Generational Perspectives on Employment: A Contrast between Baby Boomers and Millennials

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The world of employment has evolved significantly over the years, with different generations experiencing and interpreting work in distinct ways. Baby boomers and millennials, What Generation Am I? A Guide to Generations by Year (parents.com)separated by several decades, have grown up in contrasting socio-economic, technological, and cultural landscapes. These factors have played a role in shaping their perspectives on employment. In this article, we will delve into the divergent viewpoints of baby boomers and millennials regarding work, examining their values, priorities, and approaches to careers.

Work-Life Balance

Baby Boomers:

For many baby boomers, work was often seen as a means to provide for their families and secure a stable future. Many were part of the traditional 9-to-5 work culture, where long hours at the office were considered necessary for career advancement. The concept of “putting in the time” was deeply ingrained, often at the expense of personal and family life.

Millennials:

Millennials, on the other hand, tend to prioritize work-life balance. Work Life Balance | Mental Health America (mhanational.org)They witnessed their parents’ dedication to their jobs and the toll it took on family life. As a result, millennials often seek flexible work arrangements that allow them to balance their careers with personal interests and family time. Remote work and freelance opportunities are particularly attractive to this generation, enabling them to integrate work into their lives, rather than the other way around.

Career Loyalty

Baby Boomers:

Loyalty to one’s employer was a hallmark of the baby boomer generation. Many individuals spent the majority of their careers at a single company, viewing job stability and benefits as vital components of their employment. Climbing the corporate ladder and staying with the same company until retirement were common aspirations.

Millennials:

Millennials tend to value personal growth and skill development over long-term loyalty to a single employer. They are more willing to change jobs and even switch careers in pursuit of new challenges and opportunities. This fluid approach to employment can be attributed, in part, to the economic instability witnessed during their formative years and the rise of the gig economy, What is the gig economy and what’s the deal for gig workers? | World Economic Forum (weforum.org) which has normalized job hopping and freelancing.

Purpose and Fulfillment

Baby Boomers:

While many baby boomers found purpose and fulfillment in their work, these aspects were often secondary to the financial stability that employment provided. Career choices were frequently influenced by practical considerations rather than a quest for personal passion.

 

Millennials:

Millennials seek meaning and purpose in their careers. They are more likely to prioritize jobs that align with their values, allowing them to make a positive impact on society and the environment. This generation places a premium on job satisfaction and is willing to make career decisions that reflect their personal beliefs and goals, even if it means sacrificing higher-paying opportunities.

Technology and Adaptability

Baby Boomers:

Baby boomers adapted to technology as it emerged, but their careers were not as intertwined with digital tools and platforms as those of millennials. They often had to learn new technologies later in their careers, and some may have viewed technology as a disruptor rather than an enabler.

Millennials:

Having grown up in the digital age, The Digital Age: The Era We All Are Living In – DZone millennials are comfortable with technology and its rapid evolution. They readily embrace new tools and platforms, which has contributed to the rise of remote work, digital nomadism, and the gig economy. This adaptability allows them to navigate an ever-changing job market with relative ease.

In conclusion, the differing perspectives of baby boomers and millennials on employment reflect the evolving nature of work and societal values. While baby boomers often prioritized stability and financial security, millennials place greater emphasis on work-life balance, purpose-driven careers, and adaptability. Understanding these generational differences Generational Differences in the Workplace
 [Infographic] (purdueglobal.edu) is crucial for employers, policymakers, and individuals seeking to thrive in the modern world of work, fostering collaboration and harnessing the strengths of each generation.

The Pervasive Influence of Proxy Advisory Firms on Public Company Shareholders

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Proxy advisory firms, once relatively obscure entities, have risen to prominence in recent years as influential players in the corporate governance landscape. These firms provide crucial recommendations and analysis on various matters put forth during shareholder meetings, profoundly impacting the decision-making processes of public company shareholders. This article explores the pervasive influence wielded by proxy advisory firms and the implications of their recommendations on corporate governance and shareholder engagement.

