I run my company with an open books policy. Staff on the payroll have a right to see the Profit and Loss statement as well as the Balance Sheet. I believe if I’m asking these guys to go on the journey with me, they have a right to know what risks we’re taking.

I’ve even offered to show the books to a key supplier or two. 😉 They declined but were apparantly impressed that I offered.

Compare my attitude with that of my uncles and father (or even of some younger business owners I know). These guys are terrified of their staff finding out they are profitable. One entrepreneur told me to never mention his Mercedes at his business — the staff don’t know he has one. One uncle berates me every time I do something “extravagant” like fill the office fridge with soft drinks or get an expensive haircut. Actually he didn’t like my disclosure to staff that I got suckered into the expensive haircut, “What will they demand if they know you spent that much?”, he said. Aside: never tell a cute hair-stylist “do whatever you want” without getting a written quote.

Maybe it was my time in IT, but I treat my staff as if they are smart and loyal. If I inform and empower them, they’ll make better choices for my business. They are more brutal on discount requests than I ever was.

While none of them eagerly await weekly or monthly P&L’s there is a culture change occuring.

Can anyone support this idea with examples of their own?