Holacracy has been on my radar for the last couple of years as an organizational paradigm that’s worth further exploration. I’ve covered some pieces of it on this blog as well.
I was thrilled to learn that Brian Robertson, Holacracy’s creator, has finally written a book about it, and was really looking forward to reading it:
If you have no idea what Holacracy is, I won’t suggest jumping straight to the book, but starting with this short article instead:
The book provides the most holistic, yet still readable, description of what Holacracy is really all about (pun intended). Though it still leaves much to be desired (which we’ll get to in a second), it does a great job illustrating how governance and tactical meetings work and touching on some of the less known aspects of Holacracy such as its approach to strategy and to deadlines, both strongly resonating with me. The aspect that would have probably benefited the most from further exploration is the circle-based org structure. It doesn’t address some of the key org design challenges that exist in traditional hierarchical structures, like the need to alternate organization and focus by function, product/service and customer/region. It also enacts a meaningful organizational constraints that doesn’t get acknowledged: if each sub-circle is represented in governance and tactical meetings by both a lead-link and a rep-link, it puts the limit on the number of sub-circles within a circle at about 4-5. Otherwise the number of people attending the meeting quickly jumps to over 10 people, which makes them exponentially more challenging to run.
Sadly, my high level takeaway is that Holacracy is an exciting but incomplete paradigm. And there’s some reason for pessimism since this omission was made by design. Let me explain:
Many of the principles and concepts that Holacracy is based on and consists of strongly resonate with me: roles as living and evolving entities, the radical distribution of authority through the circles-based org structure, the unique and highly effective governance and tactical meeting structure, even thinking about strategy as a set of heuristics rather than a high-level, executable plan.
The one principle that Holacracy takes too far, in my opinion, is the decoupling of “role from soul”. Holacracy accurately observes that under the traditional paradigm, four “spaces” are too tightly coupled: the person space, the role space, the tribe space and the organization space. A good example is the traditional manager’s job being simultaneously responsible for both for the business outcomes accomplished by her employee (role space) and her employee’s professional growth and development (person space). The solution that Holacracy prescribes is radical decoupling, ignoring the fact that in cases of extreme decoupling, misalignment will lead to chaos. Holacracy explicitly takes the “human spaces” (left column, person+tribe) out of scope:
Or, to use a more familiar diagram to the readers of this blog:
Dealing with “human spaces” problems such as hiring/firing, compensation, growth, etc. is not part of the Holacracy “operating systems” but mere “add-ons/apps” that each business should figure out on its own, once they adopt Holacracy. Yet at the same time, it’s been acknowledged that Holacracy is at odds with traditional “human spaces” solutions, and the friction between the two is a key cause for some companies attempting to adopt Holacracy but failing to successfully do so. To go back to our manager example, Holacracy offers clear guidance on what to do with half of her traditional responsibilities, but leaves practitioners completely on their own about the other half. To me, that sounds like a classic case of mistaking a bug for a feature.
A fix for this bug, would require viewing the organization as a sociotechnical system, acknowledging that it has a human component that cannot be fully decoupled. The human systems that align with the process components of Holacracy have to be an integral part of the Holacracy “operating system” rather than an add-on “app”.
Note that none of this invalidates any other principles and concepts that are already an integral part of Holacracy. I am confident that Holacracy is a superior organizational paradigm compared to the traditional one. I’m just disappointed that its creators decided to “call it done” and draw the operating system/apps line where they did. I fear that only addressing half of the problem space will have a substantial negative impact on its adoption (and success) rate. To use another software metaphor, they seem to be building the right product, I’m just not sure they have a Minimum Viable Product. Yet.