Maverick

Ricardo Semler

1993

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About the Author

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Ricardo

SemlerBorn: 1959 at Sao Paulo in Brazil

Best known for his experiments in Industrial Democracy and Corporate reorganization (1980 onwards)

Business Success:

Revenues: $4 million(1982) -> and $35 million (1994) -> $212 million(2003);

Annual Growth Rate up to 40 per cent a year. Workers: 90 (1982) -> 3,000+ (2003)

Awards & Recognition:

•"Time" featured in the Global 100 young leaders profile series - 1994

•Nominated by the World Economic Forum - 1994

•The Wall Street Journal America Economia (WSJ - Latin America) - Latin American businessman

of the year in 1990

•Brazilian businessman of the year in 1990 and 1992

Books:

•Virando a Própria Mesa ("Turning Your Own Table") – 1988 / Maverick - 1993

•The Seven Day Weekend - 2003Src: http://en.wikipedia.org/wiki/Ricardo_Semler & http://www.santigarcia.net/2009_01_01_archive.html

Interesting aspects from the

Book

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The Semco Management Style: Throw every “Scientific” Management

Technique out of the window or turn it on its head!

Some Highlights (1/4)• Removal of necessary security

check at the gate for the workers

• No strict dress code

• Individual cabins and work stations converted into open spaces

– Ricardo’s own office becomes smaller

• Workers to decide their own dress and color

• No individual parking (FCFS)

• Recognize unions

• Self – managed committees (own and change)

– Instance to find a new factory location!

– Encourages employees to visit 30 nearby factories to compare skills, responsibilities and pay cheques

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• Consequently staff turnover goes down

• Treat everybody as an adult

• During the strike period

• Continues all benefits

• No police interventions

• No punishment

• Encourage return

• No firing due to vengeance

• Get then to understand their own act of aggression

• Workers take charge of theirs work places

• “Paints the walls around them in their favorite colors”

• Rules:

• No rules or rule books

• Common Sense is the driver

Some Highlights:

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• Size:

– Amoeba: Dividing Businesses in smaller and manageable units

– Giving autonomy to units

– Minimum Interference

– Break the Diseconomies of scales

• Search committee of workers formed to search a suitable place for the company

• Workers as a part of the whole (anti Taylorism)

– Supervision to Ownership/Meaning in the work

• Financial Info:

– All financial information made available to everybody

• Profit Sharing:

– Workers decide their own profit sharing cheques (23%)

– Equal amount not percentage

• Interview:

– Qualified candidates are interviewed by the people that would be working for them

• Job Rotation: Leadership benefits

Some Highlights: Hiring and Firing the Boss!

• Unique system: Subordinates recruit their boss!

• Based on Rating Questionnaire – Covers softer aspects

– Administrative Skills

• Min Score of 70 – < 70% intense pressure to change

working style

• Productivity based bonus for the unit ensures fair evaluation by subordinates

• Earn the Respect of your colleagues

• Leadership becomes an important category for career advancement

Hierarchy to Rounded Structure

• “Pyramid Structure”– unwanted levels

– clutter at mid management levels

– insecure work environment

• Solution the Circular Organization– Free from hierarchical tyranny

– No intra reporting amongst same levels

– Don’t push to jump a level as a matter of prestige!

• Technical Expertise encouraged

• Blank: Visiting Cards– Employees free to write whatever they

deemed appropriate on their visiting cards

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Giving up their job if they don't fit into the context! Know they have a preference

if they are to return!

Some Highlights: • Headline Memo!

• Name your price– Salary fixed by the employees

• Mind your own business– Benefit of doubt to the employees

– No promises, no freebies, no soaps, only sound financial advice

• “Zero Tolerance” for corruption

• Head on approach to corrupt inspector’s approach “Creating difficulties to sell Simplicities”

• Suffered delays, bottlenecks-stuck to the policy-positive image of Co

• “Thinking for Living”- Nucleus of Technological Innovation (NTI)

• “Flexitime” for employees.– Make them agree on common Co. goals and let them loose to achieve them

– Concept of work teams and interchangeability of jobs

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One single messageWe TRUST you!

QUESTIONSTHANK YOU

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