Sharing information with employees leads to 80% faster growth
Today I wanted to talk about sharing information with your employees as a way to make them identify with your organization and motivate them to do better.
Years ago, I worked for an organization that was so close-mouthed and so secretive that the right hand didn’t know what the left hand was doing. Such a secretive nature meant that the managers didn’t know what they were doing and everyone was making up policy and telling employees different things. One manager would tell you to open the door and keep it open and in the next minute, another manager would order that the doors be kept locked.
While such examples may seem simplistic, they contribute to disorganization and disorientation and the employees don’t know what to do next. Now successful employers, like to share information. From basic information to very complex procedures and process on what to do to lead the organization to where it needs to go next.
Sam Walton writing about how he gradually turned Walmart around from the little provincial country store that it was into the behemoth it is today says that one of the things that he did which turned around the store was sharing information with the associates in the stores. And mark you, the decision to call the workers, associates was very deliberately made so as to make them feel part and parcel of the empire.
In his own words, he says that “Sharing information and responsibility is a key to any partnership. It makes people feel responsible and involved, and as we’ve gotten bigger we’ve really had to accept sharing a lot of our numbers with the rest of the world as a consequence of sticking by our philosophy.”
Another important ingredient that has been in the Wal-Mart partnership from the very beginning has been our very unusual willingness to share most of the numbers of our business with all the associates. It’s the only way they can possibly do their jobs to the best of their abilities—to know what’s going on in their business. If I was a little slow to pick up on sharing the profits, we were among the first in our industry—and are still way out front of almost everybody—with the idea of empowering our associates by running the business practically as an open book. I’ve always told people in the stores what was going on with the numbers. But after we decided to act like a partnership, we formalized the sharing of information to a much greater degree.
What kind of information does Sam Walton share
Sam Walton says
“In our individual stores, we show them their store’s profits, their store’s
purchases, their store’s sales, and their store’s markdowns. We show them all that on a regular basis, and I’m not talking about just the managers and the assistant managers. We share that information with every associate, every hourly, every part-time employee in the stores. Obviously, some of that information flows to the street. But I just believe the value of sharing it with our associates is much greater than any downside there may be to sharing it with folks on the outside. It doesn’t seem to have hurt us much so far.”
Benefits of sharing information
By sharing so much information Mr Walton succeeded in achieving various goals simultaneously and flawlessly.
Making the employees feel valuable and valued
Passing information on future goals and growth
Growing as a family and wanting to achieve success together
Of course Mr Walton did other things which influenced the growth of the store, but think about how loyal you could be to someone who spills their guts to you. You identify with them and you want to help them grow.
How can you benefit from this post?
It’s simple really. Start sharing more information with your employees. This way, people understand why they are being asked to do certain things. They become more accountable and want to do more to meet the organization’s goals
Now watch this video on how to become a better CEO for your organization and the skills you need to develop.