October 24, 2023 - “Holacracy” or a flat hierarchy is not typically associated with hospitality, a traditionally hierarchical industry. However, a recent article published by EHL Hospitality Business School, recognized as the world’s best hospitality management university, explores how implementing a flat hierarchy could benefit the industry.

Challenges within hospitality are becoming more and more evident, and competition is high amongst business owners. In order to succeed and flourish, businesses need to adapt and move with the times. Decision making needs to have an incredibly quick turnaround. So, hospitality leaders should consider the “holacratic” hierarchy.

Holacracy refers to an organizational system that aims to “empower employees and distribute authority more evenly across the company.” It is a sharp departure from traditional top-down management approaches and offers a more flexible and self-governing structure.

In order to help people understand it a little better, the researchers have broken it down into five key principles:

1. Defining roles instead of focusing on traditional titles

2. From top-down management to a flattened hierarchy

3. Frequent but focused meetings

4. Transparency and accountability are key

5. A holistic view of the organization

The researchers say the benefits of holacracy in hospitality include a more adaptable, agile workplace where employees thrive and it is easier to make decisions that will benefit the guests and the business needs.

Holacracy encourages fluidity and flexibility in roles, enabling employees to collaborate across departments more effectively.

The researchers acknowledge that implementing holacracy could be difficult, as hospitality workers will have a hierarchical mindset. At first, it may be difficult to adapt to a workplace without a clear leader.

A new management system comes with difficulties, but the researchers advise hospitality managers to focus on the parts they can implement immediately, like a comfortable work environment.