Understanding Proxy Advisory Firms:

Proxy advisory firms, such as Institutional Shareholder Services (ISS) Governance Advisory Services | ISS (issgovernance.com)and Glass, Lewis & Co., Glass Lewis – Proxy Voting have emerged as critical intermediaries between companies and their shareholders. Their primary responsibility lies in providing unbiased research, analysis, and recommendations on matters put to vote during annual meetings, Annual General Meeting (AGM) – Overview, Public Companies (corporatefinanceinstitute.com) including executive compensation, board elections, mergers and acquisitions, environmental and social proposals, and other critical governance issues.

Influence on Shareholder Voting:

Shareholders of public companies, particularly institutional investors, often rely on the research and guidance provided by proxy advisory firms to make informed voting decisions. The firms’ recommendations carry significant weight, as they possess a reputation for thorough analysis and objectivity. As a result, their guidance can shape the outcomes of shareholder votes, leading to substantial impacts on the companies in question.

Effect on Corporate Governance:

The recommendations of proxy advisory firms can influence corporate governance practices within public companies. Faced with the prospect of unfavorable voting outcomes, companies may be compelled to address governance deficiencies, enhance transparency, and align executive compensation with performance metrics. This external pressure to conform to best practices can foster more accountable and responsible corporate leadership.

Controversies and Criticisms:

Despite their widespread influence, proxy advisory firms have faced criticisms on various fronts. Concerns have been raised about potential conflicts of interest, as these firms may provide both proxy advisory services and consulting Home – ISS Corporate Solutions to companies seeking to improve their governance practices. Critics argue that this duality could compromise the firms’ objectivity and independence.

Moreover, some argue that proxy advisory firms’ methodologies may not always be entirely transparent or reflective of the unique contexts of each company, leading to recommendations that do not consider specific nuances of the business. This raises questions about whether the firms’ recommendations always serve the best interests of shareholders in every case.

 

The Balancing Act:

The influence of proxy advisory firms is a delicate balance between providing valuable guidance to shareholders and the potential risks associated with undue concentration of power in their hands. Regulators and market participants have recognized the significance of proxy advisory firms and have taken steps to promote greater transparency, accountability, and oversight in their operations.

Engaging with Proxy Advisory Firms:

Public companies are increasingly engaging with proxy advisory firms to ensure that the firms’ assessments consider a comprehensive view of the company’s governance practices and long-term strategic vision. Constructive dialogues between companies and proxy advisors can lead to more accurate assessments and a deeper understanding of the company’s unique circumstances.

In conclusion, proxy advisory firms play an undeniably influential role in shaping the corporate governance landscape by providing vital recommendations to shareholders. While their impact has led to positive changes in corporate practices, concerns regarding their objectivity and methodologies persist. Engaging in constructive dialogue with these firms and promoting greater transparency in their operations may lead to more balanced and informed decision-making, ultimately benefiting both public companies and their shareholders. As these firms continue to evolve, it is essential to strike a harmonious balance that upholds their value while mitigating potential risks to corporate governance and shareholder interests.

Coach versus Mentor

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A coach and a mentor are both valuable resources for personal and professional development, but they serve different roles and have distinct characteristics. Here are the main differences between a coach and a mentor:

Purpose and Focus:

Coaching: Coaching The Role of a Coach in The Workplace | EZRA (helloezra.com) primarily focuses on performance improvement and goal achievement. A coach helps individuals identify their goals, develop action plans, and provides support, guidance, and feedback to enhance their skills and reach their desired outcomes. The emphasis is on short-term objectives and specific areas of development.

Mentoring: Mentoring 10 Reasons Why You Need a Mentor | Indeed.com is more about long-term personal and professional growth. A mentor is someone with extensive experience and knowledge in a particular field who offers guidance, advice, and wisdom to a less-experienced individual. The focus is on sharing insights, imparting wisdom, and nurturing the mentee’s overall development.

