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Leading by Omission

Ricardo Semler: September 22, 2005; Running Time: 48:09

About the Lecture

About the Lecture

If successful business depends on innovation, wonders Ricardo Semler, why are automobiles made essentially the same way today as they were in Ford’s first assembly line 100 years ago? Parallel parking is one of “ the stupidest things we do,” says Semler, “If we had a day, could we not by tomorrow afternoon figure out a way to make a car” that handles better in this common situation -- or, on a grander scale, escape from the “silly concept” of oil dependent transportation altogether? The problem, Semler figures, is that there’s “something fundamental about organizations and … leadership that makes it almost impossible for people inside a business to change their own industry.” Industries are based on “formats that are basically legacies of military hierarchies,” says Semler, which neglect or deny the power of human intuition and democratic participation. In Semler’s own firm, there are no five-year business plans (which he views as wishful thinking), but rather “a rolling rationale about numbers.” A project takes off only if a critical mass of employees decides to get involved. Staff determine when they need a leader, and then choose their own bosses in a process akin to courtship, says Semler, resulting in a corporate turnover rate of 2% over 25 years. “We’ll send our sons anywhere in the world to die for democracy,” says Semler, but don’t seem to apply the concept to the workplace. This is a tragic error, because “people on their own developing their own solutions will develop something different.

Lecture Details

Location: Wong Auditorium

“Every one of us can send emails on Sunday night, but how many of us know how to go to the movies on Monday afternoon? If you don’t know how to go to the movies from 2 to 4, you’re in trouble because you’ve just taken on something that unbalances life, but you haven’t rebalanced it with something else.”

Ricardo Semler

About the Speaker

Ricardo Semler

President, Semco S/A Author

Ricardo Semler heads up the Brazilian company, Semco, which is involved in such diverse ventures as manufacturing mixing equipment, making cooling towers, managing Latin American properties, and environmental consulting.

Semler has authored two best-sellers, Maverick: The Success Story Behind the World's Most Unusual Workplace and The Seven-Day Weekend: Changing the Way Work Works.

Semler is a Harvard Business School alumnus, and has been named Brazil's Business Leader of the Year two times.

Ricardo Semler

Semler's profile at Leigh Bureau

About the Host

About the Host

MIT Sloan School of Management

The MIT Sloan School of Management, based in Cambridge, Massachusetts, is one of the world’s leading business schools — conducting cutting-edge research and providing management education to top students from more than 60 countries. The School is part of MIT’s rich intellectual tradition of education and research.

MIT Sloan began in 1914 as engineering administration curriculum in the MIT Department of Economics and Statistics. The scope and depth of this educational focus have grown steadily in response to advances in the theory and practice of management to today’s broad-based management school.

A program offering a master’s degree in management was established in 1925. The world’s first university-based executive education program — the MIT Sloan Fellows — was created in 1931 under the sponsorship of Alfred P. Sloan, Jr., an 1895 MIT graduate who was then chairman of General Motors. A MIT Sloan Foundation grant established the MIT School of Industrial Management in 1952 with a charge of educating the “ideal manager.”