Src Holding

8/3/2019 Src Holding

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Presented by:

Ravi Shankar

Bhuvnesh

Manindra Kumar

Ved prakash

SRC HOLDING

Open Book Management


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About Case Study

y How SRC turned itself around by implementing the

OBM philosophy.

y Problem that necessitated the adoption of OBM.

y How & why SRC opened its financial book to employees

& made them partners.


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OPEN BOOK MANAGEMENTy To give employees all relevant financial information about the

company so that workers can make better decisions.

yEmployees are made challenged to move the numbers in adirection that improves the company.

y Employees have direct stake in companys success and failure


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PLANNINGy To implement Open Book Management and Great

Game of Business.

y Employees as the partners in the business.

y Great Game of Business:

Putting Open Book Management inpractice.


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ORGANISINGy Train employees to understand financial statements.

y Training programme using a series of business course &

on various aspect of running a business.

y Employees activity committee (executives of differentdepartments).

y Employees were trained to take over the job formanagers and executives.


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Cont..

y Three basic rules of OBM:-

1. Know and teach the rules,

2. Follow the action and keep score,

3. Provide a stake in the outcome.


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STAFFINGy Bonus plan is tied up with the achievement of specific

goals.

y Reward for the ideas contributing in improvement and

cost saving to company.y Job satisfaction survey half yearly.

y Remuneration in four ways:

1. Salary

2. Stock programs

3. Individual bonus programs

4. Their share in the earnings of the company.


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Cont

y SRC provide job security to the employees.

y Not a single employee lay-off even at the time of crisis


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LEADERSHIPy Jack Stack, President and C.E.O

y People-oriented and transformational leader.

y Employees as the most valuable assets.


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CONTROLLINGy Employees group meeting regularly to review their progress

towards the achievement of their goals.

y Income statement were made to identify the weak areas of

the company. On weekly basis.


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CONCLUSIONy After implementing GGOB system, SRC grew at a rate of

40%.

y Its debt-equity ratio also reduced from 89:1 to 5.1:1.

y Share price increased to $8.54.

y GGOB resulted in formation of a unique org. culture.

y SRC showed the success of OBM and employee ownership.


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LEARNINGSy The philosophy of OBM and GGOB system.

y The importance of role that strong leadership play in a

companys success.

y How company can survive periods of crisis, if the culture, the

employee and the management work cohesively.


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THANK YOU

Documents

Src Holding