Open book management

Open book management is the practice of giving all employees access to the financial and operational information of a business. The intent behind this approach is to give employees a greater sense of involvement in the business, so that they will be more inclined to support the performance targets of the firm. Open book management only works if it is supported by a significant level of employee training, so that they fully understand the information that they are being given. This approach is especially effective when it is combined with a gain-sharing program, so that employees benefit from their participation in the operations of the business.