The concept of management circles is often used in the area of organizational development, but also in restructuring processes. It is also used when companies want to improve internal cooperation and achieve faster decisions. In the decision-making process in particular, conflicts often arise when hierarchies clash with competencies. Specifically: an employee cannot contribute their experience and skills strongly enough because a person above them in the hierarchy ultimately has the last word - regardless of their competence in this case.
In a management circle, the focus is on the equality of all participants who can make joint decisions. Every vote counts equally - regardless of the individual's position in the company. But how do equal members in management circles actually work together and what are the advantages of this method of decision-making?
Management circles are based on the principle of sociocracy - a term coined by the French philosopher Auguste Comte to describe the rules of social interaction. Based on this idea, a Dutch peace activist founded a school in the 1920s that taught sociocratic principles - the very school that Dutch entrepreneur Gerard Endenburg attended.
Endenburg worked as a cyberneticist in the design of electronic systems and later took over his parents' company. There he experienced first-hand the problems associated with traditional management approaches and considered how he could work more constructively with his team. With his knowledge of sociocratic approaches and the practical experience he gained from his day-to-day management work, Endenburg developed a new system for managing a company.
The idea of sociocratic, i.e. equal leadership, has been adopted and further developed many times in the past. Today, many companies work according to the SCM - the sociocratic circular organization method.
This method is based on the following principles:
| Caution: There is a difference between consensus and consensus! The terms consensus and consensus should not be confused with each other in a leadership circle. While a consensus aims to completely resolve all contradictions, it is precisely these contradictions that are part of the solution in a consensus. Consensus is a concept in sociocracy in which decisions are made in the absence of serious objections. |
Several people who bear responsibility in a company work together in a management team. However, there are no hierarchies within this group - all members are equal. A key aspect of a functioning management team is communication. Regular communication is important so that all members of the management team are always up to date and potential conflicts can be identified and resolved immediately.
Through regular reflection and mutual feedback, continuous improvements in our joint work are possible. There is an openness to change when it is necessary. Decisions are made together in such a way that a consensus must be reached before the decision is ultimately implemented. In practice, of course, it is not always possible for every individual to give their full agreement to a proposal. However, there must no longer be any serious objections to this proposal.
Other important principles of cooperation:
If the management circles in a company are faced with excessive challenges, sub-circles can be formed. These are then entrusted with special projects or tasks. The sub-circle is formed from members of the higher-level management circle so that there is a mix of members from other sub-circles or teams and the talents and knowledge are distributed evenly.
Sub-circles are authorized to make decisions independently within the scope of their responsibilities. This means that they do not have to contact the superordinate group every time a decision needs to be made.
The basic principle of a performance circle is consensus. Decisions are only valid if all members of the circle agree. However, what seems logical and sensible in theory must also work in practice, as it often turns out: five people, six opinions.
Decisions must always be discussed equally among all participants. The principle is that there does not have to be 100% agreement in the end, but that there must not be any serious objections. To reach a decision, all members are heard and all opinions and objections are accepted. All members of the steering committee should aim to find not necessarily the best solution, but one that can be implemented and is within the tolerance range of all those involved.
Management circles can use the so-called SCM method to reach consensus decisions.
This is the typical process of a consensus moderation:
The formation of leadership circles can be useful in very different situations. Steering committees allow teams to act more autonomously in individual areas and make decisions at a local level. Nevertheless, they remain bound to the overarching goals and guidelines.
Management circles can also be useful if a company has difficulties with inefficient or hierarchical decision-making processes. Well-functioning management circles speed up the decision-making process and ensure that all relevant voices are heard. In addition, the participation of employees in decision-making processes is increased and the expertise already available in the company is fully utilized. Management circles create a culture of participation in a company.
In organizations that are exposed to rapidly changing conditions or environmental influences, management circles improve adaptability. They can also be useful in conflict resolution, as they promote transparent communication structures and clear decision-making processes. The members of a leadership circle are on an equal footing and are much better able to resolve conflicts constructively rather than hierarchically.
These indications also speak in favor of the formation of management circles
When managers act as a unit and set an example of constructive cooperation, they are a role model for all employees. They set a good example in terms of communication, critical thinking and critical self-reflection. Management circles promote the active participation of all members, regardless of their position or hierarchical level in the organization. Employees outside the management level can also become members of a management circle and contribute their expertise.
Further advantages of management circles at a glance:
Individuals also benefit from being part of a management circle. They can take on more responsibility and contribute their skills even better.
Within a management circle that works according to sociocratic principles, challenges can of course also arise that impair or even completely prevent good cooperation. These challenges arise when individual members have difficulty expressing themselves or actively listening.
Conflicts are unavoidable in any group. However, they can be resolved constructively if all objections are heard and dealt with appropriately. Consensus as a decision-making process is certainly unfamiliar to some members and therefore requires a certain degree of openness and flexibility. It goes without saying that conflicts within a management circle should never be carried out on a personal level.
Time management is a major challenge. To avoid wasting members' time, meetings must be organized effectively without discussions getting bogged down in details during meetings. In a steering committee, all members must take responsibility and show commitment. Problems can arise if individuals remain passive and neglect their tasks.
Especially in established organizations with fixed structures, resistance to the introduction of management circles can quickly arise. Change is not always perceived positively. The challenge lies in recognizing resistance in good time, understanding it and finding ways to gain acceptance.
Many companies are still predominantly hierarchically structured. There is a management level that sets guidelines and employees who carry out these guidelines. The introduction of management circles therefore requires good and well thought-out planning. Managers should create an understanding of the advantages of a circle organization. The members of the management circle are then carefully selected - not on the basis of their position, but above all on the basis of their skills and competencies.
During the transition phase, it is often worth working with pilot projects. This allows the members of the steering committees to gain experience and familiarize themselves with the consensus method. The management circles formed are then gradually implemented in the company. Open communication and quick and appreciative feedback are particularly important during the transition period.
Special coaching and training sessions offer valuable support in this phase, strengthening all members and encouraging them to work together to find solutions to challenges. The coaches and trainers at the Stage Academy can provide you and your team with practical tips and ideas when forming leadership circles.