In planning for their company's 1996 fiscal year (ending April 30), managers of Patagonia, Inc., which designed and marketed high quality outdoor equipment and clothing, decided to implement a form of "open-book management." The Patagonia system, which was called the Workbook Process, was intended to be a single coordinated process that combined the company's strategic planning, budgeting, and quality improvement processes. But more importantly, the Process was designed to make information about all aspects of Patagonia's business available to all employees and to encourage the employees to be an active part of the company's planning, operating review, and decision making processes.

Questions
1. Evaluate Patagonia's Workbook Process. Would you recommend to Patagonia's management that they continue the process? Why or why not?
2. If you recommend continuing the process, what changes would you suggest, if any?
3. If you recommend discontinuing the process, what would you substitute instead?

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EXHIBIT 1 Patagonia, Inc Lost Arrow Corporation- Consolidated Net Sales 2 2 FY 1980-1997 Fiscal Year Ended Sales (millions) Percent Change June 1980 lune 1981 lune 1982 June 1983 June 1984 June 1985 June 1986 June 1987 June 1988 June 1989 June 1990 April 1991 April 1992 April 1993 April 1994 April 1995 April 1996 April 1997 3,125 5,020 8,350 16,383 22,449 31,156 36,919 46,508 66,786 73,561 86,136 103,725 115,703 112,194 125,869 148,642 154,067 158,476 60.6 66.3 96.2 37.0 38.8 18.5 26.0 43.6 20.4 18.