Zappos, a leading online shoe and clothing retailer, has adopted a radical management approach known as ‘Holacracy’. This system, which replaces traditional hierarchical structures with a web of circles and roles, seeks to distribute authority and decision-making throughout an organisation. It aims to increase efficiency, agility, transparency, and employee engagement by empowering individuals and teams.
Zappos’ adoption of Holacracy has not been without challenges. Critics argue that the system can be complex, time-consuming, and difficult to understand. Despite these criticisms, Zappos maintains that Holacracy has helped the company to remain innovative and customer-focused in a rapidly changing retail environment.
Tony Hsieh, CEO of Zappos, believes that Holacracy is a necessary step towards creating a more adaptable and resilient organisation. He envisions a future where companies are more like cities, evolving organically rather than being controlled from the top. Hsieh’s goal is to create a company where everyone is an entrepreneur, and Holacracy is a key part of this vision.
In conclusion, while Holacracy may not be a perfect system, it represents a bold attempt to rethink traditional corporate structures. As Zappos continues to experiment with this approach, it provides a fascinating case study for other organisations considering similar changes.
Go to source article: http://www.forbes.com/sites/stevedenning/2014/01/15/making-sense-of-zappos-and-holacracy/