Zappos, the online shoe and clothing retailer, is operating a management structure known as Holacracy. In this radical system, there are no traditional managers and employees set their own tasks. The company has been transitioning towards this model since 2013, with the aim of increasing adaptability and reducing bureaucracy.

Holacracy, a term coined by software entrepreneur Brian Robertson, replaces the traditional hierarchical structure with a system of overlapping circles. Each employee has a role within these circles, with responsibilities and expectations clearly defined. The idea is to allow for rapid reorganisation in response to changing needs, without the need for top-down directives.

Zappos’ CEO, Tony Hsieh, is a strong advocate of Holacracy, viewing it as a way to keep the entrepreneurial spirit alive in a large company. However, not everyone is convinced. Critics argue that the system is too rigid and complex, with a steep learning curve for new employees.

Despite this, Zappos is committed to the model, with Hsieh stating that those uncomfortable with the change were free to leave. As of 2014, around 85% of the company’s employees were operating under the Holacracy system.

Go to source article: