16
Feb 2004
CONTROLLING
THE ENDS-NOT THE MEANS OR METHODS!
Nirmit/Raju/Sriram/Mitchelle/Aparna/Sanjeev/Abhi/Reena
· Enclosed
pages are from the book MAVERICK (by Ricardo Semler)
· When
nearly 10 years (1977-1987), I tried to introduce at L&T (Powai), some of
the concepts/ideals mentioned in enclosed pages. Given a strong union /
conservative top management / apathetic middle management and a workforce of
7500 + at Powai, it was not easy. But, at the end of a relentless effort for 10
year, many things did change for the better.
On
Feb 14 1990 I deposited Rs. 3000/- from my personal account & starts a 3P
account.
INTRODUCTIO
Just
the other day, Clovis Bojikian, our Sultan for HR (yes, we still love to mock
titles) and I sat around evaluating how close we now were to our dream of 19
years ago. 30 percent, we agreed. Not very good for two decades of huffing and
puffing for democracy in the workplace. The worst part, however, is that we had
put that percentage at 50 only three years before.
If
you ask the serious people, those with blue suits and tie clips, Semco is a
roaring success. We are pursued by bankers who enjoy lending money to people
who have it, and are stalked to the point of sexual harassment by stock market
underwriters.
By
the Grand Scoreboard of Numbers, We’re doing fine: since the first edition of Maverick in 1993, we have gone from US$35 million in sales to US$160 million, and
mushroomed from hundreds of employees to 1.500 profits and profit sharing are
dandy. Salaries are increasing strongly, we have internet companies making
money and a half-dozen new joint ventures underway with Global 500 companies.
Wunderbar!
But
to us this begs, on its knees, the question: so what?
During
our meager years we were deluged with pundits who, personally, behind our backs
or in magazine articles, proclaimed our imminent demise. At the Federation of
Industries our poor numbers were merrily displayed to other club members as a
proof that this democracy nonsense was no way to run a business. Today, a
whopping 85 percent of those Board members have lost or sold their companies.
We
could now do a little bit of gloating, but for one issue: we were always
adamant that making money and creating a sustainable organization where people
felt enthused to flock to on Monday mornings – had little in common. Sure, I
love making money, and I even enjoy a spot of gloating (Jung backs me on this)
And yes, making money is a nice by –product of a business that is on the right
track. But it is only one of many indicators.
The
same way that an IQ test may tell you about people’s specific abilities in
narrowly defined intelligence but tells you nothing about other vital
characteristics, so profits are an indicator, but not much else. How many untold
companies have gone to the doghouse surrounded by very handsome numbers? How
many businesses make a killing for the owner while slowly killing off all the
enthusiasm of the underlings?
Sure,
we’re happy, and we feel vindicated from the soothsayers that told us to beware
the ides of March. But rapid growth has brought about a backslide in our hopes
of reaching corporate nirvana. Clovis and I are still a bit airy- Fairy and
touchy –feely, I know, but we ain’t givin’ up yet.
Our
Board meetings have two open seats for the first employees that sign up, and
two more for any person in a leadership capacity that cares to show. And we
still debate strategy openly, schedule meetings on a volunteer basis, and have
leaders interviewed by their future subordinates. But in a time of growth, and
in a pattern where we increasingly join with huge corporate partners, Clovis
and I are less quirky than we’d like to be.
So
the Semco story continues and, should we do badly in five to ten year’s nothing
will alter our faith in freedom and
democracy as guarantors of sustainability. Maverick is a tale of flying in the
face accrued business wisdom. But it is also a reminder that age-old truths
about human nature, respect and integrity can be powerful allies of success. At
least that’s what the numbers say, if people in striped suits can be trusted.
Recently
we inaugurated our new offices, which herald the end of the headquarters and
the untimely death of control. The new layout harks of a VIP airport lounger.
We resisted the temptation of cutesy billiard tables and beanbags, painted
nothing in citric colors and left no place for cribs or dogleashes. How
undotcomlike.
But
we did something else: we told people that they were all welcome to join the
new system, which entails a non-territorial concept. Give up your desk and the
trappings of personal space, and we give you freedom. Predictably, only half of
our people have taken up the offer so far. Not everyone likes freedom,
apparently.
It
works like this: instead of one headquarter building; we distribute identical
offices across town (four so far). To use a desk, a couch seat or a place at
the cappuccino outdoor café (modem-wired) you tap into the website and reserve
a place for yourself. At any of the locales across town, presumably the closest
to your house, your next meeting, or the theatre you’re going to at night. If
you need a meeting area, reserve more seats close to you, or a closed meeting
room (I find that 70 percent of the people believe that their meeting falls
into the 10 percent of the situations of confidentiality, so we have lots of
closed rooms, also). Because no one knows whether you’re at Office A,B,D or at
home, you discover that, hey presto! You can also stay an extra day at the beach.
And no one will know.
As
I tell our people constantly: we’ve all learned how to answer email on Sunday,
but none of us has learned to go to the movies on Monday afternoon. Until we
learn that, we are email slaves harnessed to the wicked ways of the Profit and
Loss Master.
In
our new system, the ability to control, once taken away, eliminates not only
the headquarters, but all of the insecurity that makes bosses glance, glare and
gloat (by looking at their watches and around the office). Now, one issue alone
remains: whether people are doing what they negotiated to do, be it the sale of
140 widgets per month, or the Business Plan for a new company. Now, control is
passé and a badge of incompetence. Now, you are free.
As
we shift into this new gear of growth without bondage, all bets are off as to
where Semco will be in seven years time. The last time someone asked, seven
years ago, the reply was that of Lewis Caroll: if you don’t know where you’re
going, any road will take you there.
So
we have arrived. And feel the corners of our mouth going from a slight smirk to
was not really …a gloat. Now back to the job -70 percents.
Hemen Parekh
