Zappos CEO, Tony Hsieh, has been a wonderful inspiration for me as a manager and an entrepreneur. Watching his retail model become a leading e-tail model has been an eye opener for many industries and individuals. He’s a game changer and is always on the lookout for that next best solution to product, distribution, and talent management. He applies principles of people to process and process to people.
I enjoy being a fly on the wall and picking up what I can about the way Hsieh thinks and makes his magic happen. Delivering Happiness, his best selling book about renovating corporate culture to be more fun while keeping the profits flowing, was a real eye opener for me having witnessed many a corporate culture that did not look fun in the least (and I love me some shoe shopping @ Zappos.com!)
So, it comes as no surprise that Hsieh is at it again, breaking another mold about the way we manage people – this quote really summed it up for me – “Research shows that every time the size of a city doubles, innovation or productivity per resident increases by 15 percent. But when companies get bigger, innovation or productivity per employee generally goes down,” reads a quote from Hsieh, posted on Zappos’ website. “So we’re trying to figure out how to structure Zappos more like a city, and less like a bureaucratic corporation. In a city, people and businesses are self-organising.”
Holocracy, the self organizing tool Hsieh has chosen is a radically different management system that changes how an organization is structured, how decisions are made, and how power is distributed. Hmm. If Tony Hsieh thinks it has value, I want to know more about it.