Great Ideas! Jack Stack's "The Great Game of Business" - Executive Overview

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Jack Stack's The Great Game of Business is a practical and inspiring overview of how Springfield Remanufactring in Missouri achieve extraordinary performance by virtue of some basic blocking and tackling; specifically: by showing employees how the company makes money and giving them a stake in the outcome.

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  • Introduce the book, Collins, L&L concept\n\nVALIDATION - clients and OSB\n
  • Define OB, RR2B and DD\nOB - not so much a “how to” as benchmarks ... or organizational DNA\nRR2B - generally seen as the most influential book of the early 21st century\nDD - “It’s no harder to build something great than something good” “all companies have the potential to go from good to great”\n
  • Collins as guru:\n\nCome to Boulder, RH framework, Growth Summit keynote\n
  • Collins as guru:\n\nCome to Boulder, RH framework, Growth Summit keynote\n
  • Explain “prequel” idea\n\nCorporate genome project -- mapping “great” organizational DNA\n
  • Explain “prequel” idea\n\nCorporate genome project -- mapping “great” organizational DNA\n
  • Not about these companies? Not about business?!?\n\n1 thing: the timeless principals of G2G\n
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  • Introduce the book, Collins, L&L concept\n\nVALIDATION - clients and OSB\n
  • Great Ideas! Jack Stack's "The Great Game of Business" - Executive Overview

