SEMCO Case-산업관계론

Ricardo Semler Ricardo Semler (born 1959 in São Paulo) was 21 years old when be received his MBA from Harvard Business School. He is the CEO and majority owner of Semco SA, a Brazilian company best known for its radical form of industrial democracy and corporate re-engineering. Under his ownership, revenue has grown from US$4 million in 1982 to US$212 million in 2003 and his innovative business management policies have attracted widespread interest around the world. TIME featured him among its Global 100 young leaders profile series published in 1994 while the World Economic Forum also nominated him. The Wall Street Journal America Economia, the Wall Street Journal's Latin American magazine, named him Latin American businessman of the year in 1990 and he was named Brazilian businessman of the year in 1990 and 1992. Virando a Própria Mesa ("Turning Your Own Table"), his first book, became the bestselling non-fiction book in the history of Brazil. He has since written two books in English on the transformation of Semco and workplace re-engineering: Maverick, an English version of "Turning Your Own Table" published in 1993 and an international bestseller, and The Seven Day Weekend in 2003. Semco 1982-1990 Semler went to work for his father's company, originally called Semler & Company, then a Mixer & Agitator supplier in São Paulo. Semler clashed with his father, Antonio Semler, who supported a traditional autocratic style of management while the younger Semler favoured a decentralised, participatory style. Further, Ricardo favoured diversification away from the struggling shipbuilding industry, which his father opposed. After heated clashes, the son threatened to leave the company. Rather than see this happen, Antonio Semler resigned as CEO and vested majority ownership in his son in 1980 when Ricardo was 21 years old. On his first day as CEO, Ricardo Semler fired sixty percent of all top managers. He began work on a diversification program to rescue the company. A fainting spell when he was 25 inspired him to want a greater work-life balance for himself and his employees. Attempts to introduce a matrix organisational structure in 1986 failed to achieve desired improvements.[1] In the late 1980s, three engineers at Semco proposed setting up a Nucleus of Technological Innovation to develop new businesses and product lines which Semler endorsed. At the end of the first six months, NTI had identified 18 such opportunities. Following the success of this initiative, satellite units were encouraged throughout Semco. By the late 1980s, these satellite units accounted for two-thirds of its new products and two-thirds of its employees. Semco 1990-2004 After dramatic restrictions on liquidity instituted by Brazilian president Fernando Collor de Mello to combat hyperinflation in 1990, Brazil's economy went into a severe downturn, forcing many companies to declare bankruptcy. Workers at Semco agreed to wage cuts, providing their share of profits was increased to 39%, management salaries were cut by 40% and employees were given the right to approve every item of expenditure. Performing multiple roles during the crisis gave workers greater knowledge of the operations and more suggestions on how to improve the business. Reforms implemented during that time led to 65% reduction in inventories, a marked reduction in product delivery times and a product defects rate that fell to less than 1%. As the business climate improved, Semco's revenues and profitability improved dramatically. As of 2003, Semco had annual revenue of $212 million, from $4 million in 1982 and $35 million in 1994, with an annual growth rate of up to 40 per cent a year. It employs 3,000 workers in 2003, as opposed to 90 in 1982. The company's units include: the industrial machinery unit, which now manufactures mixing equipment as opposed to pumps Sembobac, a partnership with Baltimore Air Cooler making cooling towers Cushman and Wakefield Semco, a partnership with Rockefeller property company Cushman and Wakefield managing properties in Brazil and Latin America Semco Johnson Controls, a partnership with Johnson Controls, managing large scale facilities such as airports and hospitals ERM, a partnership with Environmental Resources Management, one of the world's leading environmental consultants Semco Ventures, offering high technology and Internet services SemcoHR, a human resources management firm Semco-RGIS, an inventory control firm As Semco grew, Ricardo Semler received a great deal of recognition. He was named Brazilian businessman of the year in 1990 and 1992, and the World Economic Forum named him as one of the Global Leaders of Tomorrow. A high profile committee appointed by CIO Magazine featuring Tom Peters, Jim Champy and Michael Hammer selected Semco as one of the most successfully re-engineered companies in the world. The BBC included Semco in its series on Re-Engineering the Business for creating one of the most successful management structures in business. Other activities Semler has reduced his involvement in Semco in the past decade to pursue other activities. He wrote a book Maverick on his experience at Semco which became a worldwide bestseller in 1993. A second book, The Seven Day Weekend: Changing the Way Work Works, followed in 2003. He has appeared in the media around the world and speaks regularly to business schools, businesses and groups to promote his philosophy of industrial democracy. He has also been a visiting scholar at Harvard Business School [1]. Semler has been Vice President of the Federation of Industries of Brazil and a member of SOS Atlantic Forest, Brazil's leading environmental defence organisation. In 2003, he founded the Lumiar School, a democratic school where children aged from 0-14 are engaged in projects of their interest. There are three such schools - one in the city of São Paulo and two in the vicinity of Campos do Jordão in the state of São Paulo. The Semco Way Our Way A company full of crazy people? A Group of nutters? If you think that