Yep. But hierarchical bureaucracies are also rife with inefficiency and dysfunction. Coordinating the activity of groups of human beings at scale is just a hard problem. It could be that holacracy is effectively not much different than hierarchical bureaucracy, but with different tradeoffs and personalities. Then Zappos has to bear the weight of defending holacracy when it is not demonstrably the case that a traditional management structure would necessarily have done better.