Zappos: An Experiment in Holacracy

Zappos: An Experiment in Holacracy

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  • Teaching Notes
Abstract

Tony Hsieh, CEO of Zappos sent his employees an ultimatum in early 2015 – embrace the self-management philosophy Holacracy or leave the company. Eighteen percent of the staff chose to leave rather than remain under the new system characterized by no job title, no managers, and complex rules governing employee interactions. Is this an experiment in organizational design worth sustaining?

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