Page 8 - Beverage Master DecJan 2021
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Legal & Marketing

               •  Empower employees to use financial information  – to inform their decisions. For example, suppose
                  when making business decisions.                   a brewery uses a mobile canning company to pack-
                                                                    age beer. The packaging manager understands the
               •  Trust employees as business partners with pro-    costs associated with this service and can make an
                  prietary company information                      informed decision about whether the purchase of
                                                                    canning line would benefit the company financially.
               •  Reward employees fairly for the brewery’s suc-    The packaging manager understands how to build a
                  cess                                              return on investment calculation and is empowered
                                                                    to make a purchase recommendation based on the
                   Train employees in Financial Literacy            numbers.

                 Financial literacy is the ability to read and under-            Trust Employees with
               stand the numbers of your brewery business so that         Proprietary Financial Information
               you can improve financial results. Improving finan-
               cial results may include growing sales, strengthening    Open book management centers around trust. Do
               gross margins, or increasing cash flow. In today’s   you trust your employees with sensitive financial
               uncertain times, financial literacy is more important   information? What if confidential information is
               than ever.                                           shared with competitors? What if it’s leaked out on
                                                                    social media? Sharing information requires trust.
                 The numbers of your brewery business are report-
               ed on the financial statements – the income state-     OBM requires that we trust employees to han-
               ment, balance sheet and statement of cash flows.     dle sensitive information with professionalism and
               Each of these reports provides vital financial infor-  confidentiality. The best way to earn the trust of
               mation to understand what’s going on in your busi-   employees is to be trustworthy yourself. Be trans-
               ness                                                 parent, share the information that will help them do
                                                                    their job better, or have a better understanding of
                 The financial statements are the scoreboard for    the business. When you call upon the highest level
               your brewery and the numbers show whether            of thinking from your employees, you get the high-
               you are winning or losing. The financials show you   est level of results.
               where you are in relation to your goals and how
               much harder you must push to hit the targets.           Reward Employees for Brewery Success
               Open book management requires that you train
               employees in financial literacy so that they can       In an open book management system, employees
               know the score, and help the brewery win the finan- are asked to learn new things in addition to their
               cial game.                                           core job. Brewers are asked to understand the costs
                                                                    that go into making the beer. Brewery salespeople
                 Empower Employees to Make Decisions                are asked to understand product margins for each
                                                                    brand in the portfolio. Taproom staff are asked to
                 In most organizations there is a decision-making   learn the average order per customer, for example.
               hierarchy. Owners or managers make the decisions,    Everyone in the organization needs to learn some-
               and employees carry out the directives. With open    thing new to make the open book management sys-
               book management, everyone is responsible for mak- tem work properly.
               ing decisions and has the authority to do so.
                                                                      The goal of open book management is to create a
                 If a problem needs to be fixed, employees are      culture of business owners. OBM teaches employ-
               empowered to fix it. If an opportunity needs to be   ees to think of themselves as businesspeople
               seized upon, employees are obliged to act. There     instead of workers. To make this real, business-
               is no waiting around for a manager to make these     people need a stake in the outcome – a reward for
               decisions. The move lies squarely on the shoulders   brewery success. As such, part of what they earn
               of employees.                                        should be tied to company financial performance.

                 With open book management, employees use their    A stake in the outcome gives employees a vested
               understanding of the numbers – financial literacy    interest in improving financial results. The brewer

               6      December - January  2021      BEVERAGE MASTER

          BM120121 Main Pages  copy.indd   6                                                                       11/23/20   11:24 AM
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