.
Corporate Democracy and the Need to Ask “Why? Why? Why?” A typical work-day for most Americans includes arriving to work in a suit or equally formal outfit no later than nine o’clock in the morning, obliging a brief lunch break, and leaving no earlier than five o’clock in the evening, all while following rigid business standards. Although customary, Ricardo Semler, CEO of Semco, questions cookie-cutter organization frameworks that companies often enlist when managing their businesses. At a presentation during the inaugural Quality of Life conference hosted by Sodexo, Semler advised companies to take a different view of recognition in the workplace, notably by granting employees independence and providing more inter-business transparency. According to Semler, there is a conflicting coalition of high unemployment rates and plentiful unfilled positions. Typically, positions that remain available for extended periods are best suited for young people. But, because organizations have not adapted to the young workforce’s needs, employing this group is challenging. Numerical proof of this dilemma is exhibited by the employment rates of a Swiss temp company. The temp company has approximately 700,000 people searching for employment every day. Each available job listed by the temp company has an average of 112 applicants. Although the number of applicants is immensely higher than the number of available jobs, 87,000 of these jobs appear unemployable and remain unfilled for extended lengths of time. Semler suggests that companies are failing to attract necessary employees because they have not updated their policies for over a century. Companies set schedules, indicate allotted vacation days, select supervisors, and virtually define all elements of business in an effort to improve performance. Companies wishfully expect growth by approaching business the exact same way failed businesses did before them. He went as far as comparing modern business models to the 1908 Henry Ford assembly line. Semler juxtaposed the rigid organization of assembly lines to the sharp duties and protocols in businesses today. Though many companies expect inflexible business standards to increase productivity, these protocols are largely ineffective. Failure of traditional business models is showcased by the alarming statistic that 92.9 percent of companies do not survive 20 years. When Semler accepted leadership of his father’s company, he initiated a new business model. He retired the idea of conducting business like an assembly line, where each employee is treated equally and functions in nearly identical capacities. He introduced independence and flexibility to his company. Semler abandoned the idea of his business working as a familial unit because he did not want employees relying on the company to monitor how hard they are working, their schedule, or their health. Instead, his employees are given tasks and deadlines. They work on their own schedule. They have nearly complete control over their work environment. They even choose their supervisors. Employees can complete their work in any capacity, with completion of tasks existing as the only requirement. Extending independence, scheduling is in the hands of the employee. Employees do not need to schedule vacation days or attend meetings they are not interested in. The company encourages its employees to approach work in ways that best suit them. Employee satisfaction in response to this approach results in higher productivity and a minimal two percent personnel turnover per year. Semler allows employees such extensive freedom that if a task is so unrewarding that no employee wants to do it, the company will reevaluate the work to determine if it is actually crucial. If it is determined unnecessary, the task is abandoned in favor of more important duties. Semler’s business is thriving. It has survived 30 years under this model and will predictably continue expanding. Semler initiated this change by asking, “Why?” three times of business practices in the company. If the third questioned, “why?” was not followed by a logical answer, the policy was amended. With this technique, Semler created a business that functions for its employees and whose employees effectively output sharp, prompt work. For Semler, the first step in business reform is asking, “Why? Why? Why?”   About: This synthesis feature was adapted from the inaugural Quality of Life conference report by Sodexo. The contributor, Ricardo Semler, President, Semco S/A, gave a presentation on recognition in the workplace.  

The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.

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November 20, 2015

Corporate Democracy and the Need to Ask “Why? Why? Why?” A typical work-day for most Americans includes arriving to work in a suit or equally formal outfit no later than nine o’clock in the morning, obliging a brief lunch break, and leaving no earlier than five o’clock in the evening, all while following rigid business standards. Although customary, Ricardo Semler, CEO of Semco, questions cookie-cutter organization frameworks that companies often enlist when managing their businesses. At a presentation during the inaugural Quality of Life conference hosted by Sodexo, Semler advised companies to take a different view of recognition in the workplace, notably by granting employees independence and providing more inter-business transparency. According to Semler, there is a conflicting coalition of high unemployment rates and plentiful unfilled positions. Typically, positions that remain available for extended periods are best suited for young people. But, because organizations have not adapted to the young workforce’s needs, employing this group is challenging. Numerical proof of this dilemma is exhibited by the employment rates of a Swiss temp company. The temp company has approximately 700,000 people searching for employment every day. Each available job listed by the temp company has an average of 112 applicants. Although the number of applicants is immensely higher than the number of available jobs, 87,000 of these jobs appear unemployable and remain unfilled for extended lengths of time. Semler suggests that companies are failing to attract necessary employees because they have not updated their policies for over a century. Companies set schedules, indicate allotted vacation days, select supervisors, and virtually define all elements of business in an effort to improve performance. Companies wishfully expect growth by approaching business the exact same way failed businesses did before them. He went as far as comparing modern business models to the 1908 Henry Ford assembly line. Semler juxtaposed the rigid organization of assembly lines to the sharp duties and protocols in businesses today. Though many companies expect inflexible business standards to increase productivity, these protocols are largely ineffective. Failure of traditional business models is showcased by the alarming statistic that 92.9 percent of companies do not survive 20 years. When Semler accepted leadership of his father’s company, he initiated a new business model. He retired the idea of conducting business like an assembly line, where each employee is treated equally and functions in nearly identical capacities. He introduced independence and flexibility to his company. Semler abandoned the idea of his business working as a familial unit because he did not want employees relying on the company to monitor how hard they are working, their schedule, or their health. Instead, his employees are given tasks and deadlines. They work on their own schedule. They have nearly complete control over their work environment. They even choose their supervisors. Employees can complete their work in any capacity, with completion of tasks existing as the only requirement. Extending independence, scheduling is in the hands of the employee. Employees do not need to schedule vacation days or attend meetings they are not interested in. The company encourages its employees to approach work in ways that best suit them. Employee satisfaction in response to this approach results in higher productivity and a minimal two percent personnel turnover per year. Semler allows employees such extensive freedom that if a task is so unrewarding that no employee wants to do it, the company will reevaluate the work to determine if it is actually crucial. If it is determined unnecessary, the task is abandoned in favor of more important duties. Semler’s business is thriving. It has survived 30 years under this model and will predictably continue expanding. Semler initiated this change by asking, “Why?” three times of business practices in the company. If the third questioned, “why?” was not followed by a logical answer, the policy was amended. With this technique, Semler created a business that functions for its employees and whose employees effectively output sharp, prompt work. For Semler, the first step in business reform is asking, “Why? Why? Why?”   About: This synthesis feature was adapted from the inaugural Quality of Life conference report by Sodexo. The contributor, Ricardo Semler, President, Semco S/A, gave a presentation on recognition in the workplace.  

The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.