Ricardo Semler (born 1959) is the
CEO and majority owner of
Semco Partners
Ricardo Semler (born 1959) is the CEO and majority owner of Semco Partners, a Brazilian company best known for its radical form of industrial democracy and corporate re-engineering. Under his ownership, revenue has grown from 4 million US dollars ...
, a
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
ian company best known for its radical form of
industrial democracy
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decisi ...
and corporate re-engineering. Under his ownership, revenue has grown from 4 million US dollars in 1982 to 212 million US dollars in 2003 and his business
management
Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a Government agency, government body. It is the art and science of managing resources of the business.
Management includ ...
policies have attracted widespread interest around the world. ''
Time
Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, ...
'' featured him among its Global 100 young leaders profile series published in 1994 while the
World Economic Forum
The World Economic Forum (WEF) is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer and economist Klaus Schwab. The foundation, ...
also nominated him. ''The Wall Street Journal'' ''America Economia'',
The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
's
Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
n magazine, named him Latin American businessman of the year in 1990 and he was named Brazilian businessman in year 1990 and 1992. ''Virando a Própria Mesa'' ("Turning Your Own Table"), his first book, became the best selling
non-fiction
Nonfiction, or non-fiction, is any document or media content that attempts, in good faith, to provide information (and sometimes opinions) grounded only in facts and real life, rather than in imagination. Nonfiction is often associated with b ...
book in the history of
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
. He has since written two books in English on the transformation of Semco and workplace re-engineering: ''
Maverick
Maverick, Maveric or Maverik may refer to:
History
* Maverick (animal), an unbranded range animal, derived from U.S. cattleman Samuel Maverick
Aviation
* AEA Maverick, an Australian single-seat sportsplane design
* General Aviation Design Burea ...
'', an English version of "Turning Your Own Table" published in 1993 and an international bestseller, and ''
The Seven-Day Weekend
''The Seven-Day Weekend'', by Ricardo Semler is a 2003 non-fiction book about changing the nature of work, with a case study of the management changes at Semler's family-owned business, Semco. It follows his popular '' Maverick!: The Success Stor ...
'' in 2003.
Semco 1980–1990
Semler went to work for his father's company, originally called Semler & Company, then a mixer and agitator supplier in
São Paulo
São Paulo (, ; Portuguese for ' Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the Ga ...
. Semler clashed with his father, Antonio Semler, who supported a traditional autocratic style of management whereas young Semler favoured a decentralised, participatory style. Furthermore, 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. Semler experienced health issues, culminating in a
fainting
Syncope, commonly known as fainting, or passing out, is a loss of consciousness and muscle strength characterized by a fast onset, short duration, and spontaneous recovery. It is caused by a decrease in blood flow to the brain, typically from ...
spell at a pump factory (
Baldwinsville, New York) when he was 25. After seeing a doctor at the
Lahey Clinic (Boston), he was diagnosed with an advanced case of stress. This 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.
In the late 1980s, three engineers at Semco proposed setting up a Nucleus of Technological Innovation (NTI) 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.
An assessment of Semler's business philosophy through phenomenological analysis (within the radical change of Semco's management style), led Bombała to conclude that it was an ''"...excellent exemplification of good leadership."'' Eleanor Glor notes that the only accounts about the change in management style come from Ricardo Semler himself, rather than from the affected workers.
Semco 1990–2004
After dramatic restrictions on
liquidity
Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include:
* Market liquidity, the ease with which an asset can be sold
* Accounting liquidity, the ability to meet cash obligations when due
* Liq ...
instituted by Brazilian president
Fernando Collor de Mello
Fernando Affonso Collor de Mello (; born 12 August 1949) is a Brazilian politician who served as the 32nd president of Brazil from 1990 to 1992, when he resigned in a failed attempt to stop his impeachment trial by the Brazilian Senate. Collor ...
to combat
hyperinflation
In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as t ...
in 1990, the
Brazilian economy
The economy of Brazil is historically the largest in Latin America and the Southern Hemisphere in nominal terms. The Brazilian economy is the third largest in the Americas. The economy is a middle income developing mixed economy. In 2022, acc ...
