SlideShare a Scribd company logo
1 of 18
Download to read offline
5 HolacracyisFailing
Reasons
Why
And one BIG REASON why you
might ought to give it some time.
@CakeHR
WhatisHolacracy?
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.
AdoptHolacracy
orLeave.
This is the ultimatum that
Tony Hsieh, Zappos' CEO,
issued when he decided to
adopt Holacracy
in his company.
Aftermorethan2years...
P O W E R E D b y S E R V I C E™
“What has Holacracy done for Zappos today?”
IsHolacracyFailing?
According to the press, it is.
Here’s Why Eliminating Titles and Manager at
Zappos Probably Won’t Work. – Business Insider
Tony Hsieh’s Workplace Dream:
Is Holacracy a Big Failure? – Forbes
Are You Planning to Do Away with Your
Managers? Doubtful. – Fistful of Talent
5Holacracy
Reasons
Why
isFailing
To track the pulse of the HR
world, or follow up on latest
workplace trends, visit our
blog at cake.hr/blog
@CakeHR
YOUR HR. SIMPLIFIED.
1.HolacracyisNotaStepbyStepGuide
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.HolacracyReducesControl
There's no corporate hierarchy in Holacracy.
Even CEOs don't have the power to dictate
what the departments should be doing.
3.YouMustGetRidofOldHabits
An “old way” manager has the habit of telling
people what to do. And in micromanagement
cases, how to do it.
In Holacracy, it’s a different story.
4.It'sHardtoGetEveryoneOnboard
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.ItFocusesonRoles
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.
TheOneBigReason
WhyHolacracy
isWorththeWait
California-based agency
called Phelps
has been practicing
Holacracy since 1981.
PhelpsHasBeenReaping
theBenefits
Great work output because employees no longer worry
about layers of approvals.
Performance-based compensations.
No C-suite director taking credit of others' work.
No corporate title competition.
AdoptingHolacracy?
HereAre4ThingstoFocusOn
1. Personal Responsibility
2. Timely and Honest Collaboration
3. Openness to Feedback
4. Embrace the Core Values of Holacracy
-BrianJ.Robertson
“Holacracy is not a governance process
“of the people, by the people, for the people” –
it’s governance of the organization,
through the people, for the purpose.”
YOUR HR. SIMPLIFIED.
Check out the one-stop HR management suite at cake.hr
@CakeHR
www.cake.hr

More Related Content

What's hot

Why transformation efforts fail
Why transformation efforts failWhy transformation efforts fail
Why transformation efforts fail
Javed Sarwar
 

What's hot (20)

HR & Digital Transformation
HR & Digital TransformationHR & Digital Transformation
HR & Digital Transformation
 
Introduction to Holacracy
Introduction to HolacracyIntroduction to Holacracy
Introduction to Holacracy
 
The leadership pipeline
The leadership pipelineThe leadership pipeline
The leadership pipeline
 
Data Science and Analytics in Human Resources - Moneyball comes to HR
Data Science and Analytics in Human Resources - Moneyball comes to HRData Science and Analytics in Human Resources - Moneyball comes to HR
Data Science and Analytics in Human Resources - Moneyball comes to HR
 
Why transformation efforts fail
Why transformation efforts failWhy transformation efforts fail
Why transformation efforts fail
 
The Six Stages of Digital Transformation
The Six Stages of Digital TransformationThe Six Stages of Digital Transformation
The Six Stages of Digital Transformation
 
The Digitization of Human Resources
The Digitization of Human ResourcesThe Digitization of Human Resources
The Digitization of Human Resources
 
Leaders as change agents
Leaders as change agentsLeaders as change agents
Leaders as change agents
 
Simply Irresistible: Engaging the 21st Century Workforce
Simply Irresistible:  Engaging the 21st Century WorkforceSimply Irresistible:  Engaging the 21st Century Workforce
Simply Irresistible: Engaging the 21st Century Workforce
 
