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Zappos to employees: Get behind our ‘no bosses’ approach or leave with severance

52 pointsby lambtronabout 10 years ago

15 comments

geofftabout 10 years ago
Metafilter linked to this Re&#x2F;code article about the holacracy yesterday:<p><a href="http:&#x2F;&#x2F;recode.net&#x2F;2014&#x2F;10&#x2F;03&#x2F;holacracy-or-hella-crazy-the-fringe-ideas-driving-the-las-vegas-downtown-project&#x2F;" rel="nofollow">http:&#x2F;&#x2F;recode.net&#x2F;2014&#x2F;10&#x2F;03&#x2F;holacracy-or-hella-crazy-the-fr...</a><p>A couple friends and I were talking about whether this is a cult. I said it was missing a religion, because it had optimized out the unnecessary parts of a cult. Another said it was the religion of messianic capitalism.
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msoadabout 10 years ago
My company does this &quot;no bosses&#x2F;titles&quot; bullshit too. We have, of course a CEO, there is a CTO and a VP and a director of engineering and then me. When I ask for a promotion to Principal Engineer from my current Senior Software Engineer role(that was on my offer letter) they say &quot;we don&#x27;t have titles&quot;!<p>It&#x27;s all bullshit and there is always a hierarchy. My company did it really badly by letting my bosses put titles in their LinkedIn profiles, Zappos may do better in that regard but there would always be someone who overseas you. As other comments mentioned the irony is &quot;the CEO&quot; said all of this!
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mgmtbsabout 10 years ago
I worked for a company with a &#x27;flat&#x27; hierarchy. There was actually a secret hierarchy, and I got pushed out for defying the secret hierarchy. The structure allowed the &#x27;managers&#x27; to avoid any accountability.
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mblevinabout 10 years ago
The real question for me is: Has Tony Hsieh completely lost his fucking mind, is this the future and we just don&#x27;t know it yet, or is this all part of some elaborate plan to fire everybody or stage some sort of internal company cleansing?<p>Seriously - somebody please tell me.<p>I don&#x27;t get it.
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michaelchisariabout 10 years ago
There are democratic, non-heirarchical corporations out there, like Mondragon.<p>They grew a bit more organically than this, however, so the structural result is very noticably different.
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lithaabout 10 years ago
So screw over anyone in a lower position than director. Next up, no more hourly employees so they can work then without overtime pay. (oh wait that is now standard)
Gustomaximusabout 10 years ago
How will they handle accountability without bosses? Decisions are likely to get made by the more outspoken or celebrity personalities. How will they accurately identify weaker decision makers in this category as where they spread influence is a &#x27;group decision&#x27;. At 1500+ employees this could easily end up into some political minefield of power struggles and blame&#x2F;credit games.
trhwayabout 10 years ago
who is going to write performance reviews? Titles or no titles, whoever writes your review is your manager.
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jackmaneyabout 10 years ago
Holy crap. Zappos sounds like the unholy spawn of a pyramid scheme and a cult.
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nazcaabout 10 years ago
I think it is pretty clear Tony Hsieh isn&#x27;t the right person to lead Zappos at this scale. His craziness got it to where it is today, but what you need from a CEO changes with scale.
pmcgabout 10 years ago
Does HN need a top banner saying that it&#x27;s April 1?
tw04about 10 years ago
&gt;Zappos CEO Tony Hsieh<p>Oh the irony. So basically what I gather is Zappos is trying to find a way to drive down the salary of all employees by removing their titles. Except for the executives... because you HAVE to have executives, even with fuedalism... er... &quot;holacracies&quot;.<p>&gt;Hsieh&#x27;s memo says they will keep their salaries through the end of 2015 and will get guidance for reinventing themselves into new roles at the company.<p>Yup... &quot;We want to gut all the high paying jobs from our organization by giving the rest of you the job your managers had before. Hope you enjoy the additional job titles, we won&#x27;t be increasing your salaries&quot;.
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kenkoabout 10 years ago
As usual, Maciej was killing it:<p><a href="https:&#x2F;&#x2F;twitter.com&#x2F;Pinboard&#x2F;status&#x2F;582619098921603072" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;Pinboard&#x2F;status&#x2F;582619098921603072</a> &quot;Anyone claiming there is structure, management, hierarchy, concentration of power or obstacles to freedom at Zappos will be summarily fired&quot;<p><a href="https:&#x2F;&#x2F;twitter.com&#x2F;Pinboard&#x2F;status&#x2F;582628592179232769" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;Pinboard&#x2F;status&#x2F;582628592179232769</a> &quot;We’ll know that Holacracy truly works when even the lowliest janitor at Zappos can threaten to fire everyone for not reading a certain book&quot;
