SEMCO a democratic company​

Ricardo Semler already recognized the importance of more control and equality within his company in the 1980s. He transformed the Brazilian machine builder Semco into a democratic organization. A revolutionary transformation, which brought the company to great prosperity.

A professional company

In 1982, at the age of 22, he was put in charge of his father's company. Initially he did his best to turn the traditionally run company into a modern, professional organization. But it was not the company he envisioned.

“Semco seemed like a well-organized and disciplined company, yet we couldn't get our people to a desired level of performance or create a situation where they enjoyed their work. There weren't enough cathedral builders.”

What to do? Two camps emerged within Semco, the hard guys, the autocrats, the men of discipline and order, and the soft ones who believed that when people were motivated by a sense of involvement, they could overcome any problem. Semler

However, he himself increasingly doubted the effect of that "professional" and above all tough approach.

Contemplation

Semler develops all kinds of symptoms during that period and, at the age of 25, appears to be severely overworked. The doctor who examines him tells him that if he wants to prevent a recurrence, he must radically change his lifestyle. That he really has to do everything completely differently in his life.

During that reflection period, he came to the conviction that the traditional organization is based too much on hierarchy and power and that this is disastrous for the enthusiasm and involvement of employees. He decides to radically change course. But he also realizes that he must first reorganize himself. So critically look at his own views and beliefs. Views on work, people and leadership. He opts for a radically different “Weltanschauung”, for that other image of man. Employees are adults who want to take responsibility and who you can trust.

No more time clocks

So he abolished time clocks and body searches at the gate. Employees were given more say and more responsibility; for their own work process, their working hours, their work clothes, even a say in their salary. And employees also assess their managers. He makes fewer and fewer decisions himself. He also removed all self-satisfying symbols from the factory, no private rooms, no private secretaries. Even the director makes his own copies at Semco, arranges his own appointments and collects his visitors himself. Parking spaces near the entrance are for customers and visitors, not for management and executives.

That certainly didn't happen overnight and certainly not without resistance. A large number of the managers who had set the tone until then could not cope with the new relationships and left the company. The number of managers was drastically reduced anyway.

Growth and popular employer

But the effect was special. Despite the disastrous economic developments in Brazil at the time, such as sky-high inflation, the company grew, became very profitable and also became the most sought after employer. It now offers a wide range of services and has thousands of employees.

Ricardo Semler himself became Brazil's Entrepreneur of the Year in 1990, is now a bestselling author, teaches at MIT and has been a popular speaker for years. And at Semco itself, they now give tours for CEOs of large companies who do not come for the beautiful machines that Semco makes, but who are mainly curious about the way in which Semco does it.