In 1983, Stack and some employees bought the company from IH, turning SRC into what Inc. magazine calls “one of America’s most competitive small companies.”
WS: You are a big believer in open-book management, in which employees gain access to the company’s financial numbers. Why is this so important?
Stack: Senior executives take all this financial knowledge and lock it into this vault. As a result, employees become totally disconnected with what’s in that vault. I’ve found it’s much better to tell people how the business works.
WS: Doesn’t that require a lot of teaching about financial concepts?
Stack: You need to explain the cash-flow process, the dif...(register to read more)