The world is full of mushroom managers. They believe you should treat company employees like mushrooms. Keep them in the dark and feed them shit!
But, Jack Stack doesn’t believe that works very well.
He believes in “Open Book Management”. In fact, he started the concept in February 1982 when he and twelve other managers bought, Springfield Remanufacturing Company with $100,000 in their own money and $8.9 million in loans.
In 1983 the single share stock price of SRC was $.10.
In January of 2015 the single share stock price was $199.00.
In 1983 there were 119 employees.
Today there are 1,600 employees in 17 divisions.
‘Mushroom Management’ or ‘Open Book Management’
There is no question.
I first read this book in August of 1995. Five and a half years after I started Business Navigators.
Now, I help most of my clients share Profit and Loss statement monthly with all employees.
In only 252 pages Jack reveals the important aspects of ‘Open Book’.
Let me share a couple of his thoughts.
“The whole idea of open-book management, after all, is to create an environment in which people can continuously learn and grow. If you stick to it, if you keep educating and challenging people, if you knock down the barriers and make sure they stay down, you can’t help but get better and better at the Game as time goes along.”
The Higher Laws of Business
- You get what you give.
- It’s easy to stop one guy, but it’s pretty hard to stop 100.
- What goes around comes around.
- You do what you gotta do.
- You gotta wanna.
- You can sometimes fool the fans, but you can never fool the players.
- When you raise the bottom the top rises.
- When people set their own targets, they usually hit them.
- If nobody pays attention, people stop caring.
- As they say in Missouri: Shit rolls downhill. By which we mean change begins at the top.
I especially like # 8.
Jack provides an effective and practical approach to success. I know it works because I’ve been offering to my clients for 23 and a half years and I’ve watched it work.