When every single employee is an owner, then every single employee needs to know how the money works. That is why at The Honest Company we gather as a full team the day after we report earnings. We want every member of our team to know how we did, where we go from here and how the money works. This week our incredible finance team gave a great lesson on our key financial measures and how they fit into our broader corporate goals. We don’t want any employees to be confused or unclear on how their efforts drive our culture and results. At Honest every employee is a builder and an owner. That is Inclusion delivered through Diversity, to drive Equity. At Honest when we win, we all win! Thanks to our incredible team. Congratulations on the incredible results. Every detail and every person matters. 🦋🤎🖤 #employeeowners #dei #representationmatters
Yes! Seeding the whole organization with financial literacy of the business is the way you empower the team to win.
Yes, everyone in the company needs to understand how the money works. For us in finance, this is music to our ears...... #ebitda #finance
Love this. I’m always astounded when leaders don’t share this level of insight with their teams. The result is often that employees don’t (truly) understand how the company makes money and what matters to their “owners” (saw this in spades in marketing services for example, but in many tech startups also)
Love this practice because awareness and education with this type of repetition creates a culture of purpose supported by the financials.
Take it to the next level and get everyone to understand how Honest goes from contract mfg to sale. The important KPIs like COGs, CAC, LTV really frames just how much you need to sell to gain profit.
I absolutely LOVE this! During my time at a previous organization the leadership would regularly speak about EBITDA and other financial metrics that left many of our associates cross-eyed and confused. This created gaps in how our teams interpreted and worked towards the company’s objectives, as well as made them unclear about the impact of their efforts overall. Thank you for sharing, Carla!
Carla, you're the perfect person to be featured on my podcast, the Top 10% ranked show "Failing to Success!" Interested in coming on to share your story with our listeners?
Transparency builds trust! I watched this in action in my first comms consulting gig during a merger and it was thoughtful and so eye opening for someone coming from TV News.
Carla Vernón this is amazing. Transparency from leadership is so critical to buy-in and understanding from everyone on the team 👏
Founder & CEO at Partake Foods
3wLove this! We've been incorporating increasing financial statement literacy with our team and have lovingly adopted EveryBody In The Dance Area as the alternate name for EBITDA 🕺🏽