Ricardo Semler at TED (Technology, Entertainment, Design):
«How to run a company with (almost) no rules»
Oct 2014
The Company ...
«02:04 ... This is a complicated company with thousands of employees, hundreds of millions of dollars of business that makes rocket fuel propellent systems, runs 4,000 ATMs in Brazil, does income tax preparation for dozens of thousands. ... 02:28 ... we said, let's devolve to these people, let's give these people a company where we take away all the boarding school aspects of, this is when you arrive, this is how you dress, this is how you go to meetings, this is what you say, this is what you don't say, and let's see what's left. ... Instead of going mountain climbing when you're 82, why don't you do it next week? And we'll do it like this, we'll sell you back your Wednesdays for 10 percent of your salary. So now, if you were going to be a violinist, which you probably weren't, you go and do this on Wednesday. ... 03:12 ... So we started saying things like, why do we want to know what time you came to work, what time you left, etc.? Can't we exchange this for a contract for buying something from you, some kind of work? ... 03:48 ... How do we find people? ... come have your interviews. Anyone who's interested in interviewing, you will show up. And then we'll see what happens out of the intuition that rises from that, instead of just filling out the little items of whether you're the right person. And then, come back. Spend an afternoon, spend a whole day, talk to anybody you want. Make sure we are the bride you thought we were and not all the bullshit we put into our own ads. ... 04:33 Slowly we went to a process where we'd say things like, we don't want anyone to be a leader in the company if they haven't been interviewed and approved by their future subordinates. Every six months, everyone gets evaluated, anonymously, as a leader. And this determines whether they should continue in that leadership position, which is many times situational, as you know. And so if they don't have 70, 80 percent of a grade, they don't stay, ... 05:11 ... why can't people set their own salaries? What do they need to know? There's only three things you need to know: how much people make inside the company, how much people make somewhere else in a similar business and how much we make in general to see whether we can afford it. So let's give people these three pieces of information. So we started having, in the cafeteria, a computer where you could go in and you could ask what someone spent, how much someone makes, what they make in benefits, what the company makes, what the margins are, and so forth. And this is 25 years ago. ... 05:46 ... we don't want to see your expense report, we don't want to know how many holidays you're taking, we don't want to know where you work. We had, at one point, 14 different offices around town, and we'd say, go to the one that's closest to your house, to the customer that you're going to visit today. Don't tell us where you are. And more, even when we had thousands of people, 5,000 people, we had two people in the H.R. department ... 06:19 ... let's agree that you're going to sell 57 widgets per week. If you sell them by Wednesday, please go to the beach. Don't create a problem for us, for manufacturing, for application, then we have to buy new companies, we have to buy our competitors, we have to do all kinds of things because you sold too many widgets. So go to the beach and start again on Monday. ... 07:26 ... our board had two seats open with the same voting rights, for the first two people who showed up. (Laughter) And so we had cleaning ladies voting on a board meeting, which had a lot of other very important people in suits and ties. And the fact is that they kept us honest. ...».
The result ...
Semler believes in a decentralised, participatory business style in which employees are trusted to exercise freedom and autonomy, setting their own working hours and even their own salaries. For those who might be sceptical of this approach, the figures speak for themselves: Semco’s revenues increased from $4 million in 1984 to $212 million in 2004. After achieving this success, Semler turned his attention to education: what would happen if he applied similar principles of autonomy and democracy to schools?
«Innovation in education for work: The Lumiar schools, Sao Paolo, Brazil» http://www.innovationunit.org
The School ...
«... 08:15 ... we set up a foundation, which now has, for 11 years, three schools, where we started asking the same questions, how do you redesign school for wisdom? It is one thing to say, we need to recycle the teachers, we need the directors to do more. But the fact is that what we do with education is entirely obsolete. The teacher's role is entirely obsolete. ... we said, if we were to design a school from scratch, what would it look like? ... 09:05 ... so we created this school, which is called Lumiar, and Lumiar, (http://lumiar.org.br/), one of them is a public school, and Lumiar says the following: Let's divide this role of the teacher into two. One guy, we'll call a tutor. A tutor, in the old sense of the Greek "paideia": Look after the kid. What's happening at home, what's their moment in life, etc.. But please don't teach, because the little you know compared to Google, we don't want to know. Keep that to yourself. Now, we'll bring in people who have two things: passion and expertise, and it could be their profession or not. And we use the senior citizens, who are 25 percent of the population with wisdom that nobody wants anymore. So we bring them to school and we say, teach these kids whatever you really believe in. So we have violinists teaching math. We have all kinds of things where we say, don't worry about the course material anymore. We have approximately 10 great threads that go from 2 to 17. Things like, how do we measure ourselves as humans? So there's a place for math and physics and all that there. How do we express ourselves? So there's a place for music and literature, etc., but also for grammar. ... 10:23 And then we have things that everyone has forgotten, which are probably the most important things in life. The very important things in life, we know nothing about. We know nothing about love, we know nothing about death, we know nothing about why we're here. ... why do we have to scold the kids and say, sit down and come here and do that, and so forth. We said, let's get the kids to do something we call a circle, which meets once a week. And we'd say, you put the rules together and then you decide what you want to do with it. So can you all hit yourself on the head? Sure, for a week, try. They came up with the very same rules that we had, except they're theirs. And then, they have the power, which means, they can and do suspend and expel kids so that we're not playing school, they really decide. ... 11:30 ... we keep a digital mosaic ... It's something where we keep the Brazilian curriculum with 600 tiles of a mosaic, which we want to expose these kids to by the time they're 17. And follow this all the time and we know how they're doing and we say, you're not interested in this now, let's wait a year. And the kids are in groups that don't have an age category, so the six-year-old kid who is ready for that with an 11-year-old, that eliminates all of the gangs and the groups and this stuff that we have in the schools, in general. And they have a zero to 100 percent grading, which they do themselves with an app every couple of hours. Until we know they're 37 percent of the way we'd like them to be on this issue, so that we can send them out in the world with them knowing enough about it. And so the courses are World Cup Soccer, or building a bicycle. And people will sign up for a 45-day course on building a bicycle. Now, try to build a bicycle without knowing that pi is 3.1416. You can't. And try, any one of you, using 3.1416 for something. You don't know anymore. So this is lost and that's what we try to do there, which is looking for wisdom in that school....
20:26
Chris Anderson: So you have asked extraordinary questions your whole life. It seems to me that's the fuel that's driven a lot of this. Do you have any other questions for us, for TED, for this group here?
20:38
Ricardo Semler: I always come back to variations of the question that my son asked me when he was three. We were sitting in a jacuzzi, and he said, «Dad, why do we exist?»
20:50
There is no other question. Nobody has any other question. We have variations of this one question, from three onwards. So when you spend time in a company, in a bureaucracy, in an organization and you're saying, boy -- how many people do you know who on their death beds said, boy, I wish I had spent more time at the office? So there's a whole thing of having the courage now -- not in a week, not in two months, not when you find out you have something -- to say, no, what am I doing this for? Stop everything. Let me do something else. And it will be okay, it will be much better than what you're doing, if you're stuck in a process.
CA: So that strikes me as a profound and quite beautiful way to end this penultimate day of TED. Ricardo Semler, thank you so much.
21:30
RS: Thank you so much. (Applause)
Source: http://www.ted.com
