Big companies can hide behind layers of reports and still survive. Small businesses don’t get that luxury, so we brought on Bill Fotsch to talk about what actually works when you’re trying to grow profitably with a lean team and real constraints. Bill’s an engineer by training, a former Bain consultant, and a long-time advocate of open-book management who’s seen the difference between “finance theater” and true employee engagement.

We get into how open-book management evolves into what Bill calls economic engagement: using the operating metrics your people can influence every day and tying them directly to customer outcomes and cash flow. We unpack why concepts like EBITDA often fail on the floor, and why the best metrics feel “nuts and bolts” enough that a crew lead, designer, or frontline operator can use them to win the day. Bill also tells the story of why Net Promoter Score didn’t help until teams asked the follow-up question that matters most: why did the customer score you that way?

Along the way, we challenge big-company advice that gets copied into small business culture, including the idea that there’s one perfect “right way” to run a company. Bill shares his research work with Harvard Business School, the role of mechanisms and management systems, and why employee equity by itself rarely changes behavior without real participation. We also touch on leadership isolation, getting the truth from your team, and how better systems become a practical succession planning strategy that makes the company less dependent on the owner.

If you want to go deeper, we also mention a no-cost diagnostic tool Bill offers so you can learn by doing. Subscribe for more conversations like this, share the episode with an owner who’s stuck chasing the wrong metrics, and leave a review so more small business leaders can find the show.

Check out Bill's diagnostic Tool

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Economic Engagement: Beyond Open-Book Management Basics with Bill Fotsch