The Great Game of Business: Teaching Financial Literacy and Ownership - Watch Here

About The Guest(s): Steve Baker is the Vice President of the Great Game of Business. He joined the company 17 years ago and has since become an expert in teaching business and financial literacy to employees. Steve is passionate about helping people understand the financials of a business and empowering them to make a positive impact.

Summary: Steve Baker, Vice President of the Great Game of Business, shares his journey from being an art school graduate to becoming a business expert. He explains the concept of open book management and how it can demystify financials for employees. Steve emphasizes the importance of teaching people how to make money and generate cash in a business. He also discusses the power of connecting employees with the financial outcomes of their actions and decisions. Steve highlights the benefits of implementing the Great Game of Business system, including increased employee engagement and a more competitive company.

Steve and Ron discuss the challenges faced by businesses and the need to build a great company. They stress the importance of aligning education, accountability, and incentives to the goal of building a great company. Steve also emphasizes the value of talent and the need to develop leaders within the organization. They conclude by highlighting the importance of purpose and fulfillment in work, and how the Great Game of Business provides an opportunity for employees to make a meaningful contribution.

Key Takeaways:

• Open book management is about demystifying financials and teaching employees how to make money and generate cash.
• Connecting employees with the financial outcomes of their actions and decisions increases their engagement and ownership.
• Building a great company should be the focus, as it leads to better quality, technology, service, and profitability.
• Talent is a crucial factor in business success, and developing leaders within the organization is essential.
• People are looking for purpose and fulfillment in their work, and the Great Game of Business provides an opportunity for employees to make a meaningful contribution.

Quotes:

• "We want to take the numbers and demystify them, knock business off its magical pedestal, and make it accessible to people." - Steve Baker
• "If you focus all your energy on building a great company, you will have great quality, technology, service, and people." - Steve Baker
• "We want to connect people with the direct line of sight to how they help us make money and generate cash." - Steve Baker
• "In a growth company, you're always adding people, so you need to constantly develop leaders." - Steve Baker
• "People are looking for purpose and want to know if they can do well and do good at the same time." - Steve Baker

Articles: 

The Great Game of Business: Building a Business of Business People

Introduction

In today's competitive business landscape, it is crucial for companies to find ways to engage and empower their employees. One approach that has gained significant attention is the Great Game of Business, an operating system that promotes open-book management and financial transparency. This system, developed by Jack Stack and his team at SRC Holdings, aims to demystify the world of business and empower employees to think and act like owners.

In this thought leadership article, we will explore the main themes discussed in a recent interview with Steve Baker, the Vice President of the Great Game of Business. We will delve into the key principles of the Great Game, the importance of financial literacy, and the impact of this operating system on employee engagement and company performance. Through verbatim quotes from the interview, we will gain insights into the practical implementation of the Great Game and its potential implications for businesses.

The Great Game of Business: A Growth System

At its core, the Great Game of Business is a growth system that helps companies operate more effectively and achieve sustainable growth. It is not just an operating system; it is a mindset that encourages employees to think beyond their individual roles and understand how their actions contribute to the overall success of the company. As Steve Baker explains, "We want to take the numbers and demystify them, knock business off its magical pedestal, and make it accessible to people."

The Great Game of Business starts with the fundamental principle that the company is the product. By focusing on building a great company, organizations can drive quality, innovation, and customer satisfaction. As Baker emphasizes, "If you focus all of your energy, your education process, your accountability rhythm, and your incentive program on building a great company, you will have great quality, great technology, great service, and great people."

Financial Literacy: The Language of Business

One of the key aspects of the Great Game of Business is financial literacy. In today's society, many employees lack a basic understanding of business finance, which can hinder their ability to contribute to the company's success. Baker shares his own experience, stating, "I am living proof that anyone can learn business. I went to art school, and now I speak and teach business internationally."

To bridge this gap, the Great Game of Business aims to teach employees how to read and understand financial statements, such as the income statement and balance sheet. By demystifying these financials and connecting employees with the numbers, companies can empower their workforce to make informed decisions and contribute to the financial success of the organization.

Engaging Employees through Open-Book Management

Open-book management is a fundamental component of the Great Game of Business. It involves sharing financial information with employees and involving them in the decision-making process. By opening the books, companies can create a sense of ownership and accountability among employees, leading to increased engagement and motivation.

Baker explains, "We want to connect people with a direct line of sight to how they help us make money and generate cash. We ask them to help and give them a stake in the outcome." This approach not only fosters a culture of transparency and trust but also encourages employees to think creatively and take ownership of their work.

The Power of Incentives and Rewards

In addition to financial transparency, the Great Game of Business emphasizes the importance of incentives and rewards. Traditional bonus plans often focus on individual performance, but the Great Game takes a different approach. It encourages companies to develop self-funding incentive plans that are tied to the overall financial performance of the organization.

