How to Implement Holacracy: A Practical Seven-Phase Guide

Holacracy—the self-organization framework with roles, circles, and governance processes—takes hours to understand. Implementing it takes months to years. The implementation is the hard part.

This guide walks you through the seven phases of a successful Holacracy implementation, based on experience from numerous rollouts, including our own. It shows how to establish governance structures, define roles, and get meetings working effectively.

If you’re not yet familiar with Holacracy, start with our comprehensive Holacracy guide. This implementation guide assumes you already understand the concepts of roles, circles, governance, and tactical meetings.

What This Guide Offers

This guide isn’t a theoretical framework. It’s a practical roadmap that emerged from actual implementations. You’ll learn:

• What prerequisites must be met before you start
• What each phase looks like concretely and what you need to do
• Which mistakes to avoid
• How to handle typical obstacles
• What resources you’ll need

The phases build on each other. Don’t skip any phase, even if it seems trivial. Each phase creates the foundation for the next.

Phase 1: Readiness Assessment

Before investing a single dollar or hour in implementation, you must ensure your organization is ready. A failed Holacracy project costs not just time and money but damages trust in change initiatives generally.

Assessing Leadership Commitment

The most important prerequisite is genuine leadership commitment. Without full support from leadership, Holacracy will fail—because leadership must surrender their authority to the system.

Research Insight: An analysis of 52 academic papers on leadership transition and self-organization shows: Leadership commitment is the strongest single predictor of implementation success. Organizations with “half-hearted” commitment show a 3x higher abandonment rate in the first 18 months. (Source: Theme T11 - Leadership Transition, SI Labs Paper Database)

Genuine commitment means:

Leadership understands what they’re giving up. They can no longer arbitrarily make decisions that fall outside their roles. When an employee makes a decision within their domain, leadership cannot overrule it.

Leadership is willing to go through the process. Leaders must also attend governance meetings, raise objections, and follow the rules.

Leadership won’t revert to old patterns when conflicts arise. When things get difficult, leadership won’t simply “make a decision” to solve the problem.

How to test commitment:

• Present hypothetical scenarios: “What do you do when an employee makes a decision you think is wrong, but it falls within their domain?”
• Ask about motivation: Why Holacracy? If the answer is vague (“we want to be more agile”), the commitment is probably superficial.
• Observe behavior: How does leadership respond to contradiction? If dissent is suppressed, Holacracy won’t work.

Assessing Cultural Readiness

Holacracy requires people who are willing to take responsibility. If your culture is characterized by passivity and “doing only what’s required,” implementation will be extremely difficult.

Indicators of cultural readiness:

• Initiative already exists. People do things without being asked.
• Feedback is normal. People give and receive feedback without becoming defensive.
• Mistakes are seen as learning opportunities. Not as occasions for blame.
• Transparency is desired. People want to know what’s happening in the organization.

Indicators of lacking readiness:

• “That’s not my job” is a common phrase. People define themselves through narrow responsibilities.
• Information is hoarded. Knowledge is power, and people are reluctant to share.
• Decisions are avoided. People wait for instructions rather than deciding themselves.
• Conflicts are swept under the rug. Instead of processing tensions, they’re ignored.

No culture is perfect. But if multiple warning signs are present, you should work on culture first before introducing Holacracy.

Planning Resources

Holacracy isn’t free. The following resources are needed:

Time: Governance meetings require time. Plan for 2-4 hours per month per circle in the initial phase. Add time for training, facilitation, and processing tensions.

Money: Facilitator training, possibly external coaching, tools like GlassFrog or Holaspirit. Budget at least $5,000-15,000 for a small organization.

Energy: Implementation is exhausting. People must learn new habits and unlearn old ones. This costs cognitive energy.

Patience: Holacracy reveals weaknesses immediately but strengths only after months. You must be prepared to go through a valley of frustration.

Go/No-Go Decision

After the assessment, make a conscious decision:

Go: Leadership commitment is genuine, cultural readiness is sufficient, resources are available.

No-Go: One of the criteria is not met. In this case: Work on the prerequisites first.

Conditional Go: Prerequisites are largely met but not perfect. You can start but must work on the gaps in parallel.

