Published on

Published in: Business, Career
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. Maverick ! Amazing Real Life Story of a Young man Ricardo Semler And his company
  2. 2. Profile of Semco <ul><li>Was Founded by Antonio Semler in 1952 on his Dining Table(contraction of Sember & Company as Semco) </li></ul><ul><li>Started business by manufacturing oil separating machine and soon entered into Marine and related sectors </li></ul><ul><li>Revenues of $4 million in 1982 </li></ul>
  3. 3. CV of Ricardo Semler <ul><li>Was not a Bright Students(Passed mostly with D Grades) </li></ul><ul><li>Liked rock n roll </li></ul><ul><li>Served in Army for an Year(compulsory in Brazil) </li></ul><ul><li>Developed a Genuine Interest in Business </li></ul>
  4. 4. Management of Semco <ul><li>Pyramidical Structure </li></ul><ul><li>Was being run by selected Managers of his father </li></ul><ul><li>Semco was not doing well </li></ul><ul><li>It was primarily a Rule Book Drive Company </li></ul><ul><li>For his father personal and business life was intertwined </li></ul><ul><li>Was investing money in Marine Business without any returns </li></ul>
  5. 5. Ricardo Semler <ul><li>Had serious differences with his father </li></ul><ul><li>Joined Semco.but was not given and decision making </li></ul><ul><li>Was exploring the possibility of buying some sick company and starting his own business </li></ul><ul><li>Had finalized the contract to buy a sick company </li></ul>
  6. 6. Vital Change <ul><li>Curt Semler finally hands over the reins of the company to his son Ricardo </li></ul><ul><li>Gives him a free hand to run the company </li></ul><ul><li>First Emergency Surgery(15 topmost managers of Semco fired by Ricardo in half a day) </li></ul><ul><li>Ernesto appointed as new key manager </li></ul><ul><li>Customer could do not digest this great and sudden change </li></ul>
  7. 7. <ul><li>Running from one bank to another to arrange cash </li></ul><ul><li>Ernesto trying to putting in place “a system” </li></ul><ul><li>Appointment of some other key managers </li></ul><ul><li>Looking around for new business to acquire </li></ul><ul><li>A couple of Acquisitions </li></ul><ul><li>Stress takes its toll on Ricardo </li></ul><ul><li>Faints often and has other health related problems </li></ul>Difficult Times
  8. 8. Change in Approach <ul><li>Decides to re-organize himself first </li></ul><ul><li>Makes a strict plan for his personal and profession life </li></ul><ul><li>Tried all the tricks in the books to keep people motivated </li></ul>
  9. 9. Winds of Change starts blowing! <ul><li>Carefully watched the oppression of workers. </li></ul><ul><li>Removal of necessary security check at the gate for the workers. </li></ul><ul><li>Next goes the strict dress code. </li></ul><ul><li>Individual cabins and work stations converted into open spaces Ricardo’s own office becomes smaller. </li></ul><ul><li>Workers to decide their own dress and color. </li></ul><ul><li>No individual parking(first come first serve basis) </li></ul><ul><li>Goes for the first time to the Union office to negotiate. </li></ul><ul><li>Encourages workers to make their own committees. </li></ul><ul><li>Encourages self Management by the workers. </li></ul>
  10. 10. Results start coming in <ul><li>Workers on their own design and develop a new slicer </li></ul><ul><li>Sales shots up </li></ul><ul><li>Revenues grow from $4 million revenues during his father’s tenure to $212 millio n in 2003 </li></ul>
  11. 11. CHALLENGES <ul><li>Strong presence of HP ,Epson in the field of printers </li></ul><ul><li>Price War led by LG in Digital Camera </li></ul><ul><li>Xerox having stronghold in the field of photocopier </li></ul><ul><li>Canon late entry in field of Projector </li></ul><ul><li>Distribution networks only in large cities </li></ul>
  12. 12. Sweeping Changes <ul><li>Encourages employees to visit 30 nearby factories to compare skills,responsibilities and pay cheques </li></ul><ul><li>Consequently staff turnover goes down </li></ul><ul><li>Recognizes the existence of the unions </li></ul><ul><li>Treat everybody as an adult </li></ul><ul><li>During the strike period </li></ul><ul><ul><li>continues all the benefits </li></ul></ul><ul><ul><li>Never call the police </li></ul></ul><ul><ul><li>Tell the strikers that no one will be punished when they return to work. </li></ul></ul><ul><ul><li>Don’t fire anyone during or after the strike,but make everyone see that a walk out is an act of aggression </li></ul></ul><ul><li>Workers take charge of theirs work places </li></ul><ul><li>“ Paints the walls around them in their favorite colors” </li></ul><ul><li>All rules and rule books are discarded </li></ul><ul><li>Common Sense is given more importance </li></ul>
