When the holocracy was first introduced early last year and it resulted in more employees than predicted immediately leaving, Hsieh apologists said &quot;It&#x27;s ok, Zappos will be stronger for it.&quot; But over the course of the year, people keep leaving, and people keep making excuses.<p>I think we have enough proof that the flat management structure doesn&#x27;t work as well as a traditional hierarchy for a company of Zappos&#x27; size and in its industry. But I guess some people won&#x27;t believe it until the company actually goes down the toilet or backtracks.