Phase 2: Constitution Adoption

The formal adoption of the Constitution marks the official start. From this moment, Holacracy rules apply, not the old hierarchies.

Understanding the Constitution

Before adopting the Constitution, the authority holders must understand it. This doesn’t mean knowing every detail, but the core principles:

• How authority is distributed
• How governance works
• What they’re giving up and what they’re keeping

Recommendation: Read through the Constitution together. At minimum, Articles 1, 2, and 3. Discuss questions and concerns.

Customization Options

The standard Constitution from HolacracyOne is a good starting point but isn’t sacred. Some organizations customize it:

Adapt terminology: Some organizations use different terms (e.g., localized translations or alternative naming conventions).

Simplify processes: For small organizations, some processes can be simplified.

Add supplements: Some organizations add rules that are missing from the standard Constitution.

Warning: Don’t customize the Constitution too early. Only after at least a year of experience will you know what you really need.

Legal Considerations

Different jurisdictions have specific considerations when implementing Holacracy:

Worker representation bodies: In countries with works councils (like Germany’s Betriebsrat), union representation, or similar structures, these bodies must be involved. Introducing Holacracy changes work processes and may require consultation or co-determination.

Executive liability: Corporate executives (such as LLC managing members, GmbH Geschäftsführer, or corporate directors) retain their legal responsibilities even when they delegate operational authority through Holacracy. Clarify how this tension is resolved.

Employment contracts: Holacracy changes how work is organized. Review whether employment contracts need to be updated, particularly regarding job descriptions and reporting relationships.

The Adoption Act

Adoption is a formal act. Typically, the existing authority holders (executives, founders) sign a document stating:

1. As of [date], the Holacracy Constitution version X applies.
2. All previous authority is transferred to the system.
3. The Anchor Circle is defined and an initial Lead Link is appointed.

Make this moment visible. It’s a symbol of change. Some organizations create a small ceremony around it.

Phase 3: Initial Role Mapping

After adoption, existing activities must be mapped to roles. This is the first practical step and often the most difficult.

From Jobs to Roles

The most common mistake: Simply translating job titles into roles. “Marketing Manager” becomes the role “Marketing Manager.” This doesn’t work because:

• A job typically contains multiple roles
• Jobs are built around people, roles around work
• Job titles describe status, not activities

The right approach: Analyze the actual work. What do people do? What recurring activities exist? What decisions are made regularly?

Workshop Format for Role Mapping

A proven format:

Preparation (individual, 1 hour): Each participant lists what they actually do. Not what’s in the job description, but the real work. Recurring activities, projects, decisions.

Session 1: Collecting Activities (2-3 hours): All activities are collected and written on sticky notes. One activity per note. No editing, just collecting.

Session 2: Clustering (2 hours): Similar activities are grouped. Each cluster becomes a potential role.

Session 3: Defining Roles (3-4 hours): For each cluster, a role is defined:

• Purpose: Why does this role exist?
• Accountabilities: What does this role do on an ongoing basis?
• Domains: What does this role have exclusive control over?

Session 4: Assigning (1-2 hours): Roles are assigned to people. One person can hold multiple roles.

Common Mapping Mistakes

Too many roles: Some organizations create dozens of roles. That’s overwhelming. Start with fewer roles and refine through governance.

Too vague accountabilities: “Take care of marketing” is not an accountability. “Create and send monthly newsletter” is.

Forgotten domains: Domains are often forgotten, but they’re important. Without domains, no one knows who can decide what.

One-time activities as roles: Roles describe recurring activities. One-time projects are not roles.

Documentation

Document the results in a tool like GlassFrog, Holaspirit, or a simple spreadsheet. The documentation must be accessible to everyone.

Phase 4: Circle Design

After role mapping, roles must be organized into circles. Circles are the structural units where governance takes place.

Identifying Natural Circles

Circles emerge where roles share a common purpose. Typical criteria:

• Shared customer or output: Roles working on the same customer or product often belong in one circle.
• Necessary coordination: Roles that frequently need to coordinate benefit from a shared circle.
• Similar expertise: Roles with similar skills can form a competence circle.

