Managing With an Open Book

WS talks to visionary CEO Jack Stack

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in Leaders & Managers,Management Training

Jack Stack is the president and CEO of SRC Holdings Corp. in Springfield, Mo., a rapidly growing industrial firm with 1,200 employees and $140 million in revenues. Stack came to SRC in 1979 as a plant manager of International Harvester after 11 years of management experience.

In 1983, Stack and some employees bought the company from IH, turning SRC into what Inc. magazine calls “one of America’s most competitive small companies.”

WS: You are a big believer in open-book management, in which employees gain access to the company’s financial numbers. Why is this so important?

Stack:
Senior executives take all this financial knowledge and lock it into this vault. As a result, employees become totally disconnected with what’s in that vault. I’ve found it’s much better to tell people how the business works.

WS: Doesn’t that require a lot of teaching about financial concepts?

Stack:
You need to explain the cash-flow process, the dif...(register to read more)

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