Summary
SRC Holdings Corporation, formerly Springfield Remanufacturing Corp., is a well-known manufacturing enterprise comprised of numerous companies spread across 12 Business Units engaged in activities ranging from manufacturing to packaging to management consulting and training. However, their primary business expertise and core competency is remanufacturing –the process of taking used transportation parts, for example, and returning them to their OEM(original equipment manufacturer) specifications. Headquartered in Springfield, Missouri, the SRC story is one of tremendous financial success, virtually from the beginning of the organization in 1983. At that time, a share of stock was worth 10¢; as of 2012, a single share is valued at about $361! But although the company is well-known for its financial record, it is safe to say that it is most famous for its founder and current CEO, Jack Stack, and his insistence on converting his company into an employee-owned firm very early on. The subsequent success of SRC and the role its employee stock ownership plan (ESOP) played in this success is legendary. Thus, it’s not surprising that both the SRC ESOP and Jack Stack play central roles in this case study.