Chapter 11.6, Problem 3CC

Summary Introduction

Case summary:

Company Z has a unique way of delivering its shoes which was marked by its CEO, Person H, as a unique approach to delivering happiness. The company focuses on achieving customer satisfaction which is the key to the success of its business.

Company Z was acquired by company A in 2009 but due to its excellence in operations, Company Z operated as an independent unit. The company is known for implementing innovative ideas and implementing new work culture.

To empower workers, the company planned to change its operating model to holacracy, which allows the workers to act as an entrepreneur and take decisions on their own. It highly emphasized a bottom-up approach rather than following a top-down approach. The coordination of the employees often overlapped horizontally.

The new plan proved hard to be implemented as company Z is the first one to practice this technique. However, the new plan had its backdrop for most of the employees and the company operation began to slow down. When offered a three-month severance package to quit the job, nearly 18% of the workforce left the job.

The workers complained about the implementation of the new practice and scope for improvement in the job. The management and the CEO are positive in the implementation of the practice.

To determine: The difficulties faced by company Z in implementing Holocracy and the actions which could be taken to solve the problem.