A NEW WORKING CONSTITUTION EMERGES TO CODIFY A LIQUID HOLACRACY” GOVERNANCE MODEL

Imagine an organization where hierarchy melts away, replaced by a fluid, dynamic structure that empowers every member.This isn't a utopian fantasy; it's the promise of holacracy, and it's taking shape with the emergence of new working constitutions. Holacracy is a management framework codified into a constitution the rules of engagement for working in an organization. It takes a leader willing to delegate their authority into a set of foundational rules that everyone will follow, including themselves.The pursuit of more agile and responsive organizational structures has led to the rise of holacracy, a self-management system where authority is distributed, and decision-making is decentralized. Governance process: Holacracy has a unique governance process that empowers employees to propose changes to the organization s structure and processes. These proposals are evaluated and approved by the whole team, rather than by a single manager. Holacracy doesn t restrict people to their job titles. Instead, authority and responsibilitiesThink of it as an organizational operating system upgrade.Now, innovative collaborations are pushing this concept further, most notably with the development of codified constitutions designed to govern interactions within decentralized environments.

One such example is Bitnation's partnership with Swarm.They are pioneering a ""holonic contract"" to manage their Slack community, a testament to how holacracy principles can be applied even in informal, online settings.ConsenSys is also at the forefront, developing governance models to replace traditional hierarchies with a more liquid and decentralized approach.But what exactly *is* a liquid holacracy, and how can a constitution codify its principles?This article will delve into the core concepts of holacracy, explore the significance of these emerging constitutions, and provide practical guidance on implementing this transformative governance model.

Understanding the Core Principles of Holacracy

At its heart, holacracy is a radical departure from traditional hierarchical management. Anybody who s been following Holacracy for a while must have tried to read the Holacracy Constitution at least once. If so, like most people, you might have been disappointed to discover what s under the hood: hard to digest legalese.It's a system that distributes authority and decision-making power throughout an organization, empowering teams and individuals to take ownership of their work.Instead of fixed job titles, individuals hold multiple ""roles"" within different ""circles,"" each with specific responsibilities and accountabilities. Holacracy represents a transformative approach to organizational leadership that decentralizes authority and fosters a culture of self-management and innovation. By adopting the Holacracy Constitution and implementing this new management system, organizations can create more dynamic, responsive, and empowered workplaces.This allows for greater flexibility and responsiveness to changing circumstances.

Several key principles underpin the holacracy framework:

• Distributed Authority: Power is not concentrated at the top but distributed throughout the organization.
• Self-Organizing Teams (Circles): Teams have the autonomy to organize themselves and make decisions related to their work.
• Clearly Defined Roles: Each individual holds specific roles with clearly defined responsibilities and accountabilities.
• Iterative Governance: The organization's structure and processes are continuously refined through a structured governance process.
• Transparency: Information is readily accessible to everyone in the organization.

The Holacracy Constitution: The Foundation of the System

The Holacracy Constitution is a crucial element.Think of it as the operating system's instruction manual.Developed by Brian Robertson, it establishes the fundamental rules and processes for how the organization operates.It defines the roles, the governance process, and the mechanisms for resolving conflicts. Although holacracy is becoming more popular, research on working conditions and well-being of employees working in holacratic organisations is sparse. The concept of holocracy refers to the development of a new way of structuring and running an organisation that replaces conventional management.By adopting the constitution, leadership commits to relinquishing traditional control and empowering the defined processes.

While the Holacracy Constitution can appear daunting with its detailed legal language, it serves as a stable framework within which teams and individuals can innovate and adapt. A New Working Constitution Emerges to Codify a Liquid Holacracy Governance Model Bitnation in Partnership with Swarm is developing a proto-constitution, or what it referred to as a holonic contract to govern interactions within its Slack Community, which is a collaborative messaging and sharing platform used globally byIt's important to remember that the constitution is not intended to be a static document. How to Start with Holacracy. Adopt the Constitution: Leadership formally agrees to abide by Holacracy s rules, distributing control to the defined process. Train Everyone: Holacracy is a new operating system. Provide ample time and support for people to learn its vocabulary, tools, and rhythms.Holacracy's framework enables changes through governance processes.

