“Maverick” was one of the best books I have read on management, business and so on. It’s written by Ricardo Semler, the heir to a massive Brazilian company and should be compulsory reading for anybody either trying to manage a business or advising others who are doing so. There are many jewels of wisdom in it but while listening to the furious commentary about executive pay I am reminded of one.

Now it’s been a while since I read the book and my copy is still with whomever I lent it to (if you’ve got it can I have it back please?) but I recall a story he tells of a meeting soon after he took over as head of Semco, the family conglomerate. I’ve always thought it would be fun to have a family conglomerate but apparently there are problems associated with it. One was presented to Semler by a very senior executive (previously close to Semler’s father) who felt that due to the combination of increased pressure of work, massively heightened level of responsibility and the fact that it was his birthday and there was an R in the month he needed a hefty pay rise. Those of you in the financial services sector will know the feeling.

So he popped in to see the newly appointed Semler Junior to suggest that the young lad should just sign it all off and they’d all be happy. Apparently young Ricardo said he fully understood, stated that the exec would be in a better position to know what was fair and that as far as he (Ricardo) was concerned there was no issue. Whatever he wanted. Only one small request. Ricardo suggested that the Senior man should just run it by his staff. All of them. And explain why he felt the umpteen trillion Reais increase was needed. In fact was only fair. He was sure they would understand. Even those about to be laid off. This was the beginning of what Semler espoused – open management. Sounds simple now but was a bombshell then. In Brazil.

Not sure is changed a lot since. And not just in Brazil. When a new CEO is appointed, how much say does the company at large have in the deal? When bonuses are allocated, who does the allocation? And how? How different would it be if CEO packages did have to be run by the stakeholders? And not just the toothless way it happens now but by stakeholders with teeth. What would happen if they could actually say NO! Perhaps a bit less secrecy combined with a few rules about requiring democracy might make a difference. This is low Control Leadership. Not abrogation of responsibility but the fierce imposition and defence of individual rights. So if I want to roll over the top of you all and keep all the apples for myself then that’s fine providing you know about it and have agreed. I suspect you would see some quite different contracts being written. Not necessarily making people poorer but making rewards strictly contingent on success. Oh and while we’re about it how about allowing everybody in on the act.

I’ve seen this working in practice twice. The first time was a team leader in a pharmaceutical company who was told she’d done really well and so was in line for a bonus. She said it was a team effort. So her boss said OK, you’ve got $X to share around. You decide who gets what. Feeling uncomfortable with this she went to her team, put the money on the table (figuratively) and asked them how they wanted to split it. They thought she should have the bulk and divided the balance up between them amicably. Her next leadership 360 was outstanding.

A couple of years ago my daughter was asked to deliver some flyers for our local vet. Thousands of them. She enlisted some help from two friends but the help was not that helpful. Daughter ended up doing most of the work. The vet then handed over $100. Daughter was in a quandary. She thought she should give over $33.33 to each but then she also thought that wasn’t fair. So I suggested she take the money to school, call a team meeting and put the money on the table (real money this time). And ask how to split it. Friends immediately said “you did most of the work. You take $60 and we’ll take $20 each.” Done and dusted in minutes and everybody left feeling fairly treated.

So there you are. Openness does work. But we’re just not used to it.

NLB