Ricardo Semler A Revolutionary Model Of Leadership Harvard Case Solution & Analysis


Antonio courtseller left Austria before the start of World War II to South America to start a new life there. The Brazil’s first “Economic miracle” helps him to form his company.The company’s operation was to build the marine pumps to theshipping industry. He was keen to put up the family business. However, he thought that his son, Ricardo,was not capable of managing the business, and the father also disliked some of his natural habits. In 1950, he set up his own company.In 1980, the Brazilian economy started declining, and the shipbuilding industry was also affected seriously.Ricardo considered diversification as a last resort.

His father decided to handover the business to Ricardo, and he took actions immediately and fired 60% top management hired by his father. He then appointed some young managers to bring up to date the company’s style of doing business. In the following two years, his decisions turned around the performance of the enterprise.Initially, he adopted a very strict approach to leadership, soon he realized that this way of leadership caused severe stress among the employees as well as he was also the victim of prolong working hours and faced seriouslife-threateningdiseases.

Ricardo Semler adopted a very democratic and flexible approach to lead his company, and stopped working on weekends and left the office at sharp 19:00, along with the new human resource director Mr. Clovis Bojikian. Ricardo and Clovis changed various things in the company such as dress codes as employeescould come to work in informal clothes as well as formal clothes. They also replaced security guards with the signboards. In the opinion of Ricardo, the internal controls were a sign of mistrust.However, these implementations were severely challenged by middle managers.

Ricardo Semler A Revolutionary Model Of Leadership Harvard Case Solution & Analysis

He almost shut the human resource department by implementing a policy which gave the authority to workers to hire a member. Similarly, the job rotation programwasalso implemented so that the employees have diverse skills. These decisions changed the financial figures of the company, and the compensation of the employees weredirectly linkedto the enterprise’s profits.

During the recession of the Brazilian economy, almost every Brazilian company sufferedmassive losses, SEMCO is one of them;all the workers agreed to a 30% pay cut, agreed to give up their benefits and all the outsourced work was managed by the employees. As a result of this co-operation of the employees, SEMCO hadsuccessfullyprotected itself against this turndown and recovered from this recession quick time He also set up schools which were also following this strategy, where students and their parents planned the syllabus.At present, Ricardo is not the CEO of SEMCO but still he is the principle shareholder of the company.Currently, Ricardo Semler owns a number of businesses, Schools, Hotels and Mutual funds.

Problem Statement:

The current style of leadership may cause different problems which can result in financial and non-financial damages to SEMCO.The employees can become a bit lazy in performing their tasks when there are loose controls as well asit could undermine the quality of work they have performed which would ultimately impair the brand image. Furthermore, the free internal controls may result in fraud or theft as there are many opportunities for the employees to commit and conceal the frauds..................

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