The Anchor Circle in Holacracy: The Root of the Organization

The Anchor Circle is the root node of the Holacracy structure. It’s the only circle without a super-circle and contains all other circles – directly or indirectly. It used to be called “GCC” (General Company Circle), today “Anchor Circle” is the official term.

At SI Labs, the Anchor Circle is where organization-wide decisions are made. This article explains its special role.

What Is the Anchor Circle?

The Anchor Circle is the circle that represents the entire organization. It’s not simply “the topmost circle” – it has specific properties that distinguish it from other circles.

The Special Characteristics

No Super-Circle

The Anchor Circle has no parent circle. It’s the final instance within the Holacracy structure.

Purpose of the Organization

The purpose of the Anchor Circle is the purpose of the entire organization. All other circles ultimately derive their purpose from it.

No Rep Link Upward

Since there’s no super-circle, there’s also no Rep Link. The feedback loop ends here.

Lead Link Comes from Outside

The Lead Link of the Anchor Circle is typically appointed by the Board of Directors or owners – not by a super-circle.

Anchor Circle vs. Regular Circle

Feature	Regular Circle	Anchor Circle
Super-Circle	Yes	No
Rep Link	Yes (upward)	No
Lead Link Source	Super-Circle	Owners/Board
Purpose Source	Super-Circle	Constitution/Owners

The Special Position in the System

The Anchor Circle has systemic significance.

Last Escalation Point

When a sub-circle has a tension it cannot resolve itself, it carries it upward via Rep Link. This chain ends in the Anchor Circle. What cannot be resolved here has no further instance in the Holacracy structure.

Organization-Wide Policies

Policies that should apply to the entire organization are decided in the Anchor Circle. They automatically inherit to all sub-circles.

Example: A policy “All contracts over €50,000 need two signatures” is decided in the Anchor Circle and then applies everywhere.

Strategic Direction

The strategic direction of the organization is defined in the Anchor Circle and carried from there through the Lead Links into the sub-circles.

Research Insight: The existence of a top circle that balances autonomy and alignment is characteristic of successful Holacracy implementations. Without clear governance at this level, coordination problems arise. [1]

Who Sits in the Anchor Circle?

The composition is crucial.

The Typical Members

Lead Link of the Anchor Circle

Often the CEO or Managing Director (in traditional terminology). This person is appointed by the board or owners.

Rep Links of Sub-Circles

Each direct sub-circle sends its Rep Link to the Anchor Circle. They bring in their circles’ perspectives.

Cross Links (if any)

If the Anchor Circle has Cross Links to external entities (e.g., to an Advisory Board), they sit here.

Other Roles

Roles defined in the Anchor Circle – e.g., “CFO,” “Legal,” “Strategy.”

Who Does NOT Automatically Sit in the Anchor Circle

• All leaders (just because someone is Lead Link of a sub-circle doesn’t mean they sit in the Anchor Circle)
• All senior people (seniority isn’t an entry right)
• Owners (unless they have a role)

The Size of the Anchor Circle

Rule of thumb: The larger the organization, the more direct sub-circles, the more people in the Anchor Circle.

Organization Size	Typical Anchor Circle Size
20-50 people	5-8 members
50-200 people	8-12 members
200+ people	12-20 members

The Anchor Circle Lead Link

A special role.

Where Does the Lead Link Come From?

In traditional organizations, there’s a CEO appointed by the board. In Holacracy, the parallel position is the Lead Link of the Anchor Circle.

The Holacracy Constitution doesn’t say who appoints them – that comes from outside the Holacracy system (typically from the board or owners).

Responsibilities

Like any Lead Link:

• Assigns roles in the Anchor Circle
• Allocates resources
• Sets priorities
• Defines strategy (for the entire organization)

Additionally (often):

• Represents the organization externally
• Interface to board/owners
• Bears special legal responsibility

The Lead Link Is Not the Boss

Even though the Anchor Circle Lead Link is often the most influential individual: They have no directive authority for operational work. Authority lies in the roles, not in the person.

Typical Anchor Circle Roles

Besides structural roles, there are often specific functional roles.

Common Roles

Finance/CFO

Accountability for financial health of the organization. Often with domain over financial data.

Legal

Accountability for legal compliance. Domain over contracts binding the entire organization.

Strategy

Accountability for strategic planning and market observation. No domain (strategy doesn’t exclusively belong to one role).

People/Culture

Accountability for organization-wide people topics. Domain over hiring processes.

Roles That DON’T Have to Be in the Anchor Circle

Not every “C-level” function needs to be a role in the Anchor Circle. Some are better placed in sub-circles:

• “CTO” – maybe better as a role in the Product circle
• “CMO” – maybe better as a role in the Marketing circle
• “COO” – maybe split across multiple roles

The question is: Does this work need organization-wide governance, or does it belong in a specialized context?

Governance in the Anchor Circle

The governance meetings in the Anchor Circle have special significance.

What Gets Decided Here

• Structure of direct sub-circles
• Organization-wide policies
• Roles in the Anchor Circle itself
• Domains at organization level

What Does NOT Get Decided Here

• Internal affairs of sub-circles (that’s their governance)
• Operational decisions (that’s Tactical)
• Personnel decisions in the classical sense

The Rhythm

The Anchor Circle often has governance less frequently than sub-circles, because fewer tensions surface at this level. Typical: Monthly instead of weekly.

The Anchor Circle at SI Labs

Our experiences:

What We’ve Learned

Keep it small. Our Anchor Circle has 6-7 members. Big enough for all perspectives, small enough for efficient meetings.

Focus on organization-wide topics. We try to leave everything that can be solved in sub-circles there.

Take Rep Links seriously. Rep Links bring critical feedback. Hearing this feedback is more important than quick decisions.

Typical Challenges

• The Anchor Circle sometimes becomes a “leadership circle” that controls too much
• The balance between alignment (enough coordination) and autonomy (letting sub-circles work) isn’t always clear
• Some topics fall through the cracks – do they belong in the Anchor Circle or in a sub-circle?

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Research Methodology

This article is based on the Holacracy Constitution and over ten years of experience with the Anchor Circle at SI Labs.

Source selection:

• Holacracy Constitution and official materials
• Practitioner experiences from the Holacracy network

Limitations: Our experience comes from a medium-sized organization. In very large organizations, the Anchor Circle may function differently.

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Disclosure

SI Labs GmbH has practiced Holacracy for over ten years. The author has experience as a member of the Anchor Circle.

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Sources

[1] Robertson, Brian J. “Holacracy.” In The Management Shift, edited by Vlatka Hlupic, 145-168. Chichester: Wiley, 2012. DOI: 10.1002/9781119197683.ch9 [Book Chapter | N/A | Citations: N/A | Quality: 60/100]

[2] Bernstein, Ethan, et al. “Beyond the Holacracy Hype: The Overwrought Claims and Actual Promise of the Next Generation of Self-Managed Teams.” Harvard Business Review 94, no. 7/8 (2016): 38-49. [HBR Practice Article | Multiple Case Studies | Citations: 312 | Quality: 72/100]