Good Work Toolbox

GWT Analyst’s summary: This article was authored by Ricardo Semler, president and second generation owner of Brazil’s Semco. The organization has evolved from an industrial manufacturer of marine pumps to a group of around ten companies, from industrial machinery to environmental resource management. Their corporate culture is far from the traditional top-down rigid structure. Semco believes that economic success requires replacing control and structure with democracy. Workers are empowered to make decisions about their work and are involved in organizational business decisions such as product offerings and business ventures. Semco’s leadership believes that their most precious asset is the wisdom of their workforce. Semco trusts their employees and allows large decision latitude. The results of this management philosophy have been immense profits and growth. As of 2007, Semco had grown 40% per year without public investment. The business has evolved with changes in industry, still generating profits from earlier ventures while they seek new markets. Their organization has been the feature of university case studies and attracted international publicity.