Example structure for a service company:

• Anchor Circle: Overall organization
  • Delivery Circle: Client projects
  • Business Development Circle: Sales and marketing
  • Operations Circle: Finance, HR, IT

Super-Circle vs. Sub-Circle

The decision of when to create a sub-circle is not trivial:

Sub-circle makes sense when:

• The group has a clearly delineated purpose
• The group needs its own governance autonomy
• There are more than 3-4 roles working closely together

Sub-circle doesn’t make sense when:

• The group is too small (fewer than 3 people)
• The purpose isn’t clearly delineated
• Coordination with the super-circle would become too complex

Assigning Lead Links

Every circle needs a Lead Link. The Lead Link is appointed by the parent circle (typically by the Lead Link of the super-circle).

Criteria for Lead Links:

• Understands the circle’s purpose
• Can set priorities
• Is respected by circle members
• Can resolve resource conflicts

Warning: The Lead Link is not a manager in the traditional sense. Avoid automatically making former managers into Lead Links. That perpetuates old hierarchies.

Electing Rep Links

Rep Links are elected by circle members, not appointed. This is important for balance of power.

Election process:

1. Each circle member can self-nominate or be nominated
2. Each nomination is briefly explained
3. Secret or open vote
4. The person with the most votes becomes Rep Link

Phase 5: Training and Facilitation

Without training, Holacracy will fail. People must understand and practice the processes before they become productive. This phase is often underestimated because training is considered a “soft” factor. That’s a mistake.

Facilitator Training

Facilitators are the backbone of Holacracy. They hold governance meetings together and ensure the rules are followed. A meeting without competent facilitation drifts into discussion and produces frustration instead of results.

Facilitator training should cover:

The complete governance process (IDM):

• Proposal phase: How do you help proposers formulate clear proposals?
• Clarifying Questions: How do you distinguish clarifying questions from disguised statements?
• Reaction Round: How do you prevent reactions from becoming debates?
• Objection Round: How do you test objections for validity?
• Integration: How do you help integrate objections into the proposal?

The tactical meeting process:

• Facilitate check-in and closing rounds effectively
• Conduct checklist and metrics reviews efficiently
• Triage process: “What do you need?” as the central question
• Recognize structural issues and move them to governance

Intervention techniques:

• How do you interrupt politely but firmly?
• How do you stay neutral even when you have your own opinion?
• How do you deal with dominant personalities?
• How do you reactivate passive participants?

Practice exercises:

• Simulated meetings with constructed scenarios
• Feedback from experienced facilitators
• Video analysis of your own facilitation

Training options:

• External training from certified Holacracy trainers: Highest quality but expensive. Typically $1,500-3,000 per person for a 2-day training.
• Internal training by experienced facilitators: More cost-effective but requires internal expertise.
• Online courses and videos: Lowest cost but also lowest effectiveness. Better than nothing but no substitute for in-person training.

Recommendation: At least two people should have intensive facilitator training. This ensures there’s always a backup, and facilitators can give each other feedback.

Research Insight: A comparative study shows: Organizations with formal facilitator training reach in 6 months the productivity that untrained teams only reach after 18 months. The investment in training pays off through shorter meetings and fewer process errors. (Source: “Practitioner vs. Academic Understanding of Holacracy,” 2024)

All-Hands Education

All employees must understand the basics, not just facilitators. Uninformed participants slow down meetings and frustrate others.

Content for all-hands education:

• What is Holacracy and why are we introducing it? Context and motivation. Why now? What do we expect?
• Basic concepts: Roles, circles, domains, accountabilities, purpose.
• Governance vs. Tactical: When do I change the structure (governance)? When do I work within the structure (tactical)?
• The IDM process: Broadly understand how governance works, even if you’re not a facilitator.
• Rights and duties: What can I decide? What must I communicate? What can I demand?
• What changes for me personally? Concrete impacts on daily work.

Format: A combination of presentation and Q&A. Plan at least 2-3 hours. Better: Half a day with interactive elements.

Practice Sessions

Theory isn’t enough. People must practice Holacracy before using it productively. Options:

Simulated governance meetings: Practice with harmless proposals. Examples:

• “I propose to create the role ‘Coffee Machine Manager.’”
• “I propose to assign the domain ‘Company Newsletter’ to the Marketing Circle.”

