Zappos, an online shoe and clothing retailer, has made a radical shift towards a self-management model known as Holacracy. This change has not been without its challenges, with 14% of the company’s workforce opting to leave rather than adapt to the new structure. Holacracy aims to empower employees by eliminating traditional management hierarchies, instead creating circles of roles that allow for more flexibility and autonomy.

The transition to this model has proven difficult for some employees, who are unsure of their new roles and responsibilities. This has led to a drop in productivity and an increase in staff turnover. Despite these challenges, Zappos remains committed to the model, believing it will foster innovation and agility.

The move has been met with mixed responses from business leaders and experts. Some admire Zappos for its bold move, while others question the sustainability of such a model. The company’s success or failure with Holacracy will likely have significant implications for the future of self-management in the business world.

In the face of these challenges, Zappos has offered support to its employees, including coaching and training to help them navigate the new system. The company has also set up a market for roles, where employees can bid for tasks they want to take on, further promoting autonomy and flexibility.

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