Baker highlights the significance of these incentive plans, stating, "When you have a stake in the game, you behave differently. Players do the same thing. They want to know who they're fighting against, where the goal is, and what they have to do to get there." By aligning incentives with the critical numbers that define success, companies can motivate employees to work towards common goals and drive financial performance.

Implications and Future Outlook

The Great Game of Business offers a unique approach to employee engagement and company performance. By promoting financial literacy, open-book management, and self-funding incentive plans, companies can create a culture of ownership and accountability. This not only drives financial success but also fosters a sense of fulfillment and purpose among employees.

Looking ahead, the Great Game of Business has the potential to transform the way companies operate and engage their workforce. As more organizations recognize the value of financial transparency and employee empowerment, we can expect to see a shift towards a more inclusive and collaborative business environment.

In conclusion, the Great Game of Business provides a framework for building a business of business people. By focusing on financial literacy, open-book management, and incentives, companies can empower their employees to think and act like owners. This approach not only drives financial performance but also creates a culture of engagement, innovation, and continuous improvement. As businesses embrace the Great Game, they have the opportunity to unlock the full potential of their workforce and achieve sustainable growth in today's competitive landscape.

Additional Insights from the Interview

During the interview, Steve Baker shared some additional insights that further highlight the significance of the Great Game of Business. These verbatim quotes shed light on the transformative power of this operating system and its potential impact on individuals and organizations.

"They just didn't know what the challenges were for the business. And then finally, I guess one of my favorite things is when people start to get real personal, they're like, hey, you know what, what if I train these people up? What if I teach 'em about business? And they get smart and they get really good and they leave. And I'm like, dude, what is your alternative? If they're stupid and they stay. Workforce I can possibly have. And everyone listening, man, I'm telling you, if you're looking at companies, you need to remember this. In the next five years, the companies that have the smartest, best educated, best trained up, workforce will dominate in their industry next five years, maybe 10. So, Believe in your people, you'll build trust and respect more quickly with, a more transparent workplace than anything else. Do what Ron did. Model some vulnerability, some courage, and say, this is what I'm dealing with. Can you help? And build a self-funding incentive plan that's built around the metrics of building a great company instead of just hitting a KPI."

"It is so demoralizing to go, if you just do what I tell you to do, everything will take care of itself. What if I'm part of something bigger? Will I tap to my discretionary energy, my discretionary innovation, and my wisdom and my experience? What about the guy that was an accountant that was on the floor triggered you to go, oh, wow, there's a problem here, we really need to look into. I'm sorry, I get so worked up Ron, but dude, this stuff changes lives. It's changed my life and I am so, so engaged around this that, don't tell Jack this, I'd probably do it for free. It's just, it's transformative. It really is."

"So, three top takeaways. If somebody can, cuz we're hitting the top of the hour here. So if somebody can't remember anything else about what we learned today and they only can remember three things today, what would be the three things you want 'em to remember? Yeah, the company is the product. So align your, education program, your accountability program, and your incentive program to building a great company. If you have debt, that's probably in your way. If you have a lack of talent, that's probably in your way. If it's technology, you get the point. Build a great company. The second one would be is to build a business of business people who think and act and feel more like you do. You will be freed. And the third thing is believe in people. I am telling you man, people are just looking for purpose. And next gen workers, they want to know, can I do well? And can I do good at the same time? Guess what? At great game companies, even if you're remanufacturing internal combustion engines, guess what guys? That is still a tremendous purpose because there are still 350 million internal combustions engines out there that will end up in the landfill if there aren't guys like us. There's purpose. You can do well, and you can do good at the same time."

"What's interesting is the majority of people on this planet lack fulfillment, and I think it's because they spend, the majority of their time at work and they're not, there's no sense of fulfillment in most jobs, right? It's just like you go in and do your job and you go home. But I think there's a, there's potential here. I think if I surveyed the, what do you think you guys have right now? 1200 to 1500 employees. I didn't see your employee size. 2000. Yeah. And they don't think of themselves as mechanics and machinists and remanufacturer. They think of themselves as business people. We're building a hundred year company. If you ask our employees, that's what they're building."

In the interview, Steve Baker also shared how interested individuals can learn more about the Great Game of Business. He mentioned that the website greatgame.com provides access to resources and materials related to the Great Game. He also offered a special opportunity for listeners to access the original audio book of Jack Stack's book on the Great Game of Business for free. By visiting greatgame.com/steve, individuals can gain valuable insights and resources to help them understand and implement the Great Game in their own organizations.

In conclusion, the Great Game of Business provides a comprehensive framework for building a business of business people. By focusing on financial literacy, open-book management, and incentives, companies can empower their employees to think and act like owners. This approach not only drives financial performance but also creates a culture of engagement, innovation, and continuous improvement. As businesses embrace the Great Game, they have the opportunity to unlock the full potential of their workforce and achieve sustainable growth in today's competitive landscape.

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