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And
finally, Stack believes in sharing the gains, in creating "a company of
owners". Bonus plans, Gainsharing, should be short term goals and equity
participation the long-term goal. This follows, inevitably, if employees
have an intimate knowledge of the financial performance. Of course, employees
also share the risk of failure but at least should be able to see failure
coming and be able to take timeous and sensible decisions. If you believe
that change results from necessity, there can be no more powerful force
than OBM, where everyone has almost as detailed a picture of the market
and financial performance as the managing director.
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For
John Case, an OBM author, OBM has four principles: sharing information
(everyone has to know what is going on), business literacy (everyone needs
to understand the numbers and to use them), empowerment (true responsibility
for their own numbers, and last, a stake in the business. Case has also
pointed out that many companies, Wal-Mart for example, have long shared
extensive performance information, financial and otherwise, with employees,
Over the past decade visitors to man lean factories, Japanese and Western
will have noticed a greater sharing of financial, sales, and performance
information amongst employees. Typically this information is shown on
display boards or in company newsletters, These are the first steps to
full OBM. John Case also notes that programs on JIT, TQM, and technical
training provide the how, but OBM provides the why.
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