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Holacracy and Zappos: The strategic change

Research and evaluate key issues in strategic and operational management, critique theoretical models and apply them to a presentation.

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Added on  2023-04-23

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This presentation discusses the reasons for adopting Holacracy, its success or failure, and the strategy by Zappos. It also explains the outcomes of lean philosophy at Virginia Mason Hospital. The presentation highlights the benefits of adopting lean philosophy, such as reducing waste, increasing productivity, and improving efficiency. It also explains how inefficiency at all major levels at the hospital were recognized and removed. The presentation is relevant to the subject of business and industrial marketing and is suitable for college-level courses.

Holacracy and Zappos: The strategic change

Research and evaluate key issues in strategic and operational management, critique theoretical models and apply them to a presentation.

   Added on 2023-04-23

ShareRelated Documents
Tony Hsieh at Zappos: Structure,
Culture and Change
Holacracy and Zappos: The strategic
change
Holacracy and Zappos: The strategic change_1
Reasons for adopting Holacracy
• The major reason for adopting holacracy is to utilise the full potential of the
employees and not just restrain them to one particular department.
• The main unit of holacracy is the “circle” which is nothing but a group of
employees coming together with a common goal or a project
• Holacracy, helps to make decisions at the point of origin and not push the decision
making up the hierarchical ladder. This helps in time saving.
• The attention or focus of an individual in a circle is bounded by the limitations of
each project. The individuals constituting the circle keeps changing depending on
their potentials, skill sets and project requirements.
Holacracy and Zappos: The strategic change_2
Reasons for adopting Holacracy contd....
• The management of Zappos wanted the employees to operate more as an
independent and self managed individuals.
• They also was desirous of making Zappos function like a city, going by the logic,
that when a city flourishes, productivity increases by 15%. In contrast when an
organization doubles up in size, the productivity declines.
• A company might die but a city lives forever and Zappos management intended to
give Zappos and its employees, a chance to flourish and survive by adopting the
principle of Holacracy.
Holacracy and Zappos: The strategic change_3
Holacracy – Success or Failure?
• Holacracy brought upon immense responsibility on individual employees. For e.g.
They even had to find out their own worth in the industry and corresponding salary,
which in a traditional scenario would be worked upon by the Human Resources
Department.
• Self management at the organizational level can be difficult for many people. The
sudden confrontation with self management where the individual is solely
responsible for his/her thoughts and actions, proved to be difficult for many
employees.
• Acceptance of the outcome of the actions and disappearance of hierarchy to settle
difficult decisions became a very slow and steep learning curve for many.
Holacracy and Zappos: The strategic change_4

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