Springfield ReManufacturing Corp. was the SRC company that started it all. Originally the remanufacturing division for International Harvester built in 1974 when IH was one of the 25 largest corporations in the United States.
In 1983, Jack Stack and 12 employees scraped together $100,000 of their own money and borrowed another $8.9 million to buy the division before it was divested. “We were buying our jobs,” - Jack Stack, CEO, SRC Holdings The business acquisition may have been achieved, but securing the 119 jobs of the people with the division was not. The company’s debt-to-equity ratio was 89-to-1. The business environment was tough. The country was in the midst of a “double dip” recession.
Stack knew something drastic had to be done to keep the business from folding.
The solution: Share the financials with the employees and teaching them the “rules” of business.
This new approach to running a company was called Open-Book Management and was coined “The Great Game of Business” and later “A Stake in the Outcome.”
“The best, most efficient, most profitable way to operate a business is to give everybody in the company a voice in saying how the company is run and a stake in the financial outcome, good or bad.” – Jack Stack
The approach worked.
Springfield ReManufacturing Corp. stock that started in 1983 at $0.10 per share has increased in value of over 360,000% today.
“SRC is an employee owned company dedicated to being a business of business people, where everyone has a stake in the outcome.” – Jack Stack, CEO, SRC Holdings
Springfield ReManufacturing Corp. actively practices the teachings of The Great Game of Business.
Our employees are participating owners projecting our future success.
Each week the financials are shared with the employees for the current month’s performance.
Each month the next three months financials are projected and reviewed together.
Twice a year we are looking five years out and strategizing how best to meet the customer’s needs to meet the demands of the marketplace.
Daily, each of us are looking for ways to increase the value of our products, our company and our fellow owners’ quality of life.
“Proper development, validation, quality controls, disassembly, reclaim and reman program design are at the “core” of what SRC offers its OEM customers.
It’s what OEM’s value about our services… it’s what they have come to expect.
The financial aptitude of our employee owners; the transparency, collaboration and the creativity in providing solutions is what enhances our value. There is a passion and business acumen among our workforce like no other. An entrepreneurial foundation exists that large corporations struggle to maintain due to sheer size. One visit to our plant and it becomes evident SRC has something special to offer.
These soft traits OEM’s do not expect… but, it is the secret of why they come to trust us.