Episode #206 of The Intentional Growth Podcast
Hosted by Ryan Tansom
Jack shares how he increased the value of the business by 360,000% since he took a $100k loan in '83 and turned SRC Holdings into a company that now has 1600 employees and $600M in revenue by using open book management (now called the Great Game of Business).
Jack shares how educating his employees on financial principles and integrating them into the company’s processes allowed them to grow the value of the business into an extraordinary place.
Jack is the author of The Great Game of Business and A Stake in the Outcome. He is also the Founder, President and CEO of SRC Holdings Corporation, a 100% employee-owned remanufacturing firm, where he developed the “open book management” business model (now called the Great Game of Business), which promotes financial transparency with the company’s employees
Under Jack’s leadership and with the “open book management” model, SRC Holdings has owned over 60 businesses, increased its stock value 360,000%, does $600,000,000 in revenue and saved an unbelievable $100 million dollars between the 2009 recession and now in anticipation of the next downturn.
They also doubled the size of the business in the five years after each recession they went through.
I’m excited to share this conversation with you today because the insights into sustainable and long-term growth from The Great Game of Business are invaluable for our current economic moment.
Jack and SRC Holdings empower their employees to understand and participate in the company, creating the opportunity to find new ways to grow the value of the business on top of just growing the net income while creating wealth for everyone involved.
What You Will Learn In Today's Podcast Interview
- What is different about the current economic climate compared to past recessions
- How the company’s financials can be used as a game to drive value and company culture
- How the “Report Card” of a business works
- Vanity metrics to watch out for and how to identify KPIs that drive future value
- How a long-term growth mindset can set both you and your employees up for success
- How the open book management approach can accelerate a company’s value growth
- The value of identifying the employee associated with each line on an income statement
- Why you should educate your employees on the financials of your organization
- The financial and personal value of an ESOP
- The “Four Legs of the Stool” small business owners need that they often do not prioritize
- The opportunities that exist if you have cash on the balance sheet in anticipation of economic downturns
- The eight places cash can go to within a company