5 Why Holacracy is Failing Reasons
And one BIG REASON why you might ought to give it some time.
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What is Holacracy? Holacracy is a system of governance where authority and decision-making are placed on the shoulders of self-organizing teams instead of managers and bosses.
Adopt Holacracy or Leave.
This is the ultimatum that Tony Hsieh, Zappos' CEO, issued when he decided to adopt Holacracy in his company.
After more than 2 years... “What has Holacracy done for Zappos today?”
P O W E R E D b y S E R V I C E™
Is Holacracy Failing? According to the press, it is. Here’s Why Eliminating Titles and Manager at Zappos Probably Won’t Work. – Business Insider
Are You Planning to Do Away with Your Managers? Doubtful. – Fistful of Talent
Tony Hsieh’s Workplace Dream: Is Holacracy a Big Failure? – Forbes
5
Reasons Why Holacracy is Failing
YO U R H R . S I M P L I F I E D.
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1. Holacracy is Not a Step by Step Guide
Holacracy does not teach you how to run your company. Instead, it guides you on how to conduct meetings and other activities that encourage collaboration and self management.
2. Holacracy Reduces Control
There's no corporate hierarchy in Holacracy. Even CEOs don't have the power to dictate what the departments should be doing.
3. You Must Get Rid of Old Habits
An “old way” manager has the habit of telling people what to do. And in micromanagement cases, how to do it. In Holacracy, it’s a different story.
4. It's Hard to Get Everyone Onboard
Due to distribution of authority, traditional job title holders may find it hard to change the course of the team or to make every member of the circle focus on the same goal.
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5. It Focuses on Roles
Each members are expected to voice out their concerns on the work done, not on the person who did it. Putting aside personal feelings also mean doing away with corporate politics.
The One Big Reason Why Holacracy is Worth the Wait
California-based agency called Phelps has been practicing Holacracy since 1981.
Phelps Has Been Reaping the Benefits Great work output because employees no longer worry about layers of approvals. No corporate title competition. No C-suite director taking credit of others' work. Performance-based compensations.
Adopting Holacracy? Here Are 4 Things to Focus On 1. Personal Responsibility 2. Timely and Honest Collaboration 3. Openness to Feedback 4. Embrace the Core Values of Holacracy
“Holacracy is not a governance process “of the people, by the people, for the people” – it’s governance of the organization, through the people, for the purpose.”
- Brian J. Robertson
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