SRC Holdings: The 'Open Book' Management Culture  - CLEO Skip to main content

Summary

The case examines how Springfield Remanufacturing Corporation Holdings (SRC), a key player in the engine and parts remanufacturing market in the US, turned itself around by implementing the ‘Open Book Management’ (OBM) philosophy. The case gives an overview of the evolution of SRC and the problems that necessitated the adoption of the OBM philosophy. Details of how and why SRC opened its financial books to employees and made them partners in the business are given. The case then discusses the evolution of SRC’s ‘Great Game of Business’ (GGOB) system. It examines the company’s unique organizational culture that emerged on account of implementing OBM and GGOB. The case also reviews the benefits SRC reaped on account of the OBM and GGOB initiatives. This case is developed to help students to: (1) get an insight into the automotive engine and parts remanufacturing market in the US; (2) understand the impact of an organization’s strategic problems on its divisions and employees; (3) learn the philosophy of OBM and the GGOB system; (4) analyze the importance of the role that strong leadership plays in a company’s success; (5) understand how implementing OBM and the GGOB resulted in the creation of a unique organizational culture; (6) examine how companies can survive periods of crisis, if the culture, the employee base and the management work cohesively; and (7) appreciate the benefits that accrue to an organization on account of financial literacy (in employees), employee involvement, and ownership. The case is targeted at MBA/PGDBA students and is intended to be part of the human resource management curriculum. The teaching note does not contain an analysis of the case.