1. Managing without Managers Ricardo Semler hbr - 1989

2. Overview of company Semco is one of Brazils fastest growing companies
Named Best company in Brazil to work for
Three Values: Democracy, profit sharing, information
Encourage experiment and conceptual change
Treats employees as “responsible adults”

3. Democracy and Employee Involvement
First value
Democracy and Employee Involvement

4. Participatory Management
Four obstacles To Participatory Management
Size
Hierarchy
Lack of Motivation
Ignorance
Anthony Jay’s 1950’s Corporate Man

5. PYRAMIDS AND CIRCLES

6. Organizational Circle
Semco designed an organizational circle to replace the organizational pyramid
Contains 3 concentric circles
First-Counselors
Second-Partners
Associates and Coordinators
Counselors
Partners
Associates
&
Coordinators

7. Organizational Circles Cont.
Switched because of their view on organizational pyramids
Pyramids emphasize power whereas the circle promotes employee involvement
Some decisions made by company-wide votes
Example: Purchase of new factory

8. HIRING ADULTS

9. Review
Treating employees as if they are adults allows workers to use common sense and in turn promotes personal responsibility
Therefore, letting them do whatever the hell they want breeds a culture of capable, accountable, and responsible employees

10. HUNTING THE WHOLLY MAMMOTH

11. Hunting the Mammoth If you don’t appoint a leader, one will emerge
Roles FIND the person
Results not status

12. Semco’s Second Value
Profit Sharing

13. Corporate profit sharing is today’s mammoth meat
Most successful when there is a broad program of employee participation

14. TRANSPARENCY

15. TRANSPARENCY

16. Semco’s Third Value
Information

17. Transparency
Sharing all of the information & not holding back anything
Confidential Salaries…
The relevant information became insignificant

18. Letting Them Do Whatever the Hell They Want
Choosing your own:
Pay
Job Title
Dress Code
Office Decorations
Work Hours

19. Overview Semco is a company with a unique system
The level of employee involvement could be considered as overwhelming to many companies
Employee’s are “treated as adults”
Semco’s Three Core Values
Democracy, Profit-sharing, information