By Agha Sumair Khan Presentation

Managing Without Managers by Ricardo Semler

Ricardo Semler Born 1959 in São Paulo , Brazilian . Harvard Business School graduate. He took over as CEO of his father’s ( Antonio Semler) Company Semco SA at age 21 in 1980. On his first day as CEO, he fired sixty percent of all top managers.

Born 1959 in São Paulo , Brazilian .

Harvard Business School graduate.

He took over as CEO of his father’s ( Antonio Semler) Company Semco SA at age 21 in 1980.

On his first day as CEO, he fired sixty percent of all top managers.

He began work on a diversification program and to rescue the company. He introduce a matrix organisational structure in 1986 failed to achieve desired improvements. Workers at SEMCO agreed to wage cuts, providing their share of profits was increased to 39% . Management salaries were cut by 40% and employees were given the right to approve every item of expenditure.

He began work on a diversification program and to rescue the company.

He introduce a matrix organisational structure in 1986 failed to achieve desired improvements.

Workers at SEMCO agreed to wage cuts, providing their share of profits was increased to 39% .

Management salaries were cut by 40% and employees were given the right to approve every item of expenditure.

The Co. Annual r evenue in 1982 was $4 million. The Co. Annual r evenue in 1994 was $35 million. The Co. Annual r evenue in 2003 was $212 million. It employs 3,000 workers in 2003, as opposed to 90 in 1982 . He was named Brazilian businessman of the year in 1990 and 1992. The World Economic Forum named him as one of the Global Leaders of Tomorrow. In 2003, he founded the Lumiar School, a democratic school where children aged from 2-10 learn only about things that interest them. He has also been a visiting scholar at Harvard Business School .

The Co. Annual r evenue in 1982 was $4 million.

The Co. Annual r evenue in 1994 was $35 million.

The Co. Annual r evenue in 2003 was $212 million.

It employs 3,000 workers in 2003, as opposed to 90 in 1982 .

He was named Brazilian businessman of the year in 1990 and 1992.

The World Economic Forum named him as one of the Global Leaders of Tomorrow.

In 2003, he founded the Lumiar School, a democratic school where children aged from 2-10 learn only about things that interest them.

He has also been a visiting scholar at Harvard Business School .

The BBC included SEMCO in its series on Re-Engineering the Business for creating one of the most successful management structures in business. SEMCO as one of the most successfully re-engineered companies in the world by CIO Magazine . He wrote a book Maverick on his experience at SEMCO which became a worldwide bestseller in 1993.

The BBC included SEMCO in its series on Re-Engineering the Business for creating one of the most successful management structures in business.

SEMCO as one of the most successfully re-engineered companies in the world by CIO Magazine .

He wrote a book Maverick on his experience at SEMCO which became a worldwide bestseller in 1993.

A second book, The Seven Day Weekend: Changing the Way Work Works , followed in 2003. Vice President of the Federation of Industries of Brazil. A member of SOS Atlantic Forest, Brazil's leading environmental defence organisation.

A second book, The Seven Day Weekend: Changing the Way Work Works , followed in 2003.

Vice President of the Federation of Industries of Brazil.

A member of SOS Atlantic Forest, Brazil's leading environmental defence organisation.

The company's units include: The industrial machinery unit, which now manufactures mixing equipment as opposed to pumps Sembobac, a partnership with Baltimore Air Cooler making cooling towers Cushman and Wakefield SEMCO, a partnership with Rockefeller property company Cushman and Wakefield managing properties in Brazil and Latin America Semco Johnson Controls, a partnership with Johnson Controls, managing large scale facilities such as airports and hospitals ERM, a partnership with Environmental Resources Management, one of the world's leading environmental consultants Semco Ventures, offering high technology and Internet services SemcoHR, a human resources management firm Semco-RGIS, an inventory control firm

The industrial machinery unit, which now manufactures mixing equipment as opposed to pumps

Sembobac, a partnership with Baltimore Air Cooler making cooling towers

Cushman and Wakefield SEMCO, a partnership with Rockefeller property company Cushman and Wakefield managing properties in Brazil and Latin America

Semco Johnson Controls, a partnership with Johnson Controls, managing large scale facilities such as airports and hospitals

ERM, a partnership with Environmental Resources Management, one of the world's leading environmental consultants

Semco Ventures, offering high technology and Internet services

SemcoHR, a human resources management firm

Semco-RGIS, an inventory control firm

Description: Semco S/A is a manufacturing company in Brazil where workers make corporate decisions, set their own hours, and have access to monthly financial figures. The company's management philosophy is anti-hierarchical and perhaps unorthodox, its profits are handsome. The company operates on the basis of three key principles: work force democracy, profit sharing, and free access to information. Democracy lets employees set their own working conditions; Profit sharing rewards them for doing well; Information tells them how they are doing.

Semco S/A is a manufacturing company in Brazil where workers make corporate decisions,

set their own hours, and have access to monthly financial figures.

The company's management philosophy is anti-hierarchical and perhaps unorthodox,

its profits are handsome.

