This story first appeared in the October 2014
issue of Entrepreneur
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While I'm a big believer in "open book management," it's important to make sure that your employees' goals are aligned with the goals of your company. This means not simply sharing your monthly, quarterly or annual financial results, but letting your employees know what they can do to improve those results and giving them a financial incentive to help you do that. Such incentives may take the form of a company-wide bonus pool, a sales compensation plan or a profit-sharing plan. The key is to make sure that whatever incentive plan you put in place takes your company where it needs to go. There's no point in jeopardizing product quality or customer relationships for the sake of short-term sales or profit goals.