Servant leadership project_final
Servant leadership project_finalServant leadership project_final
Servant leadership project_final
 
Leadershi style, job satisfaction and employee performance publish
Leadershi style, job satisfaction and employee performance   publishLeadershi style, job satisfaction and employee performance   publish
Leadershi style, job satisfaction and employee performance publish
 
After the Pandemic: Leadership in a Hybrid Workplace
After the Pandemic: Leadership in a Hybrid WorkplaceAfter the Pandemic: Leadership in a Hybrid Workplace
After the Pandemic: Leadership in a Hybrid Workplace
 
Sociocracy and Holacracy. A very different same
Sociocracy and Holacracy. A very different sameSociocracy and Holacracy. A very different same
Sociocracy and Holacracy. A very different same
 
Three horizons
Three horizonsThree horizons
Three horizons
 
Leading Change Feb09
Leading Change Feb09Leading Change Feb09
Leading Change Feb09
 
Insights from the book 'Accelerate' (John P. Kotter)
Insights from the book 'Accelerate' (John P. Kotter)Insights from the book 'Accelerate' (John P. Kotter)
Insights from the book 'Accelerate' (John P. Kotter)
 
Human resource champions
Human resource championsHuman resource champions
Human resource champions
 
Leadership agility 360™ presentation
Leadership agility 360™ presentationLeadership agility 360™ presentation
Leadership agility 360™ presentation
 
Change management-leadership-guide
Change management-leadership-guideChange management-leadership-guide
Change management-leadership-guide
 
Situational Leadership
Situational LeadershipSituational Leadership
Situational Leadership
 

Similar to 5 Reasons Why Holacracy is Failing. Is it Time to Say Goodbye to Holacracy (and Zappos)?

Before you begin the read the Inside Zappos CEO.docx
Before you begin the read the Inside Zappos CEO.docxBefore you begin the read the Inside Zappos CEO.docx
Before you begin the read the Inside Zappos CEO.docx
write22
 
2 Diagnosing and Planning for ChangeJupiterimagesGoodsho.docx
2 Diagnosing and Planning  for ChangeJupiterimagesGoodsho.docx2 Diagnosing and Planning  for ChangeJupiterimagesGoodsho.docx
2 Diagnosing and Planning for ChangeJupiterimagesGoodsho.docx
vickeryr87
 
SM Certification slide-doc FINAL
SM Certification slide-doc FINALSM Certification slide-doc FINAL
SM Certification slide-doc FINAL
Tony Cole
 
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docxWhos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
helzerpatrina
 
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docxWhos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
harold7fisher61282
 
Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks
Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracksHeikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks
Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks
Aalto on Tracks
 
CCA_Leaders and Corporate Culture Insight Paper
CCA_Leaders and Corporate Culture Insight PaperCCA_Leaders and Corporate Culture Insight Paper
CCA_Leaders and Corporate Culture Insight Paper
RMWildman
 
How to be a Bosshole
How to be a BossholeHow to be a Bosshole
How to be a Bosshole
Wendy Lewis
 
The Future of Organizing
The Future of OrganizingThe Future of Organizing
Managing On-Demand Talent
Managing On-Demand TalentManaging On-Demand Talent
Managing On-Demand Talent
Stewart Levin
 

Similar to 5 Reasons Why Holacracy is Failing. Is it Time to Say Goodbye to Holacracy (and Zappos)? (20)

Before you begin the read the Inside Zappos CEO.docx
Before you begin the read the Inside Zappos CEO.docxBefore you begin the read the Inside Zappos CEO.docx
Before you begin the read the Inside Zappos CEO.docx
 
2 Diagnosing and Planning for ChangeJupiterimagesGoodsho.docx
2 Diagnosing and Planning  for ChangeJupiterimagesGoodsho.docx2 Diagnosing and Planning  for ChangeJupiterimagesGoodsho.docx
2 Diagnosing and Planning for ChangeJupiterimagesGoodsho.docx
 
