Generations Law - February 2020

The Business Brief

February 2020

Developing Your Company’s Culture

answer their questions. Not surprisingly, many of your employees won’t have a clue about business financial statements. Sharing financial information will help employees see how their work contributes to their success and the profitable growth of the business. Be sure to frequently remind your managers and employees that each one of them contributes to your company’s success. Highlight career advancement paths, showing employees how contributing to the company’s growth puts their future career growth in their hands. When employees realize they are trusted by and can trust management, they’ll step up and perform their work in an engaged and thoughtful manner. Strive to create an ownership culture in which employees see the business in the same way you do. People will fight for what they have helped create and will understand how their contributions relate to the success of the enterprise. Overcome the typical situation where employees only see their work in isolation and never know the direct tie on how much they are helping (or hurting) the company. Besides, letting your employees in on the “inside” scoop will elevate their status and let them know they are in a unique group and privy to information that people at other organizations are not.

should be to support the greater good of the business by improving employee relations so employees know what they are working for, feel valued, and deliver results that support continual and sustainable company growth. Some business owners worry that opening up information like financial data for everyone to see will harm the business. Often the fear is that competitors will end up getting hold of key financial information. While it’s true that outsiders could obtain financial data from your employees, the reality is that it probably won’t make much difference. Sharing company financial information with employees should be limited to simplified data that doesn’t provide any competitive insights. Another common concern is that giving employees financial information might lead to unintended internal consequences. This includes staff members finding out how much revenue the company generates and requesting larger salaries or finding out how little the company makes and jumping ship. However, what usually happens is that employees feel more involved in driving the company’s success. It's important to note that compensation figures should not be shared, and each employee’s privacy must be protected. It’s also a good idea to invite the company’s CPA to come in for a couple of hours each month to explain the financial reports to the employees and

One of the challenges every smart business owner faces is developing a company culture. Most consultants recommend establishing a culture that breaks down the walls of “us versus them” between management and employees. You can accomplish this by creating transparency as a part of your company culture and encouraging the open sharing of information and accountability at all levels. Your goal should be to develop company policies that make sharing and decision-making an integral part of your company’s philosophy and not just an empty saying or catchphrase. Creating trust and openness with your workforce will build a family-like culture and make your business the kind of company people want to work for. Accordingly, you and your managers need to share information on the company’s direction, strategies, and financial outlook. Creating an open business environment encourages employees to look out for the company’s best interests. Your objective

–Tom Walker

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