Open book management its not what you think

Open book management

Guide to powerful cultural change delivering rapid financial

improvements

By Mick Holly and Andre Gien www.finacialstatementstory.com

What is Open Book Management (OBM)

It’s a culture, its what leaders want and are passionate about It’s a way for people to know and understand how they, and the

business is performing Its about empowering people to think and act as business

owners MOST IMPORTANTLY ITS ABOUT TRUST

The fundamentals to effective open book management

Mutual respect and trust Sound compensation system based on performance

and feedback

A culture that encourages learning and growth

Other great benefits Create a culture of discovery Driving real problem not symptoms Enable people to focus on measureable activities That improve financial performance

How do I get there

The secret is to start slow Then keep at it knowing it’s a slow process Start with the basic concepts Develop diagnostic skills Scale the learning Observe the “new behavior” Keep the process sustainable

What does open book management deliver

The ultimate benefit is feeling of OWNERSHIP

Ownership is the most powerful form of engagement

The Basic conceptsyes it is about how we make money and

create wealth

How we make money is a good start

Then how do we keep our money

When we keep our money what do we do with it

Using storiesStories are a powerful way to engage and get people connected with the mission

The treasure map is a vehicle to tell all kind of stories that help the open book management process

Let the characters tell the storyRevenue is Vanity Profit is Sanity Cash is King

Learn what happens when the characters work together and what happens when they don’t

Vanity is responsible for revenues and growing sales

Sanity maintains the focus on cost helping to achieve good growth

The King need no introduction he is all about cash and keeping it in his coffers

The treasure map Used to integrate

The way we make money With the way we create wealth Into the 5 chapters of the financial statement story

Removes distraction placing financial performance on the center stage

Its interactive Its engaging Creating simultaneous learning and discovery Driving meaningful actions and accountability

Now Future

Revenue

Profit growth5% EBIT growth

$15,727

Gross profit 24

%

$20,000

26%

Benefit

Treasure

Money making machine

Wealth creation engine

Total Investment

Now Future

Now Future

$10,400

$15,000

Treasure and Future map

Growth %Profitability %Working capital

Cash required

Returns

Self funded ???

-1.85%

5%

13.8%

<15%

10C

34C

$10B

16%

<22%

Division targeted growthNew markets

Change working capital to be competitive weapon

Significant culture change

We have to do this within a 10% operating cost

EPS growth 25%

The Story

Make the story interactive

Observe behavior changes

Before After

Let us help you on your open book journey

We deliver an open book methodology that can be replicated by you.

Lets chat when you have some time [email protected]

[email protected]

Andre Gien

Andre is our Evidence Wizard. He combines the Passion of intuition with the Power of Evidence to weave amazing stories that reveal the secrets and treasures that are locked within financial statements.

He has deployed the financial statement story discipline in over 150 different companies releasing more than $500million in value and more importantly, demystifying the financial statements for thousands of people.

Andre's favorite quote:

"If you change the way you look at things, the things you look at change"

[email protected]

Mick Holly

Mick is Chief Treasure Hunter. Over the last 30 years Mick has consulted with the world’s leading companies to identify and implement performance improvements. He has discovered that behind every person and company is a story. Sometimes it’s a rocking adventure, sometimes a comedy, a mystery, a drama and on occasion, a tragedy. Going beyond mundane numbers and engaging in the story is the key to helping companies and individuals build corporate and personal wealth.

[email protected]

Facilitators