{"id":19996,"date":"2022-10-07T13:36:08","date_gmt":"2022-10-07T10:36:08","guid":{"rendered":"https:\/\/edureviewer.com\/blog\/auto-draft\/"},"modified":"2026-01-06T15:37:31","modified_gmt":"2026-01-06T12:37:31","slug":"holacratic-organizational-structure-with-examples","status":"publish","type":"post","link":"https:\/\/edureviewer.com\/blog\/holacracy-structure\/","title":{"rendered":"Holacratic Organizational Structure: With Examples"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_56_1 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#What_is_Holacratic_Structure\" title=\"What is Holacratic Structure?\">What is Holacratic Structure?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#How_Holacracy_Works\" title=\"How Holacracy Works\">How Holacracy Works<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Holacratic_Organizational_Structure\" title=\"Holacratic Organizational Structure\">Holacratic Organizational Structure<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Diverse_size_nature_and_scope\" title=\"Diverse size, nature, and scope\">Diverse size, nature, and scope<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Give_Authority_to_Employees\" title=\"Give Authority to Employees\">Give Authority to Employees<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Teams_Are_a_Culmination_of_Goals\" title=\"Teams Are a Culmination of Goals\">Teams Are a Culmination of Goals<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Innovation\" title=\"Innovation\">Innovation<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Examples_of_Holacratic_Structure_in_Companies\" title=\"Examples of Holacratic Structure in Companies\">Examples of Holacratic Structure in Companies<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#In_Project_Management\" title=\"In Project Management\">In Project Management<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Actual_Companies_Adopting_Holacratic_Structure\" title=\"Actual Companies Adopting Holacratic Structure\">Actual Companies Adopting Holacratic Structure<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Holacratic_Structure_Advantages_and_Disadvantages\" title=\"Holacratic Structure Advantages and Disadvantages\">Holacratic Structure Advantages and Disadvantages<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Pros_of_Holacracy\" title=\"Pros of Holacracy\">Pros of Holacracy<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#Cons_of_Holacracy\" title=\"Cons of Holacracy\">Cons of Holacracy<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/#FAQ\" title=\"FAQ\">FAQ<\/a><\/li><\/ul><\/nav><\/div>\n<p>One of the key differences between companies is in the organizational structure. Some companies have one guy in charge of everything. There are also companies where the responsibility for leading the teams is divided into leaders, but everything gets reported back to the head.<\/p>\n<p>No matter which one it is, the organizational structure is specific to that company. But today we\u2019re not talking about any common organizational structures that you already know about. Today we\u2019re going to discuss holacratic structure.<\/p>\n<p>The holacratic organizational structure is for companies that want to be as agile and adaptable as possible. In this article, we\u2019ll take a look at what the holacratic structure is and whether or not it will apply to your company. Let\u2019s begin.<\/p>\n<p>As you learn about the unconventional business model, Holacracy, you might also wonder, <a href=\"https:\/\/edureviewer.com\/blog\/jobs-with-a-series-7\/\">what jobs can you get with a Series 7 license<\/a>? This insight can broaden your perspective and open up new career possibilities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Holacratic_Structure\"><\/span>What is Holacratic Structure?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>So, what is a holacratic structure exactly? It\u2019s a business structure that strays away from the traditional management-based organizational structure. Under the holacratic organizational structure, an organization is divided into smaller teams that are autonomous.<\/p>\n<p>These teams work separately as their own little companies of sorts. These smaller teams have their own separate goals that play into the grand scheme of their company\u2019s business.<\/p>\n<p>While discussing the Holacratic structure, it&#8217;s crucial to ensure our grammar is impeccable. <a href=\"https:\/\/edureviewer.com\/services\/grammarly-com-review\/\">Reading the Grammarly review can provide<\/a> an overview of a tool that helps maintain high-quality written communication.<\/p>\n<p>The main aim of a holacratic structure is to divide decision-making authority between teams. This innovation process flows smoothly because of the inputs of every employee.<\/p>\n<p>There are set guidelines as to how holacracy works in a company. We will be talking about that in the next section.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Holacracy_Works\"><\/span>How Holacracy Works<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before explaining how a holacratic business structure works, let\u2019s briefly look back at traditional companies and how they function. In a normal organization, a worker as a job title and he\/she is responsible for one role. In most cases this role is fixed and does not change much.<\/p>\n<p>But under a holacratic business structure, a single employee can have multiple roles and multiple duties. Remember how we mentioned businesses that follow a holacratic structure are adaptable? This is the adaptability that we were talking about.<\/p>\n<p>As we delve into the world of Holacracy and its structure, let&#8217;s not forget the importance of articulating your experiences on your resume. Mentioning that <a href=\"https:\/\/edureviewer.com\/blog\/training-new-employees-on-resume\/\">you&#8217;ve trained new employees on resume can significantly<\/a> enhance your appeal to potential employers.<\/p>\n<p>The authority of each team is separate. Teams are called \u201ccircles\u201d in the holacratic business structure. And although there is much freedom in how jobs are handled, it really is a chaotic way to run a business.