SEMCO: A case study in distributing organizational power, Part Two
Monday, December 13, 2010 at 03:00AM
maren in Conversation skills, Distributing organizational power

(Continued from Part I)

SYNOPSIS:After inheriting his father’s company, Ricardo Semler worked so hard and long at building the company that he began exhibiting serious symptoms: dizziness and fainting, chronic sore throat, shaking hands and constant heartburn. He checked himself into a clinic for exhaustive medical tests, and braced himself for bad news.

“Ricardo,” the doctor told him gravely after three days of every conceivable medical test. “There is absolutely nothing wrong with you.” His symptoms were the result of a serious case of stress.

This diagnosis led to serious self-reflection about what his life had become.  It marked the beginning of what would become a lifelong habit of asking the question, “Why?”

These kinds of questions lead to the transformation of Semco. The first thing to accomplish, Ricardo decided, was to “rid the organization of hierarchy.”

It was a constant work in progress, but throughout the years, Ricardo kept asking “Why?” And the answers would lead to a further dismantling of the policies, procedures and processes of a traditional organization.

Semler eventually was running a company where “CEO” was nothing but a title, and he had little more power than any given worker. Today’s Semco is a place where employees decided when it makes the most sense for them to work and when. They choose their own leaders, define their own schedules, and set their own salaries.

They order their own equipment and supplies, without purchase orders. All meetings are open — show up if you’re affected or interested, leave when you lose interest. Projects get a green light only a when critical mass decides to make it happen. Leaders are situational – the staff determines when it needs one. When a leader’s role is no longer necessary, it goes away, without anyone losing pay or status. Nobody is entitled to the corner office, the premium parking spot or an executive dining room.

Those who are interested in who gets hired do the hiring, regardless of their position in the organization. People choose their own titles based on what the customer needs. The HR department consists of one person.

Semler says he exchanged the traditional system “hire, then manage” to a company that tells its employees: “Let’s do what you think you need to do in a way you’d like to do it. “

Sounds like a recipe for disaster? Well…. You can decide after next week’s installment.

CONTINUED NEXT WEEK…

Article originally appeared on henning-showkeir (http://www.henning-showkeir.com/).
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