Holacracy – The Art of Doing

In the late 18th century, a motley crew of lawyers, farmers, merchants, and disruptive freethinkers had an idea for a startup. Few of them figured the fledgling startup had much chance of success. They came up with many names–including Columbia, the United Colonies, British America, and United Statesian–until they finally settled on the United States of America.

But how exactly do you go about starting up a government, especially if it is unlike any other that has existed before? It wasn’t as if they could go online and read up on how to do it.

The Founding Fathers were an exceptionally innovative collection of men. Not only has the government they conceived of lasted for more than 200 years, but it’s a model of democracy around the world.

It’s fascinating to realize that the political strategies the founders argued passionately about are still being argued today in business schools, boardrooms, and in the garages and basements of those aspiring to become the next Steve Jobs or Mark Zuckerberg. Continue reading “Five Startup Lessons from America’s First Cofounders”

After making its move to the new downtown Las Vegas campus as part of Tony Hsieh’s Las Vegas revitalization quest, Zappos is making another radical change.

No more job titles. No more managers. No more hierarchical decisions. By this time next year, Zappos’s 1,500 workers will be organized into something called a holacracy.

Holacracy is a little known organizational management system that’s is gaining a toehold in the business world. Zappos, so far, is its biggest adopter. Holacracy takes its name from the Greek word holos, a single, autonomous, self-sufficient unit, that is, at the same time, dependent on a larger unit. Think of a human cell’s relationship to the entire body.

Brian Robertson, founder of HolacracyOne and advisor to Zappos and other companies on how to adopt holacracy describes human beings as sensors who observe errors and inefficiencies in systems, and can intuit possible fixes. He describes the gap between what is (current reality) and what could be as a “tension.”

In traditional corporate hierarchies Robertson found that employees who observed inefficiencies or had ideas for improvements would have to go to a boss, who would go to their boss, who would go to their boss and so on. Often this critical information that could lead the company to meaningful change simply slipped through the cracks. “When there is lack of clear and effective channels for processing tensions,” Robertson says, it can leave people frustrated, burnt-out, and disengaged.

So how does holacracy work? Continue reading “No Managers Required How Zappos’s is Ditching Old Corporate Structure for Something New”