Holacracy: The New Management System for a Rapidly Changing World by Brain J. RobertsonImagine that you have a clear understanding of the roles you fill and have the accountability and authority to perform those roles however you see fit…and no one can tell you how to or what to do. Would that engage you?  Does it sound like a fantasy?  Actually, it’s a reality at Zappos and 300+ other companies.

 

This new organizational model is called Holacracy and its founding father, Brain J. Robertson, is the author of Holacracy: The New Management System for a Rapidly Changing World. Mr. Robertson finds that, “the traditional hierarchy is reaching its limits, but “flat management” alternatives lack the rigor needed to run a business effectively. Holacracy is a third-way: it brings structure and discipline to a peer-to-peer workplace.” 1

 

“What is Holacracy? Essentially it’s a new social technology for governing and operating an organization, defined by a set of core rules distinctly different from those of a conventionally governed organization.”2 There are four elements that make Holacracy distinctive and valuable.

 

 

  1. “A flexible organisational structure with clear roles and accountabilities”3

“Holacracy focuses on clearly differentiating individuals from the roles they fill. The organization’s structure is defined by the roles the organization needs to pursue its purpose, without reference to particular individuals in the organization. The people come in later, to fill or energize those roles.”4

 

How does this benefit employee engagement? 

  • Each person understands the purpose of the organization and how they fit into the attainment of the organization’s goals.
  • Each person has clear responsibilities and the authority to do what is needed to meet them.

 

 

 

  1. “A new meeting format geared towards action and eliminating over-analysis”5

“Tactical Meetings are focused on the operational work of a [specific group of roles]. Their purpose is to triage issues that have come up during the week and remove obstacles so that the work can move forward.”6 In these meetings, one agenda item is addressed at a time and each attendee has the opportunity to offer input as long as it’s helping the agenda-item holder to move forward. 7

 

 How does this benefit employee engagement? 

  • All employees have the ability to contribute ideas regardless of the role they currently hold.
  • Each employee has a means to resolve issues in a constructive, structured manner without having to build consensus.
  • Productivity can increase because meetings are more succinct and focused.

 

 

 

  1. “More autonomy to teams and individuals helps individuals to solve issues themselves and cut through bureaucracy.” 8

“This foundation really does create a new world at work, a world in which you have the space and autonomy to do what you need to in order to fulfill your roles, without any requirement to get consensus or buy-in from anyone. And a world where the authority you hold can’t be co-opted by a group process just because someone doesn’t like the specific decisions you make. You know who is accountable for what, and what you have the right to expect from others (and vice versa), so you don’t have to navigate the bureaucracy, politics, and ego that come with explicit expectations. And when something is unclear, or when authorities or expectations need to evolve, there is an integrative governance process to generate that clarity.” 9

 

How does this benefit employee engagement? 

  • “…instead of holding people accountable for specific results, which can be affected by many things outside of their control, Holacracy tends to hold people accountable for the choices they make while working toward those results.”10
  • “As they are given authority over their roles, those who used to be a long way down the organizational food chain often feel a discomforting sense of having nowhere to hide out anymore, and no one else to blame.”11 “ But in Holacracy, that position is turned on its head. We do have the power – no matter where in the organization we sit, we have the power to process any tensions we feel into meaningful change.”12

 

 

 

  1. “A unique decision-making process to constantly evolve the organisation’s structure”13

“The Holacracy governance process generates clarity by defining explicit roles with explicit accountabilities, which grant explicit authority, and then continuously evolves these definitions to integrate learning and align with the organization’s every-changing reality.”14 “Governance is how we work – the pattern of how we organize, as distinct from the specific decisions we make within that pattern.” “Governance is about the structure of the organization’s work, and the authorities and expectations that go along with it.”15

 

How does this benefit employee engagement? 

  • Employees have the freedom to complete their responsibilities without having to build consensus, play politics, etc.
  • Clearly defined roles make it easy to identify gaps in role responsibilities.
  • Roles can be created, changed or removed based on the organization’s needs. Since most employees hold multiple roles, their tenure with the company is not impacted.
  • Each employee has the opportunity to shape the organization and contribute to its success.

 

 

 

Holacracy offers an interesting opportunity to positively impact employee engagement even though it focuses on the organization’s needs instead of people needs. While it may not be “the” answer, it clearly has some benefits over the hierarchical organization structure. As more companies adopt this structure, it will be interesting to see how they address the lack of an employee-manager relationship, how recognition and rewards will be handled, how individual employees identify growth and development opportunities, and how advancement opportunities are ascertained.

 

 

 

What are your thoughts on Holacracy and its impact on employee engagement? What insights did you find in Mr. Robertson’s book?

 

 

 

1 “How It Works.” Holacracy. HolacracyOne, LLC. Web. 23 Sept. 2015. <http://www.holacracy.org/>.
2 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 12. Print.
3 “How It Works.” Holacracy. HolacracyOne, LLC. Web. 23 Sept. 2015. <http://www.holacracy.org/>.
4 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 43. Print.
5 “How It Works.” Holacracy. HolacracyOne, LLC. Web. 23 Sept. 2015. <http://www.holacracy.org/>.
6 “Tactical Meetings.” Holacracy. HolacracyOne, LLC. Web. 23 Sept. 2015. <http://www.holacracy.org/>.
7 ibid.
8 “How It Works.” Holacracy. HolacracyOne, LLC. Web. 23 Sept. 2015. <http://www.holacracy.org/>.
9 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 202– 203. Print.
10 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 108. Print.
11 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 194. Print.
12 ibid.
13 “How It Works.” Holacracy. HolacracyOne, LLC. Web. 23 Sept. 2015. <http://www.holacracy.org/>.
14 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 41. Print.
15 Robertson, Brian J. Holacracy: The New Management System for a Rapidly Changing World. New York: Holt, 2015. 27. Print.

 

 

Disclosure of Material Connection: The links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only reference products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

 

 

 

 

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