HolacracyOne runs with Holacracy. We’ve adopted the Holacracy Constitution in our legal bylaws, and built a novel legal structure for the organization around that foundation. Not only can we say we’re using Holacracy, but for HolacracyOne this is a legal reality – enforceable in court if need be.
There are three components that enable our legally-grounded Holacracy practice - each summarized and linked to below. Together they encode the distributed power system of Holacracy into the organization’s legal DNA (see other effects in this blog post).
The Holacracy Constitution documents the core rules, structure, and processes of the Holacracy Organizational Operating System. It enables an organization wishing to use the Holacracy system to anchor that intention in concrete and specific processes, and levels by the playing field by giving everyone access to the “rules of the game”. The Constitution is a portable document which can be adopted in many ways, whether via CEO policy, a board resolution, or, like HolacracyOne, by anchoring it into the core legal bylaws of the organization.
HolacracyOne’s legally-governing Operating Agreement (our bylaws) references and integrates the Holacracy Constitution as the governing paradigm for our Pennsylvania LLC legal entity. It also defines our board structure, the compensation system for our partners, our investment structure, etc. Unlike the more generalized Constitution, our Operating Agreement was created solely to meet HolacracyOne’s needs; it was not intended to serve as a general template for others to use or rely upon. We share it for transparency, and to serve as a concrete example of the way we integrated Holacracy into our legal governance.
While our Operating Agreement and the Holacracy Constitution provide the foundation for how the organization is governed, it is the output from that governance process which truly structures our day-to-day operations. HolacracyOne’s partners refer to these governance records frequently - they tell us what others can expect from us, what authority we hold, and the constraints we must honor. You can see HolacracyOne’s governance records and current operating structure in GlassFrog, a software tool we’ve created to help those practicing Holacracy. Start with an overview of HolacracyOne's circle structure, and click through to see our roles, accountabilities, policies, etc. for each circle.
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