Ep 65: Holacracy and New Organizational Structures for the Future of Work
Dec 28, 2015
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Alexis Gonzales-Black, former organizational design lead for Zappos, discusses the concept of Holacracy and its implementation at Zappos. She explores alternative organizational structures and highlights the benefits of self-organization and distributed authority. A must-listen for anyone interested in the future of work.
Implementing Holacracy requires behavior and mindset changes, understanding the unique needs of each organization.
Self-management and self-organization are part of the future of work trend, with companies moving towards distributed decision-making and autonomy.
A balance between a strong sense of identity and purpose, openness to change, and focus on the organization's mission is crucial when combining the family mentality with Holacracy.
Deep dives
Implementing Holacracy at Zappos
Zappos embarked on a journey to implement Holacracy, a self-management and self-organization system. The transition took around three years and involved pilot groups and rolling out Holacracy governance and tactical meetings. While there were challenges, 86% of employees chose to stay and continue with the implementation. The company aimed to distribute authority, increase transparency, and create a more responsive structure for decision-making. However, it was important to recognize the hurdles of behavior change, fear, and identity that employees experienced during the process. The downtown project in Las Vegas also experimented with Holacracy but adapted and integrated only the relevant parts into their organization.
Is Holacracy for Everyone?
Holacracy may not be suitable for every organization, but the principles of self-management and self-organization can be applied in various ways. Companies can start by reflecting on their current operating systems and identifying barriers to work efficiency, such as communication silos and slow decision-making. It is important to consider individual characteristics like critical thinking skills, adaptability to change, and comfort with ambiguity. Companies can adopt smaller aspects of Holacracy or other self-management systems that align with their specific needs and goals. These changes can lead to a more responsive and agile structure for both small and large companies.
Challenges and Failures of Holacracy
Implementing Holacracy comes with its share of challenges, including the need for behavior and mindset changes. Organizations might underestimate the ingrained behaviors of deferring to authority and fear of stepping out of hierarchy. Employees may struggle with ambiguity, self-management, and taking risks without managerial oversight. Additionally, the transition to Holacracy may not work for every team or company. The downtown project in Las Vegas, for example, adopted aspects of Holacracy but decided against implementing the full system due to various reasons. It is essential to understand the unique needs and capabilities of each organization when considering self-management approaches.
The Future of Self-Organization
Self-management and self-organization, such as Holacracy, are part of a broader trend in the future of work. While not every company will fully adopt a comprehensive system like Holacracy, many are making moves towards more distributed decision-making and autonomy. Companies are acknowledging the need to respond quickly to changes in the business landscape and leverage the skills and passion of their employees. Concepts of transparent communication, distributed authority, and flat hierarchies are becoming more prevalent. Regardless of the specific self-management system, a shift towards responsive structures is expected in the coming years.
Is the Family Mentality Suitable for Holacracy?
The family mentality, characterized by a sense of belonging, authenticity, and support, can coexist with Holacracy. However, it is important to strike a balance. Families are not always effective at surfacing conflict and having difficult conversations, which are necessary in self-managed organizations. Companies should aim for a balance between a strong sense of identity and purpose, openness to change, and a focus on the greater mission of the organization. Exploring the teal model of organizations, as described in Reinventing Organizations, can provide further insights into creating effective structures that combine the best of both worlds.
Today my guest for the Future of Work Podcast is Alexis Gonzales-Black. Alexis is the former organizational design lead for Zappos, and is currently the co-founder of Thoughtful Org Partners. Previously, I spoke with Brian J. Robertson, the creator of the concept of Holacracy. This concept received fame because of Zappos initiatives around Holacracy. Alexis is one of the people who helped lead the entire Holacracy transition there.
Alexis was a part if the pilot group at Zappos for Holacracy. She worked on the implementation team for over 2 years. Currently, Alexis works with Thoughtful Org, which she co-founded, to help companies explore what the future structure of their organizations look like. In Holacracy, as an operating system, individuals are not confined to one group or team. Reaching across the organization for opportunities is available and encouraged. Self-organization can be used as a diversity and inclusiveness tool as well. Alexis provides great insights to alternative organizational structures. This podcast is a must listen to anyone who wants to learn about alternative organizational structures and how they could work for your company.
What you will learn in this episode
What is Holacracy?
How Self Organizations Work In the Decision-making Process
What Zappos has done with Holacracy and Where They Are Going
The Difference between Empowerment and Distributed Authority