Learning Notebook - David Rostcheck
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in the last few years, Zappos has been quietly moving away from holacracy. It has done away with its at-times rigidly (and ironically) bureaucratic meetings and brought back managers, while retaining its circular hierarchy, a key artifact of holacracy. Zappos executive John Bunch, who co-led the rollout of holacracy, has explained that the company, famous for its exceptional customer service, encountered some “big challenges” in its business metrics and sought to redirect employees’ focus back to the customer (an oft-cited criticism of holacracy is that it is too internally focused). By March 2017, the e-retailer had shifted its strategy to remedy this. The solution? A marketplace system where teams operate like small businesses and manage their own profit-and-loss statements, rather than focusing on the scope of their holacratic authority to manage the company’s full P&L.
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