Holacracy is a form of Adhocracy, which we covered in an earlier video. But, whilst we are way past ‘peak adhocracy’, it seems that holacracy is thriving.

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The Nature of Organizations
=======================
This video is part of course module number 6.1.2
Program 6: Managing within Organizations
Course 1: The Nature of Organizations
Section 2: Organizational Models


Other videos in this section include:
Edgar Schein's Two Organizational Cultures - https://youtu.be/9C64CXJw83E
Henry Mintzberg's 4 plus 2 Organizational Types - https://youtu.be/JmvYcskjh3E
Charles Handy's Gods of Management - https://youtu.be/yClxu7dzmB4
Charles Handy's Shamrock Organization - https://youtu.be/dGGKT0Mr_HA
Charles Handy's Federal Organization Model - https://youtu.be/69AYxCvT7m4
Charles Handy's Triple-I Company - https://youtu.be/gFRXiMkIg6k
The Matrix Organization Model - https://youtu.be/hJ9wbFgmtKM
Peter Senge's Learning Organization - https://youtu.be/k1k2h1l2VO0
Adhocracy - https://youtu.be/7QKm0Y3_Hr0
The Agile Organization - https://youtu.be/67NVUeFQMy4
Virtual Organizations - https://youtu.be/Hsovj2jPNPA

LESSON NOTES
Holacracy is a modern attempt to reform traditional hierarchies. It keeps the aspect of senior-level overviews and subordinate focus. But it gives greater autonomy to individuals, and more substantial decision authority to small teams at the focus of operations and change.

In 2015, Brian Robertson published the book ‘Holacracy: The New Management System for a Rapidly Changing World’ - https://geni.us/J6erC. It sets out the principles he developed and the practices that support them.

What is Holacracy?
- Instead of managers, decisions are made by ‘Circles’.
- These are groups of individuals whose roles cluster around a coherent set of activities, processes or parts of a function.
- Circles can re-organize quickly, making this organizational structure highly agile.
- Each individual in a holacracy should feel highly empowered to make changes.

Advocates say holacracy leads to an entrepreneurial mindset. Individuals and circles are in constant search for incremental improvements, which makes this model a good one for making Kaizen work well.

Circles within circles
Holacracy does have a hierarchical structure. Each circle sits within another, at a higher level. And representatives from the broader circle sit within it, to ensure alignment at the strategic level

Summary of the decision-making process:
1. Proposal
The proposer describes the problem and presents proposal to address it
2. Clarifying Questions 
Members of the circle ask clarifying questions, and proposer may answer. R
3. Reaction Round 
Now, each person can express their reaction to the proposal.
4. Amendment and Clarification
Having addressed questions and heard reactions, the proposer offers clarifications. They can also amend their proposal in light of the reactions.
5. Objection Round 
Facilitator surveys each person in turn. They ask:
‘Do you see any reasons why adopting this proposal would cause harm or move us backwards?’
This is the formal structure of an Objection. Members can make as many objections as they wish. The facilitator notes each objection without discussion. If there are no objections, the circle adopts the proposal.
6. Integration
If there are objections, this step develops a revised proposal that does not cause objections, but that still addresses the proposer’s problem. The group focuses on one objection at a time. When the circle has addressed each objection, it returns to another Objection Round.

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RECOMMENDED READING
=====================
- Understanding Organizations https://geni.us/oB774Do
- Images of Organization https://geni.us/hrOemEs
- Inside Organizations: 21 Ideas for Managers https://geni.us/YwwL
- Gods of Management: The Four Cultures of Leadership https://geni.us/bpPeC5


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