Open book management is an approach that Zingerman’s practices and teaches. They describe it as actively sharing all the financial information about the business with everyone who works within the organization. Everyone, from dishwashers to owners and accountants, is responsible for the financial performance of the organization.

This may seem like an odd approach, but Zingerman’s says it’s one of the most successful changes they’ve made. Part of the reason it’s so effective is because people at the top of organizations don’t know the answers to every problem. Employees on the front lines are doing the day-to-day work and see problems that leaders often don’t. They’re able to provide ideas that are of great value, which makes an impact on the entire business.

One example Zingerman’s gives involves the dishwasher at their restaurant. They were noticing food costs were too high, but couldn’t figure out why, so they asked a dishwasher to report on the top five items wasted. Turns out, a lot of french fries weren’t being eaten, so they decided to serve smaller portions and offer free refills, saving them thousands of dollars a year. If the dishwasher hadn’t been involved, they may have never figured this out.

Open book management combines the abilities, creativity, experience and intelligence of all team members, and gives everyone the confidence and knowledge to handle situations and help the business succeed.

Learn more about open book management: zingtrain.com/article/why-open-bookmanagement-is-an-excellent-way-to-run-abusiness

This article was published in the Venango Chamber’s May 2021 VenangoWorks! Newsletter.