Unic is entering its seventh year with Holacracy. It is now time to take stock. What has changed under the new form of collaboration? How can companies break free from rigid structures? What are the challenges and advantages that come with this management framework and the transformation itself? Sandro Dönni, Principal Consultant at Unic and a key player in the introduction of Holacracy as a ‘lead link’ in the change office back then, answers these and other questions in the interview below. Find out why the switch to Holacracy should be a one-way street and why traditional hierarchies just cannot compete with a distributed decision-making system.
How have your experiences with Holacracy been?
Looking back today, Unic was very formalised before the introduction of Holacracy. Too many processes made work complicated, which increased the complexity and slowed the company down. We had to become much more agile.
The introduction of Holacracy was a turning point. There was a positive change across all teams in how we worked and how we interacted. Thanks to this new drive, we now approach changes more fearlessly. All employees are invited and encouraged to instigate and drive changes.
Companies underestimate what the herachies trigger in them, what negative impact they have!
Sandro Dönni, Principal Consultant Unic
Today, there is more freedom and more of a flow to things. The switch to Holacracy was good for the culture at Unic. Of course, there are still interpersonal issues at times and a self-management system requires even more communication and social skills. But in my view, we have become better at these things and are more relaxed in our collaboration. Most likely, that is also due to the increased transparency and clarity. Issues with corporate politics have disappeared almost completely from the day-to-day business at Unic.
What are the biggest advantages of Holacracy for you personally?
The key advantage is that all employees can get actively involved in anything that is important to them. They can invest their energy and skills wherever they create the most value. Everyone can change the organisation step by step, based on the situation. Employees decide for themselves which roles they want to fill and which focus areas they would not consider. The world of roles also leads to dynamic career and development paths and is one of the key reasons for our low fluctuation rates, I believe.
Another advantage lies in the organisation itself. If the setup is customer-centric and the circles (teams) are purpose-centric, you will also manage to serve customers better, based on their needs. Holacracy comes with a lower risk of creating an organisation that only revolves around itself. The individual teams are more entrepreneurial and metrics and their KPIs are available to everyone and understood. Everyone has a vested interest in contributing to the company’s success.
What are the biggest challenges for you and for Unic with Holacracy?
The shift to more self-management has many positive aspects and promotes intrinsic motivation, and at the same time, it is a challenge for everyone and takes some getting used to for some. These challenges that come with self-organisation need to be mastered together. While everyone needs to be clear on the responsibilities that come with the respective roles, open dialogue remains extremely important. Roles and responsibilities change continually at Unic, and the system adapts to the challenges in the environment. At Unic, this now happens without a hitch. Distributed responsibility is now perceived as something positive and creates a lot of potential for personal development for our employees.
Another challenge is the never-ending search for the potential for optimisation. This always creates tension, because very often, there is no clear-cut right or wrong way. We keep evolving constantly, always looking for the perfect equilibrium between forward momentum and stability. In my view, the right speed leads to a balanced use of resources and helps us all to stay healthy and motivated while maintaining momentum.
Based on what you know today, what would you focus on?
We offer communication training because it turns out that communication in particular, combined with social skills, is a key factor for success. The type of communication usually depends on the tools used. Chats, tickets, emails, virtual meetings, face-to-face meetings: Different channels come with differences in communication. How do I react? How can I be appreciative? And how do others perceive me? These are important questions that every customer and colleague would answer differently. And since in Holacracy, no single person is calling the shots, the collective needs to make sure that communication remains appreciative across all channels.
For companies about to embark on that journey, you would recommend...
Taking the journey, it is worth it. Companies should embark on the journey towards shared leadership and self-management with clear conviction and goals. The transformation requires good support. This is absolutely fundamental, and it requires people with the right skills and enough time to take this on. It is not something you do on the side. Having someone with experience and an outside view of things by your side also helps. I would also recommend not having a plan B, just to make sure you stay the course and remain focused on your goal, investing all your energy into the new pathway, plan A. It is a journey that modern companies should embark on!
