Holacracy: Fad or Truth?

According to Vox and other media, "holacracy" is the latest management trend to sweep the tech industry.

What is it?  According to the article,, "Holacracy is management by committee with an emphasis on experimentation. The CEO formally relinquishes authority to a constitution and re-organizes everyone into decentralized teams that choose their own roles roles and goals."

Is it a fad that will fade?  Is it enduring truth that demands our attention because its potential is too big to ignore?  Should you immediately drop everything and leap on the holacracy bandwagon - if you can pronounce the word...?

Yes, it is a fad.

Yes, it has some truth, but so do the best lies. 

No, you should not drop everything to pursue holacracy.

The truth is that most if not all of the positive aspects of holacracy are just reworded leadership systems of an Ownership Culture.

Yes, immediately and continually invest in developing an ownership culture where employees are passionate about their work and gain personal meaning from taking responsibility for achieving results.

In brief, an ownership culture achieves all the benefits of holacracy where employee:

• Authority matches their responsibilities
• Ideas are encouraged, explored, and piloted
• Opinions are considered for major decisions
• Roles are clearly defined and measured
• Accountability comes from peers, not just managers

This is how Nucor Steel, Amazon, Netflix, Nordstrom, The Ritz-Carlton, and many other companies have grown and keep growing.

There is always work to do to improve your company culture, but pilot ideas that may come from reading about fads like holacracy rather than abandon what is true to gamble on its entire premise.

My concern is not just wasting time.  Holacracy could encourage some employees' entitlement mentality.  It is potentially a socialistic fantasy for large companies to attempt to overcome bureaucracy that could fail miserably.  Zappos can afford to play with holacracy for a period of time.  Most small companies do not have that luxury.

Look at holacracy.  Learn from it.  Just do not drink the Kool-Aid...

BE a 3STRANDS LEADER

Systematic Leadership;  inspiring others in Meaningful Work;  and consistently expressing Sincere Gratitude to people around you.

Meeting Ideas

My suggestion is simple.  Read the article.  Then think about or discuss as a group:

Here is a quick test:

1. I supplied a list of holacracy benefits above.  Use mine or create your own.
2. Go through the list item-by-item.  Where are we strong and where are we weak?
3. What can we do to make our strengths even stronger within an ownership culture?
4. What can we do to make our weaknesses competitive, not the best, within an ownership culture?
5. What would require us to move to a holocracy?  Why?
6. Do we need to schedule a conversation with Dave?

Thank you.