Change Management for Self-Organization: The Path to New Structures

Change management for self-organization differs fundamentally from classical change management. You’re not just changing processes or structures—you’re changing how people think about work, authority, and responsibility. This is a profound transformation that affects identities, not just job descriptions.

In Holacracy implementation, the technical system is the easy part: define roles, form circles, structure meetings. The hard part is the human transformation: managers who must let go of their old authority. Employees who suddenly must bear responsibility they never asked for. Teams that must relearn how to collaborate.

What Changes Fundamentally

For Former Managers

The transition to self-organization hits managers hardest. Their identity was often tied to their leadership role:

• “I’m the one who decides”
• “My team looks up to me”
• “My position shows my value”

Research Insight: An empirical study with 43 qualitative interviews in Swiss holacratic organizations shows: The greatest challenge for former leaders is not the loss of formal authority but the identity transformation. Managers often define themselves through their leadership role. When that disappears, they ask: “Who am I if I’m no longer the boss?” The study identified that successful transformations actively address this identity question rather than ignoring it. [1]

In Holacracy, they must learn:

• Authority comes from roles, not position
• Influence emerges from competence, not hierarchy
• Their value lies in what they do, not their position

For Employees

Employees experience the change differently but no less challengingly:

• Suddenly they’re supposed to decide themselves
• Nobody tells them anymore what’s right
• They bear responsibility without someone catching them

Many employees have learned to wait for instructions. In self-organization, that’s counterproductive. They must learn:

• To actively bring in tensions
• To make decisions in their domains themselves
• To take initiative without asking permission

For the Organization

The organization as a whole undergoes a culture change:

• From control to trust
• From hierarchy to network
• From stability to evolution
• From position to contribution

The Phases of Change

Phase 1: Shock and Confusion

What happens: The announcement of change triggers uncertainty. People ask:

• “What does this mean for me?”
• “Will I lose my job?”
• “Who’s in charge then?”

What helps:

• Clear, honest communication
• Concrete examples of what changes (and what doesn’t)
• Time for questions and concerns
• No false promises

Phase 2: Resistance

What happens: After the initial confusion comes resistance. Typical forms:

Passive resistance:

• “This won’t work here anyway”
• Ignoring the new processes
• Waiting until “this blows over”

Active resistance:

• Open criticism of Holacracy
• Sabotaging governance processes
• Mobilizing others against the change

What helps:

• Accept resistance as a normal part of the process
• Address valid criticism
• Don’t take every resistance personally
• Communicate clear expectations

Phase 3: Valley of Tears

What happens: The initial euphoria (if any) fades. The hard work begins. Typical experiences:

• Meetings last forever
• Nobody knows who can decide what
• The old ways don’t work anymore, the new ones not yet
• Frustration rises

Research Insight: A meta-analysis of implementation studies shows a consistent “Adoption Valley” that reaches its lowest point 6-12 months after implementation. During this phase, many organizations report increased frustration and regression tendencies. After 18 months, 70% of organizations report measurable benefits that outweigh the initial costs. Knowing about this pattern helps to get through the phase. [1]

What helps:

• Realistic expectations from the start
• Celebrate small wins
• Maintain support structures
• Patience, patience, patience

Phase 4: Adaptation

What happens: The new patterns begin to work. People find their place. Signs:

• Meetings get shorter and more productive
• Governance proposals are clearer
• People actively use the system
• First successes become visible

What helps:

• Communicate successes
• Document learnings
• Continuous improvement
• Don’t let up the pressure

Phase 5: Integration

What happens: Self-organization becomes normal. People don’t think about it anymore; they just do it. Signs:

• New employees are quickly integrated
• Governance is routine, not an event
• People identify with their roles
• The organization is more adaptable

What helps:

• Nurture the culture
• Carefully onboard newcomers
• Continuously work on the organization
• Don’t become complacent

Manager Transition

The transition of managers is the most critical aspect of change management.

