I can think of hundreds of objections to that kind of structure, some based on things that would be a poor fit (distributed authority being potentially problematic for fiduciary responsibilities in publicly traded companies, and for compliance to regulation like SOX).

And then a host of others based on what happens when someone SAYS they will adopt the method, but instead of doing it all that way, they try to maintain their top level power and accountability structure with this underneath it.

It would be really interesting to see how HR/recruiting would work in this paradigm. How do you decide to let people go when the authority to do so is distributed?