Open Book finance

Business practice of sharing financial and decision-making duties among all other employees (___________model: Low-preforming working expectation? Less sense of responsibility giving staff members higher challenging work will turn out impractical or chaot

traditional business

from the ________: Executives passing along only the information deemed "safe" for employees eyes. Tend to hide net profits and financial info keep books closed protect competitive advantage

top down

�___________ model: Business practice of sharing financial and decision-making duties among all employees. "They are learning how to manage money and how to run a business"
� Not just about showing people all the numbers; Teaching and coaching employees h

Newer business

�Focusing on business transparency
(Note): Open-book finance ideas / concepts originally developed by ______(1993) and Jack Stack (1997)

John Case

One of the open book finance benefits that:
� Cost control or cost savings as everyone's responsibilities: Everyone becomes _______ for and contributes to the financial success of the company

responsible

One of the open book finance benefits that:
� Expect more commitment to __________ and better employee contribution

improving financial results

One of the open book finance benefits that:
� Employees have a ______understanding of their organization's purposes and goals

clearer

Two of the open book finance benefits:
�Even _____ ones can add up to a very large number
�Promoting open communication among employees

smaller

Business cases we discussed: Zingerman's / Whole Food / Paris Creperie:
o______ adopting the open book finance: the Creperie $50,000 Net operating profit (NOP) in 2014
oAll employees learned the basics of business-understanding the balance sheet and knowi

Before

_______ open book finance, Paris team delivered NOP of $204,000 over _____ times the previous year's performance in 2015. Full time-worker took home an extra $6,000/ year
o F&B expenses were reduced to_____

After, 4, 7%

�What information shared if organizations adopt _______management principles? Budgeting, monthly results, quarterly financial reports, possible variance, daily, weekly, and monthly financial goals, unexpected results. Sales, expenses, debts, payroll- the

open-book