Holacracy, a management system that distributes authority, is proven to be effective in small and medium-sized organisations. Its application to large groups, however, is a topic of debate. Critics argue that Holacracy’s decentralised decision-making process could lead to a lack of cohesion in large organisations, with too many individual circles operating independently.
On the other hand, proponents of Holacracy believe it can be scaled up successfully. They argue that its principles of transparency, autonomy, and efficiency can be beneficial to large organisations. The key is to ensure a balance between autonomy and alignment.
Zappos, a large online shoe retailer, is an example of successful implementation of Holacracy in a large organisation. Despite initial resistance and high turnover, the company has managed to adapt to the system and has seen improvements in transparency and efficiency.
The success of Holacracy in large groups, therefore, seems to depend on the organisation’s ability to adapt to the system and maintain a balance between autonomy and alignment. It requires a commitment to change and a willingness to navigate initial resistance and turnover.
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