There’s a change happening in Europe and the US and it’s going to happen here. It will challenge every preconception you have about leadership and business, yet companies that have embraced it are experiencing higher engagement, better quality employees and higher profits. Even in countries such as France where the economy is low, companies embracing this way of business are outperforming those that aren’t.

So what is this new way?

It’s called self-governance. In these companies management is eliminated and the business is driven by individual autonomy and self-governance.

In self-governing companies, employees belong to groups and these groups can take lots of different forms. They can be functional, for example being responsible for staff engagement or marketing, or cross-functional, with each group forming a mini company which could include HR, manufacturing, marketing, sales, admin and manufacturing.

Each group operates independently and is self-managed. This means that each group could operate differently, and potentially have different structures and processes. Everyone has equal say in the group and in the decisions that are made. Group members are recruited, evaluated, rewarded and even removed by their peers and decisions are made by what’s best for the company rather than by consensus.

Employees aren’t told how to work or what to do – they pick a role that plays to their strengths and adds genuine value to the group. If they don’t add value their role won’t be needed. Being employed in self-governing companies is all about the value you bring to the group and the results that you achieve.

Everyone’s a leader – self-governance pushes leadership and responsibility down to the individual, where continual improvement is everyone’s responsibility.

Crazy you say, how could that ever work? Wouldn’t a company fail without managers to make sure things get done? Well interestingly, the answer is no.

Zappos is one such company that has adopted self-governance and become a workplace where no one and everyone is the boss. The leading online shoe and clothing store in the US, they are renowned for their incredible culture and customer service.

Two years ago, CEO Tony Hsieh, sent an email to the whole team explaining how the company was embracing self-governance. Of their 1600 employees 14% decided it wasn’t for them and left through an optional buy-out.

There was external support brought in to help the team transition through the process and successfully operate in the new structure. These coaches are there to support employees in transitioning to the new structure and to help the groups function effectively.

Interestingly, meetings are highly structured and documented via online software, so decisions are transparent. Each meeting has someone appointed by the group to direct the meetings. They also help the group keep track of its time and money resources but have no authority over others in the group.

There are about 300 companies in the US, including the Washington state government, using or trialing self-governance, with many more in Europe. It is credited with making companies nimble and adaptable and turning employees into mini entrepreneurs, solely responsible for their own success and that of the company.

I believe self-governance is all about creating a truly accountable culture and giving your people the freedom and empowerment to do what they do best. Is it time for you to consider a different way?