“OPEN BOOK” MANAGEMENT

Grantham & Associates, Inc. operates under an “open book” management policy. The benefits and guidelines of this policy are as follows:

Benefits

• Teach basic business skills to employees.
• Enable employees to understand the effects of their actions upon the firm’s success.
• Foster a sense of ownership in the firm.
• Help identify the most productive employees including future leaders.
• Build morale.
• Encourage feedback and creativity.
• Minimize financial surprises.
• Help build an internal market for the firm’s shares.

Guidelines

• Provide general business performance data to all employees, including the firm’s overhead rate, client and project profitability, and job chargeability.
• Provide future leaders with additional performance data such as share valuation, profit distributions, company revenue and expenses, and the firm’s business plan.
• Provide current principals with complete access to the firm’s financial data.