I like the idea of parallel/independent organizations but I think the problem I see with their use in businesses is the fact that it can impede the very purpose

I like the idea of parallel/independent organizations but I think the problem I see with their use in businesses is the fact that it can impede the very purpose of a business: to make a profit from a good or service. To achieve part of that mission is to specialize where you have someone directing production (managers) and someone who knows how to produce a part of the good/service (labor). Now, I do believe managers and labor can be the same thing at least in terms of dual roles. But to get there you can't bomb out an existing firm's structure which is what I see Zappo's CEO doing. The turn around is either going to take a VERY LONG TIME or it may never happen at all with high churn of employees.