What does OBM mean in ACCOUNTING

Open Book Management (OBM) is a management philosophy and system of processes that seek to promote increased employee engagement through financial transparency.

OBM seeks to achieve increased employee engagement and involvement in decision-making within an organization. By ensuring employees are aware of the company's financials, they can have greater influence on the direction it takes.

Both employers and employees stand to benefit from Open Book Management. Employers are able to draw on employees' knowledge of their work area when making decisions, while employees gain a greater understanding of how their work impacts the business's overall performance.

By increasing transparency and sharing key information with all team members, OBM helps to foster trust between management and staff as well as motivating employees by allowing them to see results for their hard work. This ultimately increases engagement within the workplace.

One potential issue with OBM is that it requires significant investment from all parties involved — managers, who must provide training; accountants or CFOs, who must track metrics; and teams who must learn new data analysis skills. Additionally, it can be difficult if not impossible for smaller businesses who lack resources or funds required for this system.