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“At some point, you have to make a
decision.
Boundaries don’t keep other people
out.
They fence you in.
Life is messy. But...
“We’ve all learned to go on to
our email on Sunday evening
and work from home. But
very few of us have learned
how to go t...
LETS TAKE A
TRIP UP THE
MEMORY LANE
1953
ANTIONIO
CURT SEMLER
FOUNDED
1960-1970’s
SEMCO WAS A
MAINLY A
MANAFACTURER
OF MAR...
CHANGES
People set their
own working
hours
Workers choose
their managers
and evaluate
them twice in a
year
21 page “Surviv...
SBU’S OF SEMC
Manufactures pumps, industrial dish washers, cooling units,
industrial machinery
Runs office buildings’ data centers
Provi...
HOFST
EDE
MODE
L
RICARDO SEMLER
LEADERSHIP
STYLE
• Democracy in the organisation
• Rotating the CEO position
KEY
STRENGHTS
• Recognizing that the people a...
Management Style of Semler
Participation Ownership Performance
Discipline Empowerment Authority
Accountability
ORGANIZATION STRUCTURE
"It's a system that puts a lot of weight on leaders because then
can no longer simply protect thems...
PARTICIPATORY MANAGEMENT
FUNCTIONAL
STRUCTURE
MATRIX STRUCTURE
LATTICE STRUCTURE
Counsellors
Partners
Associates &
Co-ordi...
"Semco's ongoing
transformation is a
product of a very
simple business
philosophy: give
people the freedom to
do what they...
A bonfire of
bureaucracies
Spin off new
satellite
suppliers
Rounding the
pyramid
Set your own
salaries and
bonus
Appraise ...
Ask someone at Semco “who’s in
charge?” and the most likely
response will be “no one.”
Semco doesn't plan which
businesses...
Core Values
Linking pay with performance
Autonomy given to employees
Wednesday Voucher
Freedom & Accountability
Three step...
"Rather than
force our
people to
expand a
business
beyond its
natural limits,
we encourage
them to start
new
businesses."
“Participation gives people
control of their work,
Profit-Sharing gives them
a reason to do it better, and
Information tel...
A person’s appearance is not
a factor in hiring or
promotion. Everyone knows
what he or she likes or needs
to wear. Feel a...
ADVANTAGE
S
DISADVANT
AGES
How it actually works…
• Ricardo Semler doesn’t have a current title. The company recently
held a party to commemorate the...
Semler's Rules for Management Without
Control
Forget about the top line.
Never stop being a start-up.
Don't be a nanny....
Can Semco’s culture work for Indian
Companies?
• First, to copy Semco's structure, you need to:
• Be convinced that it wil...
• One of them is the relationship between the boss and subordinates. The
general belief is that in India the relationship ...
Thank You
Organization Culture at Semco
Organization Culture at Semco
Organization Culture at Semco
Organization Culture at Semco
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Organization Culture at Semco

This presentation explains the organization culture at Semco and changes brought about by Ricardo Semler to follow unconventional HR practices and make Semco one of the most successful companies in the World.

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Organization Culture at Semco

