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Open book management style: helpful or hurtful for business?

Open book management style is a tactic many business owners and managers find tough to swallow, but can have tremendous benefits in certain environments.

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Open book management style: what is it?

When I was a college student, I remember someone showing my class a link where we could look up all of the staff and faculty’s salaries. My mind was blown – I never thought I could be privy to such information. But it was an eye-opening experience that helped me understand their professional experiences while working at the university. In regards to corporate America, how many employees really know what their company’s financials look like? Would adopting an open book management style improve company performance?

First coined by John Case, businesses that employ open book management strategies share important financial and corporate information with all employees, not just senior executives, and allow employees to have a direct influence in the success and or failure of the business.

If a company is performing poorly, nothing is off of the table, and employees can see just how badly things are going which will hopefully motivate them to do better. On the other hand, if an employee does something that improves the company, they are made aware of that as well, and shown how their efforts are responsible for boosting profitability and success.

Pros and cons of open book management

Those who support this style of management like it because everyone has access to the data they need in order to make informed decisions. Businesses that operate with a hierarchical information access approach can suffer because only executives know the true status of the business. Those who are lower in command have only vague notions of what’s going on, and because they aren’t able to see things for themselves, may not have a sense of urgency or drive to do everything they can to help make things better for the company. This essentially leaves all of the responsibility in the hands of management.

However, this type of management could also create pandemonium if a company is performing poorly; employees could see drastic revenue drops and begin anxiously talking with co-workers, essentially becoming distracted and further worsening things. Additionally, staff could become resentful after seeing the salaries of their peers and superiors, which could lead to disagreements.

There are benefits and drawbacks no matter which way you look at things – so if you can’t make a definitive case for or against it, perhaps try a hybrid approach and share some of the data points you normally reserve for investors and execs with employees in order to improve their performance. This allows them to be more in tune with the company as a whole and can increase their personal investment in seeing it grow.

Destiny Bennett is a journalist who has earned double communications' degrees in Journalism and Public Relations, as well as a certification in Business from The University of Texas at Austin. She has written stories for AustinWoman Magazine as well as various University of Texas publications and enjoys the art of telling a story. Her interests include finance, technology, social media...and watching HGTV religiously.

Business Entrepreneur

The top 10 startup cities in America

(ENTREPRENEUR NEWS) If you’re thinking about launching a startup anytime soon you may want to check out this list on the top 10 cities for startups.

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The digital revolution is in full swing, and some cities are setting themselves up to capitalize upon these innovations by supporting startups.

In order to “better understand the U.S. cities driving the digital revolution,” several groups have come together to rank which cities are making the most of the tech startup boom.

The U.S. Chamber of Commerce, 1776, the U.S. Chamber Technology Engagement Center, and FreeEnterprise.com have teamed up to publish a report called Innovation That Matters (ITM).

The report analyzes and ranks U.S. cities on such factors as startup capital, the connectivity of startups, startup culture, the availability of worker talent and specialization, and more. Data was taken from surveys of entrepreneurs and businesspeople, startups, and leaders in public and private sectors.

J.D. Harrison, senior director of strategic communications at the U.S. Chamber of Commerce says that the “digital revolution has the potential to make winners of some cities and leave others behind.”

The study aims to find out which cities “embrace this shift to a digital economy and actively support technology startups,” arguing that these cities “will be the best positioned to unleash the power of high-impact innovation and cultivate vibrant, thriving communities.”

The top ten ranking cities are as follows:

10) Portland, Oregon because every city needs a nickname, has been dubbed the Silicon Forest, referencing its leadership in green tech.

9) New York City, New York. The largest tech hub on the east coast.

8) Seattle, Washington. Home to Amazon.com and several other tech firms, with Microsoft’s headquarters in nearby Redmond.

7) Dallas, Texas. Dtown moved up significantly by increasing startup connectivity and tapping into a large, diverse workforce.

6) Atlanta, Georgia. The “most improved” city on the ITM list, moving up 15 places to number six due to a surge in financial, educational, and health tech industries.