Relationship:

Coaching: The coach-client relationship is typically formal and structured. Coaches establish a professional relationship based on trust, confidentiality, and clear boundaries. They work collaboratively with clients to explore their goals, challenges, and strategies for improvement.

Mentoring: The mentor-mentee relationship is often informal and built on a foundation of mutual respect and trust. Mentors usually have a personal connection or shared interest with the mentee. The relationship tends to be more flexible and can involve discussions about various aspects of life and career.

Expertise and Experience:

Coaching: Coaches may or may not have specific expertise in the client’s field. They focus more on coaching skills, such as active listening, questioning, and providing support. Coaches help individuals develop their own solutions and perspectives by drawing out their strengths and potential.

Mentoring: Mentors possess extensive experience, knowledge, and expertise in the mentee’s field or area of interest. They share their wisdom, offer advice, and provide insights based on their own professional journey. Mentors may also provide introductions to their network or offer career guidance specific to the industry.

Duration and Intensity:

Coaching: Coaching engagements are typically time-bound and have a specific duration. The Four Stages of a Coaching Assignment (coaching-focus.com)Coaches work with clients for a defined period to achieve their goals or address specific challenges. The frequency of coaching sessions can vary depending on the individual’s needs and availability.

Mentoring: Mentoring relationships tend to be more open-ended and can last for an extended period, sometimes even spanning years. How Long Should Mentorship last? (mentorloop.com)Mentors offer ongoing support and guidance as the mentee progresses in their personal and professional journey.

Approach:

Coaching: Coaches use a structured and goal-oriented approach, employing various techniques and methodologies to help clients gain clarity, set objectives, and take action. The Best Ways for Coaching an Employee in the Workplace | Indeed.comThey facilitate self-discovery, encourage self-reflection, and help clients overcome obstacles.

Mentoring: Mentors take a more informal and nurturing approach. They provide guidance, share experiences, and offer advice based on their own successes and failures. Mentors often provide a sounding board for ideas, offer perspective, and encourage the mentee’s growth.

It’s important to note that these distinctions are not always absolute, and there can be overlap between coaching and mentoring depending on the specific context and the individuals involved. The terms “coach” and “mentor” are sometimes used interchangeably, and individuals may fulfill both roles to varying degrees.

The Key to Success

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We have all been there.  Should we buy the house or not?  Should we go back to school or put our energies into our current role Should I Go Back to School During a Recession? – Kenzie Academy (snhu.edu)?  Should we hire the candidate or move on?  We, more frequently than not, choose to stay the course.  We choose not to buy the house and to stay where we are, we choose not to return to school and we choose not to hire the candidate.  We pat ourselves on the back for making a great decision.  The house was too expensive, and we probably couldn’t have sold our current home, we probably couldn’t have managed to further our education and continue to work and that candidate that we decided to turn down was lacking in at least 6 different ways.  You have avoided what was certain to be a failure.  The question is, whose failure are you actually trying to avoid and what are you giving up when you are unwilling to take a risk? The Incredible Power of Taking Risks in Life – The Daily Positive

The fact of the matter is, the greatest achievements require going outside of your comfort zone and taking a well thought out risk.   Many of us have a difficult time dealing with the uncertainty that goes along with taking risks. We grow uneasy not knowing the outcome and we fear potential failure. What if I cause my family financial ruin?  What if I lose my job because I can’t put in as many hours as before? What if the candidate that I hire isn’t perfect and I am blamed? At the root of most of these questions is the questions “What if I’m not good enough?”  

One way to combat the fear of risk taking is to ask yourself “What if” or “So what?”  These questions can diffuse the negative self-talk by providing alternatives. Taking a risk to achieve a goal requires courage to face the fear of uncertainty. No matter the outcome, either way, we grow through the process and become more resilient and confident.  There is no right or wrong answer to many of life’s questions and avoiding them all together ensures that you never allow yourself the opportunity to grow.