  1. 1. “At some point, you have to make a decision. Boundaries don’t keep other people out. They fence you in. Life is messy. But that’s how we are made. So, you can waste your lives drawing
  2. 2. “We’ve all learned to go on to our email on Sunday evening and work from home. But very few of us have learned how to go to the movies on Monday afternoon” -Ricardo Semler
  3. 3. LETS TAKE A TRIP UP THE MEMORY LANE 1953 ANTIONIO CURT SEMLER FOUNDED 1960-1970’s SEMCO WAS A MAINLY A MANAFACTURER OF MARINE PUMPS 1960’S HIERARCHICAL ORGANIZATION WITH 12 LEVELS OF MANAGEMENT. “FEAR WAS THE GOVERING PRINCIPLE” 1980 ENTER RICARDO HE CHANGED THE ENTIRE STRUCTURE OF THE ORGANIZATION
  4. 4. CHANGES People set their own working hours Workers choose their managers and evaluate them twice in a year 21 page “Survival Manual” Profit sharing No receptionists, secretaries or personal assistants No headquarters, No job titles No mission statement People set their own salaries
  5. 5. SBU’S OF SEMC
  6. 6. Manufactures pumps, industrial dish washers, cooling units, industrial machinery Runs office buildings’ data centers Provides consulting services on environmental issues, Creates software for Internet applications, ATM services and Manages human-resources activities for major companies. What Semco does?
  7. 7. HOFST EDE MODE L
  8. 8. RICARDO SEMLER
  9. 9. LEADERSHIP STYLE • Democracy in the organisation • Rotating the CEO position KEY STRENGHTS • Recognizing that the people are the most creative and productive when they have a say in the running of the company BEST DECISION • To introduce the boldest experiment in management ever successfully taken.
  10. 10. Management Style of Semler Participation Ownership Performance Discipline Empowerment Authority Accountability
  11. 11. ORGANIZATION STRUCTURE "It's a system that puts a lot of weight on leaders because then can no longer simply protect themselves with symbols of power like closed offices or special parking places. They have to rely exclusively on their ability to generate respect."
  12. 12. PARTICIPATORY MANAGEMENT FUNCTIONAL STRUCTURE MATRIX STRUCTURE LATTICE STRUCTURE Counsellors Partners Associates & Co-ordinates
  13. 13. "Semco's ongoing transformation is a product of a very simple business philosophy: give people the freedom to do what they want, and over the long haul their successes will outnumber their failures."
  14. 14. A bonfire of bureaucracies Spin off new satellite suppliers Rounding the pyramid Set your own salaries and bonus Appraise your boss Small, symbolic changes that make a big difference Workers’ committees take on a managerial role A new leadership network Profit Sharing Information Sharing THE NEW SEMCO
  15. 15. Ask someone at Semco “who’s in charge?” and the most likely response will be “no one.” Semco doesn't plan which businesses to enter. Instead it 'rambles' into new areas by trial, error and argument ORGANIZATIONAL CULTURE
  16. 16. Core Values Linking pay with performance Autonomy given to employees Wednesday Voucher Freedom & Accountability Three step test for starting a new business
  17. 17. "Rather than force our people to expand a business beyond its natural limits, we encourage them to start new businesses."
  18. 18. “Participation gives people control of their work, Profit-Sharing gives them a reason to do it better, and Information tells them what's working and what isn't.”
  19. 19. A person’s appearance is not a factor in hiring or promotion. Everyone knows what he or she likes or needs to wear. Feel at ease — wear only your common sense.”
  20. 20. ADVANTAGE S DISADVANT AGES
  21. 21. How it actually works… • Ricardo Semler doesn’t have a current title. The company recently held a party to commemorate the tenth anniversary of the last time he made any decision at all. • The only real rules at Semco - is huge peer pressure and self- discipline. • Semler is more worried that the company's uniqueness will be diluted if it grows too fast or makes too much money. • Semco’s products are so good and its customer service so efficient that 80 percent of its yearly revenues come from repeat customers.
  22. 22. Semler's Rules for Management Without Control Forget about the top line. Never stop being a start-up. Don't be a nanny. Let talent find its place. Make decisions quickly and openly. Partner promiscuously.
  23. 23. Can Semco’s culture work for Indian Companies? • First, to copy Semco's structure, you need to: • Be convinced that it will work for your company • Be able to change your company's structure • Make it work in practice, with your own people • In the Semco case, the transition worked because the leadership (Ricardo Semler) owned the company, was young and he found the right associates to lead the change. • Above all it requires smart, humble and daring managers, willing to change their minds often.
  24. 24. • One of them is the relationship between the boss and subordinates. The general belief is that in India the relationship is very formal and hierarchical. • There are instances of companies with the traditional hierarchical model moving to a more decentralized way of functioning. • Not all of them may be able to make a transition to the "boss less" model. • A lot of Indian startups are coming up with the flat organizational system.
  25. 25. Thank You

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