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Opening the books, growing the business Logo cgma

  Neil Amato |   Free |   AICPA and CIMA |   01 Jun 2016 |   CGMA Magazine

This article explores how companies that share information with employees find that transparency makes everyone more visionary.

Topics covered:
  • Management accounting: Leadership: Team building, Intermediate
  • Management accounting: Leadership: Team building, Advanced
  • Management accounting: Leadership: Driving performance, Intermediate
  • Management accounting: Leadership: Driving performance, Advanced

3 Comments/Reflections

Leona Kelly

Leona Kelly Oct 2020

This approach of open communication has been very effective in my experience to motivate managers and staff and to assist with the growth of a team culture - however there have been experiences whereby managers spent so long analysing the financial information which they were provided with that they started to decline in their productivity or they started to distance themselves from their team members and function negatively. There needs to be careful management of this process and support from all levels
John Walton

John Walton Feb 2020

Learn from employee owned businesses that sharing financial informatioin will empower employees. Sharing bad news is just as important as sharing good news. Set the context when presenting financial imformation.
Lalit Bhandary

Lalit Bhandary Jun 2016

A very good article, with simple example the benefit of concept of Transparency and open-book management are well explained.
I like the part of owning the process to have more commitment, engagement and retention.

In my 20+ years of financial experience I have seen these benefits coming in an open book environment. I have worked in organisation with closed and also open.

When I read this article I could relate the principles, benefits and deliverables very structurally.

Some examples were in this article was very inspirational for me. One of them specifically 

"When you own something, you take more responsibility, you take more care, you are more loyal and committed to helping deliver success,” said Louisa Hosegood, FCMA, CGMA, the head of assurance, operations at John Lewis."

i am certainly in agreement and like it.