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- 🖤 Open Works #017 How To Share Financials Without Stressing Your Team Or Your CEO
🖤 Open Works #017 How To Share Financials Without Stressing Your Team Or Your CEO
Every edition we solve a people and culture problem, crowd-sourced from the Open Org community.
John Faulkner-Willcocks
November 29, 2024
Welcome to Open Works. Every edition we solve a ‘people and culture’ problem crowd-sourced from the Open Org Community of 375+ Startup and Scale-up People Leaders.
💭 This Week’s People Problem
“Our CEO is afraid to communicate financials to the wider team. He’s worried about causing anxiety and people not understanding the numbers. I’m worried because we’re not treating people like adults.”
🖤 Our Take On How You Solve
🏃 TL:DR
Build financial literacy as a foundation.
Inform the team gradually with clear, relatable examples.
Embed financial communication as a regular, low-stress part of the culture.
⚡️ The Problem
CEO’s when you suggest that maybe we oughta be treating folks like adults by sharing how the company is doing….
The CEO fear:
If we tell everyone how bad it really is, we’ll cause panic. Panic hurts our (slim) chance of success. People will look elsewhere. So we’re not going to do that.
OK so this fear is understandable. But it’s also a point in time snapshot of when it’s “too late” to make changes to how you communicate financials.
Wisdom drop incoming, which handily applies to both romance and finance 😉
The wisdom 👇️
Don’t wait until it’s too late.
Seriously tho, talking about company finances is tricky. Done poorly or too late, it confuses and demoralises. But done early and transparently, it builds trust, clarity, and alignment across your team.
Let’s get into a 3 stage solution we think is an absolute slice of fire 🔥
🧘 The Solution
🎓 Stage 1: Baseline Business Literacy
Start safe. Focus on educating your team about how the business works without diving into numbers just yet.
Suggested steps:
Share a memo or Loom video presentation with an invitation to ask questions. Example framing: “It’s important we all understand how the business works.”
Create evergreen documentation in your handbook.
Key Questions to Cover:
What’s our elevator pitch?
Who are our ideal customers?
What problem do we solve for them?
How do we deliver value over time?
Who are our competitors, and where do we fit in the market?
What makes us unique?
How do we make money?
How do we set our goals and measure success?
Inspiration:
How We Get Users – PostHog
How We Make Money – PostHog
Not Running Out of Money – PostHog
Outcome:
The team gains a clear understanding of the business fundamentals, preparing them for more nuanced financial conversations.
📣 Stage 2: Inform the Team (Ad Hoc)
Introduce financial concepts gently through town hall sessions, using relatable examples to illustrate key points.
Example Structure for a Session:
Present an overview of overall costs and profit margins.
Use a hypothetical team example to explain the cost of operations and how new business impacts profitability.
Open the floor live or with sli.do for Q&A to clarify and engage.
Outcome:
The team develops a basic understanding of business costs and profitability without being overwhelmed.
Leadership gets a sense of the team’s comfort level and interest in financial details.
🏦 Stage 3: Regular Financial Transparency
Make financial updates part of your company rhythm with structured, brief town hall slots.
Structure:
1 Pager + Leadership Overview:
2-minute refresh on company strategy.
5-minute update on:
Progress toward revenue targets.
New business pipeline (won vs. lost, hot vs. cold leads).
Burn charts showing the path to profitability (e.g., covering costs).
Outcome:
Financial transparency becomes routine, reducing anxiety or providing a catalyst for urgency when needed
Teams stay informed about business performance and feel more engaged in driving outcomes.
🧠 Next Steps:
Start small with Stage 1 and build toward Stage 3 as the team’s understanding grows.
Keep communication consistent, clear, and tied to company objectives.
📚️ Good reads relating to this problem…
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With 🧊 & 🔥
John & Adam
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