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Holacracy Definition

What Is a Holacracy?

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A holacracy is a system of corporate governance whereby members of a crew or enterprise type distinct, autonomous, but symbiotic, groups to perform duties and firm objectives. The idea of a corporate hierarchy is discarded in favor of a flat organizational structure the place all employees have an equal voice whereas concurrently answering to the course of shared authority.

How a Holacracy Works

In a holacracy, as an alternative of hiring an individual to fill a pre-defined position (comparable to that outlined in a job description), individuals choose to tackle a number of roles at any given time and have flexibility to maneuver between groups and roles if they’ve expertise or insights that may show useful to the group.

Holacracy appears to be like to dispose of managing from the top-down and provides people and groups extra management over processes.

Arthur Koestler, creator of the 1967 Ebook “The Ghost within the Machine,” coined the time period holarchy because the organizational connections between holons (from the Greek phrase for “complete”), which describes models that act independently however wouldn’t exist with out the group they function inside.

Brian Robertson then developed the idea and dynamics of holacracy whereas operating a software program improvement firm named Ternary Software program within the early 2000s. In 2007, he and Tom Thomison based HolacracyOne and revealed the Holacracy Structure three years later. Firms which have publicly adopted holacracy in some type embody Zappos.com.

Zappos.com, with 1,500 workers, is the most important firm to undertake Holacracy.

Instance of a Holacracy

One instance of a holacracy is the video game software firm Valve Company, maker of the Steam video video games platform. At Valve, workers are allowed to work on no matter pursuits them, but additionally requires that they take possession of their product and any errors they could make alongside the way in which.

Specialists have argued that this construction works properly for some, however that there are many nice workers for whom one of these group is a horrible place to work.

Key Takeaways

  • A holacracy is a system for managing an organization the place there aren’t any assigned roles and workers have the pliability to tackle numerous duties and transfer between groups freely.
  • The organizational construction of a holacracy is fairly flat, with there being little hierarchy.
  • The construction, which has a set of pointers laid out because the Holacracy Structure, works properly for some however could be a unhealthy match for different workers which may in any other case be nice in a extra hierarchical system.

Particular Issues

Critics have identified that holacracy as a company administration doctrine doesn’t imply the tip of the company hierarchy. Hierarchy remains to be an integral a part of holacracy; in truth, hierarchies and the rigidity it creates in numerous actors’ roles could also be extra pronounced in holacracy.

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