Applying Influ ence Down and S ideways 57
Managers also generate influence-enhancing trust when they
share information that affects their subordinates. The practice of
‘‘open book management’’ (OBM) is one example of information
sharing that improves performance. OBM provides employees with
all relevant financial and performance information about their com-
pany or unit. Evidence shows that employees feel more involved
with their jobs and make better day-to-day decisions if they are reg-
ularly updated on company revenues, cash flow, expenses, and
profitability. Information sharing of this type also enhances trust.
Let’s face it, people who are kept in the dark are justifiably suspi-
cious and distrustful. If management says, ‘‘Today we’re announc-
ing a company-wide campaign to reduce expenses, and we expect
everyone to pitch in,’’ employees are as likely to dig in their heels
as to cooperate. Conversely, if all employees can see that profitabil-
ity is being squeezed by flagging revenues and increasing costs, the
necessity of expense reduction will be apparent, and those same
employees will find numerous ways to cut costs. As a manager, you
can get the benefits of OBM by sharing the three or four critical
performance measures that are under the control of your unit and
its people.
One company we know has been very effective using this ap-
proach. The company attacks its important problems and opportu-
nities through cross-functional teams of five to seven employees.
Each team has what it calls ‘‘critical performance indicators’’ (CPIs),
and each team focuses on a fairly narrow, measurable goal deemed
important to the company. One team, for example, is working to
enhance the experience of people who use the company’s website.
That team’s CPIs include page feed times, the number of minutes
that people stay on the website, and the number of people who
return to the website each week. Team CPIs are compiled and
posted via e-mail every afternoon. Everyone knows how things are
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