The sociocratic enterprise and sociocracy

Sociocracy (Latin: socius: companion and kratein: to govern) assumes that all parties involved are the same when it comes to managing decisions in a company. A decision is made as soon as there is no longer any serious counter-argument. The method therefore requires self-motivation, a cooperative togetherness and personal responsibility. In accordance with the Management Y principle, it also aims to ensure that employees “feel good” and therefore strive for self-realization in the company. Management X means that a person basically strives for an aversion to work and a manager has to force him to work. Management Y, on the other hand, says that work is a high priority for employees and is an important source of complacency.
Take a look at the book Management Y from Brandes . There I also used all the information for this paragraph and it is currently the most widespread approach, which is based on the human striving for self-realization and is based on sociocracy. Also read mine for more information Article on Management Y and sociocracy.

The holocracy company and holacracy

I have Holocracy already explained in another article. For this reason, I would just like to briefly summarize what holocracy could be according to current literature: Holocracy is a decision-making practice that allows in complex interconnected functional units (holons or circles) to govern oneself by serving the purpose of the company.
The differences to sociocracy are not so easy to see. But to put it simply: Holacracy appears to be more structured. Roles are precisely assigned through the individual circles and thus the individuals (egos) are separated from each other. With sociocracy, all of these points are optional. So the big difference really lies in the somewhat stronger structure of Holacracy versus Sociocracy. For comparison: Holacracy is a new framework that offers certification through an umbrella organization. Sociocracy has been around for over 40 years and does not include official certification. Take a look at that Book by Robertson or read You my article too Holocracy .

The democratic company and democracy

The approach of democracy in companies first of all represents the questions: Who leads me, who represents me and how am I involved in the company? Here, too, experiments are carried out with the “time” factor in leadership. The second topic is self-determination: where do I work, when and with whom? So it’s about more say for employees and fairness of opportunities. According to the author of the book “Democratic Companies”, it is a matter of fulfilling the wishes of employees in developing the strategy of their company and letting them decide on their own work situation. So it puts the group decisions in the foreground. The goal is not to get a majority decision, according to the author, but to change the positions of the group members so that their voices unite to form the critical mass of an option. For more information and the sources for this paragraph, take a look at the book democratic companies by Sattelberger et al. , which deals intensively with democracy in companies. A separate one Article on corporate democracy can also be found on the blog.

Is that agile and evolutionary?

We quickly notice that all models are still very abstract and have not yet been tested in implementation. All 3 models are different from the basic idea. In the course of the research I will do case studies in all 3 forms and examine exactly whether these forms are really agile and evolutionary and whether these models have advanced companies and how they are changing companies. All 3 models have the involvement of employees as a high goal.
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Why is there complexity in management

Why did it get so complex? What were the triggers and why wasn’t it like that “earlier”? For this I found the picture above. It seems that this dynamic has only slowly increased since 1970 and has peaked again in the past few years. The reasons for the high density and the increase in competition appear understandable. In addition, many authors mention the digital transformation, Industry 4.0 and Big data . Take a look at the book “Organizations for Complexity” by Pfläging! or in the article “ Frameworks for agility “.

What actually is complexity?

Simply systems contain few elements, are stable and predictable. So you have a unique behavior. Chaotic systems are characterized by many elements, extreme dynamics, many relationships and a lack of “cause-effect” relationships. So no patterns can be formed.
Complicated systems are understandable. Their behavior is predictable and it is often just a matter of what information is available to understand. The system consists of many logical parts. This can be an extensive algorithm, for example.
Complex systems are open-ended. Their behavior is unpredictable and the unexpected determines their development. The system consists of many elements whose behavior cannot be planned. The system is therefore full of contradictions and always has several options for behaving.

Facing complexity in management

Complexithodes

In 2015 Niels Pfläging wrote the second book “Complexithodes”. According to their own statement, 33 methods to reduce complexity in management are presented. Take a look at the book by Pfläging! In the next paragraph I evaluated these methods with 16 companies and came to an interesting result.

Practical examples

I saw results in the first interviews and case studies. Organizations have to change permanently, according to the test persons, these changes are becoming more and more complex and radiate more and more uncertainty on the employees. The experts gave me 4 methods with which to counter this complexity:
Reduction of complexity through:

• Creation of transparency and distribution of responsibility,
• experienced staff and “department heroes”,
• positioning and restriction to certain criteria as well
• IT tools and technology.

In the further course I investigate even more methods to reduce complexity. I am also looking into the question of how far we should reduce complexity at all. It was already clear in the first interviews that reducing complexity too much can also be negative.
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More humanity in management

According to the authors, successful organizations display a mature and humane culture. A paradigm shift from management X to management Y is taking place. Management Y serves the employee. People are not lazy, they are ready to make good contributions to something big. Living Management Y fundamentally changes our image of man from authority to serving management. Brandes et al. see the management of an organization as critical success factors and demand: “ Human maturity in key positions in the organization as a success factor for future viability “.

Organizations as social systems

Let’s take a look at the overall concept. “Bringing organizations to life together” is what the authors say and calling for a different understanding of organizations in order to shape, control and “revive” them. The authors put forward the thesis: “Leadership as a host” in an organization. We also see the Scrum approaches and the honest enthusiasm of employees. I like to compare this approach to sociocracy. Generation Y, to which I also belonged, needs incentives, i.e. meaning in everything they do. Companies must therefore honestly inspire employees through creating meaning and the defined purpose of the company. What I particularly like at the end of the book is that the authors are open and say: “Every organization can be attractive and sustainable”. I agree with the authors here and no matter which one Framework for agility You use: All seem to lead to success in their own way. Also read the articles about Holocracy and Democracy in Business . So there is still plenty of room for further research into how each of these frameworks can actually be implemented and what type of company it is suitable for.
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Der Beitrag Management Y and sociocracy erschien zuerst auf agile Companies.