Maverick: the success story behind the worlds most unusual workplace by Ricardo Semler (1993)

Almost all businessmen think their employees are involved in the firm and are its greatest asset. Almost all employees think they are given too little attention and respect and cannot say what they really think. How is it possible to reconcile these positions? The era of using people as production tools is coming to an end. Participation is infinitely more complex to practise than conventional corporate unilateralism, just as democracy is much more cumbersome than dictatorship. But there will be few companies that can afford to ignore either of them. Semler went to work for his father's company, a Brazilian Mixer & Agitator supplier. Father was autocratic, they disagreed on strategy. Father resigned as CEO and vested majority ownership in his son (then 21) in 1980. Is autocracy sometime the only way? On his first day as CEO, Ricardo Semler fired sixty percent of all top managers. Does a business need policies and procedures? After many years of rewriting massive policy manuals, Semco just stopped using them and updating them quietly. People were told to apply common sense it worked. A health crisis can be a defining moment of life improvement A fainting spell when he was 25 inspired him to want a greater work-life balance for himself and his employees. Well-sponsored innovation centres can work Three engineers at Semco proposed setting up a Nucleus of Technological Innovation to develop new businesses and product lines. After six months, NTI had identified 18 opportunities. Satellite units were encouraged throughout Semco. These satellite units accounted for twothirds of its new products and two-thirds of its employees. The Semco Way: constant experimentation and keeping what works 25% of employees set their own pay peer pressure moderates employees set their own start and finish times and their own expenses policy managers are interviewed and directly performance rated by their team democracy: factory committees influence all major business decisions minimal policy employees just encouraged to do what you would do if it were your money family silverware: when a job opportunity opens up, existing employee with 70% match is given preferential consideration over an outsider max single page memo newspaper headline title hepatitis leave: take a sabbatical to do what you would do if you couldnt work. Questions: 1. Do we all have a natural preference for trust or control? 2. Does adopting trust or control drive success and failure? 3. Should teams be involved in recruitment and appraisal of managers? 4. Should we make more use of peer pressure plus empowerment (e.g. people setting their own salaries)
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Semco upward appraisal form for managers

The following questionnaire is filled out every six months by Semco employees as part of the process of evaluating their supervisors.
Question When an employee makes a small mistake the subject is Options Irritated and unwilling to discuss the mistake Irritated but willing to discuss it Realises the mistake and discusses it in a constructive manner Ignores the mistake and only pays attention to more important matters Poorly, ignoring it Poorly, rejecting it Reasonably well Well, accepting it Constantly tense Usually tense, but relaxed on occasion Usually relaxed, but tense on occasion Constantly relaxed Insecure More often insecure than secure More often secure than insecure Secure Incapable of separating them Frequently incapable of separating them Usually capable of separating them Capable of separating them Takes credit for others success Gives credit to those who did the work Gives credit to the team as a whole Always unfair More often unfair than fair More often fair than unfair Always fair Fear and insecurity Indifference Security and tranquillity Coldness and unwillingness to talk Distance but willingness to talk Friendliness but indifference to others problems Friendliness and concern with others problems Has an attitude of superiority Ignores them Treats them politely, but with an air of superiority Respects them Much worse than they treat their superiors A little worse than they treat their superiors A little worse than they treat their superiors Treats both the same Constantly reminds everyone they are the boss Occasionally reminds everyone they are the boss Rarely makes a point of being the boss A weak leader, unable to motivate their team A weak leader but able to motivate their team A strong leader but unable to motivate their team A strong leader and able to motivate their team Demands results, but doesnt participate in the effort to achieve them Demands results and participates superficially Participates in the effort when necessary to meet the goal Is openly held in disrespect by the team Is held in disrespect by the team, but not publicly Generates neither respect nor disrespect Is respected by their team
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a. b. c. d. a. b. c. d. a. b. c. d. a. b. c. d. a. b. c. d. a. b. c. a. b. c. d. a. b. c. a. b. c. d. a. b. c. d. a. b. c. d. a. b. c. a. b. c. d. a. b. c. a. b. c. d.

The subject reacts to criticism

The subject is

The subject is

As far as professional and personal relationships are concerned, the subject is When the subjects department achieves a high level of productivity, the subject usually The subject is seen as

The subject conveys to his team feelings of The subject transmits to his team a sense of

When dealing with people in inferior positions (outside the team), the subject usually The subject treats their team members

The subject

The subject is

When their team has a specific goal, the subject

The subject

The subject

a. b. c. a. b. c. a. b. c. a. b. c. a. b. c. a. b. c. d. a. b. c. a. b. c. a. b. c. a. b. c. a. b. c. a. b. c. a. b. c. d. a. b. c. d. a. b. c. a. b. c. a. b. c. d. a. b. c. a. b. c.

When promotions and prizes are concerned, the subject

During a crisis, the subject

Which is more important to the subject

The subject is

If the subject were to replace you temporarily, their performance would be In choosing between the urgent and the important, the subject The subject

The subject is

As far as creating an environment where people feel free to be creative or suggest changes, the subject As far as the team is concerned, the subject The people who work around the subject The subjects use of financial resources is

The subjects use of his own time is

The value the subject gives to training and related matters is The subject performs tasks

Regarding opinions that differ from their own, the subject

People find the subject

The subject represents the company

Gives obvious preferential treatment to some people because of their colour, religion, gender or origin Denies being biased, but doesnt give equal opportunity to everyone Isnt biased and gives equal opportunity to everyone Gives them to those he likes Sometimes gives them to those who deserve them and sometimes gives them to followers Almost always is just and impartial Disrupts the groups unity Doesnt affect the groups unity Helps the group stick together Work to be performed perfectly Work to be performed quickly Either speed or perfection depending on the situation Excessively involved in all situations Not involved enough in all situations Adequately involved in all situations Unsatisfactory Regular Good Better than yours Doesnt know the difference between them Usually tends towards the urgent Distinguishes well between the two Wastes too much time on urgent problems Gives equal time to urgent and important matters Gives more time to important matters Not very creative and resists new ideas Too creative and change-orientated, disturbing the atmosphere Is adequately creative and change-orientated Blocks innovative and creative ideas Doesnt block them but also doesnt create them Promotes creative or innovative ideas Usually chooses the wrong people Sometimes chooses well and sometimes chooses poorly Usually chooses the right people Rarely feel motivated to work Sometimes feel motivated to work Usually feel motivated to work Poor Average Good Excellent Bad Average Good Excellent Too small Sufficient Great Almost always poorly Sometimes poorly and sometimes well Almost always well Never accepts them Usually doesnt accept them Sometimes accepts them Almost always accepts them Untrustworthy Occasionally untrustworthy Very trustworthy Poorly, raising concern about it Neither poorly nor well Well, leading people to trust it

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