5) Austin,Texas. Home of The American Genius, Austin has become a “haven for tech-savvy millennials seeking good-paying job opportunities.” Besides hosting many tech startups, Austin still has a relatively affordable cost of living.

4) San Diego, California. San Diego is full of cybersecurity, Big Data, robotics, and software startups.

3)Philadelphia, Pennsylvania. Also known as Philicon Alley, moved up from number eight by deregulating and becoming more business-friendly.

2) San Francisco Bay Area. The Bay also ranked number two last year. The seaside neighbor to the Silicon Valley has been doing a great job attracting seed funding these days.

1) Boston, Massachusetts. This is the second year in a row that Boston has topped this list, due to its large number of startups and robust entrepreneur population.

How does your city rank?

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Business Entrepreneur

Customer surveys tell more than just satisfaction

(ENTREPRENEUR NEWS) While they can be annoying for the consumer and cost time for the company, customer feedback surveys are crucial to your business.

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While Richard Dawson, Louie Anderson, and Steve Harvey may not be able to personally help you with customer service, what they have in common can. Surveys, and personalized follow-up attention in general, help clients and consumers know that they mean something to your business.

For the sake of this article (and the fast-paced, technological world we live in) I am going to be speaking about surveys. However, I want to share this anecdote first.

I used to work front desk at a salon and part of my job was to follow up with new guests about a week after their appointment.

Now, most of the time, my calls went to voicemail, which were never returned; but every once in awhile a human answered.

After going through the spiel of why I was calling, I could almost always sense a sound of surprise from the other line before the person answered my question. One conversation in particular left me realizing how important this seemingly useless task was.

I called an older woman and asked her about a recent appointment she had at the salon. She thanked me for calling and then went into detail about how great the appointment was and how much getting her hair done meant to her.

Before we hung up she said, “thank you again for calling. A salon has never done this before.” It then hit me like a ton of bricks just how significant something as small as a callback is.

If you have the time, definitely make those callbacks to clients as it could be very meaningful. However, it’s understandable that most of us may not have the time in our schedule for personalized phone calls.

So if that’s the case, don’t forget about surveys. I know most of them will either go to spam or go unanswered, but the mere fact that you’re sending it out shows clients and customers that you care about their business.

And, for those surveys that do receive responses, it can be extremely beneficial for your company as you can get insight into what works and what doesn’t. There’s really no disadvantage to this tactic, so remember to make time for that follow up with existing clients rather than just focusing on getting new ones.

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Business Entrepreneur

Entrepreneur blunders to bypass

(ENTREPRENEUR NEWS) Being an entrepreneur takes a lot of hard work, as a result, it’s easy to make mistakes. Here’s how to avoid hurting your business from the get-go.

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The entrepreneur business can be a tricky one. It’s not one of those career choices that have more of a clear-cut path, and it may require you to make your own rules along the way.

Along with making your own rules, it is also 110 percent likely that you will make mistakes along the way, as well. This is true of any career, but, when within the sphere of being an entrepreneur, responsibility has a tendency to weigh even heavier on your shoulders.

This is completely unavoidable, but if you keep an eye on your methods and not just your desired outcomes, you can help combat some of the biggest mistakes. Here are some things to keep in mind.

It’s obviously one of the first priorities to get the word out about your business. You may be inclined to hit up every social media platform known to man.

This can be harmful to you if you spread your social presence too thin and have no focus. Pick a few channels that are the most fitting for your business, build your presence, then expand to other channels from there.

Never promise more than you can deliver at the start of your business. You only get one shot at your first sale with a consumer and not delivering what they expected can hurt your next chance.

Also, be approachable and keep an open mind when it comes to networking and communicating for sales. Confidence can carry you and your business a long way.

So, you’ve found a strategy that works? Great! But, don’t get complacent. Consumers want to see innovation, and employees yearn for that, too.

Try and start each year with a calendar and determine what changes you want to make from the last. Figure out what worked and how you can expand upon it to make it fresh and possibly more successful.

With this idea, don’t settle for reusing the same knowledge over and over again. Keep learning as your business grows and turn that knowledge into actions.

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