Open-book management (OBM) is a management phrase coined by John Case of Inc. magazine, who began using the term in 1993 (Aggarwal & Simkins, 2001). However, the concept's most visible success was by Jack Stack and his team at SRC Holdings (Davis, 1997; Kidwell & Scherer, 2001).
The basis of open-book management is that the information received by employees should not only help them do their jobs effectively, but help them understand how the company is doing as a whole (Kidwell & Scherer, 2001). According to Case, "a company performs best when its people see themselves as partners in the business rather than as hired hands" (Case,1998 as cited in Pascarella, 1998). The technique is to give employees all relevant financial information about the company so they can make better decisions as workers. This information includes, but is not limited to, revenue, profit, cost of goods, cash flow and expenses.
Stack and Case conceptualize open-book principles in similar ways.
Stack uses three basic principles in his management practice called, The Great Game of Business
His basic rules for open-book management are:
Similarly, in 1995, Case made sense of open-book with three main points:
The National Gathering of Games, held annually in St. Louis, Missouri, is a coming together of open-book managements’ minds and practices. The Gathering of Games is the only practitioner led conference on creating a culture of ownership by teaching employees to feel, think and act like owners. At the event, business leaders learn from people who have used open-book management to increase the size, profitability and employee engagement in their companies. The conference consists of sessions, keynote speakers and workshops that are specifically targeted to each phase of open-book management.
The basis of open-book management is that the information received by employees should not only help them do their jobs effectively, but help them understand how the company is doing as a whole (Kidwell & Scherer, 2001). According to Case, "a company performs best when its people see themselves as partners in the business rather than as hired hands" (Case,1998 as cited in Pascarella, 1998). The technique is to give employees all relevant financial information about the company so they can make better decisions as workers. This information includes, but is not limited to, revenue, profit, cost of goods, cash flow and expenses.
Stack and Case conceptualize open-book principles in similar ways.
Stack uses three basic principles in his management practice called, The Great Game of Business
His basic rules for open-book management are:
- Know and teach the rules: every employee should be given the measures of business success and taught to understand them
- Follow the Action & Keep Score: Every employee should be expected and enabled to use their knowledge to improve performance
- Provide a Stake in the Outcome: Every employee should have a direct stake in the company's success-and in the risk of failure
Similarly, in 1995, Case made sense of open-book with three main points:
- The company should share finances as well as critical data with all employees
- Employers are challenged to move the numbers in a direction that improves the company
- Employees share in company prosperity
The National Gathering of Games, held annually in St. Louis, Missouri, is a coming together of open-book managements’ minds and practices. The Gathering of Games is the only practitioner led conference on creating a culture of ownership by teaching employees to feel, think and act like owners. At the event, business leaders learn from people who have used open-book management to increase the size, profitability and employee engagement in their companies. The conference consists of sessions, keynote speakers and workshops that are specifically targeted to each phase of open-book management.
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