What is the first step in the implementation of open book costing?

The first step in the implementation of open book costing is exploring, as this phase involves gathering information and analyzing the current financial processes and cost structures of the organization. During exploration, businesses evaluate existing practices, identify key stakeholders, and prepare to establish a transparent approach to costing that engages all parties involved.

This exploration phase is crucial as it lays the groundwork for understanding the organization's specific cost drivers and aligns the objectives of all participants. By engaging in thorough exploration, organizations can foster trust and collaboration, which are essential for the successful application of open book costing in subsequent phases such as testing, scaling, and embedding.