Company management is a challenging process that requires leaders to adapt to a dynamic business environment. To succeed in the changing world, leaders of organizations need to have a clear vision of their goals and anticipation of risks (Kukreja, 2019). One of the recent innovations in management is Holacracy, which can be defined as an integrative model of organizational governance based on role-redistribution within the company (Chen, 2018). The essential characteristics of Holacracy are decentralized power, transparency, and process orientation (Chen, 2018). Many companies that started to adopt Holacracy noticed positive results for their development. For example, Precision Nutrition and Washington Technology Solutions (WaTech) decided to use this approach in their organizations. Precision Nutrition and WaTech successfully use the Holacracy decentralized management method to improve performance and increase job satisfaction.
Precision Nutrition achieved significant progress through administering Holacracy. Precision Nutrition is a nutrition coaching company, started in Toronto, Canada, in the early 2000s (HolacracyOne, 2019). The company leaders decided to modify the management process by acquiring Holacracy in 2012 because they realized that old ways of company governance are dysfunctional (HolacracyOne, 2019). One of the company’s CEOs, Phil Caravaggio, highlighted that Holacracy helped them maintain the entrepreneurial spirit in the company by delegating the leader role to everyone in the team (HolacracyOne, 2019). Orientation on the task and decentralization enabled Precision Nutrition’s transformation from a hierarchical to autonomous model with empowered employees and increased performance.
Holacracy revolutionized management in Washington Technology Solutions, boosting its development. WaTech is an advancing technology agency providing various technology services (Takken, 2016). The first positive change noticed in the company after acquiring Holacracy was the acceleration of decision-making because this management model eliminated bureaucracy in the company (Takken, 2016). Therefore, most WaTech employees felt satisfied with the job and empowered to make crucial decisions, which will allow the company to survive and prosper in the future (Takken, 2016). Self-management in the company ensured the successful creation of entrepreneurial culture in this organization.
Overall, Holacracy is a novel approach in management that allows role redistribution and decentralization of the company governance. This approach creates a dynamic environment inside the organization, empowering all employees to acquire responsibilities for the company’s success. WaTech and Precision Nutrition noticed a significant improvement in the companies’ development and employees’ job satisfaction after introducing this management model in their organizations. This model is essential for the successful management of companies in the modern business world.
References
Chen, Y. (2017). On the essential characteristics of the innovation oriented management mode: Holacracy [Paper presentation]. 3rd International Conference on Social, Education and Management Engineering (SEME 2017), Beijing, China. Web.
HolacracyOne. (2019).Precision Nutrition’s journey to Holacracy and the impact it had on the company. Web.
Kukreja, J. (2019). Holacracy: The next generation leadership in a VUCA world.International Journal of Trend in Scientific Research and Development, 3(6), 37–47. Web.
Takken, P. (2016).“Tealing” the Capitol using Holacracy, Lean and Scrum. Web.