Zappos, the online shoe and clothing retailer, has been experimenting with a radical management concept known as holacracy. This system, which eliminates traditional management hierarchy in favour of a more democratic structure, has been met with mixed reactions from employees. Nearly a fifth of the workforce chose to take a severance package rather than continue under the new structure.
Despite these departures, the company remains committed to holacracy. The system is designed to increase transparency, empower employees, and foster a culture of innovation. While it has been challenging to implement, there are signs that it is beginning to take root. Employees report feeling more engaged and productive, and the company has seen a surge in innovative ideas.
However, critics question whether holacracy can succeed in the long term. They argue that it is too complex and time-consuming, and that it may not be suitable for all types of businesses. Despite these concerns, Zappos continues to forge ahead, confident in its belief that holacracy is the future of management.
In the end, only time will tell whether this bold experiment in corporate governance will succeed or fail. But for now, Zappos remains a fascinating case study in the potential and pitfalls of radical management innovation.
Go to source article: http://www.forbes.com/sites/stevedenning/2015/05/23/is-holacracy-succeeding-at-zappos/