Traditional vs

Zappos, an online retailer, is implementing a radical new system called Holacracy, which replaces the traditional organizational structure with a self-governing model, removing job titles and managers. Instead, power is distributed more evenly within a flatter “holarchy” of different circles, with around 400 at Zappos once the rollout is complete in December 2014. Employees can take on any number of roles within these circles, with the aim of achieving radical transparency. The company will be the largest to date to implement Holacracy, with 1,500 employees. HolacracyOne, the management consultancy that created the system in 2007, is guiding the transition. The system has been adopted by Medium, a publishing platform with around 50 employees. The system is meant to address structural issues, with leaders responding to the human element in different ways, such as the creation of mentorship circles. The system is politics-free and quickly evolves to operate the purpose of the organization, responding to market and real-world conditions in real time. The focus is on the work, not the people. The system can feel unnatural, with meetings designed to rapidly process tensions. The system aims to create a structure in which people have the flexibility to pursue what they are passionate about, taking personal accountability for their work.