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I actually like the idea of a Holacracy, and you see it in alot of small startups intentionally or not. The generally tend to loose this as they grow. I recently read one of Ricardo Selmer's books on how he used Holacracy at Semco http://www.amazon.com/Seven-Day-Weekend-Changing-Work-Works-... which is a huge multi national company. I highly suggest it.

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