Document Detail


Opening the books.
MedLine Citation:
PMID:  10165446     Owner:  NLM     Status:  MEDLINE    
Abstract/OtherAbstract:
For years, small companies have experimented with forms of open-book management. Open-book systems have smoothed change efforts by giving workers the why instead of just the how of initiatives; they have enabled employees to think like owners. Now divisions of large organizations such as R.R. Donnelley & Sons and Amoco Canada are finding opening the books can work for them, too. It isn't easy, and companies must adapt the principles to their own situations. AES Corporation, for example, found that it had to declare all its employees "insiders" when it went public. One of the reasons for large companies' interest in open-book management is the success of a role-model company, Missouri-based Springfield ReManufacturing. Leaders of divisions of large companies have been able to visit and ask questions. Other early adopters are also showing competitive advantages. Among them are Wabash National, now the nation's leading truck and tractor manufacturer, and Physician Sales & Service, a distributor of supplies to doctors' office. Open-book principles are the same whether a company is large or small: every employee must receive all relevant financial information and be taught to understand it; managers must hold employees accountable for making their unit's goals; and the compensation system must reward everyone for the overall success of the business. Hexacomb Corporation is one large organization that has done well. Workers at the company's seven plants are inspired by a system of splitting profits over budget fifty-fifty: half goes to the company and half to the bonus pool. Such companies are learning the benefits of having everyone work to push the numbers in the right direction.
Authors:
J Case
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Publication Detail:
Type:  Journal Article    
Journal Detail:
Title:  Harvard business review     Volume:  75     ISSN:  0017-8012     ISO Abbreviation:  Harv Bus Rev     Publication Date:    1997 Mar-Apr
Date Detail:
Created Date:  1997-04-16     Completed Date:  1997-04-16     Revised Date:  2000-12-18    
Medline Journal Info:
Nlm Unique ID:  9875796     Medline TA:  Harv Bus Rev     Country:  UNITED STATES    
Other Details:
Languages:  eng     Pagination:  118-27     Citation Subset:  H    
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MeSH Terms
Descriptor/Qualifier:
Decision Making, Organizational
Industry / organization & administration*
Institutional Management Teams
Management Audit / methods*
Organizational Culture*
Organizational Innovation
Personnel Management
Salaries and Fringe Benefits
United States

From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine


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