<\/p>\n<p>If you\u2019re thinking of adopting it, ask yourself the question that what is a holacratic business structure going to do for your business? Think about its impact on your employees. If your employees are not capable of handling multiple responsibilities, then maybe it\u2019s not the right structure for your company.<\/p>\n<p>But if you\u2019re employees are dedicated and manage their time for your company accordingly, then adopting a holacratic business structure might not be the worst thing in the world.<\/p>\n<p>In the journey to comprehend the Holacratic structure, it&#8217;s equally important to consider tools that can help facilitate its implementation. The right <a href=\"https:\/\/edureviewer.com\/blog\/holacracy-software\/\">Holacracy software can be a game-changer<\/a> in making your transition smooth.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Holacratic_Organizational_Structure\"><\/span>Holacratic Organizational Structure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-20000\" src=\"https:\/\/edureviewer.com\/wp-content\/uploads\/2022\/10\/company-according.jpg\" alt=\"\" width=\"720\" height=\"509\" \/><\/p>\n<p>Now let\u2019s delve further into the holacratic structure to understand it from within. Because of the way it&#8217;s structured, employees have far more breathing room than they would in traditional bureaucratic structures.<\/p>\n<p>Here are some of the key features of what is a holacratic organizational structure truly like.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Diverse_size_nature_and_scope\"><\/span>Diverse size, nature, and scope<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There\u2019s no fixed size or purpose for any circles in a holacratic structure. It can be small, medium or large. It will all depend on the needs of the company and the adaptability of the employees. More capable employees will mean smaller teams and vice versa.<\/p>\n<p>It will all come down to the scale of your business. Depending on how big or small your entire operation is, you should divide the teams accordingly. You can also prioritize the teams based on the work that they\u2019re going to be doing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Give_Authority_to_Employees\"><\/span>Give Authority to Employees<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Since there\u2019s no single head honcho in a holacratic business structure, that responsibility is given to the employees. Employees are in charge of their own work. This added freedom inspires innovation and streamlines the working process. No one has to <a href=\"https:\/\/edureviewer.com\/blog\/deal-with-incompetent-boss\/\">deal with a bad boss<\/a>.<\/p>\n<p>No employee will work well under pressure. Maybe it\u2019s better for a company to keep the pressure on. But if hard-working employees are given a little breathing room to set their own schedules, then they can be so much more productive.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Teams_Are_a_Culmination_of_Goals\"><\/span>Teams Are a Culmination of Goals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The circles in a holacratic structure have different purposes. And every employee in the circle shares the same goal. It\u2019s the objective that the team needs to complete. This team objective will not overlap with the other teams. But it will all come together in the end.<\/p>\n<p>Since a holacratic structure divides the work into smaller teams, they all have to share a common purpose. It\u2019s a large target that needs to be filled with contributions from each of the teams.<\/p>\n<p>Without the complete cooperation of each member of each circle, a holacratic company can\u2019t reach its goals. Each team needs to complete their set of responsibilities. There\u2019s no blaming game in an holacratic business structure.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Innovation\"><\/span>Innovation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Since the task is divided into teams, everything moves faster and more efficiently. This leaves the door open for innovation in a holacratic structure. As there are no hierarchical politics, no one\u2019s going to shut down an employee\u2019s idea, be it good or bad.<\/p>\n<p>That\u2019s why you will hear great stories about companies who have shifted to using a holacratic structure for their business. But for that, you need like-minded individuals who\u2019re ready to step up to the challenge.<\/p>\n<p><em>To learn more about our career advice, <a href=\"https:\/\/edureviewer.com\/blog\/\">click here<\/a>!<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Examples_of_Holacratic_Structure_in_Companies\"><\/span>Examples of Holacratic Structure in Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Let us now take a look at holacratic structure examples. After seeing these examples, you should be able to tell whether or not, it\u2019s going to work for your company. Let\u2019s start.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"In_Project_Management\"><\/span>In Project Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A project in a holacratic business structure is really unique. This is because there\u2019s no one that needs to be reported to. As we mentioned, holacratic business structure allows for autonomous teams. But no one is in charge in every circle.<\/p>\n<p>But there is one employee who will have a separate role. That is the \u201cproject governance\u201d role. And although this sounds like a management position, it\u2019s quite the opposite. The role of a project governor is just to keep track of the procedures. This is done to record the progress of completing the company\u2019s goals.<\/p>\n<p>To say that there\u2019s no project manager would be wrong. But it\u2019s not the project manager that you see in other institutions. The job of this manager is to create a clear vision for their circle. And they can delegate the task to anyone capable.<\/p>\n<p>However, that doesn\u2019t give them power over the people working. They only use delegation and motivate their team. The managers don\u2019t command the employees. Instead, every employee is responsible for their own work.