Another way to combat the fear of uncertainty is to remember that in almost every situation, you are allowed to make a U-turn.  If the decision you made does not work out as you expected it to, then make another decision.  Figure out what your learnings are, what experience you took away from the situation and move on.

One of the more obvious ways to reduce the fear of risk is to learn as much as you can about the experience you are considering embarking on. Career advice: How to get better at taking risks (usatoday.com) Find other people who have done what you are considering doing and get their advice, listen to what they have learned and what they would have chosen to do differently.

Successfully taking risks The Importance Of Taking Risks (7 Reasons To Take More Risks) (eightysixfourhundred.com)can lead to very positive outcomes including:

  • Standing out form the crowd
  • Helping you to feel alive and empowered
  • Enabling you to think more creatively
  • Helping you to learn about yourself

Risk taking can be healthy and help people develop confidence. Any failure you experience is part of the success process, not the antithesis of success.  If you aren’t willing to risk failing it is likely you will never be willing to take the risks necessary to experience great success!

Time Affluence

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We are all familiar with the term financially affluent, however, the term gaining traction today is time affluence.  Time affluence Time Affluence Increases Happiness. So How Do You Achieve It? – MOJEH is when you feel like you have enough time to relax or pursue meaningful activities. Time poverty is when you feel stressed because you are constantly rushing and feel you never can catch up.  It becomes especially obvious during this time of year when many employees are off work for the holidays.  People slow down and start wondering whether the hamster wheel they are on is truly the best way to enjoy and bring real meaning to their lives. In fact, four out of five adults report Why You Never Seem to Have Enough Time (berkeley.edu) feeling that they have too much to do and not enough time to do it. People who experience less time affluence also experience less joy each day. They laugh less. They are less healthy, less productive, and more likely to divorce. In one study, stress related to time poverty produced a stronger negative effect on happiness than even unemployment.

Unlike money, where we have choices to either spend what we have more wisely or create/earn more, we cannot increase our time.  We all have the same 24 hours each day. So, the option that leaves us with is finding a way to use our time most wisely.  Below are some ways to get the most out of the time we have.

Meditate

Strangely enough, taking downtime, especially to meditate, How to Meditate – Mindful can make us more productive in the time we spend working or actively engaged.  Especially if you have a difficult problem to solve.  Our subconscious minds will often continue to work after we have taken a break, allowing us to come back and see new solutions.

New Experiences

Engaging in new experiences can alter our sense of time.  We have all had the experience of time moving more quickly or slowly depending on what we are doing and how engaged at the moment we are.  When we free our minds to try new things, we allow ourselves the gift of experiencing our daily life differently.

Funding Time

Research has shown that people that make the decision to “buy” their way out of unenjoyable activities frequently respond more favorably to being time affluent.  The peace of mind you receive by giving yourself 3 hours of housekeeping/cleaning services may pay big dividends in your life.

Block Time

Blocking out time What Is Time Blocking And How Does It Work? (2021 Guide) – Biz 3.0 (timedoctor.com) on your calendar to just think or catch up with someone you haven’t seen in a while starts to reframe how you think about time.  In our “always-on” society, there is an expectation that we will respond to e-mails within minutes, creating a vicious circle.  Blocking time for downtime and treating it as just as important as the next barrage of e-mails can keep you feeling more in control of your day.

Money and time have much in common.  They can both be measured, and we feel as if we never have enough of either, forcing us to constantly choose between the two. The choices that we make, every day, can powerfully shape our feelings of fulfillment and happiness from the moments, days, and years of our lives. Choose wisely to enjoy your definition of a life well-lived.

