THE SRC STORY
In the early 1980s, SRC was a near-bankrupt division of International Harvester in Springfield, Missouri. That's when Jack Stack and 12 other managers took over and turned it around. The managers came up with $100,000 to put toward a loan of $9,000,000. (A debt ratio of 89 to 1 -- the highest leveraged buyout in corporate America to date!)
Stack didn't know how to "manage" a company, but he did know about the principals of competition and democracy: keeping score, having fun, providing choice, and having a voice. With these principals he created his own style of management -- open-book management. He had a dream to create a business of business people. Stack realized that the payoff would be enormous: a company that was consistently able to outperform the market.
From the basic, simple premise that everyone wants to be a winner, we have created a system -- with rules, scorekeeping and rewards -- to show every employee what it takes to win. Along the way, we’ve turned our company into what Business Week calls a “management Mecca,” attracting thousands of businesses to SRC’s home in Springfield, Missouri. There the visitors learn how to incorporate the ideals and values of SRC’s remarkable ownership culture known as The Great Game of Business® into their own organizations.
CEO Jack Stack’s book about our management system, The Great Game of Business has sold more than 220,000 copies, is in its 23rd printing, and has been translated into 8 languages. It is cited in 130 best-selling business books. In fact, Inc. magazine dubbed Stack “the father of open-book management”.
Since 1983, SRC Holdings Corporation has grown into a company that currently has 900 employees in 17 businesses across a variety of industries. Sales have increased from $16 million in 1983 to over $270 million. Stock value has risen from 10¢ per share in 1983 to $134 in 2005.
Now, through products, training, seminars and consulting services, The Great Game of Business® helps businesses create their own culture of ownership.
WHEN EMPLOYEES THINK AND ACT LIKE OWNERS…
The management paradigm that has dominated corporate thinking for more than one hundred years has been turned upside down by leading-edge companies around the world.
Thousands of organizations have dramatically improved their financial performance and the lives of employees who drive that performance.
The secret: a culture of ownership that allows them to tap into the most under-utilized resource in business today: the enthusiasm, intelligence, and creativity of working people everywhere. It’s called The Great Game of Business.®
The Great Game of Business® isn’t about theory -- it’s about practice. The Great Game draws from the successes and failures of thousands of open-book management practitioners to show how any company can teach its employees:
- How to think and act like owners
- How to promote continuous learning at every level of the organization
- How to fire up employees’ competitive juices
- How to broaden the concept of leadership
- How to delegate responsibility for the business
- How to drive innovation and build value in the business
- How to improve financial results for the company and themselves
People have applied the principles of The Great Game to an awesome array of businesses -- from oil companies to hair salons, from Internet start-ups to roller coaster manufacturers, from fast-food chains to law firms, landscapers, mining operations, even not-for-profit social service organizations.
Few people know more about building a culture of ownership than SRC Holdings Corporation, where The Great Game of Business® was born. We’ve been working on one for the past twenty-four years.
FREQUENTLY ASKED QUESTIONS
Doesn’t sharing financial information cause more problems than it solves?
Does "opening the books" mean I have to share everything, including financial compensation?
Most employees aren’t even interested in their company’s numbers, are they?
Do employees really have the capacity to understand our financials?
What if our CFO can’t get real-time financial information to employees?
If we share our financials, won’t they ultimately reach our competitors?
When people see how much we are making, won't our customers demand that we lower our prices, and our suppliers will raise theirs?
Where will we find the time to train employees, have weekly huddles, and keep our scoreboards/scorecards updated?
Can you play The Great Game of Business in a company that has multiple locations, commissioned salespeople, or with a very diverse language background?
Will it work in a very large company?
How do I implement The Great Game in my own business?
Doesn’t sharing financial information cause more problems than it solves?
Not if it’s done properly and with the right intention. Opening the books has to be connected to strategic business objectives, and employees need the knowledge and tools to use the financial information they’re given. Nail down those pieces and you’ll see that your people can use their newly acquired business skills to focus their energy wherever they have the greatest impact.
Does "opening the books" mean I have to share everything, including financial compensation?
We don't think that it is necessary to share individual compensation. Instead we lump together everyone's salaries and benefits into one line on the income statement. This lump number is important for people to see and monitor, but we don't find that individual salary disclosure is necessary, or even beneficial.
You need to start by keeping things focused and simple, driving a common understanding of your company's critical number and how your troops can move that number in the right direction. Don't deluge them with too many numbers in the beginning, but don't "hide" information from them either. However, if you do not really intend to be open about sharing information about the business, don't start.
