Renowned entrepreneur Tony Shay, founder of Zappos, one of the largest online shoe retailers, has once again shown a revolutionary approach to business. The company has long experimented with holacracy - a management concept in which vertical management and a rigid corporate structure are replaced by self-governing teams - "circles" of employees. Since April 30, the company has completely switched to this system.
It cannot be said that this concept completely denies the corporate hierarchy - decisions are made in a democratic way in the middle of the "circles", but some "circles" still obey others. The idea is based on the book Reinventing Organizations.
Back in late March of this year, Tony sent a letter to all employees warning them: if such a radical innovation is not to their liking, leave. The letter said that the company had been trying holacracy for about a year and that, finally, it was time to switch to this regime completely. The goal of Zappos is to move over time to self-management and self-organization. He actually warned the entire state that there would be no more managers from April 30th.
Interestingly, about 14% of employees from more than one and a half thousand employees of the company chose not to take risks and left the company. The managers who are in good standing at the company were offered to pay salaries before the end of the 2015 year, but at the same time they should find a different role in the business.
Recall that Tony Shay is not only the founder of a successful company with a billion-dollar turnover, but also the author of books on business. His "Delivering Happiness" has become a reference book for many internet entrepreneurs.