Holacracy, a new management fad, is gaining popularity among businesses. This system aims to distribute authority, foster transparency, and drive efficiency by replacing traditional hierarchies with a web of roles and responsibilities. Zappos, an online shoe retailer, is one of the biggest adopters of this model. However, critics argue that holacracy can be complex, with elaborate rules and procedures that may confuse employees.

The system’s rigidity is another point of contention. It requires every decision to be processed through a set system, which can stifle innovation and spontaneity. Furthermore, holacracy’s emphasis on consensus can lead to endless meetings and slow down decision-making.

Despite these criticisms, holacracy has its merits. It allows for a more flexible and responsive organisational structure, which can be beneficial in a rapidly changing business environment. Yet, the jury is still out on whether this model can deliver on its promises. The success of holacracy largely depends on how it is implemented and the specific needs of the organisation.

In conclusion, while holacracy presents an innovative approach to management, it is not without its challenges. Businesses considering this model should weigh the potential benefits against the possible drawbacks before making a decision.

Go to source article: http://www.economist.com/news/business/21606267-latest-big-idea-management-deserves-some-scepticism-holes-holacracy