As the world changes and information becomes more easily accessible, it is worthwhile asking the question, “Who should receive what information in a business?”
The following table is an example to help a business think about information flows to the various constituents in a business.
I believe that the only information that should be private within a business is payroll…and even with payroll, a leader should assume that everyone knows how much everyone else is making, because they probably do.
A very successful entrepreneur, founder of a multi-billion dollar retail enterprise, would focus himself at times on large strategic issues, and at other times on issues as mundane as how much was spent on a new phone system. He was not known as a micro-manager, because he was not interested in the small details ALL THE TIME. Instead, he was interested in small details once in a while and usually because he was testing someone, trying to figure out if he was really glad that that person was in the company. The real kicker to this entrepreneur’s effectiveness was that he was completely unafraid of firing someone if they were not meeting his standards.
Today more than ever, it is possible for leaders to delve into the details of what is happening in a business. Leaders should not be afraid of letting board members and others have access to details. However, leaders should also have a plan for the reports that each person in the business receives AND the frequency with which they receive those reports.
Monitoring details is one way to make sure that details are being covered. As Tom Peters has said, and continues to say, “What Gets Measured Gets Done.” Click here to his blog on this subject.
December 20, 2008 at 6:07 am |
I have to disagree assuming that employees already know about payroll. I think they should assume the opposite.
February 12, 2009 at 5:36 pm |
Unfortunately it is much more complicated than this. For example, the confidentiality of most HR information must be protected. In addition, most mid-to-large sized companies have many overlapping requirements to protect information that come from: contracts with suppliers and customers; joint venture agreements; statutory requirements for privacy and security (e.g., HIPAA, PCI); protection of legal privilege, etc. Even within this, it gets very complicated.