Other organizations have decided it’s just too consuming to go all in. Not everyone wants the responsibility. If Holacratic companies have drawn negative attention from the media, it is because of the way they have gone about implementing the system. No one will criticize you for a reasonable hypothesis failing, but you might get criticized for not trying. If you never fail you’re not trying hard enough; you’re not being bold enough. As issues are surfaced and resolved, competitive innovation remains the greatest driver of change. Startup entrepreneurs may or may not subscribe to the core elements of hacker ideology, but they have embraced key practical elements of the hacker way. They are paid by click and competing against viral videos, so it is in their interest to scandalize and taunt, speaking to the prejudices of the mass market. Also, it’s up to the proposer, the person who feels the reality based tension, to define how explicit a responsibility is defined. So, we've evolved how we use Holacracy to find ways to layer our culture, core values, and focus of people into the system in a way that works best for us. I recognize this, because sometimes it feels hard to do “cross circle” projects. Suddenly, they’re hiring “bosses” and they care about mainstream media? Medium recently dropped Holacracy on the basis of its overbearing bureaucracy. Such an idea could be quickly tested in a small corner of large organisation. It’s certainly true that Medium and Zappos are different companies. Holacracy practice can work in any organizational context if the people are ready to commit to the change. But we’re also winning awards and get many applications because of Holacracy. This misrepresents Andy Doyle’s claim in his announcement of Medium’s decision. This has fanned speculation that Zappos’ experiment with Holacracy is on the rocks. Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. There is so much happening in this space, it is understandable that people would look at the big picture, and reflect on the organisational operating systems that are being trialed and tested. There is a manifest incongruity in a top-down solution to bureaucratic management. No surprise why adopting Holacracy is challenging for corporate hierarchies that put a lot of emphasis on power and control! Of course, holacracy isn’t exactly a new concept. In moving away from Holacracy, Medium noted that "for larger initiatives, which require coordination across functions, it can be time-consuming and divisive to gain alignment" and that Medium believed that "the act of codifying responsibilities in explicit detail hindered a proactive attitude and sense of communal ownership". Zappos CEO Tony Hsieh shifted the entire company to Holacracy in 2013. The majority of media coverage failed to note that Zappos’ standard annual turnover is around 20%. Realistically, any company concerned to be around in ten years time should be exploring new organizational operating systems. Also, hiring “bosses” like Andy writes, surely creates problems because they might be used to create ad-hoc jobs in a top down fashion, which indeed is faster than processing the tension by doing it and codifying it later. Only 38% of companies surveyed retain a traditional structure. It is unfolding in the way we imagine the operation of the organisation itself. Calling it “hands down, by far the best way I know or have ever seen to structure and run a company,” Stirman says. ‘Not Everyone Wants to Be the Boss’, Justin Fox observes in a slightly more charitable, yet inaccurate, review in Bloomberg. The organisations of the future are being invented today. In recent years, organisations as diverse as Ford, Netflix, and Google have used hackathons to invent new products and solve thorny operational problems. The One Regret of My Software Engineering Career, I haven’t talked with anyone at Medium about this (would love to! Doyle puts this in perspective: ‘The management model that most companies employ was developed over a century ago. If change is not cheap (see above…), and if people are not comfortable with the mechanism of individual action and processing tensions based on reality, then indeed pro-activeness and ownership can suffer. Thus, job descriptions are often imprecise and leave employees wondering what their responsibilities truly are. And we value those more than the few we lose: those people probably didn’t make up their own mind based on data, so they wouldn’t fit here anyway. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Medium and Zappos’ experiments are simply the tip of the transitional iceberg. Assumption: Training / coaching / learning / onboarding might be the bottleneck for Medium. Digital technologies are enabling the shift to self-managing organisations. Medium is currently moving forward by articulating these principles and assembling a team ‘to translate [them] into a functional system’. Last week, Andy Doyle from Medium announced they won’t use Holacracy anymore to run their company. As issues are surfaced and resolved, competitive innovation remains the greatest driver of change. No one will criticize you for a reasonable hypothesis failing, but you might get criticized for not trying. Just because it failed at Medium, they’ll argue, doesn’t mean it will fail at Zappos. "I'm not surprised it was getting in the way for them." This misrepresents Andy Doyle’s claim in his announcement of Medium’s decision. It is completely the opposite of what agile, scalable organizations need in the 21st century. Instead of implementing change in a single stroke, a culture hacking strategy makes space for employees to collaboratively hack the existing management culture, experimenting with new approaches, developing prototypes, running tests and trials, iterating the designs, and learning from results. For example. Holacracy’s idealism, as well as its failure to grasp human nature, has led to serious flaws, ones which will only worsen as time goes on. Old habits are hard to get rid of. We can all sleep more soundly knowing that the organisational forms of the 19th century are alive and well, unchallenged by the pretensions of the ‘bossless organisation’. Good Holacracy, Bad Holacracy is no different. They also noted that the inaccurate media coverage of Holacracy created a … Hamel and Zanini don’t use this term, but it is clearly what they have in mind: Imagine an online, company wide conversation where superfluous and counter-productive management practices are discussed and alternatives proposed. Holacracy provides a concrete framework for encoding autonomy, agility, and purpose-alignment into your organization’s DNA.

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