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1 Maverick ! Maverick ! Amazing Real Life Story of a Young man Amazing Real Life Story of a Young man Ricardo.

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Presentation on theme: "1 Maverick ! Maverick ! Amazing Real Life Story of a Young man Amazing Real Life Story of a Young man Ricardo."— Presentation transcript:

1 1 Maverick ! Maverick ! Amazing Real Life Story of a Young man Amazing Real Life Story of a Young man Ricardo Semler And his company

2 2 Introduction of Semco Was Founded by Antonio Semler in 1952 on his Dining Table(contraction of Sember & Company as Semco) Started business by manufacturing oil separating machine and soon entered into Marine and related sectors

3 3 CV of Ricardo Semler Was not a Bright Students(Passed mostly with D Grades) Was not a Bright Students(Passed mostly with D Grades) Liked rock n roll Served in Army for an Year(compulsory in Brazil) Developed a Genuine Interest in Business

4 4 Management of Semco Pyramidical Structure Pyramidical Structure Was being run by selected lieutenants of his father Was being run by selected lieutenants of his father Semco was not doing well Semco was not doing well

5 5 Management of Semco It was primarily a Rule Book Drive Company It was primarily a Rule Book Drive Company For his father personal and business life was intertwined For his father personal and business life was intertwined Was investing money in Marine Business without any returns Was investing money in Marine Business without any returns

6 6 Ricardo Semler Had serious differences with his father Had serious differences with his father Joined Semco.but was not given and decision making Was exploring the possibility of buying some sick company and starting his own business Had finalized the contract to buy a sick company

7 7 Vital Change Curt Semler finally hands over the reins of the company to his son Ricardo Curt Semler finally hands over the reins of the company to his son Ricardo Gives him a free hand to run the company Gives him a free hand to run the company

8 8 Clearing the Path First Emergency Surgery(15 topmost managers of Semco fired by Ricardo in half a day) First Emergency Surgery(15 topmost managers of Semco fired by Ricardo in half a day) Ernesto appointed as new key manager Ernesto appointed as new key manager Customer could do not digest this great and sudden change Customer could do not digest this great and sudden change

9 9 Difficult Times Running from one bank to another to arrange cash Running from one bank to another to arrange cash Ernesto trying to putting in place a system Ernesto trying to putting in place a system Appointment of some other key managers Appointment of some other key managers

10 10 Hard Toiling Looking around for new business to acquire Looking around for new business to acquire A couple of Acquisitions A couple of Acquisitions Stress takes its toll on Ricardo Stress takes its toll on Ricardo Faints often and has other health related problems Faints often and has other health related problems

11 11 Change in Approach Decides to re-organize himself first Decides to re-organize himself first Makes a strict plan for his personal and profession life Makes a strict plan for his personal and profession life Tried all the tricks in the books to keep people motivated Tried all the tricks in the books to keep people motivated

12 12 Winds of Change starts blowing! Carefully watched the oppression of workers Carefully watched the oppression of workers First Move:Removal of necessary security check at the gate for the workers First Move:Removal of necessary security check at the gate for the workers Next goes the strict dress code Next goes the strict dress code Individual cabins and work stations converted into open spaces Individual cabins and work stations converted into open spaces

13 13 Winds of Change starts blowing! Ricardos own office becomes smaller Ricardos own office becomes smaller Workers to decide their own dress and color Workers to decide their own dress and color No individual parking(first come first serve basis) No individual parking(first come first serve basis)

14 14 Winds of Change starts blowing! Winds of Change starts blowing! Goes for the first time to the Union office to negotiate Encourages workers to make their own committees Encourages self Management by the workers

15 15 Results start coming in Results start coming in Workers on their own design and develop a new slicer Sales shots up Sales shots up

16 16 CHALLENGES CHALLENGES Strong presence of HP,Epson in the field of printers Strong presence of HP,Epson in the field of printers Price War led by LG in Digital Camera Price War led by LG in Digital Camera Xerox having stronghold in the field of photocopier Xerox having stronghold in the field of photocopier Canon late entry in field of Projector Canon late entry in field of Projector Distribution networks only in large cities Distribution networks only in large cities

17 17 Sweeping Changes Encourages employees to visit Encourages employees to visit 30 nearby factories to compare skills,responsibilities and pay cheques 30 nearby factories to compare skills,responsibilities and pay cheques Consequently staff turnover goes down Recognizes the existence of the unions Treat everybody as an adult Treat everybody as an adult

