Now is the time to teach all of your employees the business. They need to understand the numbers and how they relate to sales, profits, cash and share value. With the dire economic conditions you need everyone focused on the business, not just the management team. If your employees understand the business, then they are better prepared to face tough decisions and not be surprised by them.
There have been and there will continue to be, hundreds of thousands of employee that will be laid off completely surprised and with little or no explanation of why, other then business is bad. How would you like to be one these lucky people?
If your employees do not understand the business, then you are ignoring the knowledge capital that exists within your employees. I promise you that if employees understand the business, you will see a huge influx of new and innovative ways to improve your business. If you were dying, would you rather have 100 doctors working on your diagnosis or just three or four?
I personally lead a company where the employees were taught the business. Once that happened, the business saw significant growth in sales, profits, and share value. Tough decisions were still made, but the employees were not freaked out because they understood the business. During one tough decision, people volunteered on their own to be laid off to preserve other' employees jobs and help the business!
Jack Stack the CEO of SRC Holdings in Springfield, MO has written a book that relates to teaching employees the business - "The Great Game of Business". Here are the facts. If you invested $10,000 in 1983 when SRC was founded during tough economic times, it would be worth $23,400,000 today. SRC taught employees the business from day one, and they continue to do so today - 26 years of it.
If this post seems ridiculous, if you do not believe me, then at least take the time to read Jack Stack's book. Learn the lessons from a real life business stor
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