘so what?’ Just because they know how much you do somewhere doesn’t mean they can do what you do and how you do it,” the author states.
Do you think it’s a good idea for companies to open up their books to their employees? Do you think you would be better equipped to succeed at your job if you were more involved in your company’s finances? Are there industries or companies where such a practice does not work? Please share your thoughts by posting a comment below.
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