As managers we sometimes forget that we may be the only ones who really see the whole picture of the company operation. Communicating company performance to internal teams is an important key to setting a course for your growing business, and also to minimize deviations from that path.
The best way to communicate and leverage all the talented people in any organization is to make sure they know what the goals are and how success for your organization is measured. Sharing company financial information is still the best way to do that. Teaching your internal teams to read and understand the financial reports can be critical to your company’s success. Once headed down this path, open book management can take communication to a whole new level. Common understanding among employees and teams about how their performance impacts the bottom line is eye opening and possibly transformational.
An example of the power of sharing this data with our teams occurred for me once as a result of explaining precisely what expenses were being incurred each month on a fleet of service vehicles. Drivers who were attending the meeting realized they controlled some of those costs and together proposed changes to off-duty parking policies that saved the company fuel and maintenance costs in the following months. Not only that, but it was easier to implement a policy change that came from the employees themselves.
One excellent resource for implementing an open book management philosophy is Jack Stack’s The Great Game of Business, considered by many to be a business classic. The book, as well as the associated seminars and regular conferences, provides an established feedback community you can tap into for driving your company to success by utilizing the power of all your people.
Don’t forget to share the big picture with your team. Sharing the company financials and other performance metrics helps everyone to focus on common goals, positioning your company for success.