The Las Vegas-based online retailer Zappos – replaced the traditional top-down hierarchy approach with a new Holacracy approach where there are no formal bosses, no job titles and where the employees set their own priorities. This innovative approach was developed by a business guru Brain Robertson with the idea to give employees more of voice and to keep the organization from becoming too rigid or bureaucratic.
This model is not only adopted by Tony Hsieh, Zappos’s founder but also Twitter co-founder Evan Williams (in his new company, Medium) and Time management guru David Allen in his organization.
Holacracy is a self-governing system that aims to organize a company around the work that needs to be done instead of around the people who do it. Job titles do not exist. Multiple circles are formed where employees have to collaborate cross-functionally to perform different functions. This helps the employees to get more exposure in learning and gaining skills that may not be possible within a single circle or team.
In the place of traditional managers, there are people who are designated as “lead links” who have the ability to assign employees roles or remove them from roles within the circle – but they don’t have the ability to tell the employees what to do. Hope this holacracy approach may empowers the employees to emerge as a leaders.