Holacracy is a system of organizational management that replaces traditional hierarchical structures with distributed authority. It organizes company operations around roles instead of fixed job descriptions, allowing responsibilities to be adapted as needs evolve. Decision-making is decentralized through structured governance meetings, where teams—or “circles”—autonomously set policies and reassign roles. While this offers greater flexibility and responsiveness, it also requires a significant cultural shift and robust training to overcome challenges like ambiguity in accountability. Zappos is a noted example of an organization that has embraced holacracy to promote innovation and employee empowerment.