I run a small food manufacturing business and we have practice transparency on almost all aspects, including our P & L, with all employees. Granted, we are small, currently only four of us, never more than 10. We have always viewed it as a way to not only have employees invested in the business, but also to educate them on all the decisions made, especially the hard ones. It has meant that people have seen their layoffs coming, but I also wholeheartedly believe it is the most humane way to run a business.
A little late in the reply, but I think the biggest lessons are around how cash flow impacts almost all business decisions and how tracking relevant goals can show you if you’re heading in the right direction. I found that it’s often tempting to track the wrong KPIs, especially if you don’t understand how they affect the business as a whole. But when you look at income statements and P&L‘s regularly you see the numbers that are truly important to be paying attention to.
If only the hospice organization I worked for was dedicated to transparency! I might still be working there. Unfortunately, things had degraded into management vs. field staff and I just retired rather than endure it. But the amount of information they hid from us was staggering. What a shame….
I run a small food manufacturing business and we have practice transparency on almost all aspects, including our P & L, with all employees. Granted, we are small, currently only four of us, never more than 10. We have always viewed it as a way to not only have employees invested in the business, but also to educate them on all the decisions made, especially the hard ones. It has meant that people have seen their layoffs coming, but I also wholeheartedly believe it is the most humane way to run a business.
Thank you so much for sharing Genevieve-- I LOVE hearing about your business practices. Totally agree with you about the humanity of transparency :)
Are there particular learnings or areas that have been particularly important to your team to understand about the financials?
A little late in the reply, but I think the biggest lessons are around how cash flow impacts almost all business decisions and how tracking relevant goals can show you if you’re heading in the right direction. I found that it’s often tempting to track the wrong KPIs, especially if you don’t understand how they affect the business as a whole. But when you look at income statements and P&L‘s regularly you see the numbers that are truly important to be paying attention to.
If only the hospice organization I worked for was dedicated to transparency! I might still be working there. Unfortunately, things had degraded into management vs. field staff and I just retired rather than endure it. But the amount of information they hid from us was staggering. What a shame….
Ugh, David, I wish that weren't such a common story! Truly, what a shame.