Beyond the Holacracy Hype

Ethan  Bernstein; John  Bunch; Niko  Canner; Michael  Lee

Article | Harvard Business Review | July–August 2016

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

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 design; Organizational Charts; organizational architecture; organizational forms; organizational structure; 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;

Format: Print

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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.

Making good hiring decisions is a critical management activity, yet many leaders just “wing it” when interviewing candidates to fill openings by having an organic conversation to assess the candidate’s fit, unknowingly subjecting the process to unconscious bias. Instead, organizations should employ structured interviewing techniques to carefully assess the skills needed for a given opening, to determine a consistent approach for fairly evaluating candidates’ skills, and ultimately to make the best possible hiring decision. This note aims to help the reader acquire the skills necessary to be an effective interviewer and to champion best-practice interviewing within his or her organization. Beginning by briefly summarizing the pitfalls of unstructured interviewing, the note proceeds to explain three types of structured interviewing techniques, the steps hiring managers should undertake to prepare for and conduct interviews, and tips for making evidence-based assessments.

Teaching Note | HBS Case Collection | October 2015 (Revised February 2020)

Trouble at Tessei

Ethan Bernstein and Ryan Buell

In 2005, Teruo Yabe is asked to revive Tessei, the 669-person JR-East subsidiary responsible for cleaning its Shinkansen ("bullet") trains. Operational mistakes, customer complaints, safety issues, and employee turnover are at or near all-time highs, even as the demands on Tessei continued to grow.

Given previous leaders' failed attempts to fix Tessei's problems with increased managerial monitoring and controls, Yabe seeks a creative approach to overcome the motivation, capability, and coordination challenges facing his organization. Like many contemporary leaders, he selects transparency as his tool. He is, however, unique in adopting a highly nuanced approach to implementing transparency. In the process, he not only leads a fantastic organizational turnaround but even helps to make otherwise "dirty" work more meaningful for Tessei front-line employees. The case therefore presents students, particularly in leadership, organizational behavior, operations management, and service operations courses, with an opportunity to think through how a well-crafted transparency strategy can act as a powerful leadership tool.

Keywords: service operations; service management; employee engagement; employee motivation; leadership and managing people; leadership; quality improvement; efficiency; Japan; operational transparency; employee coordination; transparency; Leadership; Service Delivery; Service Operations; Employees; Quality; Transportation Industry; Japan;

Citation:

Bernstein, Ethan, and Ryan Buell. "Trouble at Tessei." Harvard Business School Teaching Note 616-031, October 2015. (Revised February 2020.) View Details

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

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