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Part of the Business terms glossary: A holacracy is a governance structure characterized by a distribution of power among self-organizing groups, rather than the top-down authority in the typical hierarchical corporate culture model. A holacracy provides a flat management structure that distributes authority.
This is a long email, it began. Please take 30 minutes to read through the email in its entirety.. It concerned the retailer's transition to Holacracy, a manager-free operating structure that is composed, in theory, of equally privileged employees working in task-specific circles, often overlapping. Hsieh began experimenting with Holacracy in 2013 as a way of maintaining Zappos' lauded employee-centric culture as it continued to grow. The transition was supposed to have finished within a year. But by March 2015, only 85% of Zappos employees had begun the process.