The concept of “humanocracy,” originally introduced by management experts Gary Hamel and Michele Zanini, aims to prioritize human potential within corporate structures. At its core, humanocracy seeks to eliminate the bureaucratic limitations that slow down innovation and demotivate employees. In this model, decision-making is decentralized, faster, and closer to the employees, enabling them to contribute directly to their work.
This innovative approach advocates for replacing rigid hierarchical structures with systems that focus on individuals’ creativity and potential. It’s argued—and I agree—that moving beyond traditional HR practices to grant employees freedom and decision-making authority enhances creativity, engagement, and motivation.
In fact, I firmly believe that businesses will eventually have no choice but to adopt the core principles of this model. Just as Peter Drucker said, “An organization is as strong as the people it brings together.” Perhaps, with humanocracy, we can even reconnect with younger generations who have become disengaged or disillusioned with corporate life, particularly during the pandemic. It might also reverse the declining trend in corporate loyalty.
For public institutions in Turkey, this transformation may take years. However, I am hopeful that private sector companies will adopt and implement humanocracy much more quickly.
Seeing employees as valuable members of an organization—not merely as resources that generate profit—shouldn’t be difficult. Especially when such an approach fosters creativity, trust, and harmony within teams.
Why I Am Optimistic
One reason for my optimism is the incredible pace of change in today’s markets and technologies. Adapting quickly and easily to market shifts has never been more critical in the business world. To achieve this agility, we need less of the rigid, top-down command-and-control structures and more of what can be called “horizontal hierarchies,” where decisions are made by those closest to the problems.
What’s delaying this change isn’t just the challenges of implementing radical decisions in large organizations; it’s also the egos and status-quo preservation instincts of existing leaders.
Humanocracy is more than just a management trend; it’s a new leadership philosophy. As Simon Sinek says, “Leaders should focus not on numbers, but on the people responsible for those numbers.”
While traditional leaders cling to their “people-first” slogans as a façade, the invisible hand of the free market will eventually bring them around. I firmly believe that companies embracing humanocracy—trusting employees, decentralizing decision-making, and fostering innovation—will outperform their competitors, gain an edge, and become more successful. Over time, this difference will translate into sustainable profitability and act like an invisible hand in free-market economies, pushing more companies to adopt humanocracy.
Successful Examples of Humanocracy
Interestingly, there hasn’t been a single failure among companies that have embraced humanocracy—at least, none that I’ve heard of. 😊 Some of the most notable success stories include:
- Haier
The Chinese home appliance giant has implemented a “micro-enterprise” system where employees take on their own profit-and-loss responsibilities. This model allows teams to respond much more quickly to customer needs. - Buurtzorg
The Dutch healthcare company has created self-managing nurse teams, improving employee satisfaction, patient outcomes, and reducing costs. - Morning Star
One of the world’s largest tomato processing companies operates without formal managers. Yes, you read that correctly! Employees set their own goals, and this system has significantly enhanced motivation and productivity. - IKEA
The company’s internal culture prioritizes supporting employees as a fundamental part of its management philosophy.
Taking the First Step
If you’re reading this as an HR manager or a member of upper management, I hope this article has inspired you—even just a little—to consider humanocracy for your organization. If it seems like a great idea for your company, why not take the first step in a humanocratic way?
For example, how about conducting a small survey in your organization? Ask your employees which areas they believe need the most improvement to transition to a people-centric management structure.
You might be surprised at what you learn!