New Management Approach Opens Books for Employee Scrutiny
Highlights from 2004 Articles
Date Posted: 1/3/2005
Baker Products, a major supplier to the industry, has implemented a new type of management approach. The new program is called The Great Game of Business© and is becoming increasingly popular in all industries across the nation.
The Great Game of Business takes open-book management, where all of the company’s financial records are open to employees, and takes it a step further. The employees find ways to make a difference in the company’s financial performance, and in doing so, can earn rewards for themselves.
Each year, the company picks its critical number —the one number that can bring success or failure to the business. Baker Products chose profit before tax for the critical number in 2003 and 2004. The game then focuses on the critical number.
The first step is to know the rules — and to teach all employees the rules. The second step is to follow the action and keep score — or communicate with employees on a regular basis. The third step is to provide a stake in the outcome — or a bonus if the goal critical number is met.
Since beginning the game, Baker Products employees have been looking for ways to increase profits by increasing labor efficiency, reducing delivery times, listening to customer suggestions and complaints, increasing the product line, cutting frivolous spending, and taking more of a part in the day to day running of the company.
Does the Great Game of Business work? In 2003, Baker more than doubled its profit before tax goal.
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