Open-book management involves opening a company's financial statements to all employees and providing the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.

Open-Book Management

A business strategy where financial and operational information is shared openly with employees to involve them in decision-making and to improve company performance.

Financial Statements

Formal records that outline the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Bottom Line

Refers to the final net income or profit of a business after all expenses have been subtracted from revenues.