2018 Canadian HR Trends

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It is always interesting to look at Human Resources Trends from around the world to explore the similarities and differences of varying cultural perspectives.  As our parent company is Canadian, let’s look at a few of the trends that are top of the list for 2018.  Morneau Shepell compiles an annual list of Canadian HR Trends:

Insights on what HR leaders are expecting in the coming year:

 

• Improving employee engagement is a top priority

Employee Engagement is top of mind for companies in the US as well.  Not only for altruistic motives, but for the sheer fact that engagement can be tied to better productivity and bottom line numbers all around.  Trying to tap into the discretionary effort each employee has is big business. http://www.snacknation.com/guides/definitive-guide-employee-engagement/

• Streamlining administration and absence management continue to be focus areas

Streamlining administration is a worthy cause in any country.  Streamlining can take the form of creating new processes or automation.  Robotic process automation has real potential to transform the mundane tasks in HR.

• HR leaders continue to be cautious about salary increases.  Salaries expected to increase by 2.3 per cent in 2018.

While salary increases are trending just slightly higher in the US, there are still concerns about how to differentiate between average and high performers with such small increase budgets.

• Employers are looking at workforce data in silos, with very few looking at data in an integrated way

Data will be THE FOCUS in 2018 whether in silos or a more integrated approach. 

• Complex mental health claims are the top disability management concerns

Large claim management in general is a concern.  A few large claims can turn the loss ratios in the wrong direction.

• Manager training is a focus in managing absence and disability

Manager training is a focus for all companies.  It should encompass the hard skills like managing absenteeism and disability LOA’s, but should also encompass softer skills like having difficult conversations, confrontation and inspiring your employees.

• Organizations are concerned that their employees are not adequately prepared for retirement

This is a growing concern amongst many US employers as well.  Financial wellness training for the workforce is a partial solution.  Other approaches may include automatic enrollment in 401(k) plans and writing plan documents to exclude the popular loan provisions.

Companies around the globe have the same goals, to inspire their workforces, yielding a team of more engaged workers and better profits at the bottom line.

Predictive Analytics in Human Resources

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Data based decision making and predictive analytics are buzz words you are hearing a lot about these days.  However, they are emerging from the dark corners of the developer’s worlds and into the light of mainstream business operations. I was speaking at an Analyst update earlier this week and the question came up “which companies do you follow that are using predictive analytics in Human Resources?”   A great question, but the answer was, unfortunately, no one.  Although it may be some time before this data based approach becomes mainstream in the world of Human Resources, there are a plethora of reasons it should.  

Let’s start with a definition of predictive analytics.  It is basically just a script or a technology that learns from current data and then uses that current data to “predict” or forecast upcoming data or behavior. Think about how your credit score works.  The rating agencies use data, your past history of paying on time, as well as other data points, to “predict” your ability and willingness to pay on time for a new loan.

HR has massive set of data on its employees.  By applying predictive analysis to these data sets, HR moves toward becoming more of a strategic partner at the table.  Decisions become fact and data based instead of depending on someone gut feelings or instincts.  Predictive analytics allows HR to forecast the impact that different policies will have on their workforce and to get ahead of the curve on turnover, candidate success models and employee engagement.

From Deloitte’s 2017 Global Human Capital Trends Survey. While 71 percent of companies see people analytics as a high priority in their organizations (31 percent rate it very important), progress has been slow. The percentage of companies correlating HR data to business outcomes, performing predictive analytics, and deploying enterprise scorecards barely changed from last year.

Analytics is being applied to a wide range of business challenges: Recruiting remains the No. 1 area of focus, followed by performance measurement, compensation, workforce planning, and retention. We see an explosive growth in the use of organizational network analysis (ONA) and the use of “interaction analytics” (studying employee behavior) to better understand opportunities for business improvement.

Staffing and on-boarding tends to be an area that we think of first when it comes to utilizing Predictive Analytics.  We all want to be able to predict the success of the candidate in the role.  Progressive HR organizations are using interview data, careful parsing of job posting language, and candidate screening data to do just that. New tools that look at social and local hiring data can even help companies identify people who are “likely to look for new jobs” much before they are even approached by competitors.