18 18 Sweeping Changes During the strike period During the strike period (a)continues all the benefits (a)continues all the benefits (b)Never call the police (b)Never call the police ©Tell the strikers that no one will be punished when they return to work.Then dont punish any one ©Tell the strikers that no one will be punished when they return to work.Then dont punish any one (d)Dont fire anyone during or after the strike,but make everyone see that a walk out is an act of aggression (d)Dont fire anyone during or after the strike,but make everyone see that a walk out is an act of aggression

19 19 Sweeping Changes Workers take charge of theirs work places Workers take charge of theirs work places Paints the walls around them in their favorite colors Paints the walls around them in their favorite colors All rules and rule books are discarded All rules and rule books are discarded Common Sense is given more importance Common Sense is given more importance

20 20 Changes Changes Dividing Businesses in smaller and manageable units Dividing Businesses in smaller and manageable units Giving autonomy to units to run their own shows with minimum of Giving autonomy to units to run their own shows with minimum of –Interference –Economy and dis-economy of scales

21 21 Changes Search committee of workers formed to search a suitable place for the company Search committee of workers formed to search a suitable place for the company Workers as a part of the whole(anti Taylorism) Workers as a part of the whole(anti Taylorism) One Person cant overrule everyone One Person cant overrule everyone

22 22 Changes All financial information made available to everybody All financial information made available to everybody Workers decide their own profit sharing cheuqes(after 40% tax+25% SH+12% reinvestment) Workers decide their own profit sharing cheuqes(after 40% tax+25% SH+12% reinvestment)

23 23 Miles of files One of the meetings reqmt of $50,000 worth Filling cabinets. One of the meetings reqmt of $50,000 worth Filling cabinets. Birth of the great File Crunch(Bianneal Semco File Insp and Clean out). Birth of the great File Crunch(Bianneal Semco File Insp and Clean out). Post cleanup dozens of extra cabinet auctioned off ( Compulsion to Collect). Post cleanup dozens of extra cabinet auctioned off ( Compulsion to Collect). Led to cutting down of Secretaries. Led to cutting down of Secretaries. Headline Memo. Headline Memo.

24 24 Affirmation Action Laura Barros-HR Head-traditional background-instrumental in The Semco Women. Laura Barros-HR Head-traditional background-instrumental in The Semco Women. Lunch time mtg of women employees of all levels- outpouring of grievances. Lunch time mtg of women employees of all levels- outpouring of grievances. First demand-modernization of rest rooms as per women reqmts(Howls from menfolk). First demand-modernization of rest rooms as per women reqmts(Howls from menfolk). First Semco Women Convention all women outing at a hotel in Sao Paulo. First Semco Women Convention all women outing at a hotel in Sao Paulo.

25 25 Affirmation Action Role play to bring out the ills in the Co. Role play to bring out the ills in the Co. Second convention- concept of Wailing Wall. Second convention- concept of Wailing Wall. Moral support to the cause, for gaining power the onus to convince the male workers with them. Moral support to the cause, for gaining power the onus to convince the male workers with them. Recession,women workers most affected lot. Project seemed to go in vain. Recession,women workers most affected lot. Project seemed to go in vain. Haracio Incident-Reconfirmed the faith in coming of age of the Semco Women. Haracio Incident-Reconfirmed the faith in coming of age of the Semco Women.

26 26 Trading Places Strict adherence to Job Rotation. Strict adherence to Job Rotation % managers rotated in a year % managers rotated in a year. Min 2 yrs and max of 5 yrs in a job. Min 2 yrs and max of 5 yrs in a job. Semco benefited:- Semco benefited:- –Skill enhancement. –Broader view of Co. –Discouraged Empire building. –More than one person for a Job. –Depersonalize the Organization. Hepatitis Leave Concept. Hepatitis Leave Concept.

27 27 Minding Our Own Business Impersonal" Crime and Punishment policy. Impersonal" Crime and Punishment policy. Benefit of doubt to the employees. Benefit of doubt to the employees. Impersonal view of Employees personal life. Impersonal view of Employees personal life. No promises, no freebies, no soaps, only sound financial advice. No promises, no freebies, no soaps, only sound financial advice. No Gyms, swimming pools,etc for warding off employee stress. Ensure Stress is not caused at the first place. No Gyms, swimming pools,etc for warding off employee stress. Ensure Stress is not caused at the first place.

28 28 Hiring and Firing the Boss Unique system of subordinate evaluation for the Boss. Unique system of subordinate evaluation for the Boss. Based on Rating Questionnaire (covers soft and administrative skills). Based on Rating Questionnaire (covers soft and administrative skills). New boss selection also by subordinates. New boss selection also by subordinates. 70% passing mark (<70% intense pressure to change working style). 70% passing mark (<70% intense pressure to change working style). Productivity based bonus for the unit ensures fair evaluation by subordinates. Productivity based bonus for the unit ensures fair evaluation by subordinates.

