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What is the "Sociocratic Circle Method (SCM)"?

The Sociocratic Circle Method (SCM), developed by Gerard Endenburg in the Netherlands in 1981, is a decision making and organizational structure that is designed to enhance autonomy, empowerment and inclusion.

It is also called "sociocracy" or "dynamic governance (DG)" or "dynamic self-governance (DSG)."


At its core, it fundamentally shifts the source of power in organizations from an individual (e.g. the boss or manager) to a circle of people on the same team (including the boss or manager). The circle then empowers its people (again, including the boss or manager) by electing people by consent to needed roles with a domain of responsibility. “The circle decides who decides.” In terms of making decisions within the circle, SCM defines a new decision-making process, called consent, which requires that the voice of each person in the circle be included as decisions are made within the circle.


At the same time that it shifts the source of power, it maintains the functional hierarchy which enables work to get done. So the group gets its work done as a team on a day-to-day basis, and meets periodically (e.g. every 4- to 8-weeks) as a circle of equals to assess and determine changes in how the work will get done.


Overview

SCM is a governance structure analogous to a self-directed work team where the group itself decides how to get the work done rather than the manager making these decisions alone.



A circle of equals AND a functional team


SCM overlays the existing functional hierarchy of the team with a “circle of equals” governance structure.

  • The group continues to function as a TEAM. The “functional hierarchy” is unchanged. Work continues to get done as it is currently organized, each team member having their functional roles, responsibilities, authorities, etc. You continue to have the same meetings and make decisions in the same way.

  • The group begins to also function as a CIRCLE. What’s different is that the “governance circle” begins to make the decisions for the team about how to get the work done, or changes in how the work gets done. The authority to make these decisions is shifted from the manager to the “circle” that includes all team members, including the manager.

    • The “manager” role becomes “functional leader” to reflect this change in authority

    • Examples of circle governance decisions include defining roles, delegating authority, choosing people for roles, defining guidelines, etc.


SCM governance decisions happen in special meetings called “circle meetings” where decisions are made by consent of all circle members.

  • For most groups, circle meetings are relatively few & infrequent (e.g. every 4-8 weeks)

  • For some groups like boards or executive circles, these meetings may be the primary type of meeting


New SCM Roles are needed to manage circle meetings

  • Circle Meeting Facilitator: leads circle meetings and handles the circle meeting process

  • Circle Log Keeper: organizes and maintains a log of all circle decisions and documents (proposals, roles, etc.)

  • Functional Leader (or optional elected Meeting Guide): holds & prioritizes circle meeting agenda content


SCM-specific processes and structures

  • Proposal decision process

  • Processing an issue

  • Electing people to roles

  • Circle Meeting structure

  • Creating a Role for an individual within the circle

  • Creating a Role for a sub-circle or helping circle

    • A helping circle is created to support the parent circle, but is not a governance circle


The SCM governance circle “decides who decides”

  • It can delegate authority to a person by creating a role for an individual within a circle

  • It can delegate authority to a sub-circle by creating a role for a sub-circle

  • Includes defining & selecting a functional leader of the sub-circle

  • It can share authority with a sub-circle, requiring consent by both circles

  • It can reserve authority for itself


Interactions between a circle and its sub-circle: the “double-link”

  • Each sub-circle elects a representative who participates fully in the decision-making of the higher circle when it is making governance decisions that impact them

  • The connection between two circles is a “double-link” formed by the functional leader and the elected representative of the sub-circle.


In SCM, every circle …

  • Is created and empowered by a parent circle (except 1st circle) from which it receives its Role and its Functional Leader

    • Role includes clarity of aim, domain, guidelines and requested measurements of how its aim is being fulfilled

    • Aim: a clear product or service that contributes to and is valued by the organization = its reason to exist

    • Domain: a clear realm of responsibility and authority within which it is free to make decisions

  • Is semi-autonomous and self-organizing

  • Makes its own decisions about how it fulfills its aim within its domain and the guidelines provided to it.

  • Decides how it delegates authority within its domain and what guidelines are needed within the circle

  • Maintains its own memory system (e.g. log of decisions, documents)

  • Plans for its own development including the development of its members



Why use the Sociocratic Circle Method (SCM)?


AUTONOMY - SCM values the autonomy of individuals and of teams

  • Rather than having a boss or manager who has power over us, authority is held within the collective team, as a governing circle. The circle delegates authority as it chooses.

  • The circle itself is autonomous and decides how it organizes itself to fulfill its aim.

    • (Technically, the circle is semi-autonomous in that it is created by a parent circle which defines the sub-circle’s Role in the context of the larger organization and provides its Functional Leader)

  • Decisions within the circle require the consent of each member acting autonomously.

  • Each person is autonomous and decides how they will fulfill their own role/aim.


EMPOWERMENT - SCM empowers not only leaders, but everyone throughout the organization

  • SCM is explicit about how authority (domain) flows through the organization

    • Authority starts from the top or innermost circle … and flows down or out to other circles and individuals

    • A circle can only delegate authority to individuals within its circle or to its own sub-circles or helping circles.

  • 1st level: The basic structure of SCM values the autonomy of individuals & teams (see above). Our individual empowerment lies in making and owning our own conscious choices.

