Presentation on theme: "1 Chapter One: Springfield Remanufacturing Company Slides with notes."— Presentation transcript:
1 Chapter One: Springfield Remanufacturing Company Slides with notes
2 Springfield Remanufacturing Company Jack Stack, CEO It’s My Company Too!
3 Jack Stack, 29 transferred down to Springfield, Missouri by International Harvester (IH) to generate more cash from the unit. While he was a wonder-kind, he also believe the you get more out of the workforce if you respect them and build trust. They asked for fans, they got fans They asked for refrigerators for their lunches, they got refrigerators The employees knew IH was wanting less expense, not more so they developed a trust for Jack because he was addressing employee needs IH wanted to sell or close the plant. So Jack got together $100,000 dollars and went out to borrow the addition 8.9 million to buy the plant. Banks laughed at him, except one that wanted the 115 jobs to stay in Springfield, Mo. This was one of the highest leveraged purchases in U.S. history at that time. The Background It’s My Company Too!
4 Jack Stack went to the employees and explained any mistake or loss of cash could kill the company and everyone’s job. He got their attention. He started to get them to feel pride and ownership in the organization, let them paint their areas, had an open house allowing families to come in, let employees make some decisions and better understand the financial position of the company. Jack Stack knew he could get even further engagement from the workforce, so he created the Great Game of Business. The Background (continued) It’s My Company Too!
5 1.Teach all employees the financials (ratios, statement, cash flow), budgeting; The YoYo company 2.Define responsibility areas 3.Have them create the numbers for their areas 4.Mini Games (easy wins, small bonus) 5.Huddles (group support, help, and social pressure 6.Set critical numbers for the whole organization to reach that the numbers in 3 (above) can influence 7.They can earn 10% of the bonus 1 st quarter; 20% -2 nd ; 30% -3 rd ; and 40% 4 th The Great Game Principles It’s My Company Too!
Trust in Management Open Book Management Training in Understanding Financial Reports Huddles to Create the Culture Bonus System to Reinforce Results Key Elements in the Great Game of Business 6 It’s My Company Too!
The Huddle Reinforces that we are in it together The Structure to support engagement Huddle interactions Supports those on target and helps with ideas to help those behind expectations Higher Levels of Performance Through Engagement Discretionary Thinking The Huddle: An important Event to Sustain the Culture of Engagement 7 It’s My Company Too!
Critical Number Team 3 Team 4 Team 5 Team 6 Team 2 Team 1 Each team works in their area of responsibility to meet the Critical Number They work to meet their own budget numbers that are aligned to meeting the Critical Number 8 It’s My Company Too!
9 There are 24 different videos all on different aspects of the Great Game. Video overview of the Great Game of Business It’s My Company Too!
10 Why does the Great Game Work? Mutual trust develops through open book management Gain Sharing (reinforcing and recognition for performance) Allowing input and discretionary thinking (huddles) Personal responsibility (specific accounts assigned) __________________________________________________ End result several 1000x increase in stock value Growth from 112 to 12,000 employees Now 11 different units as they grew based with employees managing the units (also helps to focus accountability) It’s My Company Too!
Springfield Manufacturing Company – Stock Price Success 11 It’s My Company Too!
What We Learned from SRC 1.Listen 2.Communicate 3.Develop Leaders 4.Address Organizational Weaknesses 5.Practice the 4Ps of Success 6.Understand 7.Build Trust 8.Train the Fundamentals 12 It’s My Company Too!