You probably spend much time pouring over budgets and trying to make ends meet and save a buck here and there. Your team may have an idea of your ministry’s income (usually inflated) but have very little knowledge of the bills. This exercise would be a simple way of explaining to everyone where the money goes.

Employees at Artists’ Frame Service in Chicago knew what the company charged customers, and they knew that their pay was only a fraction of that. The CEO wanted them to understand that the difference between invoice prices and their salaries wasn’t all profit. So the employees were treated to a demonstration of the company’s expenses, illustrated as portions of a hypothetical $100 order.

As the presenter explained where the money was going, different departments came forward to claim the proceeds of the sale. For example, an oversized $5 bill was disbursed to cover the cost of the company’s Yellow Pages listing, which cost the company roughly 5% of its receipts. The pile of cash was whittled down as claims were made by rent, health insurance, and other fixed and operating expenses. When all the bills were paid, $5 remained. The demonstration improved morale by giving workers an understanding of the company’s expenses and challenged them to look for ways to save the company money.

Adapted from “Open-Book Management 101” by Donna Renn, in Inc. magazine.