Holacracy

Holacracy

Many organizations are exploring innovative ways to enhance their organizational adaptability and responsiveness. One approach for that is Holacracy (HOL), an organizational management framework pioneered by Brian J. Robertson. HOL reimagines traditional hierarchical structures by distributing authority and decision-making throughout an organization. It is designed to augment the organization’s flexibility and competitiveness.

The Key Features of Holacracy

CIRCLE STRUCTURE: The organization is structured in a system of nested circles, each a part of a larger circle. Each nested circle is a self-organizing team with a clear purpose and accountabilities assigned by its larger circle, and has the authority to self-organize internally to best achieve its goals. Each circle has a lead link and a rep link; the lead link assigns roles and resources to the smaller circle, while the rep link brings all the tensions and problems detected in the smaller circle to the bigger circle.
ROLES INSTEAD OF JOB DESCRIPTIONS: Within each circle, there are specific roles, each with its own set of responsibilities and accountabilities. Roles are not tied to specific individuals but can be filled by anyone with the necessary skills and capabilities. Each individual can hold multiple roles that are defined and updated by each team via a collective governance process.
EFFICIENT CIRCLE MEETINGS: Regular circle meetings, including tactical meetings and governance meetings, are held to facilitate communication, collaboration, and decision-making.
- Tactical meetings focus on the day-to-day operational issues
- Governance meetings address broader structural and policy issues
In seeking efficiency, HOL uses a consent-based decision-making process, in which as long as there are no strong objections (objections that have a specific and tangible reason), decisions can be made and revised based on feedback.
GOVERNANCE PROCESS WITH DISTRIBUTED AUTHORITY: HOL uses a defined governance process to evolve roles and circle structures. Both are seen as an evolving system that can be modified to adapt to changing circumstances. During governance meetings, decisions are made through a structured, facilitated process, in which every team member can propose changes to their role, their colleagues’ roles, or the circle structure in the best interest of the organization. The system allows real empowerment by setting clear boundaries and transparent rules for each role so that individuals can lead and use their judgement within an agreed upon scope of authority.

Holacracy Success Stories

Zappos, an online retailer boasting a workforce of 1,500 employees, stands out as a prominent illustration of a firm embracing the Holacracy model. HOL was introduced to Zappos in 2013 and the company has been experimenting with it ever since. Other companies adopting HOL include, Liip, a digital agency in Switzerland; Springest, a Dutch firm developing learning software; and Mercedes-benz.io, the online division of the automotive manufacturer, and many more.

Challenges of Holacracy

Although HOL is a promising alternative, it comes with its own set of challenges. Some organizations have encountered obstacles during the transition, and skeptics contend that its structured framework might impede creativity and adaptability in certain contexts. Notably, some tech companies that initially embraced HOL eventually abandoned it. For instance, Medium, a famous blogging platform that adopted Holacracy in 2013, ended its experiment three years later. The takeaway is that organizations contemplating HOL need to carefully evaluate their culture, readiness for change, and openness to adopting a decentralized structure before moving forward.

Conclusion

I believe HOL does represent a bold step toward redefining organizational structures to meet the demand of the modern business landscape. It's not a one-size-fits-all solution, but its principles offer valuable insights into fostering agility, transparency, and adaptability within organizations. As companies continue to explore new ways of working, HOL stands as a compelling experiment in the pursuit of more dynamic and responsive organizational models.

⇨ Please share your experiences and ideas with respect to Holacracy below. I'm looking forward to your comments.

Sources:
Robertson, B. (2015). Holacracy: The New Management System for a Rapidly Changing World. Henry Holt and Company.
Holacracy—The Management Framework for a Complex World. (n.d.). Holacracy Foundation. https://www.holacracy.org/