Among all people who have run their private companies one stands out as a person, who was able to decentralize his business administration, run it successfully, and witness not only business success but also incredible loyalty, responsibility, and contentment among his fellow employees. He and his team became so popular that for an instant they even forgot to run the company.
How did he manage it?
Well, while he was studying, he was playing in a rock band, where he learned that for a band to be successful everyone has to contribute his/her part otherwise there is no music or success. And, they all have to like it. And – they share the gains equally.
When he entered his father’s company he asked him to run the family business when the profits were already falling. First, he figured that companies are actually run as military operations – it is all so hierarchical and rigorous. And, people don't really like to go to work. They don't like to be treated as someone who has nothing to contribute on their own, as though they don’t have the minds of their own neither they wanted to be exploited.
Next, he never wanted to take a bribe or give one. He was so strict in that that his company had a state tax reviser checking their company through and through for half a year continuously.
Third, he decided to take away the boarding school aspect of the company. His employees were allowed to leave the work after they have finished the needed amount of work for the day or after all the tasks were done for the day and set their own working hours. Every leader was approved by the members of the workgroup and evaluated every six months. Employees were allowed to set their own salaries and when they all agreed upon those salaries the salaries were publicly displayed in the company. Each division was allowed to allocate 20 percent of the profit and divide it among the workers. People took their own responsibility for how the company was running while the company became more resilient. They did the work that needs to be done regardless of their position. The employees elected the corporate leadership and decided of the company’s moves into new businesses or out of them. When they had to downsize due to recession, the employees themselves have chosen who will leave. In the meetings of the board they have reserved two seats for any employee from the company who’d show up first, even if it was a cleaning lady. Out of this type of employees’ participation they founded kindergartens and basic schools which run on entirely different teaching methods than regular schools, and yet they comply with regular school curriculum.
The employees felt respected, their knowledge and contribution valued, and well received. There were no strikes or subversions. There was no such thing as discontent. So, there was a long list of people who wanted to be employed at Semco and a very small turnover.
He was able to achieve true decentralization in both, managing the company and the profits, just because” he likes sharing as you go more than accumulating tremendous profits”.
I present you: Ricardo Semler, a witness to a tremendous success. Out of 3000 votes he has one.
This is an entry for the Marvelous Tales Contest #15, prompt words: witness, decentralization
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