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    ayush singla
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    Zappos transitioned from a traditional management structure to a self-management system called Holacracy. This caused some disruption as employees adjusted to the new system which eliminated functional divisions and gave employees more autonomy through self-organizing teams. There were also concerns about increased costs from high return rates and employee turnover during the transition period. The document recommends addressing these issues by designing specific roles that match individual skills with organizational goals and implementing a process for circles to provide feedback on any role changes.

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    Zappos transitioned from a traditional management structure to a self-management system called Holacracy. This caused some disruption as employees adjusted to the new system which eliminated functional divisions and gave employees more autonomy through self-organizing teams. There were also concerns about increased costs from high return rates and employee turnover during the transition period. The document recommends addressing these issues by designing specific roles that match individual skills with organizational goals and implementing a process for circles to provide feedback on any role changes.

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    27 views9 pages

    Holocracy at Zappos: Group-2

    Uploaded by

    ayush singla
    Zappos transitioned from a traditional management structure to a self-management system called Holacracy. This caused some disruption as employees adjusted to the new system which eliminated functional divisions and gave employees more autonomy through self-organizing teams. There were also concerns about increased costs from high return rates and employee turnover during the transition period. The document recommends addressing these issues by designing specific roles that match individual skills with organizational goals and implementing a process for circles to provide feedback on any role changes.

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    of 9

    HOLOCRACY AT ZAPPOS

    Group-2
    Ankit Anand PGP10071
    Ayush Singla PGP10076
    Manavi Singh PGP10092
    Swarnajit Saha PGP10100
    R Shireesha PGP10102
    Siddharth Kashyap PGP10120
    INTRODUCTION

    Tony was overseeing the transformation of Zappos from traditional to Holacracy management system

    Zappos was acquired by Amazon in 2009

    It was regarded as shining example of dynamic organisational culture

    Considered as one of best places to work

    The company has evolved a consumer centric approach

    Company culture and company brand were considered crucial parameters


    SITUATIONAL ANALYSIS

    In 2009, Amazon acquired Zappos for $1.2 billion

    Amazon pledged to provide independent culture for Zappos 

    It enabled to Zappos to expand in clothing, houseware and cosmetics 

    It converted functional concentric divisions to role concentric divisions like lead link, mentor and compensation
    appraiser 

    Some people are uncomfortable with self-management philosophy

    Tony’s move had the potential to disrupt the functioning of the company
    PROBLEM ANALYSIS

    Zappos had 365 day free return policy 

    Returns were more than one third of its gross revenue

    Self-Management can be confusing for newly joined employees 

    Employee turnover has increased to 14%

    Increased uncertainty regarding Holacracy 

    Completion of Supercloud project on time


    SELF-MANAGEMENT SYSTEMS

    Teams are the structure, that is hierarchy exists in form of teams

    In holacracy, they’re “circles”; in podularity, “pods” and at many companies, or simply “teams”

    Leadership is contextual, depends upon the context

    Teams design and govern themselves

    Process-oriented, rather than Manager-dependent


    SYSTEMS AT ZAPPOS
    MYTHS ABOUT HOLACRACY

    • There’s No Organizational Structure


    • Hierarchy No Longer Exists
    • Everything Is Decided by Consensus
    RECOMMENDATION
    Designing roles that match individual capabilities with organizational goals

    In self-managing systems, individuals have portfolios of several very specific roles 

    Design process lets individuals play to their strengths and interests

    Create safety check against roles that might be useful to one person but harmful to the team or the organization

    Circle members should be encouraged to object to a suggested role change if it would “move the circle backwards” 

    The person proposing the change must address the issue raised or drop the proposal

    A system installation  that let employees convey their skills 


    THANK YOU

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