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Democratic management Democratic management
by Linda Lane
2007-06-25 07:45:07
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He came into his daddy's company, demanded that Semco steer away from its activities as a shipbuilding supplier and abandon autocratic management in favour of decentralization... On his first day as director, Ricardo Semler fired 60 percent of senior management and began laying the foundation for a democratic organization.

"Semco now has 3,000 staffers (with very little turnover) and is growing 20 to 30 percent a year, with annual sales of $212 million U.S. [190 million euros] in 2003.

Semco's radical policies do have a downside. Demand from outsiders wanting to visit its offices is so heavy that employees have complained of feeling like exotic attractions at a zoo. But that seems a small price to pay for such runaway success."

"Why are so few companies in the world run like Semco? Ricardo Semler: "Because managers are afraid to lose power and control."

Ricardo Semler's tips for democratic management:
• Do away with bureaucracy, which creates a sense of false security.
• Let employees determine everything themselves: their salaries, their working hours, their managers.
• Let go of control to stimulate creativity.
• Strip away special treatment for managers—no parking space or secretary, not even their own desk.
• Continually question whether what appears to be self-evident is actually good for the company.
• Regularly take a break from work when you are unreachable for a period of time.
• Read classic literature instead of management books.
• Remember that leadership has nothing to do with hierarchy, because everyone can develop leadership skills."

Richardo has published a couple of best selling books. Beware when you go to the following site, as the page loads it plays loud repetitive music you may wish to turn off your speakers:

http://semco.locaweb.com.br/ingles/

Check out the Semco Management Model section of this Flash site (2007).


  
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Paparella2007-06-22 11:12:03
Fascinating! I'd like to think that Ricardo Semier's success is mainly due to his reading classic literature instead of management books. It is only one of the eight tips for democratic sussess in running a company, but it may well be one of the most important


LL2007-06-22 21:03:38
Lovely that, isn't it? Classical literature to learn from...


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