Open Book Management – 80% of the Time it Works Every Time

Final episode with Tabitha and we learn more about Open Book Management. How could your business benefit if your people understood how your organization creates value and creates a positive cash flow.

Tabitha 96

Hear how her husband’s unexpected job loss implanted in Tabitha’s mind the importance and value of Open Book Management.

What is Open Book Management? A tool to run the businesses to make sure that anyone at any level has the right information to make right and effective decisions.

How did OBM affect her day to day work when she started at Zingerman’s Roadhouse. She felt better about her decisions. She also felt more responsibility and accountability to follow through.

Many people own a “line”. What is that? Every week the businesses get together for huddles to go over the DOR or Department Operating Report. The DOR is made up all the key measures or numbers that are important to the business. For example, revenue, labor costs, food costs, etc. Each of these are a line. Someone owns each line and their job is the cheerleader for their respective line. They also report, forecast, and help deliver the results.

(post photo of the big board seen in the hallway)

Open book reporting or sharing numbers is important. But there is little that can be done by anyone with that information. Hearing what happened isn’t necessarily inspiring or habit changing.

Open book management on the other hand is 20% what happened (past) and 80% is spent looking forward. What can we do, how can we impact the numbers.

Her advice for someone wanting to make a change in their company? She would start with BLC or Bottom Line Change. Two key elements:  compelling reasons and a vision. How can the problem be compelling to the other interested parties. How is it going to make life easier for them?

Second, providing a vision. What does success look like? An inspiring story of the way it will look if the change is made. This often gets people more excited and to share new ideas.

Two businesses that are doing great things with customer service and employee engagement: Amy’s Ice Cream. (They have 30 hours of entrepreneur classes to help employees start their own thing.) Mark and Aaron over there.

Salt and Straw, Pacific Northwest. They work with local farmers, fighting local child hunger, a restaurant incubator, and working with local schools to help kids to create dishes and to pitch them.

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