Frank Ditomasso shares his company’s financial information with his employees — when it’s good and even when it’s bad.
Ditomasso, general manager of a division of Curtiss-Wright in Brecksville, is among the increasing number of business leaders who provide employees with information that was once was considered very private. In fact, the safety valve and pump manufacturer regularly schedules employee meetings to communicate the company’s state of affairs.
According to the 2002 SBN/ERC Workplace Practices Survey, the number of organizations internally disclosing information on at least a quarterly basis grew from 54.9 percent in 2001 to 62 percent this year.
Michael Grone, human resource manager at Foresight Technology Group, an IBM hardware, software and service reseller in Brecksville, says sharing company information is key to successful teamwork.
“Everybody relies on everybody else to be successful in their job,” says Grone.
Foresight shares sales and profit data, and gross margins and expenses, and teaches employees how to read a profit/loss statement.
“They can look at a P/L sheet and understand why we are making the decisions we’re making,” he says.
When expenses go up, Grone says everyone rallies to find ways to bring the numbers back in line. Some of the most innovative ideas come from within, from employees with experience and intimate knowledge of the process.
Ditomasso admits, however that an open management style can be a little uncomfortable. When business dips and cost-cutting measures are necessary, bad financial news can cause concern among employees and affect morale.
When there’s a problem, “you get very pointed questions, especially from hourly employees,” he says. “People are smart, and management is held accountable for its decisions.”
But Grone says the hard questions are worth the trouble.
“We want people to feel like business owners,” he says.
And with 18 percent of the company owned by employees, Grone says keeping employees informed is key.
“Everybody’s got skin in the game — we all benefit from the company doing well,” he says. How to reach: Curtiss-Wright, (440) 838-7695; Foresight Technology Group, (440) 717-1300
