The great game of business: how transparent is your company?
Jack Stack spoke at the #Inc5000 conference on the power of integrating full financial transparency throughout your business, straight down to the janitor
Jack Stack spoke about radical transparency in business at the Inc 5000
conference. The key takeaway of this session was the benefit of implementing the ultimate transparency within an organization,
including financial transparency.
Stack advocated entrusting every person in the organization with
company financials. Every employee, straight down to the janitor, should
know the company’s numbers. Meet every week to unveil cash flow, revenue and other key financial statistics to everyone.
The idea is this: if everyone down the line has a basic understanding of the company’s financial operations, wouldn’t it then follow that each employee would be informed enough to improve both products and costs? Educated and informed employees are secure and loyal employees.
It was hard to believe at first that this type of transparency would be beneficial: wouldn’t the employees end up spilling private financial doings to outsiders, putting the company at a disadvantage? Well, maybe on occasion, admits Stack. But the benefits far outweigh the risks. Stack finds that empowering every single employee to make and implement ideas that improve
the company. The video of employee testimonials was especially
empowering: they were empowered, smart and fiercely loyal. You want
loyal employees? Engage them and entrust them with the power to help grow the company.
And it turned out that the benefit wasn’t just for the company alone. Financial literacy was empowering far beyond the office and into the community at large.
The most Tweeted quote of this session was shared dozens of times:
And the results speak for themselves.
Jack Stack is the founder, CEO and president of SRC Holdings Corporation, a pioneer of the leadership model known as Open Book Management. He has authored two books, A Stake in the Outcome and The Great Game of Business, the latter of which was provided to all attendees at the Inc 5000 conference, courtesy of the City of Frisco, Texas.
During the live session, an artist improvised a visualization of the key ideas and concepts Stack presented. Her finished product, sponsored by Ink from Chase, is available here for download.