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Holacracy vs Agile: Which is Best for Your Organization

by msz991
September 26, 2022
in Tech
6 min read
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Table of Contents

  • Introduction
  • Holacracy and Agile Methodologies are Both Useful Approaches to Organizations
  • The Two Methods have Similarities, but Some Key Differences.
  • Both rely on the idea of empowering employees to take ownership of a project.
  • Agile Emphasizes Increasing Efficiency by Breaking Down a Task
  • Holacracy takes a different approach by looking at the entire business structure
  • Holacracy is Democratic Governing Structure
  • Agile is less Disruptive for an Organization Overall.
  • Right Methodology for Organization.
  • Conclusion

Introduction

Holacracy and agile management are two different approaches to managing a business. Holacracy focuses on the structure of an organization and how its employees fit together, while Agile emphasizes efficiency by breaking tasks into small steps that can be completed independently. Both methods have proven useful for organizations looking for new ways to improve their businesses, but it’s important to understand the differences between them so that you can decide which approach best suits your needs.

 

Holacracy and Agile Methodologies are Both Useful Approaches to Organizations

Holacracy and Agile methodologies are both useful approaches to organizational management and change. They can help your business succeed by making your team more flexible, efficient, and innovative.

Of the two, holacracy is certainly the more radical approach. Agile is a set of practices that have been used by software developers for decades to manage project work. Holacracy takes this concept one step further: instead of assigning tasks in advance according to rigid job descriptions, people in holacracy are given roles that they can fill without having any prior knowledge of what they will be doing next or where they’ll fit into the overall organization chart (that part is up for debate). This means that if you’d like someone new on your team but don’t have any specific job openings available at this time—or even if you do—you can still hire them because all employees are considered interchangeable within their roles as long as they have all needed skillsets at least somewhat related to what’s needed by their peers at any given moment within their organization’s goals

The Two Methods have Similarities, but Some Key Differences.

Both holacracy and agile are based on principles of self-management, with employees taking responsibility for their own roles in an organization. This can be empowering but can also lead to conflict if people don’t agree with the methods. The concepts also share the idea of making work more efficient; however, they differ in key ways:

  • Holacracy is more democratic than agile because it gives everyone a voice in determining how decisions should be made. Agile relies on processes and procedures to maintain consistency throughout the organization, whereas holacracy allows teams to self-organize according to different needs at any given time.
  • Agile focuses on processes and procedures over ideation or creative thinking (e.g., brainstorming), while holacracy emphasizes having much greater flexibility about how things get done within an organization based on its mission and values as well as what’s needed at any moment during each project cycle—typically longer than typical sprint cycles used by Scrum practitioners today.”
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Both rely on the idea of empowering employees to take ownership of a project.

Both methods rely on the idea of empowering employees to take ownership of a project. In both, the team decides how to get their job done and each member is responsible for their own role. This gives them the autonomy to make decisions without needing approval from a manager.

Both processes also encourage collaboration and transparency so that teams are working together while learning from each other. This helps create empathy in an organization by emphasizing shared goals over individual ones.

Agile Emphasizes Increasing Efficiency by Breaking Down a Task

Agile emphasizes increasing efficiency by breaking down a task into a series of small steps so that different team members or departments can work on them independently. This helps to speed up the completion of larger projects, as well as increase their flexibility in response to changing circumstances. Since everyone knows how to do their own job well, it’s easier for them to take ownership of their tasks and make better decisions about how best to complete them.

Holacracy takes a different approach by looking at the entire business structure

Holacracy takes a different approach by looking at the entire business structure as a whole, then breaking it down into circles and roles. This means that there is no hierarchy or reporting structure; instead, each person in the organization has their own circle to manage, and everyone has multiple roles that they can fill depending on where they’re needed.

Holacracy is based on the idea of self-management: instead of having leaders dictate what happens next, everyone decides for themselves how best to contribute toward agreed-upon goals (the purpose). This is done through frequent check-ins (called governance meetings) where people share progress and make sure they’re on track with meeting their objectives.

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Holacracy is Democratic Governing Structure

Holacracy also takes a democratic approach to the organizational structure by giving employees more control over the direction of their company. In Holacracy, each employee has a vote and can vote on changes to the organization’s structure. This is similar to how we elect leaders in a democracy: voters decide who will be their representative and help make decisions for the greater good.

With Holacracy, employees are encouraged to take ownership of their roles and responsibilities within the company—and if they don’t like how things work, they can change them! If an employee sees an opportunity for improvement, they can suggest it at one of many “circles” (roundtable meetings led by an elected lead link). If enough people agree with the idea then it becomes official policy. Employees are also allowed to vote on promotions or demotions within the organization as well as termination decisions; this gives them greater freedom when it comes time for decision-making processes around important topics like these ones which affect everyone involved equally within this type especially considering that there aren’t any managers dictating what happens next either since every role has been categorized according to its own set criteria whether that’s based off experience level or other factors such as geographic location among many other possibilities…

Agile is less Disruptive for an Organization Overall.

Agile is a set of principles and practices that focus on continuous improvement. It’s not just about software development; it’s also about how people work together, and it offers some advantages over the more traditional management structures in place at many companies today. In an agile environment, you’ll see smaller teams working together to complete tasks quickly. These teams are responsible for creating working software products in short cycles—usually two to four weeks long—and then delivering those products on time so they can be tested by users or customers. The process of creating this new product is known as “sprints,” which typically happens every few weeks (or even days in some cases). Agile teams are able to accomplish this because they’re focused on doing their job well with limited resources: no bureaucracy involved!

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As you might expect from something called “agile,” there are lots of other principles too: whole team responsibility rather than individual accountability; cross-functional skillsets instead of specialization; a continuous improvement over complacency; etcetera ad nauseum

Right Methodology for Organization.

Holacracy and Agile are two different ways of structuring an organization, but they don’t necessarily have to be mutually exclusive. If your company has a team that is struggling with its current organizational structure and would like to try something new, combining them may be the best option for you.

Agile is about how teams work together; it’s a way of thinking about how to achieve complex goals in a highly collaborative environment. Holacracy is more focused on structuring the hierarchy of an organization so that it can support an agile approach as well as other processes that may not lend themselves well to Agile practices (such as strategic planning). The goal of both methodologies is overall productivity—the difference lies in what each one takes into account when defining productivity: holacracy focuses on the relationships between people while agile focus on working software and customer satisfaction.

Conclusion

Ultimately, the decision of which solution is right for your organization will come down to what works best. If you’re looking for a more flexible and adaptable approach to organizational change, then Agile may be a good fit. However, if you’re looking for something more structured or democratic in nature that relies on employee empowerment, then Holacracy might be worth exploring.

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