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paulhauggisabout 10 years ago
Since there are &#x27;no bosses&#x27;, why does Tony Hsieh have a title like &#x27;CEO&#x27;?
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michaelochurchabout 10 years ago
Even though I support open allocation, I don&#x27;t really believe that &quot;no managers&quot; works at all. I think that it&#x27;s an overcorrection.<p>You need management, but what you need is a constitutional workplace where there are real protections (e.g. people have the right to choose the team they work on, within reason, and performance reviews are for compensation upgrades <i>only</i> and not part of the transfer packet) that employees get to vote on and that limit management&#x27;s power. I&#x27;d even consider extending that to a profit-sharing model that&#x27;s more transparent and fairer than startup equity, which is based on some insultingly small percentage of some possibly-huge-but-how-would-you-evaluate-that number in the future.<p>There are several problems with &quot;no managers&quot;. First, many tech companies tell <i>every</i> engineer, down to the junior coming out of college, that he&#x27;ll be reporting directly to the CTO. Then he gets there and learns that he will actually be evaluated by his tech lead, who answers to a (possibly titled, possibly not) full middle manager... who answers to the CEO. It&#x27;s dishonest as fuck, but really common in the startup world to use &quot;flatness&quot; to make a position sound closer to the action and to power than it actually is. &quot;Flat&quot; organizations are often alluring lies that hide the real power structures. It doesn&#x27;t matter if Bob is an idiot who works 15 minutes per week; if the CEO will take Bob&#x27;s word over yours when it comes to your value to the company, then Bob is your boss.<p>Second, if there are going to be power relationships anyway (and there are) it&#x27;s better to answer to a titled manager with a completely different job description, than to someone who&#x27;s technically same-rank and therefore also competing with you for work. You won&#x27;t win in that situation.<p>I&#x27;m skeptical because I feel like managers are akin to cops. There are some really shitty cops out there, no question. But you need them, because the alternative is... that a police-like force emerges (organized crime would rather have order than violence) but it&#x27;s not accountable to the public and the costs are erratic. With public police, you pay taxes and can vote officials out of office if they make bad calls. With emergent private police (thugs) the extortions and bribes can go up from day to day for any reason or no reason at all.<p>What&#x27;s wrong in most companies is that the police are making the laws, rather than enforcing them for public benefit. Because most companies don&#x27;t have any constitutional structure or real protection for workers, the law is &quot;if you have power, you can do it&quot; so middle management ends up making the law up as it goes, in pursuit of its own interests (maintaining and consolidating power). Management is a fine concept if management is put in its place and empowered to enforce but not legislate. I don&#x27;t know how to put this into practice. It&#x27;s hard, because you have to fight human nature.<p>In other words, the problem is the lack of constitutionality in corporate governance. Corporations are pretty much all run as dictatorships. That can work surprisingly well (in terms of efficiency and competitive supremacy) when the dictator has something unique to offer. It ages poorly, because the dictatorial role gets handed over and eventually it&#x27;s in the wrong hands and everything goes to hell. Imagine what would have happened to Singapore if anyone other than Lee Kuan Yew had been in that position. Dictatorship only works when you have a very rare type of mind and get a true philosopher-king. (It&#x27;s not about pure intelligence, either. It takes charisma and focus, too.) That doesn&#x27;t describe most corporations or corporate leaders. For the most part, this dictatorial model leads to low morale, stagnation, and mediocrity.<p>That&#x27;s why people hate management: we&#x27;ve all picked up that it&#x27;s serving its own interests rather than that of the employees or of the company. All of this said, &quot;no management&quot; tends either to produce an emergent and less accountable management&#x2F;police force or it tends to mean that power is concentrated at the top. So I tend to think that this &quot;no more bosses&quot; movement is somewhat of an overcorrection.
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