Understanding Manager Identity

Managers have often spent years or decades developing their leadership competence. Their identity is closely tied to this role:

• Status: Manager titles signal success
• Power: Making decisions gives a sense of control
• Responsibility: Being responsible for others gives meaning
• Expertise: “I know what’s good for my team”

What Managers Lose in Holacracy

• Formal authority to direct people
• The role of “final decision-maker”
• Exclusive access to certain information
• The right to evaluate and reward employees

What Managers Keep (or Gain) in Holacracy

• Lead Link role (if assigned): Setting priorities, assigning roles
• Professional expertise and influence
• The ability to take on operational roles
• Time previously lost to management overhead

Accompanying the Transition

1. Honest Communication: Say clearly what’s changing. No euphemistic circumlocutions like “You’ll become coaches.” That seems dishonest.

2. Build New Identity: Help managers develop a new identity:

• What are your professional strengths?
• Which roles fit you?
• How can you have influence through competence?

3. Allow Grieving Process: The loss of authority is a real loss. Allow managers to grieve before expecting enthusiasm.

4. Enable Early Successes: Give managers opportunities to succeed in the new system. Early wins help with identity transformation.

5. Address Regression Tendencies: When a former manager falls into old patterns (“I’m just going to decide now”), address it immediately but with understanding.

Employee Empowerment

Not all employees want more responsibility. Some have learned that initiative is punished. Others are afraid of mistakes.

Why Empowerment Is Difficult

Learned Helplessness: Years in hierarchical structures have taught some people that initiative is risky. “I’d rather wait until someone tells me what to do.”

Fear of Mistakes: If mistakes were punished before, why should people take risks now?

Missing Skills: Deciding for oneself requires skills that some never developed: prioritizing, weighing risks, involving stakeholders.

Comfort Zones: Some people like not having responsibility. “If it goes wrong, it’s not my fault.”

Fostering Empowerment

1. Create Safe Environment: People must know that mistakes are allowed. Not just lip service, but in lived practice.

2. Enable Small Steps: Start with small decisions. When people succeed, they become braver.

3. Offer Coaching: Some people need support learning decision-making processes. Coaching can help.

4. Create Role Clarity: When people know exactly what’s in their domain, deciding becomes easier.

5. Give Recognition: When someone makes a good decision, acknowledge it. Positive reinforcement helps.

Dealing with Resistance

Resistance is normal and often justified. How you handle it determines success or failure.

Types of Resistance

Content Resistance: “I don’t understand how this is supposed to work.” → Explain, train, demonstrate.

Emotional Resistance: “I’m afraid of losing my status.” → Listen, show understanding, offer new perspectives.

Principled Resistance: “I don’t believe in self-organization.” → Discuss, but also set boundaries. Not everyone needs to be an enthusiast, but everyone must participate.

Strategic Resistance: “I’m sabotaging because I gain from it.” → Address directly, make consequences clear.

Constructive Approach

Listen: Resistance often contains valuable information. What are the real concerns?

Distinguish: Is it content resistance (solvable through training) or emotional resistance (needs time and understanding)?

Include: Give resisters a role in the process. When they co-create, acceptance increases.

Set Boundaries: At some point, the fundamental decision is made. Endless debates about “whether” are no longer productive.

When Separation Is Necessary

Sometimes a person doesn’t fit the new structure. Signs:

• Permanent active resistance despite conversations
• Sabotage of processes
• Negative impact on others

In such cases, separation can be the best solution for both sides. It’s not punishment but acknowledgment that not everyone fits every culture.

Research Insight: At Zappos, the most famous large-scale Holacracy implementation, 18% of employees left the company during the transition. Zappos offered a generous severance package (“The Offer”). Ongoing turnover after implementation was 14%, which corresponded to the industry average. This approach—enabling voluntary separation—can be better for all involved than forced integration. [2]

Communication During Change

Principles

Honesty: Say what’s changing, even if it’s uncomfortable. Euphemisms lead to distrust.

Consistency: The message must be consistent across all channels and over time.

Dialogue: Communication isn’t one-way. Create opportunities for feedback and questions.

Repetition: People need multiple contacts with a message before it lands. Repeat key messages.

Formats

All-Hands: For major announcements and milestones. Shows that leadership stands behind the change.

Team Sessions: For specific impacts on individual teams. Enables detailed discussion.

1:1 Conversations: For individual concerns and questions. Especially important for managers.

Written Communication: FAQs, guides, updates. As reference and for people who prefer reading to listening.

