Every organization requires effective leadership to thrive. Even under the holocracy system, leaders must have some form of organizational power for it to succeed. Effective leadership allows a firm to achieve its objectives, as leaders motivate the employees towards the company’s goals. Zappos employs the holocracy system, which means that there are no managers or professional titles.
The framework, thus, removes any form of power from the management ranks and equally divides it to all the team members who have set expectations and roles. The primary influence of holocracy is that the company rules apply to every individual, thus it encourages employees to behave like entrepreneurs rather than following the managers’ orders. Holocracy increases productivity and innovation at Zappos, which allows it to thrive.
Holocracy, however, does not mean that leadership skills will be more or less critical at Zappos. The organization still requires effective leadership skills to boost productivity and success. There is, therefore, the need for a holocratic form of leadership, which entails establishing a learning culture and encouraging collaboration in the organization. Holocratic leadership style focuses on uniting the employees to accomplish the set goals and motivating them towards improvement. Holocratic leadership skills also help align the organization’s goals with the objectives resulting in an increased chance of success.
In any system, there is a need for effective leadership and organization power to control the operations. Even in a holocratic system, power is needed to align a firm’s goals with the set objectives so as to increase productivity. Holocratic leadership skills at Zappos boost employee training, teamwork, and collaboration and increases employee motivation, which enhances the success of the firm.