Most employees aren’t even interested in their company’s numbers, are they?
Most employees never see any performance numbers, and so they become apathetic about their ability to influence them. A recent survey found that 66% of employees expressed interest in learning how their company was doing financially. And 75% said they’d work harder and smarter if they could understand their company’s financial statements. Powerful stuff.
Do employees really have the capacity to understand our financials?
Sure they do. Most people can balance a checkbook, follow a household budget and plan for their children’s college education. And many know how to invest wisely and save for retirement. In short, they already use many of the skills needed in an open-book environment. They just need to learn your company’s financial language and how to apply it at work.
What if our CFO can’t get real-time financial information to employees?
You get the critical numbers you need to run your business -- cash flow, billable hours, order backlog -- every day. Real-time information is actually tracked by the people closest to the numbers, rather than the accountants.
If we share our financials, won’t they ultimately reach our competitors?
Thousands of small privately held companies have shared their numbers without experiencing competitive backlash. Open-book companies take a different view of this age-old fear: they see the dangers of secrecy as more problematic than the risks of openness. In fact, the level of employee engagement gained through openness can give OBM practitioners a huge competitive advantage.
When people see how much we are making, won't our customers demand that we lower our prices, and our suppliers will raise theirs?
Aren't your customers and suppliers already making these demands? And if they got your detailed financials, are you sure they would demand more? There may be some risks here, but again, you have to ask if you will be better off with employees who think like owners or by keeping them in the dark.
Where will we find the time to train employees, have weekly huddles, and keep our scoreboards updated?
Your commitment and investment in education and communication will pay back in the form of increased productivity and profitability. Yes, it will take time and discipline to realize these returns, but they will come in time.
Can you play The Great Game of Business® in a company that has multiple locations, commissioned salespeople, or with a very diverse language background?
YES. Many companies with a variety of issues have successfully implemented The Game. Keep in mind that the report cards of ANY business are universal -- the financial statements.
Will it work in a very large company?
Yes. Getting a sense of teamwork, consensus, and open communication all become more difficult as the size of a company grows. We are experiencing this ourselves with the growth of SRC. Our hint: be sure to start by breaking down your organization into all the smaller "natural teams" that exist within your company. Getting senior management support will really help the effort. Once the business is broken down, then the process of getting started is similar to that within smaller companies.
LETTER FROM JACK
"It’s not my job!" No doubt, these are four of the most hated words to every supervisor, manager and owner in business today. With the pace of change and ever increasing competition, these words do more damage to the productivity of your business than ever.
- How does an organization separate themselves from others in their industry?
- How does a company affect change before change is required?
The answer is that companies must remove those four words from the employee’s language by building a true culture of ownership. A culture where employees feel like it is their company, where the job they do every day has a direct impact on the financial performance of the organization -- and in turn on their standard of living. Companies like Southwest Airlines, Harley-Davidson and SRC Holdings Corp. have repeatedly shown that it is their culture, their esprit de corps, that drives unmatched performance year after year.
After a couple of years filled with uncertainty, turbulence, unethical business practices and mass layoffs, we recognize the need now, more than ever, for accountability, trust and organizational transparency. At The Great Game of Business® and our parent company SRC, those are the building blocks to unparalleled financial performance and an ownership culture.
We offer many resources, including articles, products, and general information to explain The Game to companies. Our coaches are also available to create a customized implementation process that will engage employees, build an ownership culture, and educate employees about financial literacy within a company.
No matter where you are in playing The Game, we can help you get moving in the right direction, focus your sights on profitability and employee engagement, chart a course for success, and join the open-book management community. Together we can show the world how to truly “win” The Game.
Jack StackPresident and CEOSRC Holdings Corp.Springfield, MO
CONTACT US
Telephone
1-800-386-2752
Postal Address
3055 East Division Street
Springfield, Missouri 65802
STAFF DIRECTORY
Rich Armstrong, President
Ext. 222
Business Development, Coach
Chris Volkmer, Controller
Ext. 227
Accounts Payable & Receivable, Speaker's Bureau
Steve Baker, Director of Sales & Marketing
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Kim Brown, Event Coordinator
Ext. 247
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Kristin Binford, Marketing Manager
Ext. 270
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The International Gathering of Games Conference
Keshia Clubb, Marketing Assistant
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Krystal Simon, Director of OBM Community Development
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The International Gathering of Games Conference, Open-Book Forums (Regional and Online)