Michael Lissack
while allowing substantial freedom in how work gets done within those boundaries. Zappos exemplifies this approach through its implementation of Holacracy. Rather than controlling employee behavior through detailed policies, Zappos establishes clear boundaries around core values and customer experience expectations while allowing remarkable freedom in how employees achieve those outcomes. This canyon-like structure enables both coherent direction and continuous adaptation to changing customer needs. The canyon metaphor offers several important lessons for organiza- tional design:
Deep Values Create Canyon Depth
The depth of a canyon comes from deeply held values. Shallow val- ues lead to shallow canyons that can be easily overrun or abandoned. Netflix’s famous culture deck articulates deeply considered principles like “Freedom and Responsibility” and “Context, Not Control” that serve as canyon walls guiding behavior throughout the organization. The test of canyon depth is whether values genuinely influence de- cisions, especially difficult ones. When Netflix decided to separate its streaming and DVD businesses despite customer pushback, it was guided by the deeply held value of focus on the future—demonstrating true can- yon depth.
Appropriate Width Creates Room for Innovation
The width of a canyon determines how much room exists for ex- ploration and variation. Too narrow, and it constrains innovation; too wide, and it lacks sufficient guidance. Amazon’s “two-pizza teams” create canyons of appropriate width—small enough to maintain clear direction while large enough to enable considerable autonomy in how objectives are achieved.
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