The Rise of Liquid Holacracy: Embracing Fluidity and Adaptability

Liquid holacracy represents a further evolution of the holacracy model, emphasizing even greater fluidity and adaptability. How Does a Holacracy Work? In a holacracy, teams have more autonomy to execute and propose ideas without building consensus or running things up the chain of command. To implement and maintain this kind of structure, founders and CEOs ratify the Holacracy Constitution, allowing holacracy s governance process to determine who has decisionIn a liquid holacracy, roles and responsibilities can shift more easily in response to changing needs and priorities. Unlike Holacracy, shared governance is not based on a formal constitution or universal framework; instead, it offers flexibility that allows organizations to co-create their own processes. Concretely, it relies on structured tools to share decision-making power, foster active participation, and strengthen collective accountability.This allows organizations to be even more responsive to market demands and customer feedback.

This model relies on structured tools to share decision-making power, foster active participation, and strengthen collective accountability.

Key characteristics of liquid holacracy include:

• Dynamic Role Allocation: Roles are assigned based on skills, interests, and availability, rather than fixed job descriptions.
• Decentralized Decision-Making: Decisions are made by the people closest to the work, rather than by managers.
• Continuous Feedback and Adaptation: The organization continuously monitors its performance and adapts its structure and processes accordingly.
• Emphasis on Self-Management: Individuals are empowered to manage their own work and take ownership of their responsibilities.

Codifying Governance: The Role of Constitutions in Decentralized Organizations

In a traditional hierarchical organization, governance is typically handled by a board of directors or a senior management team.However, in a holacratic or liquid holacratic organization, governance is distributed throughout the organization. Bitnation in partnership with Swarm is developing a proto-constitution, or what it referred to as a holonic contract to govern interactions within its Slack Community Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.This requires a clear and well-defined set of rules and processes to ensure that decisions are made fairly and effectively.

This is where constitutions come in. A New Working Constitution Emerges to Codify a Liquid Holacracy Governance Model . byA constitution, in this context, is a formal document that outlines the rules, processes, and principles that govern the organization.It serves as a guide for decision-making, conflict resolution, and organizational development. The governance meeting process is designed to make structural changes to the organization, e.g. changing the roles, circles, and policies. Traditionally, this type of decisions is made exclusively by managers.It's a formal agreement about how the organization operates.

The benefits of codifying governance in a constitution include:

• Clarity and Transparency: Everyone in the organization knows the rules and processes.
• Fairness and Accountability: Decisions are made according to established rules and processes.
• Empowerment: Individuals are empowered to participate in governance and shape the direction of the organization.
• Adaptability: The constitution can be amended and updated to reflect changing needs and priorities.

Bitnation and Swarm's Holonic Contract: A Real-World Example

Bitnation's partnership with Swarm provides a compelling example of how a constitution can be used to govern interactions within a decentralized environment.Their ""holonic contract"" is designed to manage interactions within their Slack community, a collaborative messaging and sharing platform.This contract establishes the rules of engagement for the community, defines the roles and responsibilities of members, and outlines the processes for resolving conflicts.

By codifying these rules and processes, Bitnation and Swarm aim to create a more transparent, fair, and effective community. Governance meetings are highly structured, which is often a surprise to new participants. While they leave little space for open discussion, the process is structured to encode healthy communication patterns (e.g. seek first to understand, then to be understood ).They are essentially applying holacratic principles to a digital space, empowering community members to self-organize and take ownership of their interactions.

