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Jul 5
Managing the Semco way - part 3

semler.jpgWith 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 denominators among them. They have enough complexity involved in them that it gives significant barriers to entry; the products and services are high quality and priced high; and each one caters to a specific niche within their markets.

As far as performance of the company, the sales have increase by over 600 percent over the last ten years while profits are up 500 percent.

The annual growth rate has been at 24 for percent over the last 10 years and last years revenues over $200 million. This is up from $4 million when Semler took over management of the company.

What makes this even more remarkable is that this has all happened over a chaotic Brazil economy. There have been four currency devaluations during this time, unemployment higher than ever before in history and hyperinflation. Yet if you had invested $100,000 in this creative, powerful company 20 years ago, your investment would be worht $5 million today.

The results speak for themselves whether this type of management style works. Many of the top companies in the world practice variations of this way of doing business.

Several Web sites you can read about Semler and Semco:

http://www.bettermanagement.com/library/library.aspx?libraryid=13981&pagenumber=1

http://www.cioinsight.com/article2/0,1540,1569009,00.asp

http://edition.cnn.com/2004/BUSINESS/05/19/go.semlar.transcript

http://en.wikipedia.org/wiki/Ricardo_Semler

http://www.inc.com/articles/2004/03/7dayweekend.html

http://www.christiansarkar.com/2005/12/ricardo_semlers_grupo_semco_th.htm
 
http://www.leadersinlondon.com/bio_Riccardo_Semler.asp

Part One   Part Two   Part Three

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