Change Leadership...
Follow
Find tag "Holacracy"
13.2K views | +3 today
Change Leadership Watch
How change happens and who is leading it.  For the BEST of the BEST curated news SUBSCRIBE to our monthly newsletter via  Reveln.com/Tools/ (We never SPAM!)
Your new post is loading...
Your new post is loading...
Scooped by Deb Nystrom, REVELN
Scoop.it!

Zappos is going Holacratic: No Job Titles, No Managers, No Hierarchy

Zappos is going Holacratic: No Job Titles, No Managers, No Hierarchy | Change Leadership Watch | Scoop.it

“Zappos’ focus on core values and culture has done a remarkably good job of getting around the limits of a conventional corporate structure.” .....“Leaders that already understand the limits of conventional structures are the ones that are attracted to Holacracy.”


__________________
    
“Leaders that already understand the limits of conventional structures are the ones that are attracted to Holacracy.”

       
__________________


CEOs who sign on to Holacracy agree to cede some level of power*. The advantage is that they get to view their company through an entirely different lens. But it’s an adjustment for both leaders and employees. Zappos, which has 1,500 employees, will be the largest company to date to implement Holacracy.


DN:  My contention is hierarchical & autocratic power has natural limits anyway. 


From a recent Forbes article:


…E-commerce retailers like Zappos to tech companies like Valve (famous for having no bosses) to manufacturers like W.L. Gore (famous for democratically electing its CEO), flat organizations are prospering.“There is a growing body of evidence that shows organizations with flat structures outperform those with more traditional hierarchies in most situations,” wrote Tim Kastelle in the Harvard Business Review.


Flat structures work best when a company’s main point of differentiation is innovation, said Kastelle. They also work well when teams need to be more nimble to respond to a rapidly changing environment, and when the organization has a shared purpose, he added.


…Digital and mobile technologies make it easier for employees to work in a distributed manner, wrote Kastelle.


ANOTHER Forbes article provides a counterpoint,  by a former Wall Street Journal writer, is entitled:   Gurus Gone Wild: Does Zappos' Reorganization Make Any Sense?   He quotes another blogger, William Tincup, who lists 6 problems with Holacracy.


Here are four of them in a nutshell:


  • Holacracy seems to be a scheme that’s built for growth, upmarket, happy times


  • People that will thrive in this system will be: (1) people that have a problem with authority, (2) people that can consume ambiguity, and (3) independent thinkers and doers. ...They will argue that it’s an efficient system, a lean system, and it will be at the expense of diversity. 

    

  • Holacracy [is a] value system. Kind of seems cultish, right? 
    
  • How will it scale?    Holacracy is a paper napkin idea that might best fit less than 1% of the companies in America.


Related posts & tools by Deb:


      

            

         

Deb Nystrom, REVELN's insight:

Zappos is known for its zany corporate culture based on 10 core values, innovative/ alternative work environment, and for legendary customer service.  Now Zappos may become known for breaking the hierarchy barriers to how innovative companies are structured and function.  We'll soon find out if it will scale in the bigger organization that is Zappos.


Flatter, social circle organization seems fully in line with the 10 core values of Zappos.  Overall, their great success can has been attributed to many things, incuding a clear, compelling vision of who and what they are and are not, including "It’s Not about Shoes." 

  • "Zappos is a customer service company that just happens to sell shoes.” -Tony Hsieh


In the same way, Coca-Cola is about entertainment, not sugar-water. Zappos now has legendary customer service stories included in books - such as the one about delivering flowers to a customer whose mom passed away.  Another one is about a Zappos rep talking to a customer for over 8 hours (a record that now has been broken.)


As an example, General Motors has adopted a teams approach in some of its plants, yet moves slowly as large multi-national.  Enter the new team oriented, from the ranks GM CEO Mary Barra.  The times, they are a changing!

Zappos has none of the history of hierarchy and the silo creating 1920's scientific management connected older manufacturing practices, to hold it back.


Welcome to a new view of leadership, 2014 style.  Now, we'll see if it will scale.    ~  D

more...
Kudos's curator insight, January 11, 2014 4:36 PM

An interesting experiment. The fine line between madness and genious. Can people handle it. Time will tell. 

Scooped by Deb Nystrom, REVELN
Scoop.it!

From Twitter to a new kind of company with no managers, a "Holocracy"

From Twitter to a new kind of company with no managers, a "Holocracy" | Change Leadership Watch | Scoop.it

“Management perspective looks at reports as resources – like how can you get the maximum value out of this person,” Stirman says. “But when I think resources, I think like natural gas or coal mines. Thinking about a person’s life that way just seemed really dehumanizing.”


______________________

He started spending one-on-one meetings talking to his reports about their lives, instead of their tasks, and productivity shot through the roof.

______________________


Frustrated with poor results, he decided to go off script. He started spending one-on-one meetings talking to his reports about their lives, instead of their tasks, and productivity shot through the roof.
 

______________________

 

“We don’t have a hierarchy of people, we have a hierarchy of circles.”

______________________

    

“When you sit across a table from someone, ask them ‘What’s going on in your life?’ That will always remove more hurdles than asking them ‘What’s blocking you at work?’” he said.

Stirman hit another wall trying to shield his team from external drama and politics. “Classic management advice, and all my mentors told me that insulating your team from things so they won’t worry will make them more productive and happier,” he says. “But they just got angry, and confused, and disconnected. I was constantly censoring all this information and they were way happier when they knew everything.”

...“The structure is totally built around the work the company needs to achieve its purpose,” Stirman explains. “We don’t have a hierarchy of people, we have a hierarchy of circles.”


...But Medium isn’t just taking a revolutionary approach to digital publishing – it’s changing the way companies operate too. As one of the fiercest and most faithful adopters of Holacracy – a radical new theory of corporate structure – Medium is experimenting with a completely management-free environment that’s laser focused on getting things done. 


Read more: http://ow.ly/nKJBL

 


Related posts by Deb:

    
   

 

 

Deb Nystrom, REVELN's insight:

I have to wonder why this antiquated old-school management advice is still circulating to the likes of of this younger, IT saavy crowd.  Old habits die hard.  

This detailed article cites the positive side of letting go to embrace something very new.  The leader-writer, Jason Stirman, not a manager,  discovered a diverse motivations tool that seems to work for his group, and is in for the long haul on the manager-less experiment with Holacracy.   ~  Deb



 

more...
Marie Jeffery's curator insight, August 10, 2013 3:02 PM

Thanks for drawing our attention to this excellent post, Deb Nystrom!