The Zappos Exodus Continues After a Radical Management Experiment
bits.blogs.nytimes.com
bits.blogs.nytimes.com
I was also reminded of the story of the communes in Adam Curtis' All Watched Over by Machines of Loving Grace:
http://www.dailymotion.com/video/x2eagvn_all-watched-over-by...
Go to 46:45 for the bit that's relevant.
Eventually all that would happen with a Holacracy is that the people who drink after work and become friends would back each other up during meetings, the smokers would make decisions whilst smoking that the others have no input into, and the alpha personalities (sales, marketing etc.) would bully the beta personalities (tech, ops, support etc.) into submission, and anyone who is marginalised would look for others that have been marginalisd and form groups to support each other.
Next thing you know there's silos of power and dysfunction.
I'd bet that Hsieh is an Alpha, but a kind one, and thinks given the opportunity everyone would be as fair as he is.
Looking backward, I wonder if there was a "lean" way to test a smaller version, before going company-wide.
When you spend your all adult life working in a system where there is a boss and someone in charge it's really hard to wire into a new system. Will keep on following the Zappos experiment. Kudos to Tony Hsieh for the courage and leadership.