Turnover is another area that could greatly benefit from this approach.  Capturing and reporting on it is nice, but what about getting ahead of it?  What about using data to be able to predict who is likely to submit their resignation within the next 3 months and conducting extensive stay interviews with those employees? Or being able to offer them an Individualized Development Plan to solidify their engagement?

There are a multitude of opportunities to utilize Predictive Analytics to help us make better decisions across the board in each of our organizations.

Compensation- putting the plan in place

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Last week we talked about establishing your Compensation Strategy and how to determine the competition and your rationale for certain recommendations.  Once you have a thorough well thought out strategy, though, you need to execute.  Careful, well thought out execution is every bit as important as developing your strategy.  Remember, it is likely that you understand compensation better than anyone else in your organization so start at the top.

 

Get your Executive Team Bought in

Keep in mind that executive teams have a lot on their mind and are likely not up to speed with why a compensation strategy is important, so start simple.  https://www.shrm.org/ResourcesAndTools/hr-topics/compensation/Pages/AlignPay.aspx The payroll in a company is by far the largest expenditure and compensation touches all areas like candidate attraction, retention, turnover and satisfaction to some degree.  Pay ranks in the number three spot as to reasons why employees leave positions and the cost to replace that employee is anywhere between 100-200% of their base salary. https://www.appleone.com/Employers/SCALE/2017/EngagementTools/cost-of-turnover-calculator.aspx  Plenty of reason to make sure that compensation is NOT the driving force behind your resignations.

 

Train your Managers to have Compensation Conversations

Once your executive team is bought into your strategy, it’s time to train your managers to talk about compensation. https://hbr.org/2014/04/how-to-discuss-pay-with-your-employees  We have all heard or experienced firsthand the horror stories of employees finding out what their raise is when their paycheck comes out, never having had a conversation with their manager, or the manager walking into a group of employees, handing each a piece of paper with their raise on it and walking out, thus missing a critical opportunity to further enhance the employee’s satisfaction and level of engagement. https://compensation.blr.com/Compensation-news/Compensation/Compensation-Administration/Preparing-for-Compensation-Conversations-with-Empl/  The first step is to listen.  Listen to what the employee has to say, repeat back what you think you have heard.  Share critical information, such as the merit budget pool for the year and the compensation philosophy.  

 

Communicate the Process

Letting the team know up front and reminding them often of who will do what we go a long ways towards preparing for success. http://www.simplehrguide.com/compensation-strategy-key-content.html  Communicate the roles that HR will play-to establish salary grades and structures, to provide compa-ratios, to set the merit pool amount and to weigh in on any recommended market adjustments.  The first line managers will be responsible for recommending salary increase, justifying recommendations for promotions or market adjustments and communicating the approved increases to the individual employees. Your executive team has the responsibility to communicate and support the compensation strategy and philosophy they have approved. Employees, too, play a role.  They have the responsibility to ask questions and ensure that they get a satisfactory answer.  Make sure that they know their manager is their first stop, but if questions remain unanswered that HR’s door is always open.

Do you best to create an environment where compensation is not practiced in a black box, but is implemented in a thoughtful, straight forward way, where everyone understands what it is meant to achieve and feels comfortable offering suggestions to enhance the process.  A compensation strategy, created and implemented well, can enhance many aspects of the organization and the employee experience.

Compensation- Getting it Right

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This time of year brings all the excitement of the holidays, Halloween, Thanksgiving, Christmas and Hanukkah, among others.  Amid all the festivities, for many organizations, it brings Compensation planning activities including revisions of salary structures, decisions on merit increases, promotions, adjustments and bonuses.  Before you say “Bah Humbug” let’s take a closer look at how to structure a compensation plan and why it’s so important to your organization. 

