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Jul 2
Managing the Semco way

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Have you ever heard of Ricardo Semler? He's the Brazilian that has completely redefined "business as usual." He is considered a corporate rebel who does what all the corporate, bureaucratic conformists say can't be done. Semco, the company he runs has be renowned around the world because of the practices put in place that people call "insane" until the point where they see them put into action and work.

Semler has embraced empowerment in reality as when you ask someone at Semco who is in charge, more than likely you'll get the answer "no one." Semler instigates responsibility by almost completely giving up all control.

With a number of radical ideas filling his head, at the age of 21 in 1980, he took over the company and in several days got rid of 75 percent of the "leadership" and started to put his thoughts into practice.

Sempler himself has no job title and has the reputation of releasing his employees to ask "why" about whatever they want, without fear.

Within the company there are no job titles for anyone, organizational charts don't exist, and there is no headquarters. If there is a need for an office, you have the option of going online at a satellite office that can be reserved for that purpose.

The bottom line to Semler is that he treats his employees like adults. Everything is open up to the employees to see; including financial information. He goes on to say that, "If you don't even know where your people are, you can't possibly keep an eye on them. All that's left to judge is performance."

That's what you do with adults; look at their performance. The question leads to what is being judged at your company, visibility or performance? Semler shows that it is only performance that matters.

Next post we'll delve a little deeper into how it all works out practically.

Part One   Part Two   Part Three

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» Managing the Semco way - part 3 from ManagersRealm
With all of the talk about the Semco management style, the question remains: how does it affect the bottom line? According to the company figures - fantastic. First, Semler says that all of the numerous company operations have three common... [Read More]

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« How to minimize mistakes - Or should you? | Main | Managing the Semco way - Part 2 »

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