How 4 Top Startups are Reinventing Organizational Structure
How 4 Top Startups are Reinventing Organizational Structure How 4 Top Startups are Reinventing Organizational Structure
How 4 Top Startups are Reinventing Organizational Structure
 
Beyond employee engagement-guide
Beyond employee engagement-guideBeyond employee engagement-guide
Beyond employee engagement-guide
 
Talent Management: Effective Habits of Talent Managers
Talent Management: Effective Habits of Talent ManagersTalent Management: Effective Habits of Talent Managers
Talent Management: Effective Habits of Talent Managers
 
George p
George pGeorge p
George p
 
SM Certification slide-doc FINAL
SM Certification slide-doc FINALSM Certification slide-doc FINAL
SM Certification slide-doc FINAL
 
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docxWhos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
 
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docxWhos the bossIn a holacracy, there isnt one. It isnt as flak.docx
Whos the bossIn a holacracy, there isnt one. It isnt as flak.docx
 
Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks
Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracksHeikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks
Heikki Hirvonen: Organizational philosophy @ TEDx AaltoUniversityOnTracks
 
CCA_Leaders and Corporate Culture Insight Paper
CCA_Leaders and Corporate Culture Insight PaperCCA_Leaders and Corporate Culture Insight Paper
CCA_Leaders and Corporate Culture Insight Paper
 
5 To Dos for Recruiters in a Weak Economy
5 To Dos for Recruiters in a Weak Economy5 To Dos for Recruiters in a Weak Economy
5 To Dos for Recruiters in a Weak Economy
 
How to be a Bosshole
How to be a BossholeHow to be a Bosshole
How to be a Bosshole
 
The Future of Organizing
The Future of OrganizingThe Future of Organizing
The Future of Organizing
 
Dissecting the Holacracy
Dissecting the HolacracyDissecting the Holacracy
Dissecting the Holacracy
 
Harvard hchp-6119
Harvard hchp-6119Harvard hchp-6119
Harvard hchp-6119
 
Top 5 Reasons for High Attrition.pdf
Top 5 Reasons for High Attrition.pdfTop 5 Reasons for High Attrition.pdf
Top 5 Reasons for High Attrition.pdf
 
How to make sure your structure is built for good, not evil.
How to make sure your structure is built for good, not evil.How to make sure your structure is built for good, not evil.
How to make sure your structure is built for good, not evil.
 
Employees Have Spoken - 7 Actions HR Should Take
Employees Have Spoken - 7 Actions HR Should TakeEmployees Have Spoken - 7 Actions HR Should Take
Employees Have Spoken - 7 Actions HR Should Take
 
Managing On-Demand Talent
Managing On-Demand TalentManaging On-Demand Talent
Managing On-Demand Talent
 

More from Sage HR

Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...
Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...
Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...
Sage HR
 
10 Easy Ways to Unleash Your Kid's Brain Power
10 Easy Ways to Unleash Your Kid's Brain Power10 Easy Ways to Unleash Your Kid's Brain Power
10 Easy Ways to Unleash Your Kid's Brain Power
Sage HR
 
How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...
How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...
How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...
Sage HR
 
The Rise and Fall of Ellen Pao. Perpetrator or Victim?
The Rise and Fall of Ellen Pao. Perpetrator or Victim?The Rise and Fall of Ellen Pao. Perpetrator or Victim?
The Rise and Fall of Ellen Pao. Perpetrator or Victim?
Sage HR
 

More from Sage HR (20)

Remote Working in a Crisis: A Workplace Toolkit [White Paper]
Remote Working in a Crisis: A Workplace Toolkit [White Paper]Remote Working in a Crisis: A Workplace Toolkit [White Paper]
Remote Working in a Crisis: A Workplace Toolkit [White Paper]
 
HR for Small Businesses
HR for Small BusinessesHR for Small Businesses
HR for Small Businesses
 
Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...
Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...
Human Resources Gurus for Q2 2019: CakeHR’s A-Z HR Experts List for the Secon...
 
