Ricardo semler


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Ricardo semler

  1. 1. Organizational Design Change & Transformation Presentation THE GAME CHANGERS Prepared By:- Munmun Biswas (11BM60043) Saiyam Chhabra (11BM60051) Rahul Gupta (11BM60055) Sahil Bansal (11BM60061)
  2. 2. RICARDO SEMLER Writer by Passion, Imagineer by Intention, Teacher by Interest and CEO by Profession Featured in Times Global 100 young leaders, Nominated in World Economic Forum, Wall Street Journal America Economia, The Wall Street Journals Latin American magazine A Harvard Graduate, Author of International bestsellers Maverick & The Seven Day Weekend Fired 60 % of all top managers on his very first day in office and began work on a diversification program to rescue the company In 1990, leading to hyperinflation in Brazilian Economy, faced a tough time by cutting the salaries by 40% but offered 39% profit share to them and sailed smoothly
  3. 3. THEN AND NOWCOMMUNICATING STRATEGIES Withhold and Uphold - traditional autocratic style of management, orthodox pyramidal hierarchy. Underscore and explore - Democratic style, unorthodox trust – operatives, managers, major decisions and factories; ‘amoeba’ treatment.TYPE OF CHANGE One – way turnaround – Corpocracy , ‘more people, more plants, more products, more revenue Charismatic transformation - ‘a business that wants people to think, innovate, and act as human beings’; each unit got a democratically agreed 23% of any profit and was free to allocate the money as the members decided ;letting people decide on issues cuts out forests of complication and bureaucracy ; one-page memos with newspaper-style headlines; hollowing out the corporation, subcontracting everything possibleLEADERSHIP STYLE Commanding Style Inspirational and Supporting Style
  4. 4. CHANGE CONVERSATION SKILLS TALKING IN STAGES Initiative Conversation Declaration - One-page memos with newspaper-style headlines (New Toaster Will Sell 20,000 Units for $2 Million Profit) Conversations for understanding Enables Participation – rotate managers between functions,no vice presidents, no chief officers for IT or operations, no HR department, not even a fixed CEO. Confirms the interpretations - subject managers to six-monthly appraisal by their subordinates with multiple choice questions, passing grade of 70%. ALIGNING LANGUAGE WITH THE DESIRED CHANGE Transformational Imagery of Change Demolish the pyramidal structure; go circular, with directors becoming counsellors, unit heads partners, other managers coordinators, and everybody else associates’. The core preserved
  5. 5. for Semco is applications engineering and final assembly. In these coreactivities, theres a distinct hierarchy and leadership. On issues like whatproduct to make, or the control of sales and distribution, the leaders havevery clear responsibilities‘. absolute integrity of management, the introduction of trust and delegation,the abolition of futile restraints and complications, and the whole-hearted use ofmodern manufacturing methods and people policies Prime Philosophy – ‘Changes in mentality do affect the numbers’. to shift the centre of gravity towards the middle’ boundary-less company
  6. 6. ACTIONS TO CONSOLIDATE CHANGE Redesign Roles - Top management abolished central roles; new culture in which people made their own rules. No ‘macho culture’. Redesign Reward system – - subject managers to six-monthly appraisal by their subordinates with multiple choice questions, passing grade of 70%. Encourage ‘voluntary acts of initiative’ – An experienced early retiree reckoned he could raise the productivity of Semco’s gear cutting machine ,his reward will be 20% of the first two years savings. Measure Progress - In 1993 he hadnt hired anybody, fired anybody or signed a cheque for eight years, remove this burden from the company so that self-confidence grows’ ; mission - creating a self-powered organisation