How Holacractic Leadership Can Impact Your Company

How Holacractic Leadership Can Impact Your Company

The current climate requires that organizations strive for high agility, transparency, and increased employee involvement. Holacracy provides a newer leadership model for company heads. Instead of the top-down approach style of leadership, holacracy empowers teams and individual employees with self-management opportunities.

Many organizations are upending the traditional hierarchical authority structures in favor of Holacracy leadership to increase efficiency. We will examine this organizational method to determine its potential impact on your company.

Benefits of the Holacratic Model to Your Organization

Haygroup’s research explains why this new approach is so practical. When traditional organizations are asked "what went wrong," the most common answers are poor managers, followed by “management made the wrong decisions” and “management had too many rules.” 

A Holacratic approach to leadership is widely seen as a solution to the challenges bedeviling many traditional-styled companies. Here are other positive implications of implementing a holistic leadership style in your company. 

Enables quicker and quality project delivery

In Holacratic management styles, project management assumes a life of its own. Google's Project Aristotle explained how psychological safety - the confidence to take risks without embarrassment or retribution- is essential to team success. Holacracy empowers employees to form smaller circles to focus on specific projects. These workers can then set clear timelines, scope, goals, and strategies without fearing undue bureaucracy or approval procedures. 

A good example of Holacracy leading to excellent outcomes is the retail sector. Zappos has embraced Holacracy to create a more agile and customer-centric organization. This has enabled the online retailer to respond fast to customer demands and adapt to the ever-changing world of e-commerce. 

Promotes transparency

Removing higher levels of management and entrusting employees with dynamic roles and responsibilities makes it easier to hold people accountable for their actions. This level of flexibility and transparency also removes unnecessary steps while increasing productivity.

Buffer, the popular social media management tool, introduced Holacracy in 2015 to increase its organization's transparency, accountability, and innovation. By doing so, they could align their organizational structure with their values. The result was a three-fold increase in employee engagement and administrative efficiency.

Upholds learning within teams

Since roles within a Holacracy are dynamic, continuous learning is vital. Carol Dweck's research shows that a growth mindset is indispensable for the growth of any company. Learning helps teams to innovate and improve their confidence in self-leadership. 

Also, as teams learn together, they develop more trust, a shared sense of purpose, and mutual respect. The result is increased productivity, higher job satisfaction, and better problem-solving.

Improves communication

Holacracy replaces rigid job titles with more dynamic roles managed by circles and teams to facilitate better communication. When responsibilities are as transparent, organizations can also identify and rectify bureaucracies that stifle innovation.

The global design firm IDEO harnessed holacracy to facilitate better communication between its team members. By decentralizing decision-making and allocating clear responsibilities, the firm broke down communication barriers between its team members and developed more innovative solutions for its customers. 


Holacracy is an attractive alternative to traditional leadership models because it can be adapted to different industries and contexts. When empowered, individuals collaborate more efficiently, and their innovation increases. Consequently, organizations become more agile and autonomous and offer more job satisfaction to their teams.

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