Semco is something along these lines, you're not entirely wrong. However, it is not by chance that unconventional ideas are created at this company. They are created and managed within an open management model, different from conventional models and this is exactly what we want. You can now find out more about the Semco Way, divided into what we see as major categories. Find out more about Semco and discover that we give little credence to what we see is an important factors, such as appearance and formalities. Principles and Values At Semco, we follow a few basic rules which, we believe, a dependable and reliable company should follow. This means that the Group can grow and each one of our employees fully understands their place of work. In practice, we have 10 principles and make a special effort to follow them: 1 – To be a dependable and reliable company; 2 – Value honesty and transparency over and above all temporary interests; 3 – Seek a balance between short-term and long-term profit; 4 – Offer products and services at fair prices which are recognized by customers as the best on the market; 5 – Provide the customer with differentiated services, placing our responsibility before profits; 6 – Encourage creativity, giving support to the bold; 7 – Encourage everyone's participation and question decisions that are imposed from the top down; 8 – Maintain an informal and pleasant environment, with a professional attitude and free of preconceptions; 9 – Maintain safe working conditions and control industrial processes to protect our personnel and the environment; 10 – Have the humility to recognize our errors and understanding that we can always improve. Survival Manual This manual is part of an effort from many people who want to prove that there is a more dignified and fairer method of managing companies in Brazil. It aims to ensure that everybody speaks the same language. However, we must bear in mind that we don't want people without opinions at the company. They must speak out and fight when something isn't right or does not fit their vision. However, while directives are in effect it is important that everybody pull in the same direction, and this is the basis for the Semco Group Survival Manual. Leadership We believe that organizational structure is required to ensure good business processes. However, only people who have respect for their followers can be leaders. Situational leadership will always be stimulated and respected. Position At the Semco Group, it makes no difference whether someone has a high ranking or a humble position. The most important thing is to always try to learn and teach new things. Job Rotation Whenever possible we rotate people: Some people change area and other people change business unit. This is another development opportunity offered by the company. Freedom There is no space at the Semco Group for formalities. The doors are always open and people should say what they really think, without worries or inhibitions. Honesty Everything at the Semco Group is based on trust. Whenever there is dishonesty, and there is always the possibility that there will be somebody dishonest, the company takes hard action. Accusations The company does not encourage people to accuse others - this should only occur when you believe you have access to concrete facts that somebody is benefiting while harming everybody else. Anonymous letters are not considered. Gambling No gambling of any type is permitted within the company. Weapons and Violence It is completely unacceptable to carry weapons inside the company. Any type of violence employed by one person against another is seen as an extremely serious event. Unions Unions are an important method of protecting workers. Unionization is free within the company. The Semco Group believes that constant relationships with unions are healthy for the company and the employees. The presence of union members at the company is always welcome. You... and the Others Based on the fact that everyone can say what they think, rumors and gossip should not be stimulated. Any attempt to harm another person is looked on very seriously. Take part and speak openly of what you are thinking in order to improve things. Sales at the Company The entry of salespersons to deal with personal issues is only permitted when scheduled by the interested party. Loan Sharking Any employee lending money to another while charging interest is considered abusive and this is dealt with by the company as a serious matter. Discrimination The Semco Group does not permit discrimination based on sex, colour, religion, politics etc. Everybody must have identical opportunities at the company - help to make this a reality. Use of Authority Many positions of the company involve the use of authority. Pressure, tactics that involve people working while afraid or any type of disrespect are considered incapable leadership and improper use of authority. Working Hours The Semco Group has flexible working hours where possible. This is a method of meeting the needs of each person, without harming the company. Employee Timesheet Control At the Semco Group, each person controls their own working hours. This is a method of transferring responsibility to each person. Commissions People at the Semco Group usually create commissions to deal with issues of collective interest. Take part to ensure that the commissions are active channels which effectively defend your interests, which may often not coincide with the interests of the company. Here, this conflict is seen as healthy and necessary. Internal Promotions At the Semco Group, people already working for the company are given preference when a new position or a promotion appears, as long as they fill the requirements for the job. Vacations The Semco Group does not believe that anyone cannot be replaced. Everybody must take their annual vacations, always. This is fundamental for the health of the people and the company as a whole - no excuse is good enough to justify accumulating vacations. Recruitment