Posted in Finance, Accounting and Economics Terms, Total Reads: 361
Definition: Open Kimono
The literal meaning of the term Open Kimono refers to the opening or loosening of the Kimono. Kimono refers to a type of Japanese traditional garment. This is referred to as the Japanese people opening or loosening their garments at home to relax just like relaxing by loosening the tie. While the literal meaning does not make much sense in the business world per say, but it is used for different meaning in the business scenario.
Open kimono in business scenario refers to the idea of open door policy in a company. Open door policy generally signifies the transparency and the ease of doing work in a given company and also the confidence at which each of the employee is at in a given company. This means that any employee can enter into any superior employee’s office and ask the questions relating to the company’s goals and the strategy followed and also the way in which the employee can play a role in realizing the goal and the operational work that is translating into the strategy and the way in which he should shape his personal career etc.
The financial side of the meaning of the term Open kimono is open the books. It simply means revealing whatever the company is working inside to the different stakeholders, be it inside company or outside company. This refers to declaration and reporting by a company in which the company addresses where it is investing and what is the future strategy. By looking at those open books investors decide further whether to invest in the company and also whether the company is working towards shareholders wealth maximization. And also al the outside stakeholders like suppliers decide further partnership clauses etc.