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  • July–August 2016
  • Article
  • Harvard Business Review

Beyond the Holacracy Hype: The Overwrought Claims—and Actual Promise—of the Next Generation of Self-Managed Teams

By: Ethan Bernstein, John Bunch, Niko Canner and Michael Lee
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Abstract

Holacracy and other forms of self-organization have been getting a lot of press. Proponents hail them as "flat" environments that foster flexibility, engagement, productivity, and efficiency. Critics say they're naive, unrealistic experiments. We argue, using evidence from a multi-year research agenda at several mainstream organizations that have adopted these forms, that neither view is quite right. Although the new forms (built upon a half-century of research on and experience with self-managed teams) can help organizations become more adaptable and nimble, most companies shouldn't adopt their principles wholesale. A piecemeal approach usually makes sense. Organizations can use elements of self-management in areas where the need for adaptability is high and traditional models where reliability is paramount.

Keywords

Self-Managed Organizations; Self-Managed Teams; Reliability; Adaptability; Holacracy; Organization Design; Organization Structure; Organizational Charts; Organizational Architecture; Organizational Forms; Organizational Design; Organizational Structure; Organizational Change and Adaptation; Performance Effectiveness; Performance Productivity; Management Practices and Processes; Management Systems; Managerial Roles; Human Resources; Apparel and Accessories Industry; Manufacturing Industry; Retail Industry; Public Administration Industry; Technology Industry; North America

Citation

Bernstein, Ethan, John Bunch, Niko Canner, and Michael Lee. "Beyond the Holacracy Hype: The Overwrought Claims—and Actual Promise—of the Next Generation of Self-Managed Teams." Harvard Business Review 94, nos. 7-8 (July–August 2016): 38–49.
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About The Author

Ethan S. Bernstein

Organizational Behavior
→More Publications

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    • June 2022 (Revised January 2023)
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More from the Authors
  • Buurtzorg By: Ethan Bernstein, Tatiana Sandino, Joost Minnaar and Annelena Lobb
  • Uncovering the Mitigating Psychological Response to Monitoring Technologies: Police Body Cameras Not Only Constrain but Also Depolarize By: Shefali V. Patil and Ethan Bernstein
  • Winning Business at Russell Reynolds (B) By: Ethan Bernstein and Cara Mazzucco
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