This year, Las Vegas-based retailer Zappos is doing something few international companies have dared to do and is taking a chance on the future of the company based on the confidence they have in their employees' ability to make decisions. They are reorganizing their entire internal structure to implement a system called holacracy. With this system there will be no managers or job titles regarding internal operations, and the traditional corporate hierarchy will be replaced with a series of overlapping, self-governing “clubs.” As a result, many more employees are empowered to make the decisions necessary to fulfill their responsibilities without having to ask permission from managers who may be unfamiliar with the complexity of the problem. This seemingly chaotic approach has proven effective in some smaller organizations, but never before attempted on this scale. Zappos was founded in 1999 and in 2009 Amazon bought it for 1.2 billion. This rapid growth is why this organization's leaders are trying so hard to maintain the unique culture enjoyed by its 1,500 employees. Experiencing this culture is key to understanding why the company would take such a risk with its operations. There's something special about working at Zappos and it's worth holding on to. They are relentless in their approach to providing exceptional customer service and satisfaction. To this end they want employees to be happy in their jobs and do everything they can to stifle the rigid corporate lifestyle so prevalent in other companies. There are jungle plants hanging from the ceilings, employee desks are covered in trinkets and personal decorations, managers are in charge......half of paper......and a high level of internal collaboration between sectors that normally do not occur often intersect. This gives employees a different perspective on the company as a whole and makes them feel that everyone is contributing to shaping the future of the company. While this may not be a measurable business statistic, it absolutely plays a role in employee morale. What any experienced manager will tell you means more motivation and better results. It is currently unclear how Zappos will adapt to the new structure, as only 10% of the company has fully implemented it. However, they hope that the full switchover will be completed by the end of the year. The unprecedented scale of this effort has caught the attention of business leaders around the world, who will continue to anxiously watch to see how the first chapter of large-scale holacracy unfolds..
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