The Glass Frog Croaks at Zappos

The Atlantic: “Why are so many employees leaving Zappos? Backtrack to 2013: Tony Hsieh, Zappos’s CEO, started promoting a new management structure called holacracy. It’s a setup that’s supposed to encourage collaboration by eliminating workplace hierarchy—meaning no more titles and no more bosses. The system instead asks workers to track all strategy decisions and their outcomes in a web-based app called Glass Frog.”

“But there was a result of holacracy that the company didn’t anticipate (but probably should have): confusion. Self-governing produced a bit of a mess, with some workers telling reporters that they weren’t sure how to get things done anymore. The New York Times reported last year that those in charge of payroll, for instance, had trouble determining salaries after titles had been banished, and some employees wanted a boss to consult when making important decisions.”

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