The Collaborationship Blog

The Collaborationship Blog

Why is Holacracy so hard to accept?

CollaborationshipPosted by Christian Monö Wed, May 13, 2015 14:36:12

Zappos, the online shoe retailer, has decided to go manager-free. This is gaining a great deal of media attention. Some are applauding Zappos attempt to move towards a holacracy, while others are questioning the sanity of it, calling it “an interesting experiment”. Zappos shift towards holacracy, however, is not nearly as interesting as some journalists attempt to question the logic of a manager-free organization.

Take this headline, for example: “Zappos goes manager-free – employees leave in droves” or “Zappos stopped managing its employees. They don’t seem too happy about it”. This suggests that people are leaving the company in protest against the new manager-free structure. In reality, Zappos offered a buy-out of “Three months' severance and 3 months of COBRA benefits, unless they were a Zappos employee for more than four years, in which case they would get one month of severance for every year with the company.

There can be a million reasons why taking a buy-out is a good idea for an employee, and few have to do with holacracy as a system. When journalists point out that 14% of the employees have decided to opt for the buy-out, they fail to add that annually, about 13% quit on voluntary basis (and 7% involuntary). This leaves about 300 people employed yearly. Worth noting is that Zappos have about 30,000 applying each year.

Critics have stated that holacracy might not work in societies where people are used to seeing careers as being interlinked with climbing the hierarchical ladder. In other words – if I can’t be a manager, then what drives me to perform well at work? Of course, one may wonder if such employees are worth having. If I employ people whose primary focus is their own advancement, then that means that their interest in the company they work for, as well as the work they do, comes in second place.

I’ve seen far too many examples of employees and managers taking decisions based on their own gains rather than that of the company they work for. Rather than fostering collaboration between people, hierarchy triggers competition. It’s everyone for himself, and you have to fight your way up.

Although many agree that collaboration between employees are vital for success, few have the courage and the imagination to explore structures that challenge the traditional top-down organizational structure.

Thumbs up for Zappos who dare challenge the traditional, hierarchical perspectives!


Some articles on the subject:

http://www.payscale.com/career-news/2015/05/zappos-goes-manager-free-employees-leave-in-droves

http://www.nbcnews.com/watch/cnbc/zappos-to-manage-or-not-443448899768

http://www.forbes.com/sites/danpontefract/2015/05/11/what-is-happening-at-zappos/



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