Where there is recruitment or a promotion, people in the department have the chance to interview, analyze and take part in the decision to choose the candidate. Eval‎uation by Subordinates Every six months you will fill in a questionnaire and say what you really think about your immediate superior. Be open and honest, when filling in the form and during the discussion that should take place afterwards. Retirees We have no restrictions on active or part-time work for retirees or people of an advanced age. Nobody is too old for us - on the contrary, we believe that experience comes with age. Everyday Participation The Semco Group philosophy is based on active involvement and participation. Do not sit back. Have an opinion, put yourself forward as a candidate, always say what you think - do not be just another cog in the wheel. State your opinion about everything that interests you, even if you weren't asked for it. Be active about your feelings. Suggestions We want everybody to participate; opinions will always be welcome and should be spontaneous. The Semco Group does not use and is not wish to implement suggestion box programs. Whenever there is a need or interest, we can institute campaigners that encourage specific suggestions. Dynamism The Semco Group is normally a company that implements major changes from time to time. Don't be scared - we think this is positive. Look at the changes without fear - these are typical characteristics of the Group. Salary Policy The Semco Group seeks to involve people in discussions regarding what is a fair salary for each employee. Of course, there are times when people think their salaries should be higher and the company believes it cannot pay more. What is important is to always provide an opportunity for discussions regarding this type of issue. Strikes The decision to take part or not in this type of event is an individual one. This is part of democracy and is respected by the company. Personal Life Each person's life belongs to themselves and the personal life of each person at the Semco Group is sacred. Providing it does not interfere with the work of the environment, the company is not interested in what each person does with their own life. The human resources area is available to provide support in any area, but the company will never get involved in people's private lives. Former Semco Employees Whenever anybody leaves the company, they are always welcome back - we have nothing against former Semco employees. On the contrary. Severance Whenever there are dismissals the company spends hours and days carefully considering the case (or cases). The company avoids dismissals as much as it can and is extremely involved in protecting justice - we must all take this line - dismissals are very serious and must be dealt with carefully by everybody. Occupational Safety This is not only a company responsibility. Keep your eyes open, always avoid accidents, use safety equipment even when it is bothersome - we cannot take risks with our health. Make a special effort along these lines, demand that the company do its part and do not let CIPA become a pro forma commission. Statement of Results On a periodic basis you'll find out the results for your unit and for the company, and will be able to discuss them. Watch the results closely and ask any questions you want - there are no issues that cannot be discussed. Very few companies offer this - take advantage! Profit Sharing Program The Profit Sharing Program at the Semco Group is for real. This is a participation in which each unit wins. Each company and the Group have its own program, according to the characteristics of each business. Relations In order to avoid injustice or embarrassment, close relations do not work at the same unit, workplace or with the same leader, except in special cases. In completely different and unrelated locations, there are no formal restrictions. Hourly/Monthly Workers At the Semco Group there is no discrimination - Here everybody is a salaried worker and everybody is treated the same. Our Personnel We avoid using terms like "employees", "staff", “collaborator” and similar terms. We are a team and we only have “people”. This is what we call everyone who works with us. Try as hard as you can not to use terms which are so common, but which do not express equality. Use of Company Resources Do not mix company work and resources with personal services. During working hours, nobody should provide services to other people only for personal benefit, which does not stop people using a colleague’s services outside business hours, agreeing the conditions between themselves, without involving the company. Customer Services This is very important. Never fail to serve a customer well; do not run away from the customer, and do for the customer exactly what you would expect if you were in their position. Be honest about deadlines, prices and service conditions - never promise something you cannot deliver. Communication The Semco Group and its people must communicate openly and honestly. You must be tranquil and believe what is said in company notices – demand transparency when you are in doubt. Pregnancy Pregnancy is considered a time of great importance and happiness by the company. Never allow an injustice to be committed with one of our pregnant women – they deserve our respect and care. Informality Having a birthday party at the end of the working day or using nicknames is part of the company culture – don’t feel intimidated, and don’t stick to formalities. Pride It’s only worth working for someone you are proud of. Create this pride in the quality in what you do. Never deliver a product or service that fails to meet customer expectations, do not write a letter or communiqué that is not honest, and do not let the company’s stature fall – always fight for your pride. Respect to Visitors Give our visitors all of your attention and respect. Never let anyone wait more than 5 or 10 minutes. Meet everyone with courtesy, be they a supplier, customer or anyone else.