    1. 1. Great ideas:The Great Game of Businessby Jack StackThe Executive ForumFebruary 23, 2011
    2. 2. me? What’s in it forWhy should I believe you? Why should I care?
    3. 3. Springfield RemanufacturingCorporation’s story is a remarkable one -- and Jack Stack is the visionary behind that story
    4. 4. Springfield Remanufacturing Corporation’s story is a remarkable one -- and Jack Stack is the visionary behind that story “The Great Game hasresulted in one of the mostcompetitive companies I’vecome across in all my years at Inc.”George Gendron, Editor-in-Chief, Inc.
    5. 5. This is a book written very much from the trenches
    6. 6. This is a book written very much from the trenches ... and one that has demonstrated real staying power
    7. 7. SRC has a 25 year profitability streak The company has grown from fewerthan 120 employees to more than 1,000 Annual revenues are now greater than $300 million
    8. 8. SRC has a 25 year profitability streak The company has grown from fewerthan 120 employees to more than 1,000 Annual revenues are now greater than $300 million SRC stock that was worth a dime in 1983 is now worth $170 per share
    9. 9. A quick overview
    10. 10. The guiding principal behind The Great Game of Business is Open Book Management
    11. 11. Which may not beexactly what you think
    12. 12. “The practice of communicating with people via the numbers.”
    13. 13. Ultimately, according to Stack, it’s about engaging hearts and minds
    14. 14. The Great Game of Business uses the elements of any game
    15. 15. The Great Game of Business uses the elements of any game Teams, rules, scores, results
    16. 16. But applies these elements to teaching people how to make money
    17. 17. And as Stack likes to point out,you don’t have to be a genius to understand this stuff rt &S harp Sho
    18. 18. Not even a Sam Walton- type genius
    19. 19. You just learn the rules, master the fundamentals and play as a team
    20. 20. Why a game?
    21. 21. People can know and teach the rules The can follow the action and keep score They can have a stake in the outcome Why a game?
    22. 22. Elements of the game
    23. 23. Elements of the game at SRC
    24. 24. Annual financial planning Mid-year sales & marketing summit Quarterly bonuses Mini-game rewards Monthly training & in-house workshops Weekly huddles & chalk talksDaily review of the Critical Number report
    25. 25. Your first game,however, should be kept very simple
    26. 26. A simplified financial statement Your first game, however, should be kept very simple
    27. 27. A simplified financial statementA sales & marketing plan Your first game, however, should be kept very simple
    28. 28. A simplified financial statementA sales & marketing plan A bonus program Your first game, however, should be kept very simple
    29. 29. Keys to success
    30. 30. Paint the Big PictureTeach the Critical Numbers Establish Line-of-Sight Reinforce Like Crazy Keys to success
    31. 31. Now for a deeper dive
    32. 32. Why teach peoplehow to make money?
    33. 33. Why teach people how to make money?In order to close the biggest gap in American business: The gap between management and workers
    34. 34. “The best, most efficient way to operate a business is togive everybody a voice in how the company is run and a stake in the financial outcome, good or bad.”
    35. 35. Jack Stack contendsthere are only 2 critical factors in business:
    36. 36. Jack Stack contendsthere are only 2 critical factors in business:Generating cash and making money
    37. 37. Getting started
    38. 38. Getting startedCreate a series of small wins
    39. 39. Limit yourself to 2 or 3 key goalsEven if achieving them means that there are a number of other things that need to be accomplished
    40. 40. Back to the Big Picture
    41. 41. This is another great place to start
    42. 42. It’s all about motivationThis is another great place to start
    43. 43. It’s all about motivation Giving people purposeThis is another great place to start
    44. 44. It’s all about motivation Giving people purpose Showing them what it means to winThis is another great place to start
    45. 45. How to convey the Big Picture
    46. 46. Teach people your businessMarket your products to employees Move people around Draw a pictureHow to convey the Big Picture
    47. 47. Open Book Management
    48. 48. “The more people know about a company, the better the company will perform.”
    49. 49. “The practice ofcommunicating with people via the numbers.”
    50. 50. Numbersare the language of business
    51. 51. Numbers are the language of businessPeople must speak the language in order to understand and succeed
    52. 52. Numbers are the language of businessPeople must speak the language in order to understand and succeed It’s the best way to keep people focused on the most important issues facing the company
    53. 53. How to be an open book manager
    54. 54. Start with the Income Statement Highlight the categories where you spend the mostBreak categories down into controllable elements Use the Income Statement to educate people about the Balance Sheet
    55. 55. Do not, however, rely on the type of financial statements produced by your auditor or CPA
    56. 56. Standards
    57. 57. The goal
    58. 58. The goal“Getting the people who create the numbers to understand the numbers.”
    59. 59. “A standard is the number to shoot for in any particular category you are measuring.” It could be a ratio, a % or an absolute number
    60. 60. Critical numbers, standards and targets help make sure that everyone is playing the same game
    61. 61. Skip the Praise, Give us the Raise a.k.a. STP-GUTR
    62. 62. “There is no more powerful tool a manager can have than a good bonus program”
    63. 63. SRC’s STP-GUTR program ...
    64. 64. Is the company’s most valuable educational program
    65. 65. Is the company’s most valuable educational program Acts as an insurance policy
    66. 66. Is the company’s most valuable educational program Acts as an insurance policy Builds teamwork
    67. 67. Is the company’s most valuable educational program Acts as an insurance policy Builds teamwork Helps identify problems fast
    68. 68. Is the company’s most valuable educational program Acts as an insurance policy Builds teamwork Helps identify problems fast Provides structure for the company’s Game
    69. 69. Coming up with a game plan
    70. 70. “The heart of the Great Game of Business is the annual game plan.” A set of financial statements spelling out what you expect to do month-by-month for the entire year
    71. 71. “Just as important as the plan itself is the way you produce it.”Firmly rooted in reality and with maximum participation
    72. 72. The game plan is based on budgeting and at SRCincludes 8 key documents
    73. 73. The most essential documents are: The Income Statement The Balance Sheet The Marketing & Sales Plan The Compensation Plan
    74. 74. “If you don’t stabilize a sales forecast, you can’t control your company.”
    75. 75. “If you don’t stabilize a sales forecast, you can’t control your company.”“If you control a forecast, you control the world.”
    76. 76. The Great Huddle
    77. 77. “If nobody pays attention, people stop caring.”
    78. 78. “If nobody pays attention, people stop caring.” Huddles ensure that this doesn’t happen
    79. 79. “Communications is one of the most difficult challenges in any business” However, if you don’t communicate and communicate well, people will speculate and live on rumors
    80. 80. All games have stages or cycles- including the Great Game of Business
    81. 81. Stage 1 - The Great Huddle Stage 2 - Chalk Talks Stage 3 - The Players Return to the FieldStage 4 - Preparation for the Great Huddle
    82. 82. Tips for great huddles
    83. 83. Keep it regular and on time
    84. 84. Hold it frequently enough to stay in control of the numbers
    85. 85. Put a name and a face on every line in the Income Statement
    86. 86. Invite anyone with something to contribute
    87. 87. Have a fixed format, but don’t be boring
    88. 88. Be a leader, not a boss
    89. 89. Make sure the numbers get out
    90. 90. Insist that people write it down
    91. 91. As in golf or any other sport
    92. 92. As in golf or any other sport Develop a scorecard
    93. 93. The Great Game of Business
    94. 94. The Great Game of Business Uses elements of any game Works on the principle that everyone can understand the fundamentals of business And that the more people know, the more they will contribute The key is to teach people how to make money And give them a stake in the outcome
    95. 95. Great ideas:The Great Gameof Businessby Jack StackThe Executive ForumFebruary 23, 2011

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