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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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