by Carl E. Frahme, Ph.D.

If you haven't been exposed to Open Book management, we strongly recommend you learn about it and read the articles and books at the end of this column! We've excerpted the following from the references:

Open-book mamagement is a way of running a company that gets everyone to focus on helping the business make money. Nothing more, nothing less.

If you could tear apart an open-book company and compare it with a conventional business, you'd see three essential differnces:

Every employee sees and learns to understand the company's financials, along with all the other numbers that are critical to tracking the business's performance.

Employees learn that, whatever else they do, part of their job is to move those numbers in the right direction.

Employees have a direct stake in the company's success.

If you'd like to unleash some real power in your company, give some serious thought to open-book management. It could unlock a lot of profits and growth. But it takes an honest, open approach to your employees, and a great deal of hard work and trust-building. And remember, if your competitor puts it into use before you do, it could mean trouble. You see, it really, truly does work, and it's not just another management "fad."

The reading list:

The Open Book Revolution, John Case, Inc. Magazine, June, 1995, pp. 26-43.

Before and After, David Whitford, Inc. Magazine, June, 1995, pp. 44-50.

Open Book Management, John Case, Harper Business, New York, 1995.

The Great Game of Business, Jack Stack, Currency Doubleday, New York, 1992.