29 29 Rounding the Pyramid Pyramidical Structure-unwanted levels, clutter at lower levels, insecure work environment. Pyramidical Structure-unwanted levels, clutter at lower levels, insecure work environment. Created Circular Organization. Created Circular Organization.Circular Organization.Circular Organization. Free from hierarchical tyranny. No intra reporting amongst same levels. Free from hierarchical tyranny. No intra reporting amongst same levels. Total absence of structure. Employees free to write whatever they deemed appropriate on their visiting cards. Total absence of structure. Employees free to write whatever they deemed appropriate on their visiting cards.

30 30 Name your Price Salary fixation by Employees themselves. Salary fixation by Employees themselves. Reasons – Reasons – –Transparency in letting known the top teams salary. –Letting each employee know others salary. Half yearly target setting ensured no exorbitant salary setting (adds on to expense in PBDIT). Half yearly target setting ensured no exorbitant salary setting (adds on to expense in PBDIT). Concept of Risk Salary(25% : 50%). Concept of Risk Salary(25% : 50%).

31 31 Some more Unique Practices Zero Tolerance for corruption. Zero Tolerance for corruption. Head on approach to corrupt inspectors approach Creating difficulties to sell Simplicities. Head on approach to corrupt inspectors approach Creating difficulties to sell Simplicities. Suffered delays, bottlenecks-stuck to the policy-positive image of Co. Suffered delays, bottlenecks-stuck to the policy-positive image of Co. Thinking for Living-Concept of Nucleus of Technological Innovation (NTI). Thinking for Living-Concept of Nucleus of Technological Innovation (NTI).

32 32 Some more Unique Practices Flexitime for employees. Flexitime for employees. –Make them agree on common Co. goals and let them loose to achieve them. –Initial resentment from workers-took it as Co. ploy to exploit workers. –Concept of work teams and interchangeability of jobs ensured implementation of Flexitime.

33 33 FACING THE HARD TIMES Pioneering steps to tackle Recession ( ) Pioneering steps to tackle Recession ( ) –Active Cost slashing measures. –Sending workers to customers directly (ship parts at docks). –Workers taking on outsourced work in Co. as cafeteria. –Robin Hood payment cuts-More at higher levels, reducing with time (as things improved)

34 34 FACING THE HARD TIMES Launch of Satellite Programme. Launch of Satellite Programme. –Instead of lay offs encourage employees to become entrepreneurs. –Initial leasing of machines,subsequent easy payments in reasonable terms. –Ensured Self Sufficiency" of workers & supply of good quality inputs from trusted sources. A Co. that can float on the roughest seas, without taking on water or having to force the crew to abandon the ship.

35 35 FACING THE HARD TIMES Caused Rebirth" of Semco.Redefined their business,leaner and more efficient product line. Caused Rebirth" of Semco.Redefined their business,leaner and more efficient product line. Weeded out outdated product, A small hole can sink a big Ship. Weeded out outdated product, A small hole can sink a big Ship. Essential for survival of Semco culture. Essential for survival of Semco culture.

36 36 Making the No.1 redundant Ricardos Circular Organization vision behind the concept of making the Co. free from clutches of top management. Ricardos Circular Organization vision behind the concept of making the Co. free from clutches of top management. Took several steps to make Semco Semler Proof- Took several steps to make Semco Semler Proof- –Decision making on Counselors. –Sporadic attendance in Co. meetings. –Inputs only when needed. –More time to chart the future of Semco. –Shutting out the option of automatic succession in the Semler family. Wanted to relish other facets of life. Wanted to relish other facets of life.

37 37 Present Day relevance Numerous instances in all fields of turnaround by adopting Semco thinking. Numerous instances in all fields of turnaround by adopting Semco thinking. As per Semler, man will always remain close to Tribe Mentality-affinity to like minded people. As per Semler, man will always remain close to Tribe Mentality-affinity to like minded people. Organizations redesigned to let the nature of Tribes be. Create fostering and congenial environment. Organizations redesigned to let the nature of Tribes be. Create fostering and congenial environment. Discrimination as prevalent in tribes can be overcome by flattening the org structure. Discrimination as prevalent in tribes can be overcome by flattening the org structure.

38 38 Semlers last words in the Book A Co. should trust its destiny to its employees. A Co. should trust its destiny to its employees. Semco isnt 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- Semco isnt 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- To make people look forward to coming to work in the morning…..


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