AlL abOut Open boOk ManAgemENt Elnian Gilbert & Gauri Thergaonkar January 13, 2016
AlL abOut Open boOk ManAgemENt
The Story of a Huddle
AlL abOut Open boOk ManAgemENt
The Story of a Huddle
AlL abOut Open boOk ManAgemENt
Key Terms in Open Book • Scoreboard: A whiteboard that displays the current
and forecasted performance for each of the business or department’s key measures. (Known at Zingerman’s as a DOR or Departmental Operating Report.)
• Huddle: The part of the departmental or business meeting in which the DOR is discussed. This meeting is where we run the business.
• Line-Owner: The person responsible for a key measure on the
Scoreboard. Being responsible means reporting on past results, forecasting future performance, and engaging the team on how to deliver the future results.
AlL abOut Open boOk ManAgemENt
Definitions of Open Book Management “The practice of communicating with people via the numbers.” – Jack Stack, founder of the Great Game of Business “Open book management is a system in which everyone in the organization takes responsibility for the effective operation of the business, financial and otherwise.” – Ari Weinzweig, Zingerman’s Co-Founding Partner and CEO “A way of running the business where everyone has access to, and knows how to use, the key information.” – A Zingerman’s employee “A means to empower every employee to take an active role in the success of the business.” – Another Zingerman’s employee “Being able to engage all your employees to grasps how their roles and responsibilities on a day-to-day basis impacts short and long-term finances.” – A webinar participant
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Why Open Book Works • Employees are more engaged and committed • Breaks down traditional organizational barriers • Creates a shared responsibility • Harnesses the wisdom that exists within the organization • Stress is easier to deal with when it’s shared • Everyone focused on the same goals leads to better results
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Common Questions/Concerns • Privacy • Salaries/wages don’t have to be shared • Private information tends to stay private, because people take responsibility
• Decision Making • OBM doesn’t mean that decision making needs to change • More informed decisions are made on all levels • Decisions make more sense when everyone knows how the business works
• Too much information? • OBM strives to share the right amount of information
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Why do people get engaged? •
They play a part in decision making
•
It makes their job more interesting and more fun
•
They develop leadership and entrepreneurship skills
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It can be a chance to demonstrate capability for more
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Many people like knowing the story behind the numbers
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Gainshare!
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What Open Book IS
What Open Book is NOT
• Open & lavish with sharing
• Just about opening the books
• Participative – a Team Sport
• A Spectator Sport
• FUN!
• Just about the Finances
• A way to more effectively
• The answer to everything
run the business
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For more on Open Book Our 2-day seminar : Open Book Management
www.zingtrain.com 734.930.1919
The Book : Great Game of Business
[email protected] [email protected]
