Organization Background
SRC Automotive® (SRCA) is a world class remanufacturer and assembler of gasoline engines for the automotive, marine, and industrial Industries and brands like General Motors, Mercury Marine, and Harley-Davidson. It was spun out of Springfield Remanufacturing Company in 1998.
Challenge
While the associates at SRCA have long been aligned with The Great Game of Business® (GGOB) as part of the SRC family of companies, it took a change in their leadership team to spur them to double their commitment to principles of The Game that had fallen off over the years. Part of the need for the change was that while the company was growing profitably, it was also facing a shortfall in cash. The leadership team saw an opportunity to create deeper education and engagement among its employee owners, especially when it came to financial and business literacy both at work and at home.
Solution
Two senior-level directors enrolled in a program to become certified GGOB internal coaches, while offering the support, encouragement, and funding requested for GGOB efforts by the OCC Committee. The entire SRCA team also used their huddles—from their team meeting to the all-team “Super Staff” to reinforce GGOB ideas and principles inside the company.
Results
Driving deeper knowledge of the company’s income statement, balance sheet, and cash flows among associates created positive outcomes throughout the company. As associates began to better understand how they could measure the health of their business through those financial statements, they shifted strategies on inventory management, production and shipment schedules, and by discussing terms with vendors and customers to shorten the cash cycle. At the same time, thanks to their commitment to communication, High-Involvement Planning™, teamwork, and MiniGames™ throughout the year, the SRCA team celebrated by hitting their MAX BONUS! Perhaps just as importantly, SRCA won SRC’s coveted Owner’s Cup, which is awarded annually to the SRC company for playing Great Game at its highest level.
“When I was hired on at SRC out of grad school I was taught how to read financials by a fork-truck driver. So being a part of a company that wants all layers to understand the sport of business was evident right away. Getting to share in the big wins with the company and all combining efforts to negate some headwinds really helps pull the team together.”
~ Chandler Holt, Program Manager
Pain Points and Opportunities
While the SRCA team has made incredible progress with their financial literacy education efforts, Travis Weathermon, the Director of People and Parts at SRCA, says the team still thinks it has more progress to make. That’s especially true with some of the younger associates SRCA has hired in recent years—many of whom have never been given any kind of financial education whatsoever. That lack of knowledge impacts everything from forecast accuracy to associate retention. Case in point: Weathermon recently found himself talking a young associate through the pros and cons of an offer letter he received from another company. While the associate was focused on the wage per hour he was offered, he hadn’t understood how the benefits offered by SRCA—from the health care plan and 401(k) match to the ESOP—impacted his paycheck. “I taught him that if he left, he’d make more money, but he’d take less of it home,” says Weathermon. “I also told him that I loved The Game and couldn’t imagine working in a place without it.” The associate stayed.
“Being a part of a GGOB company has truly changed my life personally and professionally. The opportunities that have been presented to me to further my education and career are unmatched. As an HR professional, being able to help other employees understand our culture and realize that we are more than just a job is the best possible outcome. Learning open book management and slowly gaining understanding of our financials helps bring everything full circle. As an employee, knowing your line of sight and being able to make an impact is very meaningful!”
~ Claire Curtis, HR Manager
MiniGame™ Highlight
When the SRCA team reinvested in Great Game, they put a lot of focus on making MiniGames meaningful, fun, and impactful. One of the games they played in 2021 addressed supply chain challenges like long lead times. They focused on diversifying their suppliers and saving the company money through any method feasible including material, labor, processes, and even where they purchased our company tee shirts. “To my knowledge, this went on to be the highest budget MiniGame in SRC (internal) history and the return per dollar spent was killer at an 8% cost,” says Weathermon.
What’s Next
The SRCA team plans to continue to invest in the education of its team, including how it can continue to better manage its cash as new opportunities like landing a contract with Ford Motor Co., push the company’s growth into the future. Part of that effort involves changing the company’s Critical Number from PBT to actual gross margin. “It requires a deeper understanding of the company and highlights the importance of not only watching profitability but other critical long-term success factors of the organization,” says Weathermon.
“SRCA is founded in the Principals of The Great Game of Business and is backed by the accomplishments that I am proud to have been part of making happen. This is apparent as soon as you walk in the doors. The culture that has been created is not only made it a great place to work, but also a sought-after company to do business with. In the 20 years and 3 divisions I have worked in I have not only learned the keys to what it takes to run a successful business, I have been able to take that knowledge and apply it to my personal life in buying a home and starting a family. As employee owners, SRC truly gives back to you what you are willing to put into it!!”
~ Paul Gomes, Production Supervisor
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