✨ Introduction
In a world where legacy institutions still operate under industrial-era hierarchies, purpose-driven organizations such as nonprofits and public agencies face a different challenge: unlocking human motivation and meaningful work without the familiar incentives of profit or hierarchy.
After 15 years in service-based organizations, I’ve come to believe we need management and governance systems built for human-powered, mission-driven work. One of the most intriguing frameworks gaining traction is Holacracy — a model of shared leadership that replaces hierarchy with clarity, autonomy, and purpose.
🌍 What Is Holacracy?
Holacracy is a management and governance system that replaces traditional command-and-control structures with a network of roles, circles, and distributed authority.
Instead of job titles and fixed hierarchies, Holacracy emphasizes:
✅ Roles, not titles: People occupy roles defined by purpose and accountability, not rank.
✅ Circles (teams) as core units: Each circle has its own purpose and decision-making authority.
✅ Separate governance and operations: Circles hold governance meetings to evolve roles and rules, and operational meetings to do the work.
✅ Transparency and clarity: A “Holacracy Constitution” outlines how decisions are made and who has authority within each role.
💬 In short, Holacracy isn’t leaderless — it’s a structured system for self-management and shared power.
🔎 Why It’s Worth Understanding
Interest in Holacracy has grown over the last decade as organizations search for more adaptive, equitable systems.
Researchers describe it as “a new way of structuring and running an organization … to replace conventional management.”
Analysts see it as part of a broader movement toward self-management and collective intelligence.
Real-world case studies show how teams are experimenting with shared governance to align flexibility with accountability.
Holacracy may not yet be mainstream — especially in the U.S. nonprofit and public sectors — but it’s one of the clearest signals that traditional hierarchies are due for reinvention.
🏢 What the Business World Reveals (and Why Their Context Is Different)
When Zappos adopted Holacracy in the 2010s, it generated enormous buzz. The company wanted to reduce bureaucracy and empower teams. But nearly 18% of employees left during the transition — a reminder that cultural change is harder than structural change.
Why did it struggle?
Because the business world’s primary incentive — profit — can clash with distributed authority. Holacracy thrives on intrinsic motivation, clarity of purpose, and shared mission — elements that nonprofits already value but corporations often struggle to sustain.
💭 For mission-driven organizations, the story is different: people already share a common purpose. The challenge isn’t motivation — it’s structure.
💡 Why Holacracy Could Work for Nonprofits & Public Service
Nonprofits, libraries, and public agencies are service-based ecosystems — powered by trust, collaboration, and human connection. That makes them fertile ground for self-management frameworks like Holacracy.
Here’s why:
Shared mission: Everyone is driven by community impact, not profit.
Need for agility: Public needs shift quickly; rigid hierarchies slow adaptation.
Human-centered work: People perform best when they understand their purpose and have autonomy to pursue it.
Inclusion and transparency: Shared governance gives voice to those closest to the work — a direct reflection of equity and trust.
🌱 Holacracy offers a framework for purpose alignment, empowerment, and adaptability — values that nonprofits already claim but rarely operationalize.
⚠️ What to Watch Out For
Holacracy is powerful, but not plug-and-play. It’s best approached as a toolkit, not a total replacement for management.
Change management is essential. Transitioning to self-management requires new skills, training, and patience.
Accountability must stay central. Clarity about roles and outcomes prevents drift and duplication.
Hybrid models work best. Adopt elements — circles, roles, governance — without overhauling everything at once.
Measurement is complex. Nonprofits must translate qualitative impact (trust, belonging, learning) into quantitative indicators that tell the real story.
🧭 A Framework for Service-Driven Leadership
For leaders ready to experiment:
Pilot a circle. Start with one function (communications, outreach, or editorial). Define clear roles and accountabilities.
Design role-based governance. Give everyone the ability to propose changes to how work happens.
Blend qualitative and quantitative metrics. Evaluate both mission outcomes and workflow efficiency.
Train for autonomy. Teach facilitation, peer feedback, and decision-making.
Reflect and refine. Revisit governance regularly — iterate like a newsroom, not a bureaucracy.
✨ Holacracy doesn’t eliminate leadership — it redefines it as facilitation, coordination, and alignment rather than control.
🕊️ Why It Matters for The Common Collective
At The Common Collective, our work bridges perspectives and builds understanding. Our structure should do the same.
Holacracy, or a hybrid version of it, aligns with our values: truth, connection, empathy, and integrity. It offers a way to design leadership around shared purpose rather than power — ensuring that our internal culture reflects the world we hope to create.
“Every fragment, when held to the light, becomes part of something greater.”
📚 Annotated Reading List
Curated resources for further exploration — ideal for your “Resources” section or newsletter sidebar.
Holacracy: A Modern Form of Organizational Governance – Frontiers in Psychology (2022).
Overview of Holacracy’s structure and behavioral foundations.
→ Read on FrontiersCase Studies – Holacracy.org
Examples of real-world organizations implementing Holacracy.
→ Visit Holacracy.orgHow It Works: Organizational Structure – Holacracy.org
Clear overview of roles, circles, and authority.
→ Read hereZappos Company Structure: Holacracy Model Case Study – IvyPanda.
Lessons from Zappos’s high-profile experiment.
→ Read hereAutopsy of a Failed Holacracy: Lessons in Justice, Equity & Self-Management – Nonprofit Quarterly.
Explores equity challenges in nonprofit self-management.
→ Read hereIntegrating For- and Non-Profit – Holacracy.org Blog.
Insights on how self-management spans both sectors.
→ Read hereExploring the Spectrum of Self-Management: From Holacracy to Co-Elevating Teams – Forbes (2024).
Compares emerging self-management approaches.
→ Read hereBeyond the Holacracy Hype – Harvard Business Review (2016).
Balanced overview of Holacracy’s strengths and limits.
→ Read hereThe Holacracy Framework: A Unique Model to Achieve Self-Organization – LP Center (2023).
Practical explanation of how the model works.
→ Read hereWhat If Government Embraced Holacracy? – GovTech (2015).
Examines potential for Holacracy in public sector settings.
→ Read hereApplying the Holacracy and Company Democracy Models to Public Sector Education – MDPI (2023).
Academic comparison of participatory governance models.
→ Read hereHolacracy and Change Leadership: A Practical Guide – Braden Kelley (2019).
Practical tips for leaders implementing distributed models.
→ Read here
✍️ Author Bio
Jen Baxter is the Founder of The Common Collective, an independent nonprofit civic organization dedicated to truth, connection, and courage. A veteran public-sector and nonprofit leader with 15+ years of experience, she brings a unique perspective to civic storytelling, organizational design, and leadership rooted in empathy and impact.
Until next time,
Guiding Principles
People first | Transparency | Equity | Creativity | Accountability | Joy
www.thecollectivestories.org