The end of hierarchy, intrancy and power relations is the promise of the holocracy form of organization. This is supposed to promote agility and also flexibility in companies. But can the leadership system meet the requirements or does leadership without a boss end in chaos? Let’s take a closer look at the holocracy organizational form and maybe it is something for you and your company.
What is the organizational form holocracy?
Holacracy can be roughly translated as holistic leadership. This was developed by the entrepreneur Brian Robertson from Philadelphia (USA) on the basis of sociocracy in his company Ternary Software Corporation. The focus here was on faster decision making with transparency at all levels of the company. He is the author of the book Holacracy: A Revolutionary Management System for a Volatile World. The concept has since grown into its own company – HolacracyOne. One component is the software Glassfrog, which helps to implement Holacracy in the company.
The basics of the organizational form holocracy
Holacracy focuses on different roles and circles as a company-wide structure. Previously, it was always about individuals and individual authorities. The roles refer to functions or fields of activity in the company and are grouped together in circles (e.g. marketing). More complex roles can in turn be represented in smaller circles. As an example, the Marketing circle would include two smaller circles (Social Media and Online Marketing).
In one’s own role, one has full decision-making power. However, if there are areas of responsibility of other roles, one must coordinate with them. From outside the circle, no one has the authority to determine anything that affects the circle. Roles meet at eye level and work together within a circle towards a common goal. The framework of each role is defined by a purpose, a scope of tasks, and an area of responsibility. Each person chooses the tasks to be performed within the framework of each role.
The four pillars of holocracy
There is a constitution for the organizational form of holocracy, which is continuously being developed and is publicly available. This consists essentially of four pillars, without which the organizational model cannot function.
- Double linkage (double-linking)
- Separation of operational and control meetings
- Distribution of roles
- Dynamic steering
Double linking
For a functioning communication between the different circles, each circle needs one (or more) representatives, who ensure the necessary exchange between the circles. The representatives pass on current information from their circle and represent its interests in the neighboring circle. In this way, all voices are heard and have equal rights.
Separation of operational and control meetings
For day-to-day operational business, responsibilities and decision-making powers are precisely delineated and separated from each other. The circles control and organize themselves and their daily tasks autonomously. In the higher-level steering meetings, resource issues (money, time, personnel) are not discussed. This creates space for ideas and strategies.
Distribution of roles
The holocracy organizational form requires a clear distribution of roles. Therefore, existing responsibilities and roles are regularly defined together in the steering meetings so that all actions necessary for the operation are covered. Misunderstandings and disputes over responsibilities are minimized.
Dynamic control
Important control decisions are made in the respective circles with integrative decision-making. In this process, the voices of all stakeholders are included, and the search is not for a perfect solution, but above all for a solution that can be used and corrected. This has yet to prove itself in practice and can therefore be changed at any time. So anyone and at any time can bring in a new (better) proposal.
The different meetings in holacracy
Meetings are an important part of holacracy. However, there are clear rules for effectiveness. Meetings take place in three formats:
Operational meetings: day-to-day tasks and how to increase the efficiency of specific projects.
Strategic meetings: discussion of the most important issues
Steering meetings: further development of structures, e.g. whether circles could perhaps be merged or new ones need to be developed
Advantages of the organizational form Holocracy
- grassroots collaboration
- more agile working
- Increased innovative power
- more freedom for employees
- no strict control mechanisms
Disadvantages of the organizational form Holocracy
- More suitable for smaller companies
- Acceptance and implementation in all parts of the company
- High costs for consultants and software during implementation