Several years ago, Springfield Remanufacturing Corp. (SRC) was experiencing financial difficulties and decided to attempt an innovative change in their management practices in order to turn their company around. After finding overwhelming success within their own company, they shared their strategy with the world and introduced The Great Game of Business and the concept of Open Book Management.
The Great Game of Business is the methodology and integrated tools proven to systematically engage your people to drive profitability and sustainability. According to Jack Stack, the CEO of SRC Holdings, “The best, most efficient, most profitable way to operate a business is to give everyone in the company a voice in how it’s run and a stake in the financial outcome: good or bad.” The business operating system of The Great Game of Business and Open Book Management is rooted in the notion of teams knowing what’s really going on and possessing the authority and responsibility to introduce change and hold a stake in the outcome.
After learning about The Great Game of Business and the impact it had on SRC, our CEO, Megan Driscoll, brought a team of employees together to discuss and generate ideas on how Open Book Management could transform PharmaLogics Recruiting.
Prior to implementing Open Book Management at PLR, our employees focused on individual and team goals, rather unconnected to the larger company initiatives and they weren’t able to see the bigger picture of how and why the company ran the way it did. Utilization, submittals, and revenue “three key company goals” were business aspects that management focused on but rarely shared with the rest of their teams. There was a fundamental misalignment and for no really good reason.
Great Game companies “open the books” and teach employees how the business makes money at a granular level. At PLR that meant incorporating the company’s initiatives into the team and individual goals and getting employees to understand how their contribution directly affects the bottom line. This also meant frequent updating on where the company stands both in weekly and quarterly conversations with all the employees present. We talk about how the company is doing in general, if we hit or missed our goals, if there is a need for change, and if so, what that change needs to be.
The Great Game of Business introduced a new level of transparency at PLR that allowed all employees to understand how the pieces fit together and how they, as individuals, could make a direct impact on the company as a whole. By making this a priority, our employees feel confident and comfortable in their own individual work and how they can contribute to PharmaLogics as it continues to grow. The Great Game of business has helped us to further empower and engage our employees, are you practicing Open Book Management?