  13. 13. Changes <ul><li>Dividing Businesses in smaller and manageable units </li></ul><ul><li>Giving autonomy to units to run their own shows with minimum of </li></ul><ul><ul><li>Interference </li></ul></ul><ul><ul><li>Economy and dis-economy of scales </li></ul></ul><ul><li>Search committee of workers formed to search a suitable place for the company </li></ul><ul><li>Workers as a part of the whole (anti Taylorism) </li></ul><ul><li>One Person can’t overrule everyone </li></ul><ul><li>All financial information made available to everybody </li></ul><ul><li>Workers decide their own profit sharing cheuqes(after 40% tax+25% SH+12% reinvestment) </li></ul><ul><li>qualified candidates are interviewed by the people that would be working for them. </li></ul>
  14. 14. Hiring and Firing the Boss <ul><li>Unique system of subordinate evaluation for the Boss. </li></ul><ul><li>Based on Rating Questionnaire (covers soft and administrative skills). </li></ul><ul><li>New boss selection also by subordinates. </li></ul><ul><li>70% passing mark (<70% intense pressure to change working style). </li></ul><ul><li>Productivity based bonus for the unit ensures fair evaluation by subordinates. </li></ul>
  15. 15. Rounding the Pyramid <ul><li>“ Pyramidical Structure”-unwanted levels, clutter at lower levels, insecure work environment. </li></ul><ul><li>Created “Circular Organization”. </li></ul><ul><li>Free from hierarchical tyranny. No intra reporting amongst same levels. </li></ul><ul><li>Total absence of structure. Employees free to write whatever they deemed appropriate on their visiting cards. </li></ul>
  16. 16. Name your Price <ul><li>Salary fixation by Employees themselves. </li></ul><ul><li>Reasons – </li></ul><ul><ul><li>Transparency in letting known the top teams salary. </li></ul></ul><ul><ul><li>Letting each employee know others salary. </li></ul></ul><ul><li>Half yearly target setting ensured no exorbitant salary setting (adds on to expense in PBDIT). </li></ul><ul><li>Concept of “Risk Salary”(25% : 50%). </li></ul>
  17. 17. Minding Our Own Business <ul><li>Impersonal&quot; Crime and Punishment” policy. </li></ul><ul><li>Benefit of doubt to the employees. </li></ul><ul><li>Impersonal view of Employee’s personal life. </li></ul><ul><li>No promises, no freebies, no soaps, only sound financial advice. </li></ul><ul><li>No Gyms, swimming pools,etc for warding off employee stress. Ensure “Stress is not caused at the first place”. </li></ul>
  18. 18. Some more Unique Practices <ul><li>“ Zero Tolerance” for corruption. </li></ul><ul><li>Head on approach to corrupt inspector’s approach “Creating difficulties to sell Simplicities”. </li></ul><ul><li>Suffered delays, bottlenecks-stuck to the policy-positive image of Co. </li></ul><ul><li>“ Thinking for Living”-Concept of Nucleus of Technological Innovation (NTI). </li></ul><ul><li>“ Flexitime” for employees. </li></ul><ul><ul><li>Make them agree on common Co. goals and let them loose to achieve them. </li></ul></ul><ul><ul><li>Initial resentment from workers-took it as Co. ploy to exploit workers. </li></ul></ul><ul><ul><li>Concept of work teams and interchangeability of jobs ensured implementation of “Flexitime”. </li></ul></ul>
  19. 19. <ul><li>Sembobac, a partnership with Baltimore Air Cooler making cooling towers. </li></ul><ul><li>Cushman and Wakefield SEMCO, a partnership with Rockefeller property company Cushman and Wakefield managing properties in Brazil and Latin America . </li></ul><ul><li>Semco Johnson Controls, a partnership with Johnson Controls , managing large scale facilities such as airports and hospitals. </li></ul><ul><li>ERM, a partnership with Environmental Resources Management , one of the world's leading environmental consultants. </li></ul><ul><li>Semco Ventures, offering high technology and Internet services. </li></ul><ul><li>SemcoHR, a human resources management firm </li></ul><ul><li>Semco-RGIS, an inventory control firm. </li></ul>Latest Success
  20. 20. Conclusion <ul><li>“ A Co. should trust its destiny to its employees”. </li></ul><ul><li>“ Semco isn’t a model, with programmes to be followed with precision ,it is infact an invitation for companies to consider themselves and their employees. Invitation to concentrate on building organizations that accomplish the most difficult of all challenges- </li></ul><ul><li>To make people look forward to coming to work in the morning…..” </li></ul>