Open-Book Management: Coming Business Revolution, The

by John Case

"Read even the first chapter of this extraordinary book and you'll find yourself cheering, screaming, jumping up and down with excitement. The companies described in this book are decades ahead of the reengineers -- and you don't need to be a Bill Gates or a Jack Welch to put their ideas into practice today." -- George Gendron, editor in chief, Inc. "Companies that practice open-book management seem to have captured some sort of lightning in a bottle." -- Chris Lee, Training

"This book should be required reading in corporate America." -- Chicago Tribune

"If you want to give your preconceived notions a good kick in the you-know-where, give Case the opportunity to articulate the merits of open-book management." -- Entrepreneur

Open-book management is not so much a technique as a way of thinking, a process that actively involves employees in the financial life of the company. Numerous companies have already found that employees who are informed and aware of the company's financial situation are motivated to seek solutions to problems and assume a greater degree of responsibility for its performance. John Case begins by examining the current competitive climate and the history of established management techniques. He shows how the traditional treatment of workers as "hired hands" with little involvement or responsibility beyond their own area is no longer effective in today's ever more competitive global environment.

Case clearly and carefully explains the principles of open-book management: timely sharing of crucial financial information with employees; educating the employees to understand and apply the information; empowering employees to apply the information to their own work; and offering employees a stake in the successful implementation of their ideas. Open-book management will take different forms at every company, Case notes, but he offers a wide range of suggestions and guidelines for implementing these principles. He concludes with a series of in-depth case studies, featuring companies of various sizes and financial situations that have successfully implemented open-book management. Open-Book Management is the indispensable guide to teaching employees how to think and act like owners.

Genres: Business, Management, Leadership

224 pages, Paperback

First published May 22, 1996

About the author

Writes about finance and business.

Reviews

[Stan · Rating 4 out of 5]

I read much of this book, and it's companion, "The Open-Book Experience". I was seeking for a way to get my employees more engaged, and this was just what I was looking for.

I own a small assisted living company with about 12 good employees. But I want to get more out of them in a way that really affects the financial success of my company. So, I formulated my profit-sharing plan and completed the other details Mr. Case recommended. Yesterday, I presented the plan to the employees. I was nervous disclosing my financials at first, but they really got involved as we discussed them. And when we calculated the profitability of a full building, they started to understand how much that could mean to them. If we maxed out our profit, they could get an extra 3-4 paychecks/year for bonuses. They got really excited about it, and immediately started voicing some great ideas. And I was able to turn the tables on them and tell them to make it happen.

I am really excited about this experiment. My hope is that they become more engaged, act like owners, and treasure every interaction as a marketing opportunity. The measure of the success is easy: what is our census? If we are always full with a waiting list, this effort will be a smashing success.

Stay tuned. I should have something to report in the second half of 2013.

[Mohammed Barakat · Rating 4 out of 5]

Open-Book Management, by John Case, presents a new management philosophy of converting any company’s hired hands into businesspeople. This new approach of running a company treats people like ‘adults’, rather than ‘kids’, who can make their own decisions on what needs to be done instead of being told by managers on what to do.
Open-Book Management (OBM) system is broken down into four principles that need to be established in a company’s culture so that it reaps the fruits of this system:

1. Get financial and operational information out to all in the company,
2. Business literacy; train people to understand and use the information,
3. Empowerment with brains; hold people responsible and accountable for their decisions, and
4. Give people a stake in the company’s success (or failure).

The book presents numerous case studies on the success of OBM for companies, some of which are amongst Fortune 500, in addition to testimonies of many executives on the positive change that had affected their companies’ bottom lines after applying the OBM.

Although it varies in implementation depending on the complexities of different industries, I feel that OBM is able to transform how employees perceive their value in their workplace. Consequently, if perception of self-value moves in the right direction, employees will think as businesspeople not as hired hands. As Richard Branson says: “Take care of your employees, and they’ll take care of your business”!

I recommend the book for any executive or C-level person facing problems with employees engagement at work, and, more importantly, struggling with red lines in his financial statements.

[Brian Willott · Rating 4 out of 5]

I got this book when I was just out of school and remember enjoying it at the time. Now, I look at today's management environment and I can see how far ahead of his time John Case was when he wrote this book.

[Jason Carter · Rating 4 out of 5]

As a business owner of a closely held business (I have two minority partners), I bought this book because I'm committed to the principles of empowering employees to think and act like owners -- and helping them to share in the rewards.

The term 'open book management' was popularized by Jack Stack, CEO of SRC in Springfield, MO, and author of "The Great Game of Business: The Only Sensible Way to Run a Company." This book presents the reasons, the rewards, and practical steps to take in becoming an open-book company. Stack's book is next on my reading list.

[Jimmy Pryor · Rating 3 out of 5]

This is an old book, 1994 or so. Open-book management was just beginning to become popular. It's a basic, good book on the subject. I am surprised that I haven't been able to find a more up-to-date book on the subject. Inc. magazine stills writes about it and John Case appears to now be a private consultant on the topic.

[Susanne · Rating 4 out of 5]

I had heard of open book management before but I never really read about it. After getting more into this topic with this book I am a fan. The book is written in a nice easy to read entertaining way and it is just a fun way to learn more about a strategy that can change as a business that much. Even though the book was written in the early 90s I feel like its still a hot topic nowadays.

[Cameron · Rating 4 out of 5]

This is great, if you are in to open book management. If you are not, congratulations - don't read this book. If you are, this is probably the best book on the topic I've seen, though it's not as much fun as The Great Game of Business.