Opening the books: should all staff understand company finances?

July 9, 2014

The Guardian | Amt Westervelt

Open-book finance has the ability to break down the divide between workers and management, and to increase productivity. Wayne Baker, professor at the University of Michigan’s Ross School of Business, teaches open-book finance, and says that over the past few years, there’s been increased interest in understanding this practice. He explains that “It’s a big change, but companies that do it achieve efficiencies and engagement at such a high level that it’s really worth it.”  Ari Weinszeig, co-founder of Zingerman’s, explains how this practice has helped his company immensely — “When people know what the game is, they play better,” because when you teach everyone in the company how the business works, they “pay attention in different ways,” because “they feel like they’re part of a team that helps that work.”