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Figure 1. Engaging employees by having them learn and present financial information resulted in increased retention for DCI.[\/caption]\r\n\r\nAndrew Levine, president of Development Counsellors International (DCI), a public relations firm, wanted to implement a more open management style at his company, so he added a financial segment to monthly staff meetings. During this part of the meeting, he would share results and trends with his employees. Much to his surprise, employees seemed bored.<\/p>\r\n
During one staff meeting he asked his employees how to calculate a profit, and only the receptionist, Sergio Barrios, knew how. Levine was astounded, both at his employees\u2019 general deficit in math concepts and at Barrios\u2019 impressive math ability. Levine then decided to require employees to present the financial reports themselves.\u00a0For the next staff meeting, Levine appointed Barrios the chief financial officer (CFO) of the day. Barrios explained the terminology in ways everyone could understand.<\/p>\r\n\r\n[caption id=\"attachment_8007\" align=\"alignright\" width=\"300\"] Figure 1. Engaging employees by having them learn and present financial information resulted in increased retention for DCI.[\/caption]\r\n\r\n
Since then, Levine has watched his employees become financial whizzes. Each CFO of the day meets with DCI\u2019s real CFO for only one day before the meeting. They review income, expenses, and all kinds of financial ratios and statements. They discuss revenue projections and general financial trends. The CFO of the day then presents this information at the monthly staff meeting.<\/p>\r\n
Maria Mantz, a junior employee, thinks the training is extremely beneficial. \u201cI\u2019m a new, young employee, and I\u2019m being trained not only as a PR executive, but also as a business executive.\u201d When Mantz\u2019s turn came around, she stood before 30 of her colleagues and began detailing accounts and asking her audience to refer to the revenue table in their handouts. She asked if anyone know what the five clients who showed an increase in activity had in common, and awarded the coworker who knew the answer (they were all performance-based accounts, i.e. accounts where the company's compensation is tied to achieving specified goals) with a gift card to a local sandwich shop. Then she opened the floor for debate by asking, \u201cIs that a good thing or a bad thing?\u201d<\/p>\r\n
\u201cCFO of the day\u201d has definitely been a good thing for DCI. Employees stay an average of five years, up from two-and-a-half years before the program. And customers are also sticking around longer\u2014the length of the client relationship has doubled to over four years.<\/p>\r\n
Levine has embraced the lessons of open management, or participative management, pioneered by Jack Stack and Springfield Remanufacturing Corporation. Whether the term is CFO for a day, participative or open-book management, the goal is to teach employees about business so that they are more engaged in the business. Companies that embrace these practices believe employees will be more productive if they understand financials and feel like owners. In the example of DCI, employees are no longer bored during the financial review section of the monthly meeting.<\/p>","rendered":"
Andrew Levine, president of Development Counsellors International (DCI), a public relations firm, wanted to implement a more open management style at his company, so he added a financial segment to monthly staff meetings. During this part of the meeting, he would share results and trends with his employees. Much to his surprise, employees seemed bored.<\/p>\n
During one staff meeting he asked his employees how to calculate a profit, and only the receptionist, Sergio Barrios, knew how. Levine was astounded, both at his employees\u2019 general deficit in math concepts and at Barrios\u2019 impressive math ability. Levine then decided to require employees to present the financial reports themselves.\u00a0For the next staff meeting, Levine appointed Barrios the chief financial officer (CFO) of the day. Barrios explained the terminology in ways everyone could understand.<\/p>\n Since then, Levine has watched his employees become financial whizzes. Each CFO of the day meets with DCI\u2019s real CFO for only one day before the meeting. They review income, expenses, and all kinds of financial ratios and statements. They discuss revenue projections and general financial trends. The CFO of the day then presents this information at the monthly staff meeting.<\/p>\n Maria Mantz, a junior employee, thinks the training is extremely beneficial. \u201cI\u2019m a new, young employee, and I\u2019m being trained not only as a PR executive, but also as a business executive.\u201d When Mantz\u2019s turn came around, she stood before 30 of her colleagues and began detailing accounts and asking her audience to refer to the revenue table in their handouts. She asked if anyone know what the five clients who showed an increase in activity had in common, and awarded the coworker who knew the answer (they were all performance-based accounts, i.e. accounts where the company’s compensation is tied to achieving specified goals) with a gift card to a local sandwich shop. Then she opened the floor for debate by asking, \u201cIs that a good thing or a bad thing?\u201d<\/p>\n \u201cCFO of the day\u201d has definitely been a good thing for DCI. Employees stay an average of five years, up from two-and-a-half years before the program. And customers are also sticking around longer\u2014the length of the client relationship has doubled to over four years.<\/p>\n Levine has embraced the lessons of open management, or participative management, pioneered by Jack Stack and Springfield Remanufacturing Corporation. Whether the term is CFO for a day, participative or open-book management, the goal is to teach employees about business so that they are more engaged in the business. Companies that embrace these practices believe employees will be more productive if they understand financials and feel like owners. In the example of DCI, employees are no longer bored during the financial review section of the monthly meeting.<\/p>\n