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Thank Different. Employee engagement is a key element to any successful business. In today’s knowledge economy, your most valuable assets are your people. All organizations need to have a strategy to engage & align their team to achieve their business goals. In a highly competitive world - the ability to retain, attract & engage your staff can be the difference between success & failure. Kudos is a corporate social network with a peer-to-peer recognition system designed to engage your teams with enhanced communication, collaboration, appreciation & recognition.
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Zappos is going Holacratic: No Job Titles, No Managers, No Hierarchy

Zappos is going Holacratic: No Job Titles, No Managers, No Hierarchy | Employee Engagement Made Easy! | 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.”

 

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

       
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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:

 

Receive Best of the Best news, taken from Deb's  NINE curation streams @Deb Nystrom, REVELN, sent once a month via email, available for free here, via REVELN Tools.

      

A History of Performance Appraisals: Letting Go to Power New Culture

            

3 Success Factors for High Performance Teams, and What Gets In the Way

         

Beyond Resilience: Black Swans, Anti-Fragility and Change
Via Deb Nystrom, REVELN
Kudos's insight:

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

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Deb Nystrom, REVELN's curator insight, January 10, 2014 12:06 PM

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

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Elon Musk: The mind behind Tesla, SpaceX, SolarCity ...

Entrepreneur Elon Musk is a man with many plans. The founder of PayPal, Tesla Motors and SpaceX sits down with TED curator Chris Anderson to share details about what's next.


Via Deb Nystrom, REVELN
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Deb Nystrom, REVELN's curator insight, July 21, 2013 10:56 PM

A TED talk that has made it to the list, "15 TED Talks That Will Change Your Life," belongs on this stream, and goes with a previous post here a few days ago.  ~  Deb

Deb Nystrom, REVELN's curator insight, July 22, 2013 1:24 PM

Shared from my Change Leadership Watch as a companion to another innovation post about Elon Musk on this stream.