This company's no-manager constitution is longer than the federal document
About 14 percent of Zappos’ workers are leaving the company, opting out of a no-manager “Holacracy” that is governed by a 30-page constitution that dwarfs the U.S. Constitution.
In a Holacracy, employees establish priorities and discuss problems in teams called “circles,” the Wall Street Journal (sub. req.) reports. The circles have “lead links” with limited authority who are similar to project managers. Workers needing to consult with a co-worker about a particular question can find the right person through a database of employee roles and tasks.
Workers tell the newspaper that switch has been confusing and time-consuming. Besides learning to govern themselves, workers have to learn the Holacracy vocabulary.
The newspaper offers an example of the new lingo, used during an orientation session last fall. “The idea is for each person to selfishly process their own tension,” said the employee leading the switchover. “The reaction round is a sacred space.” The translation: Each worker may express his or her own opinion in meetings where interruptions are not allowed.
About 300 companies have tried the system since its introduction about a decade ago. Employees who do best in no-manager companies are those who thrive on creativity, according to the article.