  • 2nd level: Circles delegate domains to sub-circles and individuals. Delegated domains include both clarity of responsibilities and the authority to make decisions relative to those responsibilities

  • 3rd level: Double-linking of circles - Elected representatives from sub-circles serve as full members of the parent circle when making governance decisions that impact them

  • 4th level: When fully implemented, every person in the organization is a member of at least one governance circle


INCLUSION - SCM ensures everyone’s voice is heard and each person is included in the decisions that most impact them

  • All members of a team are included in the governance circle

  • SCM processes are based on using rounds to explicitly ensure that each person is included in the process

  • When fully implemented, every person in the organization is a member of at least one governance circle


SCM is an ideal structure to support collaborative leadership & decision making

  • Consent decision making is an efficient and inclusive group process

  • SCM supports a shift from extrinsic motivation to intrinsic motivation (e.g. Purpose)

    • Autonomous individuals and teams operating within a clear, aligning intrinsically motivating force (see below)

  • SCM structure sets the stage for mutual accountability


SCM is an open & empty system

  • Designed to be adapted to a range of circumstances and needs (as long as basic integrity of the four core principles is maintained)

  • It is intended to enable rather than constrict


SCM is modeled on living systems: self-organizing, self-regulating, inherent learning

  • Self-organizing systems require (a) an aligning force and (b) autonomous action by the elements involved. In SCM …

    • The aligning forces are intrinsic motivating structures: strategic direction, goals, purpose, values, principles, roles

    • The autonomous action: circle members are free to make their own choices about how they get their work done

  • Self-regulating systems adjust intrinsically to changes in their environment through the Dynamic Circle Process of “lead, do, measure”

  • Dynamic Circle Process WITHIN a circle

    • Leading = governance circle

    • Doing = functional team

    • Measuring = reporting on KPIs etc. within the circle

  • Dynamic Circle Process BETWEEN circles

    • Leading = Functional Leader brings leading from the parent circle

    • Doing = the sub-circle fulfills its aim

    • Measuring = Elected Representative reports KPIs etc. to parent circle



Implications of SCM


People no longer “report to a manager.”

  • Each person is accountable to the circle(s) of which they are a member.

    • Mutual accountability is the new norm. We hold each other accountable.

    • Each member is fully responsible for the success of the circle.

    • Each person is fully self-accountable

    • If “report to” language were to be used …

      • Each person reports to the circle(s) of which they are a member.

  • Each circle is accountable to its parent circle.

    • If “report to” language were to be used …

      • Each sub-circle reports to its parent circle.

  • Through double linking, the functional leader and the elected representative are the liaisons between the circles

    • The functional leader is responsible for bringing leadership directives and changes from the parent circle to the sub-circle, i.e. specific goals for the sub-circle, changes in the sub-circle’s role (aim, domain, guidelines, measurements), organizational strategic direction, goals, values, principles, etc.

    • The elected representative is responsible for bringing feedback and measurements from the sub-circle to the parent circle.


Managers become Functional Leaders

  • Functional Leaders are chosen (elected) by the parent circle

  • Functional Leader Role (as defined by the parent circle)

    • brings leadership directives and changes from the parent circle to the sub-circle, i.e. specific goals for the sub-circle, changes in the sub-circle’s role (aim, domain, guidelines, measurements), organizational strategic direction, goals, values, principles, etc.

    • Coordinates, guides & directs day-to-day work to fulfill the aim of the team/circle

    • is an impetus for action toward the shared purpose, aim & goals

    • brings the focus of attention within the circle back to the shared purpose and aim as the basis for decisions and actions

    • likely has proficiency in a variety of the functional skills needed within the group, but the primary skills of this role are those of orchestrating people, resources and processes toward fulfillment of the shared purpose and aim

    • is alert to opportunities that may enhance the circle's ability to fulfill the shared purpose & aim, and is able to evaluate those opportunities, select those that would likely contribute to the group and develop a strategic plan for implementation

    • similarly, is alert to potential risks that may hinder or block the circle's ability to fulfill the shared purpose & aim, and takes action to mitigate these risks

    • has a systemic view of this circle and how its work integrates within higher circles and the organization as a whole

    • impacts decisions at the next higher circle to ensure that the needs of this circle are seen and valued.


People no longer have a role for an indefinite period of time

  • Every election of a person to a Role has a term, at which point the circle has a new election to determine who is in that role for the next term.

    • Terms can be of any length, but typically are 12-, 18- or 24-month terms

    • People can be re-elected or a new person can be chosen for the role



Core Principles of SCM


1. CONSENT governs decision-making. Consent means there are no argued & paramount objections to a proposed governance decision.
  • "Can you live with it?" “Good enough”

  • The consent process includes every member by using “rounds” as an implicit structure

  • => No one can be ignored.


2. A CIRCLE is a semi-autonomous and self-organizing unit that has its own aim. It makes governance decisions within its domain; delegates the leading, doing, and measuring functions to its own members; maintains its own memory system; and plans its own development.
  • Circles meet periodically (usually every 4-6 weeks) to make governance decisions for the circle.


3. Circles ELECT people to functions and tasks by consent after open discussion.
  • All roles and domains are delegated by the circle.


4. The connection between two circles is a DOUBLE-LINK formed by the functional leader and one or more representatives who participate fully in the decision-making of the next higher circle.
  • Systemic feedback moves UP through the organization.

  • Leadership moves DOWN through the organization.



Learn more about the Sociocratic Circle Method


Course within the Conscious Leader Program


Books


Video: DG for Business (7:52)

This introductory video, produced by Ted Millich, includes interviews of Gerard Endenberg (developer of SCM) and a variety of business leaders who have implemented SCM within their organizations. One of these businesses is Charlottesville Medical Research (CMR) who was a long-term consulting client of Gregg Kendrick.



Video: Overcoming hierarchy. Culture change in business with NVC and sociocracy. A conversation with Gregg Kendrick (1:21:39 - presentation starts at 4:02)

Hosted by Jerry Koch-Gonzalez and Ted Rau of Sociocracy for All

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