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Sponsored by: PeoplesBank
June 7, 2023

How Open Book Management Leads to Increased Profits

"Springfield Spring Corporation is a manufacturer of precision-engineered springs, wire forms, and stampings. We make small components,” explains Norman Rodriques, President and CFI at Springfield Spring & Stamping. “The glove box in your car has a spring in it. When you push a button on an elevator, it works because there is a spring in it. One of our largest applications now is medical components. Springs are among those things you never see, but they’re all around us.”

Investing in People

“Springfield Spring & Stamping’s success starts with Norm, his partner, Tina, and their management team. They invest in new technology, product development, and also their employees. That combination makes them unique,” states David Ference, First Vice President, Commercial Banking at PeoplesBank.

One of the strategies behind the company’s success is what we call open book management. In short, Springfield Spring & Stamping management shares its financials with its employees so they understand the drivers of the business and feel a part of the process. They understand how their day to day helps the business thrive.

Meeting Regularly

“Our employees understand the mechanics of how the company makes a profit,” Mr. Rodriques continues. “Increasing business literacy has really engaged our employees. We explain the company’s financial position, from forecasting to the balance sheet. Every month we sit, turn off the phones, lock the doors, and have a one-hour, all-hands meeting where we all evaluate the company’s financials. Sharing is caring. The employees want to know: Why do we come here every day? What impact do we have on the industries we serve?”

“You can feel it when you visit,” says Mr. Ference. “This strategy of open book management has created a strong culture of transparency, trust, collaboration, and accountability at Springfield Spring & Stamping. It empowers employees to take ownership of the company’s success.”

Mr. Rodriques states: “I’ve lived through, I think, four recessions. Going through those recessions was not easy. Each time, the catalyst behind our recovery was all of us hunkering down and understanding that, if we wanted to overcome the recession, we have to really look at things within our company. We all did it together. And because we’re open book managed, our employees understand the good, bad, and ugly.”

Building a True Team

Open book management has also been key to the company’s success, Mr. Rodriques notes: “Throughout the different challenges, I can say emphatically that the reason that we overcame them was because our management and employees are teammates — true teammates — and the foundation for that is transparency.”