The long practice of bureaucracy or operations management, which was in use since the Industrial Revolution by a vast majority of industries has been challenged by the later generations. There were multiple loopholes in the practice and the hierarchy system making it uncomfortable to cope with and get the work done.
Holacracy, also known as the Hola crazy effect, is the need of the hour. It’s a preconceived notion stating that holacracy does not follow a management hierarchy. It is a management structure that controls the company or organization, but not the employees, as the employees have a self-driven and label-less job description. Holacracy distributes authority across interconnected, self-organizing teams which are called as circles with clearly defined roles.
Implementing this technique sheds traditional hierarchy in favor of self-organizing teams and promotes a culture of continuous improvement. It is a system that not only operates for the company but for the employees as well.
Let's dwell on further details of how Holacracy can future-proof your business.
- Upgrading your management
Many organizations follow management hierarchy which is rigid and has well-defined job responsibilities for all employees. However, with the rapidly changing dynamic world, we need to adopt new remedies to improve our work environment. By implementing Holacracy, you can give your workforce the freedom to work as per convenience, develop overall abilities, skills and multi-task. Think of Holacracy as upgrading software for better functioning and optimized productivity.
- Extinction of less evolved species
It is entirely possible for an establishment to shut down due to bankruptcy or following traditional practices and not evolving with time. By implementing a Holacracy system, you can develop a responsive structure.
With an effective Holacracy system, anyone can use reliable pathways to resolve issues as and when they arise, rather than management dealing with the crisis. These actions result in small changes, which are constant and adaptive as per progressing and competitive world.
The best example is the Governance meeting, where everyone sits together to discuss a situation or new strategies and proposals, which change the design of the organization. With the help of these meetings, a company can create new roles, accountabilities or policies to address their tension, thereby changing the configuration of the organization to remove obstacles. These group meetings bring out small changes that are easier to adapt to, rather than significant changes that happen once in every few years in a management hierarchy.
- Distributed power gives great culture
You may have a grand strategy and processes, but if your work culture is not terrific, the output or result may get hampered. With the holacracy system, you can distribute the power and focus on your workforce to create a great culture, as this would develop a sense of belonging and contribute equally as an employer. Authority and power are evenly distributed amongst each role holder, and the self-governing nature helps in working to fulfill the purpose of their role. Companies that adapt to the holacracy method have employees who feel responsible for their actions and work towards improving and overcoming it themselves rather than being dependant on others.
- You are your own brand and not defined by your job roles
In an organization with structured management, there are designated roles with authority as per your post. However, this system fails as the job role remains the same and can start to feel stagnant regarding professional progress. In Holacracy, the profession is structured around an employee’s duty which continuously evolves to fulfill the purpose of the organization. Team members would bring their full potential and match their talents and job role to accomplish any given task. There is no "ask for permission" theory in Holacracy any member from any circle can implement a decision that they feel will fulfill the purpose or task at hand.
- Differentiate meetings at work “in” and “on” your organization
There are high chances of having a tensed work environment due to two people wanting to apply the same or different methods to achieve success. This tension is encouraged in Holacracy managements as it is a driving force for change and to find pathways for excellence. Meetings conducted in an organization powered by Holacracy are structured and facilitated to remove obstacles easing day-to-day life.
There are two types of meeting viz., one is Governance meeting, and other is Tactical meeting. In a tactical session, operational issues are discussed and the steps involve looking at metrics, reviewing checklists and tracking projects. The driving factor or critical discussion is based on “What do you need?” rather than one-person-knows-it-all which helps create a pathway to resolve the tension.
Everyone likes to be part of something big and feel valued. Holacracy implements and improvises the same notion with added benefits of progressing with constant change and not worrying about adapting to new technological advances.