Dive Brief:
- An article in Sunday's New York Times takes an in-depth look at Amazon-owned Zappos, the online shoe seller that a few months ago announced it was moving to a radical self-management system called Holacracy.
- The goal of Holacracy is to create a dynamic workplace where everyone has a voice and no one is stifled by bureaucracy.
- At Zappos it meant traditional corporate hierarchy is gone, according to the Times. Managers no longer exist. The company’s 1,500 employees define their own jobs. Anyone can set the agenda for a meeting. The business press had serious doubts.
Dive Insight:
How's Holacracy working? It's a mixed bag, but progress is inching along, according to the article.
Tony Hsieh, 41, who founded Zappos 16 years ago and insisted that the company try Holacracy, initially offered existing employees the option of embracing Holacracy or accepting a buyout; 210 employees, or some 14% of the work force, left. Hsieh told the Times that as Zappos grew, innovation slowed. The staff expanded, more managers joined the ranks, and the freewheeling culture lost momentum.
Hsieh may see Holacracy as a way to revive the close-knit community feeling that made the company so special 10 years ago, when it was just a few hundred people taking on the giants of e-commerce. “Once you have that level of friendship, there’s higher levels of trust,” he told the Times. “Communication is better; you can send emails without fear of being misinterpreted; people do favors for one another.”
Despite some fits and starts, there are some success stories. One Zappos team member said that "after months of torturous meetings, her circle, which promotes Zappos culture, was running more efficiently."
For HR leaders, Holacracy might sound a little wild. Odds are pretty high that it won't become the predominant management strategy in the U.S., so HR executives can rest easy for now.
