SPECIAL ASSIGNMENT ATTN: CATHERINE OWENS
1Chance
Assignment7-Powerpoint21.pptxAssignment 7 – Powerpoint Presentation
Team B –MGMT 617: Leading Team
September 20, 2020
HOLACRACY
TABLE OF CONTENTS
HOLACRACY DEFINED / ORIGIN/ TIMELINE
ADVANTAGES / DISADVANTAGES
IMPLEMENTATION / ELEMENTS
01
02
03
SUCCESSFUL / UNSUCCESSFUL IMPLEMENTATION
04
CONCLUSION
05
WHAT IS HOLACRACY?
A customized self-management practice
A way to empower members in making meaningful decisions
A framework which pursues the organization’s purpose
A non-traditional, self managed alignment organizational structure
A business practice that incorporates innovation to improve the ‘decision-making’ mindset (Nair, 2016)
HOLACRACY ORIGINATION
Developed to help organizations understand what gets in the way of collaborative, effective work
Designed to eliminate conventional management layer models and increase innovation and responsiveness to customer needs
Established to differentiate roles and the people working in them
Created to address tensions in the organization
Formed to enhance survivability in complex, dynamic environments
TIMELINE
Organizations begin to use holacracy for training and implementation services to transform operations – Core rule set evolved into a version 2.0, 2.1, 3.0, and 4.0
2009 - Now
Robertson and entrepreneur Thom Thomison focused experimentation and research to form holacracy
2007
HolocracyOne formalized the method into the first Holacracy Constitution
2009
Brian Robertson began experimentation and research on organizational culture, values, and consciousness – responded to current challenges of principles and practices for ‘lean’ movement
2001
ADVANTAGES OF HOLACRACY
Beyond empowerment, self-managing workplace distributing authority equally amongst all
Leader-follower conflicts are eradicated
The peer-to-peer workplace enhances efficiency, innovation, and accountability
Creates clarity of purpose and roles, thereby increasing self-worth as well as satisfaction (Kumar & Mukherjee, 2018)
DISADVANTAGES OF HOLACRACY
Implementation, and sustainability on a larger scale is questionable
The increased responsibilities and autonomy may not be what all employees want
The transition from hierarchic environment to Holacracy may disrupt the current habits, and processes in place (Yew, 2020)
Holacracy reduces control in an organization, making it difficult to devote department priorities and change course
THREE STEPS IN IMPLEMENTING HOLACRACY
QUANTITATIVE DATA MANAGEMENT
The organization consolidates information from three aspects:
Results – the end outcomes of the core of operations, such as sales and productivity
Process – the tasks performed in the organization
Labor – the time and work efforts spent in the process
COMMUNICATION CHANNELS
Members communicate ‘Quantitative Data Management’ aspects throughout the organization to promote participative decision-making in areas that need improvement – achieved through an ‘open web’ of collaborative meetings
RELEASE INFORMATION AND POWER
Decisions and further discussion findings are released throughout the organization through press, internet, and memorandum formats. Self-management concepts are reinforced through this unobstructed flow of decisive information (Velinov et al., 2018)
Establish and maintain protocols
Clear formal guidance allows for efficiency and standardization
Leave no member behind
Ensures that communication is open and accessible for each person – the internalized information advances the concept of self-management
Start slow and build a consensus
This element facilitates the change management process and fosters the culture and structure in the organizational environment
Set realistic expectations and goals
Setting these expectations is necessary for recognizing accomplishment and encouraging growth during the implementation of holacracy
FOUR ELEMENTS OF HOLACRACY
David Allen Company – Raleigh, NC
One of the nation’s most respected tile, stone, terrazzo, underlayment and specialty concrete contractors
Successfully implemented self-customized management practices of holacracy – to include leveraging technology to support production and adapting to meet consumer demands
Holacracy practice contributed to steady increases in annual revenue: $61.1 million in 2019 (Pressler, 2019)
Zappos – Las Vegas, NV
American Multinational online shoe and clothing retailer
Successfully implemented self-customized management practices of holacracy – to include controlling production and engaging in self-efficacy
Holacracy practice contributed to increased employee retention rates and 2019 revenue of $1.2 billion (Luenendonk, 2019)
SUCCESSFUL ORGANIZATIONAL IMPLEMENTATION
UNSUCCESSFUL ORGANIZATIONAL IMPLEMENTATION
ExtraHop
Cake Human Resources
The Human Resource software corporation failed to fully implement self-customized management and reverted back to the traditional structure
The cybersecurity solutions organization failed due to the inability to adapt to self-customized practices
Holacracy is a contemporary approach to modern business practice. As with any construct, it’s effectiveness is largely influenced by organizational commitment. The holacracy outlook distributes power differently from conventional management hierarchies and allows for the maintaining of individual freedom and alignment with an organization’s mission – making the process one of the most progressive, alternative organizational structures.
CONCLUSION
“If everyone had to think outside the box, maybe it was the box that needed fixing.”
Kumar, V. S., & Mukherjee, S. (2018). Holacracy – the future of organizing? the case of zappos. Human Resource Management International Digest, 26(7), 12-15. doi:http://dx.doi.org.ezproxy2.apus.edu/10.1108/HRMID-08-2018-0161
Luenendonk, M. (2019, September 18). Zappos: E-Commerce Retailer. Cleverism. https://www.cleverism.com/zappos-ecommerce-retailer/
Nair, D. R. (2016). Holacracy in academia. SCMS Journal of Indian Management, 13(1), 4. Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1780449824?accountid=8289
Pressler, A. (2019, October 1). Business North Carolina’s Top 125 Private Companies 2019. Business North Carolina. https://businessnc.com/business-north-carolinas-top-125-private-companies-2019/
Velinov, E., Vassilev, V., & Denisov, I. (2018). Holacracy and obliquity: Contingency management approaches in organizing companies. Problems and Perspectives in Management, 16(1), 330-335. doi:http://dx.doi.org.ezproxy2.apus.edu/10.21511 /ppm.16(1).2018.32
Yew, S. Y. (2020). Holacracy in action: Zappos experience replicability [Unpublished master’s thesis]. Università Ca'Foscari Venezia.
REFERENCES
