CHAPTER 1:

MANAGERS AND YOU IN THE WORKPLACE

ZAPPOS:
WHO NEEDS
A BOSS
 Zappos

* Zappos
• Holacracy.” * Online
• That’s the word of the day * shoe
• at Zappos, * apparel retailer
• the Nevada-based
• online shoe and apparel
retailer.
 ZAPPOS
 

During  employee meeting

 a four-hour,  CEO
 year-end employee meeting  eliminating
 traditional managerial
 in 2013,
 CEO Tony Hsieh  structural hierarchy
 announced that  implement
 he was eliminating
 the company’s
- traditional managerial and
- structural hierarchy
 to implement a holacracy.
 ZAPPOS

What  
 is a holacracy,  holacracy
 you ask?
 
 ZAPPOS
 organizational system
 
In a nutshell,  no job titles,
 it’s an organizational system  no managers
with  no top-down hierarchy
- no job titles,  upper, middle, or lower
levels
- no managers, and
- no top-down hierarchy  decisions
with upper, middle, or  hung up.
 
lower levels
where decisions
can get hung up.
 
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The idea
 behind this
 new type of arrangement
 is to focus on the work
 that needs to be done
 and not on some
 hierarchical structure
 where great ideas and
suggestions
 can get lost
 in the channels of reporting.
 
 new type of arrangement
 focus on the work
 needs to be done
 hierarchical structure
 great ideas
 suggestions
 lost
 channels of reporting
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 dreamed up
 founder
The holacracy concept  software start-up
 was dreamed up
 by Brian Robertson,
 the founder
 of a Pennsylvania
 software start-up.
 
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Its name comes  
 from the Greek word holos,  a single,
- a single,  autonomous,
- autonomous,  self-sufficient unit
- self-sufficient unit  dependent on a
- that’s also dependent larger unit.
- on a larger unit.  
 
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A simple explanation  
 of Robertson’s vision  vision
 of a holacracy is  workers as partners,
 job descriptions as roles
- workers as partners,  partners organized into
- job descriptions as circles.
roles, and  
- partners organized into
circles.
 
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(It might help  
 in grasping this idea  employee circles
 by thinking of these  overlapping
employee circles employee groups
 as types of overlapping  fluid membership
employee groups  individual roles
 but with more fluid  responsibilities
membership  
 and individual roles and
responsibilities.)
 
 ZAPPOS
 
In these circles,  can take on
 employees can take on  any number of roles,
 any number of roles,  expectation
 and the expectation is  
that  each employee will
 each employee help out
 will help out  wherever he or she
 wherever he or she can. can.
   
 ZAPPOS
Without  
 titles or a hierarchy,  titles or a
 anyone can hierarchy,
- initiate a project and  anyone
- implement innovative ideas.  initiate a project
   implement
innovative ideas.
 
 ZAPPOS
 
 circle members
 will pool ideas
The hope  watch out for each
 is that circle members other.
- will pool ideas and  
- watch out for each
other.
 
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The goal
 is radical transparency
and
 getting more people  
 to take charge.  Goal
   radical transparency
 getting more people
 to take charge
 ZAPPOS
Yet,  
 trusting individuals  trusting individuals
 who probably know  details of the job
 the details of the job better
better than  
 any manager to work  conscientiously,
- conscientiously,  creatively, and
- creatively, and  efficiently
- efficiently  
 is good  there is way
 as long as there is way  standards high.
 to keep standards high.  
 ZAPPOS
The last thing
 Zappos wants is
 for a slacker mentality
 to take hold.
 
 
 slacker mentality
 to take hold.
 
 ZAPPOS
Hsieh  
 has always approached  approached
 leading his business  leading
 in unique and radical ways.  unique
   radical ways.
 
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He strongly believes  * power of the individual
 in the power  highly successful
 of the individual and organization
 has created  
 a highly successful organization  (which is now part of
 (which is now part of Amazon) Amazon)
 that’s known  zany culture,
 for its zany culture,  corporate values
 where corporate values  matched
 are matched  personal values
 with personal values  “weirdness & humility”
 and where “weirdness and  celebrated.
humility”
 are celebrated.
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However,
 as the company moves away
 from the
 traditional work model  
 to this new system,  moves away
 it may face some challenges.  traditional work
  model
 new system,
 challenges.
 
 ZAPPOS
Both
 Zappos and Robertson
 caution that while holacracy  
 might eliminate  caution
 the traditional Manager’s  eliminate
job,  traditional
 there is still Manager’s job,
- structure and
- accountability.  there is still
  - structure and
- accountability.
 
 ZAPPOS
Poor performers
 will be obvious  
 because they won’t have
 enough “roles”  Poor performers
 to fill their time,  obvious
 or a circle charged  enough “roles”
 
 with monitoring
 the company’s culture  a circle charged
 may decide  monitoring
 they’re not a good fit.  company’s culture
   not a good fit.
 
 ZAPPOS
Also,
 just because
 there are no traditional
managers
 doesn’t mean
 that leaders won’t  
emerge.  no traditional
  managers
 leaders won’t
emerge.
 
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But
 it will be important  
 to watch for
 dominant personalities  dominant
 emerging as authority figures, personalities
 which could potentially cause  authority figures,
 other employees  potentially cause
- to be resentful or  
- to rebel.  to be resentful or
 
 to rebel.
 
 ZAPPOS
Zappos says that  
 it will not be leaderless.  leaderless
   
Some individuals  bigger role
 will have a bigger role and  scope of purpose,
 scope of purpose,  leadership
 
 but leadership
 is also distributed and
 expected in each role.
 
 ZAPPOS
“Everybody
 is expected
- to lead and
- be an entrepreneur
 in their own roles,  
 and holacracy
 empowers them to do so.”  Everybody
   to lead and
 be an entrepreneur
 own roles,
 empowers
 
 ZAPPOS
Also,
 there will be s
 one structure arrangement
 where “the broadest circles
 can to some extent
 tell subgroups
 what they’re accountable
for doing.”
 
  
 one structure
arrangement
 “the broadest
circles
 tell subgroups
 accountable for
doing.”
 ZAPPOS
But accountability,
 rather than flowing only up,
 will flow throughout
 the organization
 in different paths.  
   accountability,
 flowing only up
 flow throughout
 different paths.
 
 ZAPPOS
Other challenges
 they’re still trying
 to figure out include
 who has the ultimate authority
 to hire, fire, and decide pay.
 

 
 challenges
 ultimate authority
 
 to hire, fire, and decide pay.
 ZAPPOS
The hope
 is that eventually
 the authority
 for each of these roles
 will be done
 within the holacratic framework
 as well.
 
 
 eventually
 roles
 holacratic framework
 
 ZAPPOS
 
So,  no one has a title
 there are no
 if no one has a title and bosses,
 there are no bosses,  CEO
 is Tony Hsieh still the CEO?  
So far,
 
 he hasn’t publicly  publicly
commented
 how his own role
 about how his own role  impacted.
 is impacted.  
 
FINISH