TEAM SPIRIT About five years ago we began sharing job costs, actual revenue goal, our cost of goods goal, our gross profit goal, our expense goal, and our net profit goal with our five-person field and office staff.
It’s important for employees to have a road map for their company and bonus goals. If we as a company hit our goals, for example, on net profit, they get a certain amount of that. If we exceed our goal they get above and beyond the original bonus.
This has created synergy and teamwork. People are more conscientious about their responsibilities, which in turn keeps them accountable: They don’t want to let the team down.
They’re also more aware of job costs. They know that if they keep down individual project costs they can decrease the costs of goods sold or if they decrease an expense it will increase the net.
It wasn’t easy getting them to this point. I kept it simple by going through the five major categories on the P&L. I showed them actuals and cost of goods sold, and I taught them how much each of those things were and how easy the dollars came and went by using Monopoly money.
Keeping staff in the dark about finances can lead to distrust and isn’t good for company culture. Employees used to think I was taking home all the gross profit. Now they’re educated about expenses and they know that even the owner has a salary.
Jason Asmar, The Burke Co.
Dallas
Big50 2002