Michael Rose, CEO of Mojo Media Labs discusses the problem of financial literacy. Why is it a problem? Because businesses are not focused on teaching their employees about financial literacy. Just like literacy is an important part of becoming well-educated and well-rounded, financial literacy is important for success, growth, and scaling.
While he might not have been interested in entrepreneurship when he was young, when opportunity struck, he was able to use the lessons he learned from his parents and his internal drive and intuitiveness to grow an amazing company.
The entrepreneur gene just kicked in and when that happened, I didn’t look back.
The Steps to Financial Literacy and Transparency
When it comes to your company, financial literacy and transparency go hand in hand. Michael explains why in today’s episode.
The Importance of Financial Literacy
This is a passion for both Michael and his wife. We are a product of our upbringing and our level of financial literacy is one of those examples. Depending on what we’re exposed to when we are younger, we view our finances in different ways. Entrepreneurs need such a strong sense of financial literacy. In Michael’s experience, business owners (and employees) don’t often have a good grasp of these numbers.
At Mojo, Michael and his team focus on financial literacy by example. Every employee at Mojo knows exactly where each dollar is spent and how much is coming in.
We’re all a product of our experiences.
Open Book Management System
One of Michael’s mentors is Jack Stack, who is the founder, president, and CEO of SRC Holdings. He has been praised as an amazing strategist and his keen business intellect. Jack focuses on the concept of an open book management system in which he is incredibly transparent about his company to his team members, employees, and shareholders. Bringing his employees into the fold, helps give them a sense of their place in the company. They care about how the company does because they know the inner workings of it. This includes the numbers portion of the business. His employees are financially literate of how their company works. This means they know what is happening when the numbers are good, and when they are bad.
We all live this imposter syndrome that everything is going well, that we don’t want to share the negative news, we only want to share the positive.
ROE: Return on Energy
Michael ROE: Return on Energy concept and program is all about creating and envisioning the life that you want, in order for that energy and residual vision to spill over into your business, further growing your business to its greatest potential.
You have to create the life that you love first and it’ll grow your business. It’s absolutely tremendous what happens.
Resources about TOPIC, which Michael recommends:
- The Great Game of Business, Expanded and Updated: The Only Sensible Way to Run a Company, by Jack Stack and Bo Burlingham
This interview is part of the How We Solve podcast. To hear more from industry experts who are solving everyday business problems, check us out on Spotify, Apple Podcasts, and on our website.
About the guest
You can download the first chapter of Mike’s book, Return on Energy – ROE Powers ROI The Ultimate Way to Think & Communicate for Ridiculous Results at mojomedialabs.com/free-roe-chapter
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