HR Gurus for Q1 2019: The A-Z of Human Resources Experts This Quarter [Infogr...
HR Gurus for Q1 2019: The A-Z of Human Resources Experts This Quarter [Infogr...HR Gurus for Q1 2019: The A-Z of Human Resources Experts This Quarter [Infogr...
HR Gurus for Q1 2019: The A-Z of Human Resources Experts This Quarter [Infogr...
 
A-Z HR Gurus of Q4 2018: See the Current Experts in Human Resources!
A-Z HR Gurus of Q4 2018: See the Current Experts in Human Resources!A-Z HR Gurus of Q4 2018: See the Current Experts in Human Resources!
A-Z HR Gurus of Q4 2018: See the Current Experts in Human Resources!
 
CakeHR Pitch Deck for Zīmolu Tops - Latvia's Most Beloved Startup Brands.
CakeHR Pitch Deck for Zīmolu Tops - Latvia's Most Beloved Startup Brands.CakeHR Pitch Deck for Zīmolu Tops - Latvia's Most Beloved Startup Brands.
CakeHR Pitch Deck for Zīmolu Tops - Latvia's Most Beloved Startup Brands.
 
CakeHR’s A-Z HR Gurus for Q2 2018: Current Experts in Human Resources [Infogr...
CakeHR’s A-Z HR Gurus for Q2 2018: Current Experts in Human Resources [Infogr...CakeHR’s A-Z HR Gurus for Q2 2018: Current Experts in Human Resources [Infogr...
CakeHR’s A-Z HR Gurus for Q2 2018: Current Experts in Human Resources [Infogr...
 
HR Experts for Q12018: See the Gurus Who Made This Quarter’s List!
HR Experts for Q12018: See the Gurus Who Made This Quarter’s List!HR Experts for Q12018: See the Gurus Who Made This Quarter’s List!
HR Experts for Q12018: See the Gurus Who Made This Quarter’s List!
 
GDPR - are you ready for the challenge?
GDPR - are you ready for the challenge?GDPR - are you ready for the challenge?
GDPR - are you ready for the challenge?
 
Introducing you to the top 112 HR Analytics experts [infographic]
Introducing you to the top 112 HR Analytics experts [infographic]Introducing you to the top 112 HR Analytics experts [infographic]
Introducing you to the top 112 HR Analytics experts [infographic]
 
HR Gurus A-Z List: Revisiting the Current Industry Experts for Q4 2017
HR Gurus A-Z List: Revisiting the Current Industry Experts for Q4 2017HR Gurus A-Z List: Revisiting the Current Industry Experts for Q4 2017
HR Gurus A-Z List: Revisiting the Current Industry Experts for Q4 2017
 
Human Resource’s Gurus: Picking HR’s Ultimate A-Z Team | Q3 2017
Human Resource’s Gurus: Picking HR’s Ultimate A-Z Team | Q3 2017Human Resource’s Gurus: Picking HR’s Ultimate A-Z Team | Q3 2017
Human Resource’s Gurus: Picking HR’s Ultimate A-Z Team | Q3 2017
 
Defining Your Employee Value Proposition. 34 Surprisingly Useful Questions to...
Defining Your Employee Value Proposition. 34 Surprisingly Useful Questions to...Defining Your Employee Value Proposition. 34 Surprisingly Useful Questions to...
Defining Your Employee Value Proposition. 34 Surprisingly Useful Questions to...
 
Introduction to the HR management software CakeHR
Introduction to the HR management software CakeHRIntroduction to the HR management software CakeHR
Introduction to the HR management software CakeHR
 
Technology in HR - Human Resources Management Software
Technology in HR - Human Resources Management SoftwareTechnology in HR - Human Resources Management Software
Technology in HR - Human Resources Management Software
 
10 Easy Ways to Unleash Your Kid's Brain Power
10 Easy Ways to Unleash Your Kid's Brain Power10 Easy Ways to Unleash Your Kid's Brain Power
10 Easy Ways to Unleash Your Kid's Brain Power
 
How to Skyrocket Your Communication Skills - 23 Awesome Tips!
How to Skyrocket Your Communication Skills - 23 Awesome Tips!How to Skyrocket Your Communication Skills - 23 Awesome Tips!
How to Skyrocket Your Communication Skills - 23 Awesome Tips!
 
