Holacracy, it’s called, and it makes all previous moves toward “employee empowerment” look like the mild concessions of an 18th-century monarch. Freed from direct supervision, employees are expected to join various impermanent democratic assemblies called “circles” (headed, but not run, by a “lead link”), in which they will essentially propose their own job descriptions, ratify the “roles” of others, and decide what projects the group should undertake.
The constitution was written by Brian Robertson, a Philadelphia entrepreneur unaffiliated with Zappos who’d grown disaffected with standard management practices. Hsieh had heard him speak about holacracy at a 2012 conference, and was captivated. “We adopted it wholesale with zero changes,” says John Bunch, who used to be a technical adviser at Zappos but is now title-less. (He is, nevertheless, heading the implementation of holacracy.)
The media has so far reacted with a mix of understandable skepticism and outright derision. “Mr. Hsieh’s hot hand appears to be at risk of going cold,” The New York Times reported in July. Employees at Zappos, the paper said, have met the development “with everything from cautious embrace to outright revulsion.” The tech site Pando was less measured: “Holacracy of Dunces,” a headline snorted that same month.
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