Holacracy is a self-management practise for organizations. A Holacracy is a system of governance where members of a team or business form autonomous yet symbiotic teams to accomplish tasks and company goals. The concept of a corporate hierarchyis discarded in favour of one where all workers have an equal voice while simultaneously answering to the direction of shared authority.
In a Holacracy, instead of hiring a person to have a pre-defined role (typically outlined in a job description), people opt to fill one or more roles at any given time and have flexibility to move between teams and roles if they have skills or insights that would prove beneficial to the organization.There are four main characteristics in a Holacracy:
· Roles Roles are defined around the work, not people, and are updated regularly. People fill several roles.
· Distributed Authority Authority is truly distributed to teams and roles. Decisions are made locally.
· Rapid Iterations The org structure is regularly updated via small iterations. Every team self-organizes.
· Transparent Rules Everyone is bound by the same rules, CEO included. Rules are visible to all.
Circles replace the pyramidal hierarchy
An organization operating as a Holacracy isn’t perfectly flat, but it takes powers traditionally reserved for executives and managers and spreads them across all employees. The whole company is devided into Super-Circles like the one seen in the picture.
· Super-Circle: One that contains sub-circles. This could be Marketing
· Sub-Circle: Each is dedicated to a function. This could be Digital Advertising.
· Role: A task related to a function. This could be Social Media Producer.
Every circle also has a lead link who is responsible for overseeing roles and ensuring that employees are doing their jobs. This person also connects to other circles regularly.
Currently there are only few companies that use Holacracy but the number is rising. a whole new organizational structure to thrive in. It can just as easily happen in a "flatter structure" that can leverage some of its existing infrastructure. The basic goal with this structure is to allow for distributed decision making while giving everyone the opportunity to work on what they do best. There is still some form of structure and hierarchy, but it's not based on people as much as it based on circles or what most people would think of as departments. Information is openly accessible, and issues are processed within the organization during special and ongoing meetings.
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