Tag Archives: Google

The Holes in Holacracy

An informed article by “Schumpeter” (no first name available), The Holes in Holacracy, included in the print edition as well as online. Schumpeter’s points are really about new branded methods failing.  They are gone in 10 years. (Sociocracy on which Holacracy is based has not failed in 40 years.)

EVERY so often a company emerges from the herd to be lauded as the embodiment of leading-edge management thinking. Think of Toyota and its lean manufacturing system, say, or GE and Six Sigma excellence. The latest candidate for apotheosis is Zappos, an online vendor of shoes and clothes (owned by Amazon), which believes that happy workers breed happy customers. Tony Hsieh, its boss, said last year that he will turn the firm into a “holacracy”, replacing its hierarchy with a more democratic system of overlapping, self-organising teams. Until Zappos embraced it, no big company had taken holacracy seriously. Indeed, not all of Zappos’ 1,500-strong workforce are convinced that it can work…

Tony Hsieh, CEO Zappos. Photo credit: Wikipedia.
Tony Hsieh, CEO Zappos. Photo credit: Wikipedia.

Will conquering Zappos help holacracy thrive in the brutally competitive market for management ideas? There is good reason to be skeptical. “Nine-tenths of the approximately 100 branded management ideas I’ve studied lost their popularity within a decade or so,” wrote Julian Birkinshaw of London Business School in the May issue of the Harvard Business Review. Among the latest cast-offs, it seems, is Google’s much-admired “20% time”, in which workers got a day a week to work on their own projects; the company is reported to be quietly sidelining it.