Past Winner Stories
CIK Enterprises
www.cik.com
When C.I.K. Enterprises, LLC, started analyzing ways to grow into a multi-million dollar corporation, the management team found its answer in an innovative plan that empowers its employees.
After reading The Great Game of Business by Jack Stack, among many other business books, they decided to implement an “open-book management” culture—which requires the company to reveal its financial statements to all employees on an ongoing basis. At the time, the company was not even profitable.
Despite the negative feedback it received from peers and other business executives, C.I.K. moved forward with its plan, trusting that the “open-book” policy would pay off.
As it turned out, C.I.K. had nothing to fear and plenty to gain. After just five years, C.I.K. transformed from a business of eight employees with $2.7 million in annual sales to a company of 83 employees that does $21 million annually in sales. The company is comprised of two major divisions, “Tri-Auto Enterprises,” which specializes in the marketing of direct mail and newspaper inserts to automobile dealers, and “Trace Communications,” which specializes in the wholesaling of full-color printing and mailing.
C.I.K. executives are convinced that the open-book policy helps guide the company to success by:
* Forecasting sales and promoting accountability.
* Budgeting for upcoming years.
* Keeping an eye on slowly inflating expenses.
* And most importantly, creating common ground, via business education, for everyone from the receptionist to the vice president.
“We treat teammates like business owners,” says CEO Scott Hill. “C.I.K. continuously seizes the opportunity to utilize open-book management as the tie that binds the activities of subsidiaries, departments and individuals. It’s the common language that everyone speaks, and without it, many achievements may not have occurred.”
Financial information is passed out to employees weekly, and the finance department holds periodic seminars to educate employees about the numbers. It’s not atypical for non-managers to ask questions about sudden changes in the numbers of why a forecast falls short, according to COO Andy Medley.
He says the open-book policy also increases accountability among individuals.
“You not only learn your job, but also how your job affects the numbers,” Medley says. “Teammates cannot hide behind expectations that fall short—when everyone else sees the results and knows it’s a group effort to achieve success.”
Employees also receive further incentive through quarterly bonuses that may be earned by all company teammates when a predetermined level of E.B.I.T. (Earnings Before Interest & Taxes) is achieved. C.I.K. recently awarded bonuses in the amount of $1,066 to every employee who had been employed one quarter.
“For an organization that initially provided a product and service that was not the most innovative, nor the cheapest, nor the most specialized, open-book has allowed C.I.K. to be a magnet for talented individuals that pioneer raising the bar on job performance,” Hill says. “It cascades down to our vendors, our clients, and those who seek employment at C.I.K.”
After reading The Great Game of Business by Jack Stack, among many other business books, they decided to implement an “open-book management” culture—which requires the company to reveal its financial statements to all employees on an ongoing basis. At the time, the company was not even profitable.
Despite the negative feedback it received from peers and other business executives, C.I.K. moved forward with its plan, trusting that the “open-book” policy would pay off.
As it turned out, C.I.K. had nothing to fear and plenty to gain. After just five years, C.I.K. transformed from a business of eight employees with $2.7 million in annual sales to a company of 83 employees that does $21 million annually in sales. The company is comprised of two major divisions, “Tri-Auto Enterprises,” which specializes in the marketing of direct mail and newspaper inserts to automobile dealers, and “Trace Communications,” which specializes in the wholesaling of full-color printing and mailing.
C.I.K. executives are convinced that the open-book policy helps guide the company to success by:
* Forecasting sales and promoting accountability.
* Budgeting for upcoming years.
* Keeping an eye on slowly inflating expenses.
* And most importantly, creating common ground, via business education, for everyone from the receptionist to the vice president.
“We treat teammates like business owners,” says CEO Scott Hill. “C.I.K. continuously seizes the opportunity to utilize open-book management as the tie that binds the activities of subsidiaries, departments and individuals. It’s the common language that everyone speaks, and without it, many achievements may not have occurred.”
Financial information is passed out to employees weekly, and the finance department holds periodic seminars to educate employees about the numbers. It’s not atypical for non-managers to ask questions about sudden changes in the numbers of why a forecast falls short, according to COO Andy Medley.
He says the open-book policy also increases accountability among individuals.
“You not only learn your job, but also how your job affects the numbers,” Medley says. “Teammates cannot hide behind expectations that fall short—when everyone else sees the results and knows it’s a group effort to achieve success.”
Employees also receive further incentive through quarterly bonuses that may be earned by all company teammates when a predetermined level of E.B.I.T. (Earnings Before Interest & Taxes) is achieved. C.I.K. recently awarded bonuses in the amount of $1,066 to every employee who had been employed one quarter.
“For an organization that initially provided a product and service that was not the most innovative, nor the cheapest, nor the most specialized, open-book has allowed C.I.K. to be a magnet for talented individuals that pioneer raising the bar on job performance,” Hill says. “It cascades down to our vendors, our clients, and those who seek employment at C.I.K.”