Collegial leadership and the concept of the district organization

In 2012, we took a close look at our corporate culture and the term "New Work" for the first time. From then on, personal responsibility, openness and trust were important pillars of our culture and collaboration. Working in the Home office with people spread all over Germany was already the norm for us, as was working independently in projects and project teams. In 2019, we came across the concept of collegial leadership through the book "Das kollegial geführte Unternehmen" by Claudia Schröder and Bernd Oestereich. During a culture camp, we took a close look at this model and finally introduced it to our company.

The implementation of the district organization

As already described, self-responsible working and the feeling of being a "New Work" company was normal for us even before the implementation of the collegial leadership model. There were no perceptible hierarchies or people who saw themselves as "superiors". Instead, people worked on specific topics on an equal footing and responsibilities varied depending on the situation. This happened intuitively without being recorded anywhere. Through the subsequent examination of the circular organization model, we discovered that transparent responsibilities can create great value, especially in companies without rigid hierarchies.

The best way to describe the circular organization model is with concentric rings, which are defined both externally in relation to the market (customers, suppliers, society, etc.) and internally in relation to the owners. These rings contain circles that are always made up of people who fulfill defined tasks and have flexible responsibilities. An employee can be organized in several circles, but the responsibilities can differ. Each circle manages itself and its area of responsibility.

The last outer ring contains the business units that contribute directly to value creation. These interdisciplinary units combine all the necessary skills to provide specific value-added services and can be subdivided into smaller units. For example, circles of people working on a joint customer project are located here. Groups that work together on specific business areas are grouped into business units. In our case, these are Good Consulting, Good Applications and Good License.

There are also the service groups, which provide general services such as accounting, marketing, IT, etc. and thus support the business groups. There are also management and coordination circles for higher-level tasks. These are typically the tasks of the management. Experience and knowledge are exchanged in groups of colleagues and practitioners. These groups support each other in their personal and professional development. These communities work informally, but their existence is generally known.

In order to ensure effective self-organization, a clear overview of responsibilities, tasks and memberships in the various circles is necessary. A physical pinboard or digital publication of the organizational map, on which the names of the members in the various circles are listed, should be easily accessible to everyone and regularly updated.

What we have discovered to date

Some time has passed since we first looked at collegial leadership and the circular organization. Since then, we have regularly adapted our circle model. In practice, it is important to regularly remind people of the system and its principles and thus make them actively visible. When new people join the company, it is important to familiarize them with the concept. At the same time, the transparent presentation of the organizational structure makes onboarding new employees much easier.

Collegial leadership has helped us to create an environment in which each individual is valued and in which we can grow together. For us, it is more than just an alternative organizational structure; it is an essential building block of our corporate philosophy, which is based on joint cooperation and shared success.

Conclusion

Collegial leadership and the circular organization represent an innovative response to the challenges of the modern business environment. They enable a more flexible and agile corporate structure that responds to both employee needs and market requirements. This approach promotes personal responsibility, collaboration and innovation at all levels of the company. By replacing traditional hierarchies with a network of interconnected circles, collegial leadership enables a more dynamic, fair and adaptable form of organization. We believe that this approach can be an inspiring and forward-looking alternative to traditional management models, not only for us but also for other companies.