Book Review

MaverickMaverickBy

Ricardo SemlerRicardo Semler

Team MembersMayank Singh (08PG0019)Pratul Pandey (08PG0065)

Renu Tom (08PG0042)

Introduction

•Maverick is the story of how Ricardo Semler changed his family business SEMCO from an autocratic structure to a democratic structure

•SEMCO is a Brazilian manufacturing company

•“This is not a business book. It is a book about work, and how it can be changed for the better.” -Ricardo Semler

Ricardo Semler

•Born 1959, Sao Paulo (Brazil)•Best known for his innovative

management policies•Maverick(1993) and

Seven Day Weekend(2003)•Named Latin American businessman of

the year in 1990 – Wall Street Journal

Managerial Lessons

Democracy

• A cornerstone at SEMCO systems

• Employees get a direct vote

• Subordinate vote on their bosses

Corruption

• No tolerance to dishonesty

• Few govt. inspectors trying to extort SEMCO faced legal

punishment

• Trust employees. No frisking.

Organization Charts

•The chief organizational principle of the modern corporation, turns a business into a traffic jam.

•OST based on fluid concentric circles•Three layers of mgmt•Counselors – CEO ,VPs

Partners - Business HeadsCoordinators -Functional headsAssociates - Everyone else

Bosses•Need for supervision reduced due to more

control exercised by workers•Reduced corporate staff by 75 per cent•Eliminated departments- data processing,

quality control etc.

Clean Outs•Twice a year company shuts down for

cleaning•Everyone cleans his own workplace•Get rid of unnecessary items

Factory committees

• Representatives elected to serve on committees at

each SEMCO unit groups.

• Committees negotiate with top mgmt.

• Empowered to declare strikes.

• Questions all aspects of mgmt.

Family silverware

• SEMCO employees meeting 70% of the

requirements preferred over outsiders for a new

position

Job rotation

• Exchange of jobs by managers in a given year up to 25%.

• Min – 2 yrs & max – 5 yrs in the same job.

• Employee initiated ;offers considerable advantages.

▫ Obliging people to learn new skills.

▫ Discouraging empire building.

▫ Broader view of the company.

▫ Preparing more than one person for a job.

▫ Creating additional opportunities.

Job security

• Lifetime employment guaranteed @ American & Japanese MNCs.

• Now laid off thousand of experienced workers.

• At SEMCO, no promise of job security, implying no breakage of promise

ever.

Lost in space

• Entry level applicants loosen out in org.

• No job description, no boss, no set responsibilities.

• Free to roam; first 12 months – 12 depts.. Negotiate

permanent positions in any of those depts..

Mgmt by wandering around

• People separated by plants – designed to allow people

to mingle.

• No walls between depts..

Flexitime

• Freedom to factory workers to set their own hours as

other companies let office workers to do.

• Each floor worker heavily depends upon his teammates –

potentially disruptive.

• Subordinated individual preferences to group schedules.

Hepatitis leave

• Version of sabbaticals.

• Leave of few weeks or even a few months every year for

professionals

• To learn new skills, redesign their job or simply recharge.

Natural business

• A guiding principal

• Stripped away the unnecessary perks & privileges.

• Belief that it feeds the ego but hurts balance sheet

Nucleus of technological innovation

• Entrepreneurial efforts by engineers who are free of day to

day production & responsibilities by inventing new

products, refining old ones

• Compensation depends in part of their success in

dreaming new line of business

Profit sharing

• Unlike unilateral decisions of distribution.

• About a fourth part of the corporate profit is distributed to

workers.

• Splitting of profit i.e. distribution decided by workers.

Reverse evaluation

• Hiring or promotion to leadership position is done after interview

evaluation and approval of the subordinates.

• Every 6 months, managers evaluated by the subordinates thru

questionnaire

• Consistently poor performance usually leaves (avg. 80 marks out

of 100)

Rules•As few as possible•No dress codes, regulations on travel•Trading written rules for common sense•Rules thwart innovation

Salary Surveys•Employees set their own salaries•Interview counterparts in other

companies.

Satellite Program•Outsource to workers•Assistance in entrepreneurial development•No restrictions – allowed to sell to the

competitors

Size•Large organizations foster alienation like

stagnant ponds breed algae•Lesser number = Better coordination•When business units grow bigger split

them

Strikes•Cannot be eliminated•Avoid animosity•Informal conversations•Respect rights

Avoid Stress•Working at home•Vacations•Recreational activities

Support Staff•Phase out clerical positions•Redistribution of work

Training•Employees aspirations •Expenses approved at the weekly meetings.

Transparency•All corp. information made public•Teach workers to read financial statements•Authority employees to question managers

Surviving the worst…

•1990 - Brazil's economy went into a severe downturn. Hyperinflation

•Workers at SEMCO agreed to wage cuts•Multiple roles •Outsourcing•Promoting entrepreneurial abilities of the

workers

Conclusion

•Highly recommended•Appeals to think different•Breaks age old management myths•Pragmatic lessons for managers•Leadership skills•Interesting read

“If we do not let people do things the way they do, we will never know what they are

really capable of and they will just follow our boarding school rules.”

Ricardo Semler

THANK YOU!!!