The content is unimportant. What matters is practicing the process.

Shadow governance: Conduct governance sessions parallel to real work, but without binding results. This provides real practice material without real consequences.

Small group exercises: In groups of 4-6 people, work through the IDM process. Everyone practices the facilitator role.

Role plays: Work through specific scenarios: dominant participant, unclear proposal, invalid objection.

Phase 6: Pilot Program

Some organizations begin with a pilot in a single circle before full rollout. The pilot reduces risk and enables learning but also has disadvantages.

Pilot vs. Immediate Rollout

Arguments for a pilot:

• Reduce risk: If the pilot fails, the whole organization isn’t affected.
• Enable learning: Mistakes in the pilot can be corrected before they multiply.
• Create ambassadors: The pilot circle becomes an internal role model.

Arguments against a pilot:

• Friction between systems: The pilot circle must interact with non-Holacracy circles. This creates conflicts.
• Delayed benefits: The organization only benefits fully when everyone participates.
• Pilot as excuse: “Let’s wait and see how the pilot goes” can become a permanent solution.

Recommendation: For organizations under 30 people, immediate rollout is often better. The friction losses of a pilot outweigh the safety gains.

Research Insight: Change management research shows: Phased rollouts reduce risk but extend the “adoption valley” by an average of 40%. Big-bang implementations are more intense but reach stability faster. The optimal strategy depends on organization size, with 50 employees being a critical threshold. (Source: Organizational Change Studies, 2020-2024)

Selecting the Pilot Circle

If you choose a pilot, selecting the right circle is critical.

The ideal pilot circle:

• Has 4-8 members: Large enough for real dynamics, small enough for clarity.
• Has an engaged Lead Link: Someone who wants to make the pilot succeed.
• Is relatively autonomous: Few dependencies on other circles to minimize friction.
• Has motivated members: People who want to try new things, not just skeptics.
• Is representative: Experiences should be transferable to other circles.

Warning: Don’t choose the “easiest” circle (e.g., an innovation team that already works self-organized). Choose a circle that represents the typical challenges of your organization.

Defining Success Metrics

How do you know if the pilot is successful? Define clear criteria beforehand, otherwise evaluation becomes subjective.

Process metrics:

• Governance meetings happen regularly
• The agenda is fully processed
• Rules are followed
• Meetings don’t run longer than planned

Engagement metrics:

• Meeting attendance rate
• Number of tensions raised per month
• Number of governance proposals
• Feedback in retrospectives

Outcome metrics:

• Are tensions actually being resolved?
• Is collaboration improving?
• Is the circle more productive than before?
• Do members report positive changes?

Timeline

A typical pilot lasts 3-6 months. Shorter isn’t enough to get out of the learning phase.

Month 1-2: Learning Phase

• Many mistakes, long meetings, frustration
• Frequent questions for the facilitator
• Roles remain unclear, governance proposals are imprecise
• Normal and expected

Month 3-4: Stabilization

• Meetings become shorter and more focused
• The process becomes smoother
• Roles become clearer
• First success experiences

Month 5-6: Productivity

• The circle functions independently
• Improvements become visible
• Members appreciate the new structures
• Ready for evaluation

Evaluation and Decision

After the pilot: A structured evaluation. Possible questions:

• What worked? What would we keep?
• What didn’t work? What would we change?
• What unexpected challenges arose?
• What adjustments do we need for the broader rollout?
• Are we ready for full rollout?
• What’s still missing before we can roll out?

The evaluation should be done not only by the pilot circle but also by external observers or project leadership.

Phase 7: Full Rollout

After a successful pilot (or directly, if you’re not doing a pilot), the full rollout follows. This is the moment when the entire organization starts working according to Holacracy.

Scaling Strategy

There are two basic approaches:

Big Bang: All circles start simultaneously.

• Advantage: No friction between Holacracy and non-Holacracy parts
• Advantage: Clear cutoff date after which old rules no longer apply
• Disadvantage: High coordination effort
• Disadvantage: Many people learning simultaneously, which ties up facilitation resources

Rolling Introduction: Circle by circle over weeks or months.

