Open Book Management Definition
Open Book Management is a management technique originated by Jack Stack and his team at Springfield Remanufacturing and popularized in 1995 by John Case. The method, as the title implies, is to give employees all relevant financial information about the company so they can make better decisions as workers. This information includes, but is not limited to, revenue, profit, cost of goods, cash flow and expenses.
The basic rules for Open Book Management are as follows:
Give employees all relevant financial information.
Give employees training to understand the financial information.
Give employees responsibility for the numbers under their control.
Give employees a financial stake in how the company performs.