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Holacracy and Self-Organization

Zappos has been using Holacracy for quite some time now, but our experiences with it have been largely shrouded in mystery to the outside world. What better way to know about what is happening in Zappos with regards to Holacracy and Self-Organization than for us to share that with you ourselves? We will be providing you with insight into our own successes and struggles and tips we share with employees in the hopes that this information will help others more effectively transition to a self-managed, self-organized company structure.

Holacracy at Zappos

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What is Holacracy?

According to Holacracy.org, Holacracy is a comprehensive practice for structuring, governing, and running an organization. It replaces today’s top-down predict-and-control paradigm with a new way of achieving control by distributing power. It is a new “operating system” that instills rapid evolution in the core processes of an organization.

Why Holacracy?

“Research shows that every time the size of a city doubles, innovation or productivity per resident increases by 15 percent. But when companies get bigger, innovation or productivity per employee generally goes down. So we’re trying to figure out how to structure Zappos more like a city, and less like a bureaucratic corporation. In a city, people and businesses are self-organizing. We’re trying to do the same thing by switching from a normal hierarchical structure to a system called Holacracy, which enables employees to act more like entrepreneurs and self-direct their work instead of reporting to a manager who tells them what to do.”– Tony Hsieh How Does Holacracy Work?

Visit http://holacracy.org/how-it-works to learn how Holacracy works.

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