SRC Holdings - The 'Open Book' Management Culture |
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"We are building a company in which everyone tells the truth every day - not because everyone is honest, but because everyone has access to the same information: operating metrics, financial data, valuation estimates. The more people understand what is really going on in their company, the more eager they are to help solve its problems." - Jack Stack, President and CEO, SRC Holdings Corp., in January 2000.1 The Power of Employee Involvement
Surprisingly, the number of players in this segment had gone down considerably since the 1990s. Few small companies could sustain themselves in the engine/parts remanufacturing market. While many of them were acquired by the bigger ones in a spree of consolidation (mergers, acquisitions, and reorganizations), many others disappeared without a trace.
Reportedly, it was the only company in the industry that had continuously registered profits since its inception in 1983. SRC aimed at generating a 15% growth in revenues and earnings during both good and bad times. The company registered annual revenue of over $160 million in the year 2001. Since 1983, SRC Holdings had been ahead of its competitors on all productivity metrics such as operating income per employee, revenue per employee, and return on invested capital. SRC Holdings - The 'Open Book' Management Culture - Next Page>>
1] "Keep Employees in the Dark, and They'll Go Where
It's Light," www.businessweek.com, January 14, 2000. |
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