Ultimately, the measurable value of open-book principles will be determined by several factors: The extent to which a company modifies them to accommodate its own circumstances; the extent to which employees in that company (top to bottom) commit to the program, once devised; and the extent to which everyone involved shares equitably (NOT equally) in the rewards.
Those who admire this book as much as I do will presumably want to read (if they have not already read) The Open-Book Field Book and The Open-Book Experience. These two books develop in much greater detail the material first introduced in Open-Book Management. Also, they provide an absolutely essential guide to deriving maximum benefit from John Case's wisdom and experience.
The principle here is very simple- instead of your company or division relying on only the handful of minds at the top of the organization to improve the company, it treats all the employees as adults with brains and encourages everyone to work for the company's benefit. This also has the effect of reducing or eliminating office politics since everyone's pulling in the same direction.
How? Fortunately the process is pretty simple, though it needs to be tailored to each business. The pieces are: 1. Giving employees all relevant financial information, 2. Giving employees training to understand the financial information, 3. Giving employees appropriate responsibility for the numbers under their control, and 4. Giving employees appropriate stakes in the outcomes (through bonuses, stock, options, etc.).
"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.