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.
, Semco had annual revenue of $212 million, up from $4 million in 1982 and $35 million in 1994, with an annual growth rate of up to 40 percent a year. It employed 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
Baltimore ( , locally: or ) is the most populous city in the U.S. state of Maryland, fourth most populous city in the Mid-Atlantic, and the 30th most populous city in the United States with a population of 585,708 in 2020. Baltimore was ...
making cooling towers
* Cushman and Wakefield Semco, a partnership with
Rockefeller Rockefeller is a German surname, originally given to people from the village of Rockenfeld near Neuwied in the Rhineland and commonly referring to subjects associated with the Rockefeller family. It may refer to:
People with the name Rockefeller f ...
property company
Cushman and Wakefield
Cushman & Wakefield plc is a global commercial real estate services firm. The company's corporate headquarters is located in Chicago, Illinois.
Cushman & Wakefield is among the world's largest commercial real estate services firms, with revenues ...
managing properties in
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
and
Latin America
Latin America or
* french: Amérique Latine, link=no
* ht, Amerik Latin, link=no
* pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
* Semco Johnson Controls, a partnership with
Johnson Controls
Johnson Controls International is an American
Irish-domiciled multinational conglomerate headquartered in Cork, Ireland, that produces fire, HVAC, and security equipment for buildings. As of mid-2019, it employed 105,000 people in around 2,00 ...
, managing large scale facilities such as airports and hospitals
* ERM, a partnership with
Environmental Resources Management
Environmental resource management is the management of the interaction and impact of human societies on the environment. It is not, as the phrase might suggest, the management of the environment itself. Environmental resources management aims ...
, 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 in 1992, and the
World Economic Forum
The World Economic Forum (WEF) is an international non-governmental and lobbying organisation based in Cologny, canton of Geneva, Switzerland. It was founded on 24 January 1971 by German engineer and economist Klaus Schwab. The foundation, ...
named him as one of the Global Leaders of Tomorrow. A high-profile committee appointed by ''
CIO Magazine
''CIO'' is a magazine related to technology and IT. The magazine was founded in 1987 and is now entirely digital. The name refers to the job title chief information officer.
''CIO'' is part of Boston-based International Data Group's enterprise ...
'' featuring
Tom Peters
Thomas J. Peters (born November 7, 1942) is an American writer on business management practices, best known for ''In Search of Excellence'' (co-authored with Robert H. Waterman Jr.)
Life and education
Peters was born in Baltimore, Maryland. ...
,
Jim Champy and Michael Hammer selected Semco as one of the most successfully re-engineered companies in the world. The
BBC #REDIRECT BBC #REDIRECT BBC
Here i going to introduce about the best teacher of my life b BALAJI sir. He is the precious gift that I got befor 2yrs . How has helped and thought all the concept and made my success in the 10th board exam. ...
...
included Semco in its series on ''Reengineering the Business'' for creating one of the most successful management structures in business.
Semler has reduced his involvement in Semco in the past decade to pursue other activities. He wrote a book ''
'' on his experience at Semco which became a worldwide bestseller in 1993.
His second book, ''
'' was published 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
.
Semler has been Vice President of the Federation of Industries of Brazil and a member of
, the leading environmental defence organisation in Brazil. He founded The Ralston-Semler Foundation and the Lumiar School, a
where children from 0 to 14 years old engage 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.
As of late 2016, Semler was involved in the foundation of other ventures which intend to teach other entrepreneurs and business people how to implement a people-centric management in their companies calle
where people learn via online courses about all the people-based management styles available (Including Semler's principles described in his book
etc), they also analyse success cases of companies from different industries and countries where this kind of methodology was applied.
* 1993. ''
''
* 2003. ''