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Is it Time to Say Goodbye to Holacracy (and Zappos)? 5 Reasons Why Holacracy is Failing

Holacracy is a self-management principle founded on interconnectedness. The term was first coined in 2007 by Brian Roberts but the idea has been around for centuries. Author Frederic Laloux used the following analogy to perfectly describe Holacracy:<br><br>“In an ecosystem, interconnected organisms thrive without one holding power over another.<br>A fern or a mushroom can express its full self-hood without ever reaching out as far into the sky as the tree next to which it grows. Through a complex collaboration involving exchanges of nutrients, moisture, and shade, the mushroom, fern, and tree don’t compete but cooperate to grow into the biggest and healthiest version of themselves.”<br><br>Unlike today's business management models, Holacracy don't need the traditional corporate hierarchy. Instead, it makes use of dynamic structures that appear or disappear depending on the needs of the organization. There are no more dedicated management roles and even the CEO of the company has no power to dictate and make decisions. <br><br>“Adopt Holacracy or Leave”<br><br>These are famous lines of Tony Hsieh, CEO of Zappos, when he announced his decision to adopt Holacracy in his company. The move caught everyone's attention --- especially the business press --- and Zappos has never left the spotlight ever since. <br><br>It's only been a couple of years since Zappos adopted Holacracy. But it seems that everyone is eager to learn about the results of Hsieh's experiment. Latest speculations (mostly from the press) suggest that Holacracy is failing.<br><br>Is it? <br><br>Or maybe it only needs more time to prove its worth?<br><br>In this Slideshare story deck, we present 5 main reasons why many experts think that Holacracy is failing. And of course to make it a fair fight, we are also proud to show one big reason why we need to give Holacracy more time. <br><br>Hope you'll find this information useful!<br><br>- - - <br><br>For more visit >>> cake.hr

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Is it Time to Say Goodbye to Holacracy (and Zappos)? 5 Reasons Why Holacracy is Failing

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  1. 5 And one BIG REASON why you might ought to give it some time. Reasons Why Holacracy is Failing @CakeHR

  2. 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.

  3. Adopt Holacracy or Leave. This is the ultimatum that Tony Hsieh, Zappos' CEO, issued when he decided to adopt Holacracy in his company.

  4. After more than 2years... “What has Holacracy done for Zappos today?” P O W E R E D b y S E R V I C E™

  5. 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

  6. 5 Holacracy is Failing Reasons Why

  7. YOUR HR. SIMPLIFIED. To track the pulse of the HR world, or follow up on latest workplace trends, visit our blog at cake.hr/blog @CakeHR

  8. 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.

  9. 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.

  10. 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.

  11. 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. ?

  12. 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.

  13. The One Big Reason Why Holacracy is Worth the Wait

  14. California-based agency called Phelps has been practicing Holacracy since 1981.

  15. 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.

  16. 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

  17. “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

  18. YOUR HR. SIMPLIFIED. Check out the one-stop HR management suite at cake.hr @CakeHR www.cake.hr

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