Last month I wrote about how Haier fosters innovation in large part by eliminating middle management and having a very flat organization. For those who may have thought Haier was an outlier or that this was a uniquely Chinese situation, it was recently reported that Zappos (the online shoe store owned by Amazon) is employing a similar structure.
The system, known as Holacracy, removes all job titles and managers in a corporate structure, leaving nearly every employee on equal footing. Zappos will create approximately 400 “circles” made up of a group of employees that will be tasked with projects. The group must work together, without a formal control structure, to do their jobs.