• Advantage: Less overwhelm, focus on one circle at a time
• Advantage: Learning from each step
• Disadvantage: Friction between old and new structures
• Disadvantage: Dilution of energy over a long period

Recommendation for small organizations (under 50 people): Big bang. The friction losses of rolling introduction outweigh the benefits. The energy of collective change is more powerful than the safety of gradual approach.

Recommendation for large organizations (over 100 people): Rolling introduction, but with a clear end date and aggressive timeline.

Rollout Communication

The rollout needs intensive communication:

Before rollout:

• Announcement with clear date and rationale
• FAQ document for common questions
• Office hours for individual concerns
• Repetition of key messages in various formats

During rollout:

• Daily or weekly updates in the first week
• Visible presence of project leadership
• Quick response to questions and problems

After rollout:

• Regular retrospectives
• Celebration of first successes
• Honest communication about challenges

Parallel Operation

During the transition, old and new structures often exist in parallel. This is unavoidable but dangerous. The old structure becomes a retreat: “Let’s do it the old way, it’s easier.”

Strategies for parallel operation:

Time limitation: Set a clear date after which the old structure no longer applies. Communicate it repeatedly: “From March 1st, only Holacracy processes apply.”

No exceptions: Every exception (“For this project we’ll still do it the old way”) undermines the change.

Visible consequences: When someone uses the old way, address it immediately—friendly but clear.

Abolishing Old Structures

Eventually, old structures must be officially abolished. This is a symbolic but important step:

End old meeting formats: No more “team meetings” that exist parallel to tactical meetings.

Remove old job titles: Job titles are replaced by role collections. Business cards and email signatures are updated.

Close old decision paths: “I’ll clarify that with my boss” no longer works. Decisions fall within domains or in governance.

Shut down old tools: If you’re using a new documentation tool for Holacracy, shut down the old one.

This step signals: There’s no going back. That can be scary but it’s necessary. As long as the old structure exists, it will be used.

Handling Resistance

Not everyone will welcome the rollout. Typical forms of resistance:

Passive resistance: People ignore Holacracy and continue working as before.

• Response: Address directly, clarify expectations, offer support.

Active criticism: People publicly argue against Holacracy.

• Response: Listen, take valid criticism seriously, but don’t engage in endless debates about the fundamental decision.

Sabotage: People actively undermine governance processes.

• Response: Escalate, communicate clear consequences.

Most resistance isn’t malicious but fear of change. Empathy helps, but clear expectations are equally important.

Research Insight: At Zappos, the most famous large-scale Holacracy implementation, 18% of employees left the company during the transition. This number is often cited as a warning, but context matters: Zappos offered a generous severance package (“The Offer”). Ongoing turnover after implementation was 14%—matching the industry average. For detailed case studies, see our Holacracy case studies overview. (Source: Zappos Holacracy Case Studies, 2014-2018)

Post-Implementation

Implementation is never finished. Holacracy is a living system that constantly evolves. Many organizations make the mistake of thinking after rollout: “Now we’re done.” That’s not true.

Continuous Governance

After rollout, regular work continues:

• Governance meetings happen regularly (typically monthly)
• Roles are adjusted as work changes
• New circles emerge as the organization grows
• Old circles disappear when no longer needed

This isn’t a sign of instability. It’s by design. Holacracy is built for evolution, not stability. An organization that has the same roles after a year as at the beginning isn’t using Holacracy correctly.

Typical Post-Rollout Challenges

The “honeymoon” phase ends: After a few months, initial enthusiasm fades. Daily work feels “normal” again, but with additional meetings. This is normal. Remind the organization of the purpose and progress.

Relapse tendencies: Under stress, people fall back into old patterns. A Lead Link starts dictating decisions. An employee waits for instructions instead of acting independently. Recognize these patterns and address them.

Governance fatigue: Governance meetings are perceived as annoying when there are no noticeable tensions. The remedy: Governance only when needed, not out of habit. If there are no agenda items, the meeting is short.

Tool fatigue: Documentation in GlassFrog or Holaspirit is neglected. This leads to confusion about roles and domains. The solution: A dedicated role for maintaining Holacracy documentation.

