Your agency employees should think like owners 🧠

Here's a frustrating truth about running an agency: 

Most of your team probably doesn't understand how your business actually makes money. 

They're great at their jobs, but they see timesheets and project budgets as arbitrary numbers rather than what they really are - the foundation of your agency's success.

And it's not their fault!

We typically keep our financials close to the chest, sharing only what we think people need to know for their specific roles. 

But this creates a disconnect. 

Your team makes dozens of decisions daily that affect profitability, often without realizing it.

This is where Open Book Management (OBM) comes in.

The fundamentals of OBM are pretty simple: 

1. You teach your team how your agency makes money.

2. You show them (and keep track of) the numbers that matter

3. You give them a stake in improving those numbers

What does this look like in practice? 

Instead of just telling your team to track their hours, you show them how billable time translates to agency revenue. 

Rather than simply enforcing project budgets, you help them understand profit margins. 

When someone suggests adding an extra round of revisions for a client, they can weigh that decision against real financial impact.

Now, this doesn’t mean you have to share every financial detail. 

When implementing OBM, you start with the numbers each team can directly influence. 

Set clear targets, then share the rewards when your team hits them. It turns "staying on budget" from an abstract rule into a shared goal with tangible benefits.

Sure - it takes time to teach business finances, and some team members might initially feel overwhelmed by the numbers. 

But most agency owners find that increased transparency leads to better decisions at every level and stronger team buy-in on business goals.

Implementing OBM might sound daunting, but you don't have to figure it out alone. 

At Open Book CFO, we specialize in: 

• Helping agency owners transform their team into financially-savvy partners

• Identifying your key metrics to creating profit-sharing systems that work

• Building customized financial dashboards that give you real-time visibility into project profitability, utilization rates, and cash flow

Ready to turn your team into profit-driving partners? 

Let's talk about what Open Book Management could look like in your business.

Book a free 30-minute strategy call.

And keep tuning into Open Book CFO for more tips on building a winning agency.