Case Study # 9 - Ricardo Semler Many consider Ricardo Semler, president of Semco Group of Sao Paulo, Brazil, as someone radical. He has never been the kind of leader that most people could Expect him to be in charge of a multi-million dollar business. Why? Semler breaks all the traditional "rules" of leadership. He is the true anti-intervention leader; not even has an office at the company's headquarters. As the "first defender and the most tireless evangelist of participatory stewardship, Semler says his philosophy is simple: treat people like adults and they will respond like adults. Under focus of Semler's participatory management is the belief that organizations thrive more if employees are tasked with applying their creativity and naivety at the service of the entire company, and making important decisions according to with the workflow, possibly even the selection and election of their bosses . And of According to Semler, his approach works ... and it works well. But how does it work in reality? At Semco, you won't find most of the pitfalls found in organizations. and in the administration. There are no organizational charts, long-term plans, statutes of values regulations, dress code, written rules, or policy manuals. The employees The company decides their hours and their pay levels. Subordinates decide who their bosses will be, and they even review the performance of their bosses. Employees too choose corporate leadership and decide most of the company's new strategies company. Each person, including Ricardo Semler, has one vote. Why did Semler decide that this form of radical leadership was necessary?

It works? Semler did not come up with this radical self-government for some ulterior motive. On the contrary, she thought she was the only way to build an organization that was flexible and resilient enough to flourish in chaotic and turbulent times. He argues that this approach has allowed Semco survive the changing nature of Brazilian politics and economy. Yet when the country's political leadership and economy have gone from one extreme to the other, and countless Brazilian banks and companies have failed, Semco has survived. And not only survived, but also prospered. Semler says, If you see the Semco numbers, we have grown 27.5 percent a year for 14 years . And Semler attributes this fact to flexibility ... of your company and, most importantly, of your employees. Questions 1. Describe Ricardo Semler's leadership style. What do you think are the advantages and obstacles of your style? 2. What challenges might a radical anti-intervention leader face? How could they handle those challenges? 3. How could future leaders be identified within Semco? Would a leadership training in this organization? Analyze. 4. What could other businesses learn from Ricardo Semler's approach to leadership?