Holacracy
“One way or another, in both organizations and society, I think we’ll continue to see static, centralized control systems giving way to something else. Evolution seems to favor processes that allow peer-to-peer, emergent order to show up in response to real tensions. I think one of the best ways we can enable that is to infuse governance throughout a system — a process so fully integrated that it just happens, like breathing, with no need for master architects to apply a perfect design up front.” — Brian Robertson
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This book by Brian Robertson introduces Holacracy. In the words of its creator, it is “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.”
The system focuses on distributing power and granting higher autonomy to teams, transitioning from traditional hierarchies to organizations based on holons, wholes that are part of other wholes. Holons contribute to the overall purpose of the organization, but also have a great degree of self-governance, much like our organs act independently, but in coordination.
This paradigm shift is based on different elements. The first is a constitution, which defines the rules of the organization and the process through which it operates. This constitution is above any single individual, including founders or CEOs, effectively decentralizing power in the organization.
The second element is the structure. In Holacracy, great emphasis is put on roles instead of the people occupying these roles. Each role is defined by its purpose, its domain and its accountabilities. This grants a high level of clarity, as it is always straightforward to know who has the power to decide on what issues. Roles are then grouped into self-governing circles, which may contain sub circles. Inner circles are represented in the outer circle by the role of the representative link, while outer circles coordinate inner circles through a lead link.
The third is the governance process. Brian gets the importance of working not only in, but also on organizations. That’s why Holacracy has a system for evolving a circle’s rules. This is done through governance meetings using the Integrative Decision-Making Process, that allows individuals to sense and process tensions, changing their legislative framework.
A remarkable aspect of Holacracy is its customizability. Many standard processes, such as performance measurement or compensation, don’t need to be made from scratch. Widespread approaches can be added to the existing framework, “Apps” installed on the underlying OS. These apps are developed by the community and hosted by HolacracyOne, the company Brian founded to help spread the model.
Lastly, there are the operative meetings, where tactical decisions are made, and teams come back in synch. The book contains numerable examples of comapanies positively impressed by the efficiency of the new format described. With very strict rules on what valid input and output is, these meetings seek to avoid the long unproductive reunions that take place in many traditional organizations.
The book is split into 3 parts which make up 10 chapters in total. In the first part, Holacracy is introduced. Then, its practice is demonstrated. Lastly, the author writes about how organizations can live holacracy.
Creators of zones and societies can jump straight into chapters 4 to 7 for the nuts and bolts of the governance process, operations, strategy and dynamic control.
Policymakers and analysts should read chapters 8, 9 and 10 to understand the adoption process of holacracy and how to move organizations in that direction if an adoption is not yet viable.
Scholars and experts may refer to chapters 1, 2 and 3, in which the principles of evolutionary organization, distributed authority and the organizational structure are explained.
The book can be found here.
Written by: Francisco Litvay
