CEO of Menlo Innovations Rich Sheridan has received a number of accolades, including AnnArbor.com’s Executive of the Year award in 2012. However, according to a story this week in the New York Magazine, his authority within his own company often is extremely limited.

Sheridan and Menlo were highlighted in a piece focusing on companies that eschew strict hierarchies in favor of more “flat” leadership structures. Menlo’s open-space “software factory” has no cubicles or corner offices, and decisions on hiring, firing and promotions are made by the company’s employees as a group.

Menlo moved into their office space in early 2012, taking over the basement of the Offices at Liberty Square on East Liberty Street in downtown Ann Arbor. The move continued the growth of the tech corridor in downtown Ann Arbor that also includes Google and Barracuda Networks.

Sheridan has been an evangelist for his company’s unique style of management. He spends a significant amount of time leading tours of the factory and speaking at events and conferences, but very little acting in a traditional “boss” role.

The New Yorker story acknowledges this office style does not work for everyone, but notes Menlo specifically recruits people who will fit into their culture though an “extreme interviewing” process. Job applicants have a number of rapid-fire interviews with current employees who then meet to discuss the strengths and weaknesses of the candidate, focusing on their soft-skills as well as coding ability.

• Read the full story from the New York Magazine here.

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Get in touch with Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2