Open Book Management (OBM)
- What is OBM?
- Why implement OBM?
- Our Experience
- Perspectives from Our Team
- Application
Why Implement OBM?
Extract from Vision Pursuit– Essential Business Reading Summaries – Open Book Management – John Case 1995
The logic of OBM is simple:
Businesses in which everyone has "ownership” will outperform companies in which only a few people at the top see that as their job.In the new economy, creating a business of business people is the ticket to survival – and prosperity.
OBM stimulates and promotes enthusiasm, innovation and progressiveness. It is a platform for individuals and businesses to reach their potential and to maximise their wealth. It harnesses the focus and interest of all team members and gives the opportunity for team members to be able to benefit from the financial results and the personal stimulation that comes from being involved in the process.
Furthermore, OBM is an effective team member retention tool. To quote a recent press release from Morgan and Banks:
In ongoing surveys around the world over the past 50 years continuing evidence confirms that when asked to rank on a scale of 1 to 10 what employees want from their job, and then when management are asked what they think their employees want, we have the following startling contrast:
| Employees Rank | WHAT EMPLOYEES WANT FROM THEIR JOB | Management Rank |
| 1 | Full appreciation for work done | 8 |
| 2 | Feeling in on things | 10 |
| 3 | Sympathetic understand of personal problems | 9 |
| 4 | Job security | 2 |
| 5 | Good wages | 1 |
| 6 | Interesting work | 5 |
| 7 | Promotion and growth | 3 |
| 8 | Management loyalty to employees | 6 |
| 9 | Good working conditions | 4 |
| 10 | Tactful disciplining | 7 |
Note how the top three employee ranked issues were the bottom three ranked by management.
Management typically offers money, security and promotion – employees just want to feel valued as individuals.
A system of OBM fully addresses items 2, 5 and 9 and partly addresses items 1, 6 and 7.
It has been estimated that it costs approximately a full year’s salary to replace a team member who leaves. As OBM helps to address the needs of team members – there is significant potential for costs associated with team member turnover to be reduced – thereby assisting net profit of the business.
Read about our experience with OBM.
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