Implementing Holacracy: A Step-by-Step Guide

Implementing holacracy is a significant undertaking that requires careful planning and execution. When you start to follow Holacracy, you learn to create new structures and ways of making decisions that empower the people who know the most about the work you do: your frontline colleagues. Some of the many champions of Holacracy include Tony Hsieh, CEO of Zappos.com (author of the 1 New York Times bestseller Delivering Happiness ), EvanIt's not simply a matter of changing your organizational chart; it's a fundamental shift in mindset and culture. Robertson later developed the Holacracy Constitution which lays out the core principles and practices of the system. In 2025, he released a Manifesto 16 of Holacracy which was later developed in June 2025, as the book Holacracy: The New Management System for a Rapidly Changing World, that details and explains his practices. [2]Here's a step-by-step guide to help you get started:

1. Adopt the Constitution: The first step is to formally adopt the Holacracy Constitution.This signals a commitment to the principles of self-management and distributed authority.
2. Train Everyone: Holacracy is a new operating system, and everyone needs to be trained on how it works. A new working constitution has emerged, codifying a liquid holacracy governance model for decentralised organisations. The model, developed by ConsenSys, is designed to replace traditional hierarchical structures with a more fluid, decentralised approach.Provide ample time and support for people to learn its vocabulary, tools, and rhythms.
3. Establish Circles and Roles: Define the key functions and responsibilities within the organization and create circles to manage these functions. Remember, the constitution requires them to do so if asked. Finally, if you come across this, highlight the existence of PAD. It s tongue-and-cheek but easy to remember. When Holacracy practice is new there is a natural pull to test your understanding by crafting governance, so there s nothing wrong with acknowledging the phenomena.Assign individuals to specific roles within those circles, clearly defining their accountabilities.
4. Implement Governance Meetings: Establish a regular governance meeting process where teams can propose changes to the organization's structure and processes. Holacracy emerges as an alternative that distributes authority horizontally, promoting autonomy and innovation. Its theoretical framework focuses on work groups, roles, autonomy and flexibility, highlighting the importance of transparent communication and role delimitation.These meetings are highly structured, designed to encode healthy communication patterns and facilitate continuous improvement.
5. Embrace Transparency: Make information readily accessible to everyone in the organization. Depth Leadership Coaching empowers leaders to create a working model and gain maximum value from the Holacracy structure. We cannot force change. We can, however, work with the inner system to enable change. Holacracy is providing the structure and Depth Leadership Coaching the awareness to support this quantum leap.This includes financial data, performance metrics, and strategic plans.
6. Provide Ongoing Support: Implementing holacracy is an ongoing process. Coded constitution a new Governance model :Provide ongoing support and coaching to teams and individuals as they adapt to the new system.

Addressing Common Challenges in Holacracy Implementation

While holacracy offers numerous benefits, it's important to be aware of the potential challenges that can arise during implementation.Some common challenges include:

• Resistance to Change: Some individuals may resist the shift to self-management and distributed authority.
• Lack of Clarity: If roles and responsibilities are not clearly defined, it can lead to confusion and conflict.
• Ineffective Governance Meetings: If governance meetings are not conducted effectively, they can become unproductive and frustrating.
• Information Overload: With increased transparency, individuals may feel overwhelmed by the amount of information available.

To mitigate these challenges, it's important to provide clear communication, ongoing support, and effective training.It's also important to be patient and persistent, as it takes time for people to adapt to the new system.Remember to be open to feedback and adapt the implementation to your specific needs and context.

Holacracy in Action: Examples of Successful Implementations

While research on the working conditions and well-being of employees in holacratic organizations is still emerging, there are several examples of organizations that have successfully implemented holacracy.Zappos, the online shoe and clothing retailer, is perhaps the most well-known example.Under the leadership of Tony Hsieh, Zappos adopted holacracy as a way to foster innovation, empower employees, and improve customer service.

Other organizations that have implemented holacracy include Medium, the online publishing platform, and Springest, a learning platform company.These organizations have reported benefits such as increased agility, improved employee engagement, and better decision-making.

