hsieh can be impish. >> rachel! do you want me to leave? leave? get it? >> reporter: but he can also be seriously controversial. he's introduced a system called" holacracy" that among other things does away with bosses entirely. all zappos' 1,500 employees now belong to some 500 self- governing teams called" circles." >> we're going to start like we do every holacracy meeting with a check-in round. just call out your distractions. get here, get ready to process some tensions today and share what you know with others. >> i'm only distracted because i have a super long day of meetings. >> i'm super, super distracted because the application window is open again for intern candidates again for the summer which means we have thousands and thousands of applicants. in the span of a week we're up to like 5,000. >> reporter: so-called" tactical" meetings are run by a facilitator according to a rigid format, using holacratic lingo. >> let's move on to triage you guys. you can go ahead and just yell those tensions out and then rachel, as our secretary, will go ahead