Will Holacracy work at

Zappos?

Group 10:
Amrutha Baburaj: PGP10007
Sambhrant Sadh : PGP10044
Gaurav Keswani : PGP10019
Suraj Chaudhary : PGP10058
Pooja Gared : .PGP10036
Zappos
• Online shoe and clothing retailer in Las Vegas, U.S.
• Founded on July 12, 1999
• CEO of the company was Tony Hsieh
• Amazon acquired Zappos on November 1, 2009 for $1.2 billion

Customers Employees Vendors

• Open culture and company

• WOW experience that
generates customer loyalty
• Communicate by telephone
24*7
• 365 return days returns
policy and free delivery
favored work life balance • Treated them with respect
• Holacracy was adopted in • Vendors calls were
2013 answered the same day and
• Could leave the company as emails within hours
they pleased • Maintained good relations
• Employees were allowed to with them
speak freely to media
Problems
•Forceful implementation of Holacracy

•14% of the employees left due to the implementation of Holacracy

and there was a risk of timely completion of Supercloud Project

•The employees could research about salaries and the market rate
for jobs at other companies

•Board wanted company to focus more on profitability

Analysis
Company focused on spending money on customer experience rather than marketing

Employees, referred to as members were subjected to an intense worplace

Increased transparency for the public, customers and competitors

All the new hires were subjected to compulsory training as call center repo

Holacracy structure is self governing where the hierarchy is on projects and tasks

Removal of all previous titles and all the people managers

People responsibilities held by managers were split between three roles

Implementation of this structure increases responsibility and accountability

Recommendation
Implementation of Holacracy structure should be done gradually

Selected employees should be given training for better understanding

Hire technical experts for the completion of “Supercloud” project on time

Thank You