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Cash Flow tip – Your staff and what cash flow means to them
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Published on Thursday, 20 October 2022 11:18
The Great Game of Business (GGOB) has a book plus website and business coaching service that came out of employees working to save a company division of International Harvester on its demise back in the 1980’s and how employees and management saved both the company and their livelihoods with a unique way to run business – they have grown to launch another 60 associated companies and is regarded as one of the for-runners of Open-Book Management. Here is an exert from one of it’s blog posts).
Dave Sholten writes…
Here are three statements in which I fully believe:
- Cash flow trends can be the ultimate measure and indicator of success and/or failure of the company performance;
- Your employees are begging you to be transparent with them;
- It is important to your employees that they can TRUST you.
Put These Three Statements to Good Use
If we can assume (and agree) that the above three suggestions are accurate, then employees really want to know the honest financial health of the company, which most often includes cash flow.
Don’t ever let your pride convince you to hide the bad news, or get in the way of being honest. Honesty doesn’t have to be easy, and doesn’t always have to be good news, but it is necessary and fair in every trusting relationship.
It would serve you and your conscious well if you identified a few of the key “success/failure” financial indicators of your company’s performance, and then plan a way to start sharing with the employees the “score” involving those indicators.
You might start with your annual update, and then enhance that communication to a quarterly update. You should look forward to when your employees start to ask you questions like:
- Why did that number go up?
- How does this number impact that number's results?
- What can we do to make that trend better?
When this happens, YOU HAVE ARRIVED! Your team, however many, are asking the questions, are asking to be more included in your game of business and want to learn more about the numbers and how to positively impact the future. You will gain support and teamwork in the future course of your business. Your entire workforce will be engaged in supporting your quest to “win the game.”
For those employees who don’t embrace the information and learning, keep a close eye on them. Their heads are in the sand, and hopefully (not a recommended corporate strategy) they don’t treat your product/service/customers/clients and fellow employees that way.
In conclusion, here is what your company’s cash flow means to employees:
- Honesty;
- Trust;
- Confidence;
- Continued employment;
- Commitment to the team and organization;
- Faith in the future;
- Winning.
What is your experience with employee engagement and helping you run the business as a team together so ALL benefit?
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