Open Book 'Financial' Management: A Case Study of Manco, Inc.

Abstract

This paper reviews the strategic nature of open book 'financial' management (hereafter referred to as open book management) in optimizing an organizations return on human capital and illustrates it using Manco Inc., as a case study. The challenges and advantages of implementing open book management to improve financial performance and employee motivation are described briefly, as are some suggested procedures and steps to facilitate the implementation of open book management. Open book management is seen as being useful in minimizing agency costs as it reduces the degree of asymmetry in the information available to managers and employees especially in non-public multi-divisional public companies.