Mike Andes (speaker) advocates that owners should practice open-book management—sharing information rather than hiding it—because transparency builds employee trust, which in turn motivates employees to work harder and in the business’s best interest, ultimately increasing profitability.
Ultimately, we want to be able to make more money in our business. And the way that I believe you do that is you get people to trust you. Because I believe that if someone is hiding something from me, I will not trust them. And if I do not trust them, I am not going to work harder for them. That's ultimately what open book management comes down to. Will your employees trust you more if you share everything instead of hiding things from them? Yes. If they like you more, will they work harder for you and work in the best interest of the business? I believe the answer to that is yes.