For all of the articles out there espousing compensation as a short term motivator, compensation speaks to our employees.  It tells a story of how we perceive their value in the workplace.  There is little that is more important than the value one sees in oneself and that is partly determined by the value others place on us and our contributions.

Ask Questions

You have to start out by asking the right questions in order to determine what your company’s compensation strategy should be.  It’s OK not to have all the answers, they will provide topics for discussion with your internal teams.

What are your goals?   

It’s important to know what problem you are trying to solve before you launch into a strategy to solve it.  Do you have excessive turnover?  Are you having a hard time attracting candidates?  Are you losing your high potential employees at an alarming rate?  Do you need to focus certain groups on different goals

How would you define your market?

Is it defined solely based on a geography you are in?  Do you need to include competitors outside of your geographical regions?  Is it domestic or do you have international competitors as well?  Sometimes, you can get a good clue to identifying this by asking where do your employees come from, and where do they go when they leave?

How competitive do you need to be?   

Some disciplines like Big Data are highly competitive and there may only be a handful of candidates that everyone is competing for.  On the other hand, if your positions are relatively common and there are many candidates available, you may be able to set you target closer to the 50th percentile and be just fine

What and how should you reward?  

What behavior do you want to reinforce and what types of rewards will you give?  The most effective plans focus on a Purpose Statement and/or Guiding Principles.  Your rewards should ultimately drive the culture you are trying to create.  Even monetary rewards come in many different forms.  They could be merit increases, promotions, short term or long term cash incentives.

All of the above questions will help to guide you toward the most effective compensation strategy for your organization and drive employee productivity forward. 

 

Hierarchy versus holacracy

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Before we delve into whether or not holacracy is right for your organization, how many of us know what holacracy is?  Holacracy is a social technology or system of organizational governance in which authority and decision-making are distributed throughout a holarchy of self-organizing teams rather than being vested in a management hierarchy.  In theory, holacracy empowers people to make meaningful decisions and drive change.

Instead of a traditional management structure where questions must go from the bottom to the top and decisions go in reverse, organizations that adopt holacracy empower agile teams of people to make and implement decisions.

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Self-organization models typically share three characteristics:

Teams are the structure

In holacracy, there are “circles” or many companies simply call them “teams.” Whatever they’re called, these basic components are not, individuals, and not units, departments, or divisions but they are the essential organizational building blocks.  Individual roles are defined and assigned in order to accomplish the work. As in more traditional hierarchical organizations, there may be different teams for different projects or functions like finance, tech, sales. But self-managing enterprises have a lot more of them. After Zappos implemented holacracy, 150 departmental units evolved into over 500 circles.

Teams design and govern themselves

Although self-organizing companies try to avoid the traditional hierarchy, the teams are a part of a larger structure, which they are actually able to shape and refine. Holacratic organizations have everyone sign a constitution—a document outlining the rules by which circles are created, changed, and removed. So the circles not only manage themselves; within those guidelines, they also design and govern themselves. The constitution doesn’t dictate exactly how people should do their tasks. It explains in a broad way how circles should be created and operate: how they should assign roles, what boundaries the roles should have, and how the circles should interact with one another. 

Leadership is constantly changing

In self-managed organizations, leadership is distributed among roles, not individual people.  People usually hold multiple roles, on multiple teams. Leadership responsibilities continually change as the work changes and as teams create and define new roles. Technology is essential for keeping all these changes straight. The information is accessible to anyone in the organization and each individual’s commitments are visible to everybody at the company. Supposedly, transparency enables cross-team integration.

Although it is becoming a buzz word, holacracy is not being adopted at a rapid pace. The organizations who have tried to adopt it run into a myriad of issues, including increased turnover and decreased productivity given the endless meetings.  While some look at it with interest, others simply say it does not work.  Next week we will delve into some of the issues that have arisen when organizations have tried to implement holacracy.