Zappos CEO Tony Hsieh implemented the controversial management style and the company has seen a whopping 14% of its employees opt to leave in favor of a severance package. The Holacracy concept, which has some confused about how power is delegated, is predicated on the idea that there are no management titles and employees are structured into “circles” that are responsible to complete tasks and utilize detailed procedures to perform their functions.
The Forbes piece ponders the implication of a large number of workers leaving at once and if the employees that left were high-caliber or, perhaps, not a great fit for the Holacracy structure.