Partner Article

Can a managerless system really work?

Andrew Hill recently wrote an article in the Financial Times on Zappos, the US online footwear retailer, and its switch to a “manager-less” system. Organisational epistemology, particularly in relation to management structures, has been covered widely in a myriad of business publications, and as Mr Hill rightly points out there is no hard evidence that non-hierarchical (“self-organised”) companies outperform those that are conventionally structured. The term ‘non-hierarchical’ is very often misunderstood. It does not mean a structure with no management. Indeed, any organisation without management is doomed to failure. I’m going to assume that Mr Hill’s reference to manager-less means less management rather than no management. Management is, in effect, leadership. And leadership is as much about managing individuals as it is about managing a team of people. Furthermore, it’s about helping and supporting the team as a whole (and each individual within it) to achieve certain objectives – whether on behalf of the team or for themselves personally. Not dictating to them how to get things done. I have written in the past about the differences (in today’s business environment) between Digital Natives and Digital Immigrants. There is no question that Digital Natives perform significantly better in an environment that is not top-heavy with layers of management.

With their constant use of digital technology they have a different view of authority. After all, there are no hierarchical structures in social media networks and within a digital environment generally; everyone is equal, Modern management, particularly from the Digital Immigrant perspective, would be much more effective if senior executives recognised that there has been a seismic shift in operational methodology and more clearly understood their Digital Native subordinates. In so doing, they will understand how to achieve an effective and sustainable way of getting the very best from them. As Zappos, the world’s largest online footwear retailer, is wholly owned by Amazon, it will be interesting to see the outcome of their new operational approach. The company may become a classical business case study that is taught widely in business schools. It’s to be hoped in doesn’t become another JC Penney!

This was posted in Bdaily's Members' News section by Tyzack Partners .