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Part of the Business terms glossary: A holacracy is a governance structure characterized by a distribution of power among self-organizing groups, rather than the top-down authority in the typical hierarchical corporate culture model. A holacracy provides a flat management structure that distributes authority.
Holacracy is highly compatible with stakeholder theory as its board structure allows for multiple stakeholders to be represented in the governance of an organization and for multiple organizations with shared interests to be linked at the governance level.