The Power of Employee Appreciation. 5 Best Practices in Employee Recognition.
The Power of Employee Appreciation. 5 Best Practices in Employee Recognition.The Power of Employee Appreciation. 5 Best Practices in Employee Recognition.
The Power of Employee Appreciation. 5 Best Practices in Employee Recognition.
 
How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...
How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...
How Volkswagen Mocked Corporate Social Responsibility: “Diesel Gate” Outs Sus...
 
The Rise and Fall of Ellen Pao. Perpetrator or Victim?
The Rise and Fall of Ellen Pao. Perpetrator or Victim?The Rise and Fall of Ellen Pao. Perpetrator or Victim?
The Rise and Fall of Ellen Pao. Perpetrator or Victim?
 

Recently uploaded

LECTURE maintenance management is important 1.pptx
LECTURE maintenance management is important 1.pptxLECTURE maintenance management is important 1.pptx
LECTURE maintenance management is important 1.pptx
shahzadnasim3
 
Disaster management for class 10 students
Disaster management for class 10 studentsDisaster management for class 10 students
Disaster management for class 10 students
madhav072009
 

Recently uploaded (10)

Internal Reconstruction Corporate accounting by bhumika Garg
Internal Reconstruction Corporate accounting by bhumika GargInternal Reconstruction Corporate accounting by bhumika Garg
Internal Reconstruction Corporate accounting by bhumika Garg
 
LECTURE maintenance management is important 1.pptx
LECTURE maintenance management is important 1.pptxLECTURE maintenance management is important 1.pptx
LECTURE maintenance management is important 1.pptx
 
W.H.Bender Quote 63 You Must Plan T.O.P Take-Out Packaging
W.H.Bender Quote 63 You Must Plan T.O.P Take-Out PackagingW.H.Bender Quote 63 You Must Plan T.O.P Take-Out Packaging
W.H.Bender Quote 63 You Must Plan T.O.P Take-Out Packaging
 
DrupalCamp Atlanta 2022 - Effective Project Management
DrupalCamp Atlanta 2022 - Effective Project ManagementDrupalCamp Atlanta 2022 - Effective Project Management
DrupalCamp Atlanta 2022 - Effective Project Management
 
thesis-and-viva-voce preparation for research scholars
thesis-and-viva-voce preparation for research scholarsthesis-and-viva-voce preparation for research scholars
thesis-and-viva-voce preparation for research scholars
 
Spring-2024-Priesthoods of Augustus Yale Historical Review
Spring-2024-Priesthoods of Augustus Yale Historical ReviewSpring-2024-Priesthoods of Augustus Yale Historical Review
Spring-2024-Priesthoods of Augustus Yale Historical Review
 
Disaster management for class 10 students
Disaster management for class 10 studentsDisaster management for class 10 students
Disaster management for class 10 students
 
Marketing Management 16 Global Edition by Philip Kotler test bank.docx
Marketing Management 16 Global Edition by Philip Kotler test bank.docxMarketing Management 16 Global Edition by Philip Kotler test bank.docx
Marketing Management 16 Global Edition by Philip Kotler test bank.docx
 
Group work -meaning and definitions- Characteristics and Importance
Group work -meaning and definitions- Characteristics and ImportanceGroup work -meaning and definitions- Characteristics and Importance
Group work -meaning and definitions- Characteristics and Importance
 
Persuasive and Communication is the art of negotiation.
Persuasive and Communication is the art of negotiation.Persuasive and Communication is the art of negotiation.
Persuasive and Communication is the art of negotiation.
 

5 Reasons Why Holacracy is Failing. Is it Time to Say Goodbye to Holacracy (and Zappos)?