Let's take it back a few years....14 years before the famous story of SRC's establishment in 1983. Jack Stack is learning the ins-and-outs of manufacturing, the detailed metrics involved in the industry, and receiving training and education provided by his company, International Harvester. But what he doesn't realize is that he's being cheated out of some of the most important metrics in any company: the financials and reporting system.
In 1983, everyone is struggling for business, but this company is on the verge of failure. International Harvester owes $6 billion, interest rates are at 20%, and the company lays off 1000 workers weekly for two years straight. Jack and the other managers of the Springfield plant are fully focused on saving the jobs of their 119 employees and keeping the business from shutting down. This critical position allows Jack to take on the company financials himself and understand what it takes to make a great company: teaching everyone in the company the metrics of a successful and sustainable business through financial literacy and reporting.
In this interview with Jim Canfield, see how Jack and his team applied these metrics to turn the business around, and the lessons learned in the critical beginning years of Springfield Remanufacturing Corporation that established what we know as open-book management today.
See additional videos from Jim Canfield's interview with Jack Stack below.
Learn more about the establishment of open-book management and the Great Game in Jack Stack and Bo Burlingham's book, The Great Game of Business.
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