Holacracy vs.Shared Governance: Understanding the Differences

It's important to distinguish holacracy from other forms of distributed governance, such as shared governance.While both approaches aim to decentralize authority and empower employees, they differ in their structure and implementation.

Holacracy is based on a formal constitution and a predefined set of rules and processes.Shared governance, on the other hand, is more flexible and allows organizations to co-create their own processes.Shared governance is not based on a formal constitution or universal framework.It offers flexibility, allowing organizations to co-create their own processes and relies on structured tools to share decision-making power, foster active participation, and strengthen collective accountability.

The choice between holacracy and shared governance depends on the specific needs and culture of the organization. Swarmとパートナーシップを結んだBitNationは、実験的な組織編成、いわゆるホロニックといわれる、 Slackコミュニティ 内における交流を統括するための契約方法を展開中で、それにより共同的なメッセージのやり取りや、組織によるグローバルなプラットフォームが、よりよりワークフローのHolacracy may be a better fit for organizations that value structure and clarity, while shared governance may be more suitable for organizations that value flexibility and collaboration.

PAD: The Perils of Premature Governance Deliberation

When implementing holacracy, particularly when the practice is new, there is a natural tendency to test your understanding by crafting governance.While this is understandable, it can sometimes lead to ""PAD"" – the Perils of Premature Governance Deliberation.PAD occurs when teams spend too much time and energy on governance before they have a clear understanding of the work that needs to be done.To avoid PAD, focus on understanding the operational needs of the organization before diving into governance changes.

Is Holacracy Right for Your Organization?

Holacracy is not a one-size-fits-all solution.It requires a significant commitment from leadership and a willingness to embrace a new way of working.Before implementing holacracy, it's important to carefully assess your organization's needs, culture, and readiness for change.

Consider these questions:

• Is your organization ready to embrace self-management and distributed authority?
• Do you have a culture of trust and transparency?
• Are your employees willing to take ownership of their work and participate in governance?
• Are you prepared to invest in training and support?

If you answer yes to these questions, then holacracy may be a good fit for your organization.However, if you have concerns about any of these areas, it's important to address them before moving forward.

Conclusion: Embracing the Future of Governance

The emergence of new working constitutions to codify a liquid holacracy governance model represents a significant step forward in the evolution of organizational structures. Bitnation in partnership with Swarm is developing a proto-constitution, or what it referred to as a holonic contract to govern interactions within its Slack Community, which is aBy embracing self-management, distributed authority, and continuous adaptation, organizations can become more agile, responsive, and innovative.While holacracy is not without its challenges, the potential benefits are significant.The movement towards this management style is still relatively new and therefore can come with uncertainty regarding employee well-being and overall workflow.

As Bitnation and Swarm demonstrate with their holonic contract, the principles of holacracy can be applied even in decentralized environments. The Holacracy system provides clarity, structure, and agility, ensuring that teams can work autonomously while staying aligned with the organization s purpose. However, it s not a one-size-fits-all solution each organization builds on top of Holacracy to fit its unique needs, culture, and business model.By codifying governance in a constitution, organizations can create a more transparent, fair, and effective system for managing interactions and making decisions.

Ultimately, the success of holacracy depends on a commitment to continuous learning, adaptation, and improvement. 4. The Holacracy Constitution: The holacracy constitution is a formal document that outlines the rules, processes, and holacracy team structure. It serves as the authoritative guide for how the organization operates and evolves.By embracing these principles, organizations can unlock the full potential of their people and achieve greater success in a rapidly changing world.Are you ready to take the leap and embrace the future of governance? Holacracy s framework enables you to choose whether to follow the posted guidelines and rules or change them (through governance and other ways). You can choose to respond to external forces and apply your best judgment or not. You can choose to follow the conceptual roads and signposts or create new roads and signposts.Consider exploring the Holacracy Constitution and how its principles can be applied to your unique organization.