Sociocracy 3.0 - Decentralization at Dezentrum

Since the formation of Dezentrum in early 2018, self-organisation models have fascinated us. Decentralization of decision-making power, flexibility as well as self-managing teams which counteract hierarchical and bureaucratic structures. Common examples being the Teal organisation, Holacracy and Sociocracy 3.0. The Teal Organisation offers a solid overview of self-organised work. However, a concept we rather find abstract and intangible. In contrast, Holacracy, providing clear structures, processes and rules which can be introduced 1:1. There, on the other hand, we miss the freedom of design in the implementation process. Both models propose important inputs. Nonetheless, it is Sociocracy 3.0 (S3) which convinced us.

Three reasons were decisive. On the one hand, the balance between vagueness and restriction. On the other hand, the aspect that S3 materials are made freely available under an open source licence. And thirdly, that no systematic implementation approach, as with e.g. Holacracy, is a prerequisite. Since S3 is based on a modular principle, S3 elements can be selected and adapted to the context and needs of an organisation. Thus, S3 allows organisations to experiment with individual elements without having to change the organisational structure completely. This is why we decided to explicitly introduce Sociocracy 3.0 in June 2021. During this process, an expert accompanied us. In this blog, we share our experiences and insights.

What is Sociocracy 3.0?

Sociocracy 3.0 was developed in 2015 by James Priest and Bernhard Bockelbrink and consists of a collection of over 70 patterns. These patterns are practical tools to overcome specific organisational challenges. The aim of the patterns is to enable organisations to independently implement and develop effective and equal cooperation. All patterns are based on the seven basic principles which are key to shaping the organisational culture. These principles are Continuous Improvement, Transparency, Accountability, Empiricism, Consent, Equality, and Effectiveness.

Overview S3 Patterns and Principles

Organisational Structure at Dezentrum

Prior to the official S3 introduction, we had no official roles and no explicit organisational structure. Rather, things were managed implicitly. In a first S3 workshop, led by our expert, we learned about different patterns of S3. The focus was on the following patterns: Role, Role Selection, Circle, as well as organisational structure related patterns, Service Circle, Peach-, Service- and Fractal Organisation. To get an overview of our implicit roles, i.e. officially non-existing, yet practised roles, we started with the role allocation. Herefore, we first arranged all our responsibilities on the board.

These responsibilities were then clustered according to similarities, on the basis of which roles were formulated. For each of these roles, we jointly defined a name and purpose. Subsequently, the roles were assigned to those who feel responsible for the respective roles.

After the workshop, these roles were digitised with the help of an organisational software called Peerdom. Peerdom enables the collective development of dynamic organisational charts and gives an overview of all roles, responsibilities, goals and role holders. In this way, Dezentrum's organisational structure is not only explicit and transparent, but can also be continuously revised and developed.

Projects at the Centre of Dezentrum

For the development of our organisational chart, we followed one of the S3 patterns called Peach Organisation. We have extended the Peach and adapted it to our context. In the illustration below you can see the circle structure. When we speak of the organisational chart, we mean the Dezentrum Limited Liability Company (GmbH), which legally belongs to the Dezentrum Association. This association is in turn represented by the association board, which is elected by our association members. It is important to note that the Dezentrum GmbH and the association board operate independently of each other, so there is no hierarchical difference. What seems complicated at first glance is currently the simplest approach of combining S3 with our given legal forms while at the same time maintaining the self-organised character.

The smallest circle units represent roles. There are association internal, as well as association external roles such as consulting, auditing and accounting. The internal roles are arranged in layers. The innermost layer, Projects, includes all roles that are actively involved in projects. In order for projects to function smoothly, support is needed. This is provided by the surrounding layer, Backoffice, which provides all the necessary resources for the projects. The Backoffice is in turn surrounded by the Business Development layer, which is the interface to the outside world and ensures that new projects are generated.

Circle Structure

Addressing Tensions

Tensions arise when there are differences between the now and the future. That means differences between the question "Where am I now?" and the question "Where could/should I be?". Over the course of three months we all observed whether and in what way our explicit organisational structure caused tensions. We asked ourselves questions like: What impact did the roles, as well as the organisational chart, have on our daily work? Which processes were still not running smoothly? Which tensions were personal, and which were structural? Answers to these questions were discussed in a second workshop. For this purpose, we got to know the pattern Governance Meeting, which can be used, among other things, to jointly and effectively define solutions to tensions. Apart from the tensions that arose, we concluded that the explicit making of roles and our structure helped to create more clarity, to "think" and to "act" in roles, such that one's own responsibility is taken more seriously. This in turn has improved the quality of our work.

What we learned

The S3 implementation process so far has moved Dezentrum forward. Since Sociocracy 3.0 can look different depending on which organisation implements it, we appreciate the freedom of design. Through its modularity, S3 allows us to select appropriate patterns as needed, combine them with each other and adapt them to our context accordingly. Even before the official introduction of S3, Dezentrum embodied radical transparency. Examples have been joint wage negotiations and regular insights into financial and liquidity plannings. This transparency, as one of the seven principles, was further strengthened by the introduction of S3. Strengthened by the explicit definition of roles and responsibilities, as well as by the continuous collection of know-how, work processes and experiences into our internal Wiki. In this way, we can fall back on the Wiki in case someone is absent.

Challenges with S3

One challenge that the introduction brings is that it takes time to understand what Sociocracy 3.0 actually is. The website and the handbook provide a good overview to gain knowledge. There is even an online community to deepen the knowledge and exchange with S3 implementers worldwide. However, as there are only a few organisations working with S3, there are hardly any best-practice examples to orientate oneself by. Another challenge is that the implementation is a never-ending process of iteration and development that needs constant attention. This means additional resources that should be planned for.

What it takes to introduce S3

Considering an expert for the implementation process is not a necessity, as Sociocracy 3.0 is largely self-explanatory. Nevertheless, experts bring some advantages. Firstly, expertise, secondly, effectiveness and thirdly, a neutral and independent outside perspective, free from organisation-specific interests. However, we find that it is equally important to appoint internal coaches. That is, people who lead, continuously evaluate and develop the implementation process so that the drive is not lost over time. Internal coaches are also important to introduce new team members to S3. What helps to facilitate the implementation process in our eyes is when the organisational culture has already set the course for S3. In our opinion, this culture should embody a prototype attitude in which testing and failure are encouraged. It also needs a willingness to adapt the organisational culture, as the introduction of an organisational model is basically a culture change. Furthermore, it is crucial to align theory with practice. Only when members actually implement the patterns on a personal and organisational level will the introduction of S3 be beneficial.

Conclusion

Thanks to Sociocracy 3.0, we were able to explicitly design important work processes. This has helped us to get a better overview and to better perceive responsibilities. This helps us not only in our daily work, but also when we welcome new members to Dezentrum. We are currently experimenting with further S3 patterns. It remains to be seen which of these we will implement. To be continued. We would like to take this opportunity to thank the founders of Sociocracy 3.0 for providing the resources free of charge, the expert Daniel Sigrist for guiding us through this process, and the Mercator Foundation for making the launch possible.

Questions related to S3?

Are you interested in Sociocracy 3.0 or New Work? Get in touch with Kadira or Ruben for a non-binding exchange, we would be happy to hear from you.