Beware the Next Big Thing

by Julian Birkinshaw

WHERE DO NEW MANAGEMENT practices come from? A few emerge fully formed from the minds of academics and consultants, but the vast majority come from corporate executives experimenting with new ideas in their own organizations. A case in point is the online retailer Zappos, which is replacing its traditional hierarchy with a self-organizing “operating system” known as holacracy.

Zappos’s experiment is getting a lot of attention. Like many management innovations before it, holacracy has an exciting zeitgeist appeal. At least a few executives in other firms are no doubt asking themselves, given today’s pressure to innovate and the changing nature of the workforce, is this the management idea of the moment? ...

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