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5 Why Holacracy is Failing

Reasons

And one BIG REASON why you


might ought to give it some time.

@CakeHR

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.

Adopt Holacracy
or Leave.

This is the ultimatum that


Tony Hsieh, Zappos' CEO,
issued when he decided to
adopt Holacracy
in his company.

After more than 2 years...


What has Holacracy done for Zappos today?

P O W E R E D b y S E R V I C E

Is Holacracy Failing?
According to the press, it is.
Heres Why Eliminating Titles and Manager at
Zappos Probably Wont Work. Business Insider

Are You Planning to Do Away with Your


Managers? Doubtful. Fistful of Talent

Tony Hsiehs Workplace Dream:


Is Holacracy a Big Failure? Forbes

Reasons
Why
Holacracy
is Failing

YO U R H R . S I M P L I F I E D.

To track the pulse of the HR


world, or follow up on latest
workplace trends, visit our
blog at cake.hr/blog

@CakeHR

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.

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.

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, its a different story.

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.

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.

The One Big Reason


Why Holacracy
is Worth the Wait

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

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.

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

Holacracy is not a governance process


of the people, by the people, for the people
its governance of the organization,
through the people, for the purpose.

- Brian J. Robertson

YO U R H R . S I M P L I F I E D.

Check out the one-stop HR management suite at cake.hr


@CakeHR
www.cake.hr

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