As a relatively new framework, Holacracy offers an alternative to the conventional top-down management chain of command. By using a decentralized distribution of decision-making power, every employee is integrated into the development of the organization. Holacracy was created by software developer Brian Robertson, who introduced it in 2007 after numerous experiments using it in his own company.
The Power of Circles
In a Holocracy, employees do not have internal position and instead fulfill roles that have clearly defined areas of responsibility. These roles are structured in self-organized circles that fulfill various purposes and are positioned within higher circles.
Making Decisions in a Holacracy
So, is Holocracy a democratic approach? Yes, it is similar. Employees make decisions together in order to achieve the clearly defined goals of the working circle. But this doesn’t function according to a classical democratic majority decision. Instead, recommendations are only accepted once they can no longer be refuted with objective counterarguments.
Can Holacracy work in your company?
Let’s find out. Usually, a first test run is necessary to determine if Holacracy has potential for your organization.