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Part of the Business terms glossary: A holacracy is a governance structure characterized by a distribution of power among self-organizing groups, rather than the top-down authority in the typical hierarchical corporate culture model. A holacracy provides a flat management structure that distributes authority.
Fans of holacracy, such as Evan Williams, a founder of Twitter, respond that it is not so much about discarding hierarchy altogether as making it more fluid. This seems to work fine for the firms that have adopted it so far: relatively small, fast-growing ones, full of creative types who would shun a more conformist workplace.