Holacracy – the future of organizing? The case of Zappos

The purpose of this paper is to explore how and when holacracy works for organizations.

The paper illustrates the idea by drawing insights from the case of Zappos and Gidley’s framework of future organizations.

The paper provides a balanced view on holacracy and how it can be beneficial for organizations. The potential of holarchical structures will be fruitful only if the structure-culture fit is achieved. The paper also highlights the lessons learned from previous implementations of holacracy and concludes with possible solutions for organizations.

The structure-culture fit is still a pertinent question especially when organizations are growing in size. Organizations need to address the intergenerational differences and core tenets of organizational culture while adopting flat structures to promote flexibility and individualization. New ideas and ways of organizing are therefore best treated as experiments guided by strategic vision and a defined direction.

The paper extends the existing knowledge on holacracy by applying Gidley’s framework and providing practical insights for practitioners in implementing holacracy.