Michael Erath argues that organizations often train employees only on day-to-day tasks without showing how their work affects other teams, the company’s flywheel, and financial outcomes. He recommends building financial literacy so employees understand profit versus cash, link their work to successful outcomes, and thereby help create a healthier, sustainable organization that can pay top compensation and better pursue its purpose.
Chapters
I think it's a mindset that's required as well. There's, I think what most organizations do is they teach people what to do in an eight hour workday, right? This is what you do all day long. We don't spend time helping them connect the dots to how what they do affects other teams within the organization, how it contributes to advancing our flywheel, and how it's part of a bigger picture. And ultimately how it, and this is something Jack Stack talks about in the great game of business is how it connects back to helping us make profit and generate cash. Right? And sadly, I think most employees don't know the difference between the two either. But creating some financial literacy, understanding the importance of successful outcomes, how that ties back to a strong and healthy company from a financial perspective, all of that creates the ability to provide top of top of class pay, creates a more sustainable organization. And if you really believe in the purpose of the organization and you invest in the right people and those people are focused on generating cash and making profit, that gives us more fuel to accomplish more of the purpose that we believe in to begin with.