Ricardo Semler transformed his family's manufacturing business SEMCO from an autocratic to a democratic structure. Some of the key changes he implemented included giving employees direct votes and having subordinates evaluate managers. He also reduced unnecessary rules and management layers, allowed flexible work hours, and distributed profits to workers. The book documents Semler's unconventional management style that aimed to empower employees and make the company structure more democratic and trusting of workers.

1. Book Review Maverick Maverick By Ricardo Semler Ricardo Semler Team Members Mayank Singh (08PG0019) Pratul Pandey (08PG0065) Renu Tom (08PG0042)

2. Introduction Maverick is the story of how Ricardo Semler changed his family business SEMCO from an autocratic structure to a democratic structure SEMCO is a Brazilian manufacturing company “ This is not a business book. It is a book about work, and how it can be changed for the better.” - Ricardo Semler

3. Ricardo Semler Born 1959, Sao Paulo (Brazil) Best known for his innovative management policies Maverick(1993) and Seven Day Weekend(2003) Named Latin American businessman of the year in 1990 – Wall Street Journal

4. Managerial Lessons

5. Democracy A cornerstone at SEMCO systems Employees get a direct vote Subordinate vote on their bosses Corruption No tolerance to dishonesty Few govt. inspectors trying to extort SEMCO faced legal punishment Trust employees. No frisking.

6. Organization Charts The chief organizational principle of the modern corporation, turns a business into a traffic jam. OST based on fluid concentric circles Three layers of mgmt Counselors – CEO ,VPs Partners - Business Heads Coordinators -Functional heads Associates - Everyone else

7. Bosses Need for supervision reduced due to more control exercised by workers Reduced corporate staff by 75 per cent Eliminated departments- data processing, quality control etc. Clean Outs Twice a year company shuts down for cleaning Everyone cleans his own workplace Get rid of unnecessary items

8. Factory committees Representatives elected to serve on committees at each SEMCO unit groups. Committees negotiate with top mgmt. Empowered to declare strikes. Questions all aspects of mgmt. Family silverware SEMCO employees meeting 70% of the requirements preferred over outsiders for a new position

9. Job rotation Exchange of jobs by managers in a given year up to 25%. Min – 2 yrs & max – 5 yrs in the same job. Employee initiated ;offers considerable advantages. Obliging people to learn new skills. Discouraging empire building. Broader view of the company. Preparing more than one person for a job. Creating additional opportunities. Job security Lifetime employment guaranteed @ American & Japanese MNCs. Now laid off thousand of experienced workers. At SEMCO, no promise of job security, implying no breakage of promise ever.

10. Lost in space Entry level applicants loosen out in org. No job description, no boss, no set responsibilities. Free to roam; first 12 months – 12 depts.. Negotiate permanent positions in any of those depts.. Mgmt by wandering around People separated by plants – designed to allow people to mingle. No walls between depts..

11. Flexitime Freedom to factory workers to set their own hours as other companies let office workers to do. Each floor worker heavily depends upon his teammates – potentially disruptive. Subordinated individual preferences to group schedules. Hepatitis leave Version of sabbaticals. Leave of few weeks or even a few months every year for professionals To learn new skills, redesign their job or simply recharge.

12. Natural business A guiding principal Stripped away the unnecessary perks & privileges. Belief that it feeds the ego but hurts balance sheet Nucleus of technological innovation Entrepreneurial efforts by engineers who are free of day to day production & responsibilities by inventing new products, refining old ones Compensation depends in part of their success in dreaming new line of business

13. Profit sharing Unlike unilateral decisions of distribution. About a fourth part of the corporate profit is distributed to workers. Splitting of profit i.e. distribution decided by workers. Reverse evaluation Hiring or promotion to leadership position is done after interview evaluation and approval of the subordinates. Every 6 months, managers evaluated by the subordinates thru questionnaire Consistently poor performance usually leaves (avg. 80 marks out of 100)

14. Rules As few as possible No dress codes, regulations on travel Trading written rules for common sense Rules thwart innovation Salary Surveys Employees set their own salaries Interview counterparts in other companies.

15. Satellite Program Outsource to workers Assistance in entrepreneurial development No restrictions – allowed to sell to the competitors Size Large organizations foster alienation like stagnant ponds breed algae Lesser number = Better coordination When business units grow bigger split them

16. Strikes Cannot be eliminated Avoid animosity Informal conversations Respect rights Avoid Stress Working at home Vacations Recreational activities

17. Support Staff Phase out clerical positions Redistribution of work Training Employees aspirations Expenses approved at the weekly meetings. Transparency All corp. information made public Teach workers to read financial statements Authority employees to question managers

18. Surviving the worst… 1990 - Brazil's economy went into a severe downturn. Hyperinflation Workers at SEMCO agreed to wage cuts Multiple roles Outsourcing Promoting entrepreneurial abilities of the workers

19. Conclusion Highly recommended Appeals to think different Breaks age old management myths Pragmatic lessons for managers Leadership skills Interesting read

20. “ If we do not let people do things the way they do, we will never know what they are really capable of and they will just follow our boarding school rules.” Ricardo Semler THANK YOU!!!