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Actual_Companies_Adopting_Holacratic_Structure\"><\/span>Actual Companies Adopting Holacratic Structure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At the time of writing this article, Zappos.com is still the largest company that has taken up a holacratic business structure. Zappos.com is an online retailer shop for clothes, shoes, and handbags.<\/p>\n<p>With over 1500 employees, this company is charging ahead in the industry with their holacratic organizational structure. According to the company, their business structure allows them to act quickly on customer feedback further improving the customer experience.<\/p>\n<p>Other companies that use a holacratic structure are Liip, a digital agency in Switzerland. There\u2019s also Mercedez-benz.io which is the online part of the auto manufacturer.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Holacratic_Structure_Advantages_and_Disadvantages\"><\/span>Holacratic Structure Advantages and Disadvantages<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Now let\u2019s talk about the <a href=\"https:\/\/edureviewer.com\/blog\/holacracy-pros-cons\/\">pros and cons of holacracy<\/a>. It wouldn\u2019t be a real business structure if we only mentioned the good parts and why we\u2019re including all of it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros_of_Holacracy\"><\/span>Pros of Holacracy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The first and foremost thing that we need to say is holacracy inspires innovation in employees. Since there\u2019s no one to scold them, they can let their ideas flow freely without any hesitation. Team autonomy also plays an important part in that as well.<\/p>\n<p>Being able to discuss ideas freely in the team is one of the perks that come with a holacratic structure. And in most cases, these are ideas that benefit the organization.<\/p>\n<p>Holacracy business structure also has harder working employees. But they are also compensated fairly. Although it might not be for everyone, people who can adapt to holacracy enjoy it very much.<\/p>\n<p>And since there are fewer layers of bureaucracy in this structure, it lets employees deal directly with customers. By responding to their feedback, employees can improve the customer experience even further.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cons_of_Holacracy\"><\/span>Cons of Holacracy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Since teams are autonomous, there\u2019s no leader. This means there\u2019s no accountability and this is where the chaos ensues. If no one steps up to their responsibilities, then that can mean bad things for the company.<\/p>\n<p>Another problem also comes up in a holacratic structure. Since everyone is responsible for their own work, they like to take credit for the positive ideas and that\u2019s appreciated. But in case of failure, no one will step up. And they don\u2019t have to since there are no fixed roles.<\/p>\n<p>And you can\u2019t just think about adopting holacracy and expect it to start working instantly. For this kind of structure to work, the employees are the most important factor. If they\u2019re not fit to adapt to the holacratic workstyle, then sadly it\u2019s not the right choice for your company.<\/p>\n<p>And if you still decide to stick to holacracy, it might cost you your business. Employees following holacratic are paid handsomely for the wide variety of roles that they undertake. But if they are not capable of giving every role 100% then it\u2019s not going to work out at all.<\/p>\n<p>To learn in depth about the pros and cons of holacracy, click here!<\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQ\"><\/span>FAQ<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>What is a Holacratic organizational structure?<\/strong><\/p>\n<p>A Holacratic structure is a business structure where there\u2019s no management or authority that has power over the employees. Every team or \u201ccircle\u201d has its own set of responsibilities. To reach the company\u2019s goals, every circle needs to do their part. One of the many features of a Holacratic structure is that no one can be held accountable.<\/p>\n<p><strong>What are the advantages of a Holacratic Organizational Structure?<\/strong><\/p>\n<p>Holacratic organizational structure increases productivity in employees by giving them freedom from a bad boss. Innovation increases, and employees are more hard-working because they are rewarded handsomely. Employees are also able to deal directly with customers and improve user experience efficiently. The fewer layers of bureaucracy help out a lot.<\/p>\n<p>To learn the tips and tricks on how to deal with a bad boss, give this article a quick read!<\/p>\n<p><strong>What businesses use a Holacratic structure?<\/strong><\/p>\n<p>Businesses that are regularly dealing with customers are the ones that mostly use Holacratic structure. Employees strive to use their full potential in the roles they are given to serve customers. Customer experience is also something that\u2019s really improved in Holacratic businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the key differences between companies is in the organizational structure. Some companies have one guy in charge of everything. There are also companies where the responsibility for leading the teams is divided into leaders, but everything gets reported back to the head. No matter which one it is, the organizational structure is specific&#8230;<\/p>\n","protected":false},"author":2,"featured_media":19998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[38],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Holacratic Structure: What It Is, How It Works, Examples - EduReviewer<\/title>\n<meta name=\"description\" content=\"Ever heard of holacracy, the unconventional business structure? Read this article to learn about its benefits, advantages, disadvantages, pros &amp; cons.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/edureviewer.com\/blog\/holacracy-structure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Holacratic Structure: What It Is, How It Works, Examples - EduReviewer\" \/>\n<meta property=\"og:description\" content=\"Ever heard of holacracy, the unconventional business structure? 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