Which Organisations Use a Holacratic Structure?
Holacracy is a relatively new system being adopted by organisations around the globe. It’s defined by an ideology that champions the autonomy of employees. In holacratic organisations, employees and/or teams are given the ability to make their own decisions for the benefit of the organisation.
In this piece, we look at several organisations that use a holacratic structure and their take on how it benefits work culture.
Here are some of the companies that use a holacratic structure:
Soulbottles
Zappos
Mercedes Benz i.o
SmartHOTEL
Valsplat
Soulbottles
German firm Soulbottles produces sustainable and climate-neutral glass bottles. Its aim is to help reduce the amount of plastic waste in the seas.
When the company’s team grew to more than ten people in 2014, its founders knew they needed to implement a structure. The idea of getting rid of bosses and managers and letting people organize themselves spoke to Paul Kupfer, and he decided to implement holacracy at Soulbottles.
Soulbottles’ take on holacracy:
“We don't want management to be taken on by just a few, but for everyone to be able to get started autonomously in their areas with an entrepreneurial spirit.”
“With clear, reliable processes that ensure that suggestions for improvement – no matter who they come from – become meaningful and concrete changes.”
Zappos
Zappos is one of the highest profile companies that use a holacratic structure. Beginning as a small online shoe retailer, it’s now expanded its offering to handbags, accessories and other products.
It uses a “self-managed organisational structure” where employees are encouraged to identify areas of opportunity and propose solutions. Its aim is to empower every team to think and act like a small, autonomous business.
Zappos’ take on holacracy:
“At its core, self-management means knowing exactly what you are responsible for and having the freedom to meet those expectations however you think is best.”
“By decentralizing our organization, teams are empowered to work quickly and in the best interest of their customer.”
Mercedes-Benz.i.o
Mercedes-Benz.i.o. is a subsidiary of the automotive giant, Mercedes-Benz.
The organisation functions using a holacratic structure while working on Mercedes-Benz’s e-commerce and online marketing platforms.
Each of its employees is a responsible owner of multiple roles, and it operates on a flat-hierarchical model.
Mercedes-Benz.i.o’s take on holacracy:
“We are masters of self-organization and let our entrepreneurial spirit run free. Failure is allowed and respected. We back each other up, share our experiences and find solutions together because the tribe is greater than the sum of its individual parts. We win and learn as one team.”
“Each individual connection makes us stronger and better. By being transparent and living a respectful feedback-culture, everyone can benefit from our skills, experience and creative passion.”
SmartHOTEL
SmartHOTEL is a channel manager that helps hoteliers navigate hotel distribution on booking sites. Founded by Frank Zimmermann and Pitrik van der Lubbe, its mission is to help the hospitality industry automate day-to-day business, serving more than 1,500 hotels worldwide.
SmartHOTEL began self organising in 2015 after the founders signed the holacracy constitution, and the firm’s 25 employees began to learn how to make their own decisions quickly after.
SmartHOTEL’s take on a holacratic structure:
“At SmartHOTEL we have said goodbye to management for good. We mix the Scrum methodology with holacracy, which ensures freedom and clarity about the responsibilities of all roles within the team.”
“Holacracy replaces a hierarchical corporate culture with decision-making power at every level in the organization. Simply put; don't expect a manager to tell you exactly what to do. “
Valsplat
Valsplat is a creative organisation that places holacracy at its core. It conducts market research and designs digital solutions to improve customer experience online. Founded by Joris Leker and Nils van den Broek, it’s blazing the way for a holacratic approach in the design industry.
Valsplat’s take on holacracy:
“Holacracy helps us to become the best possible version of ourselves.”
“For years we’ve been telling people to ‘just figure it out,’ and ‘make your own decisions’, but we now realize that it’s not easy to do that without some sort of system in place. Now I am seeing people step up and take initiatives. It is so amazing to see this happening in a company. We are now able to use the collective power of individual talents and initiatives.”
“We already had a strong team before, but now, with holacracy, everyone is empowered to make changes; to do things that they consider important for the company and because of this, our team has grown even stronger.”
Holacracy has clear benefits in a work environment. Not only does it give autonomy to workers, but it increases transparency and innovation.
Read more about holacracy and how a holacratic structure can benefit organisational culture.
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