When to Seek External Help

Some problems can be solved internally, others can’t. Seek external help when:

• Governance meetings regularly fail: Meetings end without results, are aborted, or escalate into conflicts.
• Conflicts can’t be resolved: Tensions persist despite being processed multiple times in governance.
• The organization threatens to return to old patterns: Leadership bypasses Holacracy on important decisions.
• You don’t know whether a problem is normal or a warning sign: Some difficulties are part of the learning process, others signal deeper problems.
• A neutral perspective is missing: Internal conflicts can often be seen more clearly from outside.

Forms of external help:

• Coaching for facilitators
• Mediation in conflicts
• Governance review by experienced practitioners
• Training refreshers for new employees

Onboarding New Employees

New employees joining a Holacracy organization need special onboarding:

• Holacracy basics: What it is, how it works, what’s different.
• Role introduction: Which roles they’re taking on, what the accountabilities mean.
• Meeting participation: Accompaniment in the first governance and tactical meetings.
• Mentoring: An experienced colleague as contact for Holacracy questions.

Long-term Development

Holacracy is a framework that evolves with the organization. Typical phases:

Year 1: Learning the Basics

• Establish and practice processes
• Make many mistakes and learn from them
• Make first adjustments
• Survive the “six-month crisis”

Research Insight: Research shows a consistent “adoption valley” that reaches its low point 6-12 months after implementation. During this phase, many organizations report increased frustration and relapse tendencies. The stabilization curve shows that after 18 months, 70% of organizations report measurable benefits that outweigh initial costs. (Source: Meta-analysis of 15 implementation studies, 2024)

Year 2-3: Improving Efficiency

• Meetings become shorter and more productive
• Roles are defined more precisely
• The organization begins to feel the benefits
• Adjustments to the Constitution are considered

Year 4+: Holacracy Becomes Normal

• The system is part of the culture
• New employees are quickly integrated
• Focus shifts from “doing Holacracy” to “getting work done with Holacracy”
• Refinement and optimization

Metrics for Long-term Success

How do you know if Holacracy is working? Possible metrics:

• Meeting efficiency: How long do governance meetings last? Are all agenda items processed?
• Tension-to-resolution time: How quickly are tensions addressed in governance?
• Role evolution: How often are roles adjusted? (Too little = stagnation, too much = instability)
• Employee satisfaction: Do people feel empowered? Can they shape things?
• Decision speed: Are decisions made faster than before Holacracy?

None of these metrics is perfect. But together they give a picture of whether the system is working.

Common Implementation Mistakes

Mistake 1: Skipping Facilitator Training

Symptom: Governance meetings become discussion rounds. No one maintains the process.

Solution: Invest in training. It’s the most important investment.

Mistake 2: Half-hearted Leadership Commitment

Symptom: When conflicts arise, leadership reverts to “I’ll decide now.”

Solution: Confront the behavior directly. If commitment isn’t genuine, Holacracy won’t work.

Mistake 3: Rolling Out Too Fast

Symptom: The organization is overwhelmed. No one understands what’s happening.

Solution: Slow down. Better one circle that works than five that struggle.

Mistake 4: Ignoring Cultural Problems

Symptom: People continue waiting for instructions. Initiative is missing.

Solution: Work on culture parallel to implementation. Coaching, feedback, clear expectations.

Mistake 5: Expecting Immediate Results

Symptom: After three months, Holacracy is declared a failure.

Solution: Set realistic expectations. Holacracy needs 12-18 months to take effect.

Conclusion

Implementing Holacracy is a marathon, not a sprint. It requires commitment, resources, and patience. But for organizations serious about self-organization, it’s a proven path.

The seven phases provide a framework but no guarantee. Every organization is different. Use this guide as orientation, not as rigid prescription.

If you have questions or need support with your implementation: We at SI Labs have walked this path ourselves and accompany others on it. Get in touch.

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This article is part of our Holacracy series. More articles: Holacracy: A Practitioner’s Guide, Holacracy at SI Labs, Holacracy vs. Sociocracy, Why Holacracy Fails.

The Research Insights in this article are based on an analysis of 655 academic papers on Holacracy and self-organization (2012-2025).