Small Business Glossary and Definitions

Open-Book Management, or OBM, is a theory of management that emphasises making sure employees understand how their actions are going to contribute to the success of the organization as a whole. The theory is that employees will be more engaged and feel more of a stakeholder in the success of a company when open-book management is implemented. This can refer to strategic decisions the company has made, rationale for concepts such as pricing of good, or specifics such as the cash flow the company experiences. Open-book management makes employees feel more like a partner in the company.