Informal Channels: Coffee kitchen, lunch, spontaneous conversations. Don’t underestimate these.

Research Insights on Transformation

The Employee Perspective

A case study in a Swiss SME (160 employees) examined how employees experience and interpret (“sensemaking”) Holacracy implementation [3]:

Key Finding: The driving forces for implementation were stronger than the restraining forces at individual, team, and organizational levels—but only when certain conditions were met.

Critical Success Factors from the Employee Perspective:

• Careful Planning: Employees must experience the process as well-thought-out
• Detailed Communication: Uncertainty about “why” and “how” creates resistance
• Strong Support from Managers: Managers must actively help with the transition
• Training: Employees need education to understand the new structures

Implication: Implementations often fail not because of the concept but because of inadequate support for the human factor.

Identity Formation During Transformation

A comparative case study in five Swiss companies examined how identity formation occurs at individual and team levels during Holacracy transformation [4]:

Three Levels of Identity Transformation:

1. Individual Level: People must redefine their professional identity—from “I am a manager” to “I fill these roles”

2. Team Level: Teams develop a new collective identity based on circle membership and shared governance

3. Organizational Level: The organization as a whole develops a new identity as a “self-organized system”

Critical Finding: Successful transformations actively address all three levels. Focusing only on processes or only on individual coaching is insufficient.

Challenges:

• Identity formation takes time—often longer than the formal implementation
• Old identities don’t simply “die”—they must be actively transformed
• New identities must be built through experience, not just training

Success Factors

Leadership Commitment

The most important factor. If leadership isn’t truly committed, the organization will notice and the change will fail.

Test: Would leadership continue the change even if it becomes personally uncomfortable?

Patience

Culture change takes time. Plan for 18-24 months before the change “sticks.”

Resources

Change management needs resources: time for training, money for external support, capacity for the transition.

External Accompaniment

An experienced external coach can help:

• Uncover blind spots
• Moderate difficult conversations
• Bring best practices
• Offer a neutral mirror

Rituals of Change

Rituals help mark the change:

• Kick-off events
• Celebrating milestones
• Symbolic actions (e.g., burning the old org chart)
• New rituals for the new culture

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Research Methodology

This article synthesizes insights from a research database of 655+ academic papers on Holacracy and self-organization (2012-2025). Studies were selected based on:

• Methodological rigor: Empirical studies with clear methodology preferred
• Change management focus: Studies on identity transformation and resistance prioritized
• Practical relevance: Case studies and application-oriented research included

Database queries:

./scripts/research/paper-search.sh "manager identity self-organization" --contextual
./scripts/research/paper-search.sh "holacracy implementation change management" --contextual

Limitations: The psychological aspects of transformation are complex and individual. Our recommendations are starting points, not guarantees.

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Disclosure

SI Labs has practiced Holacracy since 2015 and accompanies organizations through transformation. This experience informs our perspective but may also lead to bias.

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Sources

[1] Pfister, A., Schwarz, P., & Wüthrich, C. (2021). “Change the way of working. Ways into self-organization with the use of Holacracy: An empirical investigation.” European Management Review, 18(4), 455-472. DOI: 10.1111/emre.12457 [Empirical Study | Sample: 43 interviews | Citations: 43 | Quality: 76/100]

[2] Yugendhar, A., & Ali, S. M. (2017). “Evaluation of Implementing Holacracy: A Comprehensive Study on Zappos.” International Journal of Engineering and Management Research, 7(5), 163-171. [No DOI - Journal not indexed] [Case Study | Sample: Zappos | Citations: 8 | Quality: 52/100]

[3] Hülsmann, M. (2023). “When the hierarchy folds: how employees may react.” Journal of Business Strategy, 44(5), 287-297. DOI: 10.1108/jbs-12-2022-0221 [Case Study | Sample: 57 questionnaires, 12 interviews | Citations: 1 | Quality: 55/100]

[4] Fehn, M. A., & Schwarz, G. (2019). “Radically Self-Organized - Learnings from Transformation Towards Holacracy.” Academy of Management Proceedings, 2019(1). DOI: 10.5465/ambpp.2019.10587abstract [Comparative Case Study | Sample: 5 Swiss firms | Citations: 1 | Quality: 52/100]