The company operates on the basis of three key principles:

work force democracy,

profit sharing, and

free access to information.

Democracy lets employees set their own working conditions;

Profit sharing rewards them for doing well;

Information tells them how they are doing.

Subjects Covered: Compensation, Employee empowerment, Management philosophy, Organizational structure, Participatory management.

Compensation,

Employee empowerment,

Management philosophy,

Organizational structure,

Participatory management.

How one unorthodox company makes money by avoiding decisions, rules and executive authority

The Survival Of Semco

The Top 5 Manager We call them counselors

We call them counselors

Late at Night, We searched the desk of elderly executives for forgotten contracts

How do we survived? Semco has 3 fundamental values: Democracy Profit sharing Information These principals were depended on each other.

Semco has 3 fundamental values:

Democracy

Profit sharing

Information

These principals were depended on each other.

4 big obstacles Size Hierarchy Lack of motivation Ignorance

Size

Hierarchy

Lack of motivation

Ignorance

Steps taken Break the facility into 3 separate plants. Separated everything we could so each plant can work independently. In this way the coordination between them increased The distance due to too many people at one place reduced.

Break the facility into 3 separate plants.

Separated everything we could so each plant can work independently.

In this way the coordination between them increased

The distance due to too many people at one place reduced.

Participatory (Hot Air) Give a room, Let Them Work!

Pyramids and Circles The organizational pyramid is the cause of much corporate EVIL We Value Leadership but its not the only thing we value Our People often make higher salaries than their bosses

The organizational pyramid is the cause of much corporate EVIL

We Value Leadership but its not the only thing we value

Our People often make higher salaries than their bosses

Reduce management levels Semco designed an organizational circles

Semco designed an organizational circles

Hiring Adults

We wanted our Workers to Act like Adults, so we stopped treating them like adolescents

Hunting the Woolly Mammoth After the hunt, primitive people shared their kill. Today’s mammoth meat is profit

Hunting the Woolly Mammoth

After the hunt, primitive people shared their kill. Today’s mammoth meat is profit

Transparency

If executives are embarrassed by what they make, they probably aren’t earning it

Letting Them Do Whatever the Hell They Want Excuse Me! Is There A Marketing Department?

Ricardo Semler’s Guide To Stress Management Result are proportional to efforts. Quantity of Work is more important than Quality. The present restructuring requires longer working hours temporarily. No one else can do it Right. This problem is Urgent.

Result are proportional to efforts.

Quantity of Work is more important than Quality.

The present restructuring requires longer working hours temporarily.

No one else can do it Right.

This problem is Urgent.

Second Step is to Master Ricardo Semler’s 8 Cures: 1 St CURE Set an hour to leave the office and obey it blindly.

Set an hour to leave the office and obey it blindly.

2 nd CURE Take half a day, Maybe even an entire Saturday to rummage through that mountain of paper in your office and put it in three piles. Priority items that require: Pile A- Personal Attention (indisputable importance) Pile B- Personal Attention (not right away) Pile C- Dubious rubric (good idea to look at)

Take half a day, Maybe even an entire Saturday to rummage through that mountain of paper in your office and put it in three piles.

Priority items that require:

Pile A- Personal Attention (indisputable importance)

Pile B- Personal Attention (not right away)

Pile C- Dubious rubric (good idea to look at)

3 rd CURE In dealing with Pile A- Always start with the most difficult or the most time-consuming.

In dealing with Pile A- Always start with the most difficult or the most time-consuming.

4 th CURE Buy another wastepaper basket.

Buy another wastepaper basket.

5 th CURE Ask yourself Sloan’s question about every lunch and meeting invitation. Don’t be timid. And practice these three RSVPs: -”Thanks, but I just cant fit it in” -”I cant go, but I think X can.” (if you think someone should) -”I’m sorry I can’t make it, but do let me know what happened”

Ask yourself Sloan’s question about every lunch and meeting invitation. Don’t be timid. And practice these three RSVPs:

-”Thanks, but I just cant fit it in”

-”I cant go, but I think X can.” (if you think someone should)

-”I’m sorry I can’t make it, but do let me know what happened”

6 th CURE Give yourself time to think.

Give yourself time to think.

7 th CURE About the Telephone: Don’t return the calls, return calls to whom you want to talk.

About the Telephone:

Don’t return the calls,

return calls to whom

you want to talk.

8 th CURE Close the door. Oh, I know you have an Open-door policy, but don’t be so literal.

Close the door.

Oh, I know you have an Open-door policy,

but don’t be so literal.

Ricardo Semler’s Guide to Compensation Employees negotiate their salary collectively Once or twice a year, salary market surveys When people ask for little, we give them. When they ask for too much, we give them too. Atleast a year Then if we don’t feel they're worth for money, we sit down and talk.

Employees negotiate their salary collectively

Once or twice a year, salary market surveys

When people ask for little, we give them.

When they ask for too much, we give them too. Atleast a year Then if we don’t feel they're worth for money, we sit down and talk.