Automotive Shop Management Panama City FL

Looking for a way to increase employee productivity and loyalty at your repair operation? You may need to look no further than your monthly balance sheet.

4/1/1997

Research shows employees are inclined to work harder if they're familiar with how the company makes money. In fact, in a survey by Ernst & Young, a U.K.-based consulting firm, 86 percent of employees said they'd be more motivated to help their employers succeed if they had access to the company's financial data.

That's the premise behind a philosophy called open-book management - a concept in which employers treat employees as if they're business partners.

"Open the books so people can understand the financial aspects of the business and find out how the shop makes money," says John Case, writer for "Inc." magazine and author of the book, "Open Book Management." "Sit down with employees in regular meetings and explain what the numbers mean.

"But don't expect employees to become accountants overnight," he says. "Repeat, repeat, repeat. Once they realize how a shop's success benefits them and how much impact they can make, they'll snap to attention."

Case says shop owners should make a game out of teaching employees about the company's income statement. But keep it simple. He recommends keeping track of the shop's financial success on a large scoreboard that hangs in an area accessible to everyone. Each week, update the figures in the following ...