Analytical Assignment 2: iQMetrix

Gedu College of Business Studies

Gedu, Chhukha

Analytical Assignment. Submitted by: Group 1 Chimi Wangmo (03230019)

Phuntsho Lhamo (03230121)
Madhan Kumar Rai (03230162)
Sangay Dolma (03230257)
Sonam Tshomo (03230302)
Sonam Wangchuk (03230305)
Tashi Choden (03230333)

Bachelor of Human Capital Management, 3rd Semester

23-10-2024
 DECLARATION

Module Code: HCM206 Type of Course Work: Group Task

Module Title: Organizational Behavior Module Tutor: Ms. Samten Tshomo
Date of Submission: 23 October 2024

We Hereby declare that this academic work is our and those referred ideas from other sources have
been appropriately acknowledged. The material in this submission has not been previously submitted
for assessment. WeUnderstand that if found otherwise, our Academic work will be cancelled and no
marks will be awarded besides legal consequences.

Chimi Wangmo (03230019) Sonam Tshomo (03230302)

Phuntsho Lhamo (03230121) Sonam Wangchuk (03230305)
Madhan Kumar Rai (03230162) Tashi Choden(03230333)
Sangay Dolma (03230257)

FOR MODULE TUTOR

Sl. Marking Criteria Marks Marks

No Assigned obtained
1 Format 1%
2 Question 1 2.5%
3 Question 2 2.5%
4 Question 3 2.5%
5 Referencing 1%
6 Group consistency 0.5%
Total

Feedback:

Signature of Module Tutor

Contents
Question 1 ................................................................................................................................................... 1
IQmetrix Challenges .............................................................................................................................. 1
Evaluating Holacracy Potential Solution ............................................................................................. 2
Potential Drawbacks .............................................................................................................................. 2
Holacracy's Effect on Decision-Making............................................................................................... 4
Effect on communication ....................................................................................................................... 5
Effectiveness of the Organization ........................................................................................................ 7
Question 2 ................................................................................................................................................... 9
The Organizational Culture of iQMetrix .............................................................................................. 9
Question 3 ................................................................................................................................................. 12
Office Analysis ...................................................................................................................................... 12
Recommended Pilot Site..................................................................................................................... 13
Pilot Structure ....................................................................................................................................... 15
Reference .................................................................................................................................................. 17
Question 1
Will holacracy solve the problems facing iQmetrix? Why or why not?

IQmetrix Challenges

IQmetrix is facing several challenges that threaten its continued growth and unique culture

1. Slowing Growth Despite a history of 25% annual growth, their market share is plateauing.
They need new avenues for expansion.

2. Communication and Transparency Issues: Transparency and communication are lacking

within teams, particularly those that are physically separated. Collaboration is hampered when
workers find it difficult to comprehend what their peers are working on.

3. Accountability and Decision Making: Liability can be distributed in a flat organizational

structure. Workers could find it difficult to assign blame for decisions or responsibilities.

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 Evaluating Holacracy Potential Solution

Holacracy, with its emphasis on self-organizing teams, distributed authority, and clear
roles and accountabilities, could potentially address some of iQmetrix's challenges:

Enhanced Innovation and Agility: Teams with greater autonomy can take initiative,
manage their tasks, and react more quickly to emerging market opportunities.

Increased Transparency: Communication and knowledge exchange within the company

can be enhanced by implementing circles with open meetings and distinct responsibilities.
Improved Accountability:

It will be simpler to determine who is in charge of particular tasks and results when roles
and responsibilities are clearly defined within circles.

Potential Drawbacks
Difficulty of Implementation: Changing to an entirely new organizational structure can
be a challenging and upsetting procedure. Employee assistance and training will be
essential.

Loss of knowledge: Holacracy gets rid of managers, which can mean that some areas
of knowledge and strategic direction are lost.

Cultural Fit: Employees operating under a Holacracy must possess a high degree of
initiative and self-motivation. Not every employee at iQmetrix will be a good fit, particularly
those used to a more traditional work atmosphere.

3. Issues

1. Scaling and Maintaining Culture: iQmetrix faced difficulties in preserving its corporate culture
as it expanded from five people to around 500 workers spread across several locations. Self-
organisation, autonomy, and a flat decision-making structure were the company's founding ideals.
But as the business grew, conventional organizational problems like bureaucracy, hierarchy, and
a lack of transparency surfaced and threatened to hinder the innovation and culture of the
organization.

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2. Issues with Communication and Transparency: As the business grew, communication
became less efficient. The absence of organized communication created confusion, which made
it challenging for staff members to remain in line with business objectives. Events such as the
unsuccessful introduction of the XQ product brought to light serious deficiencies in accountability
and transparency.

3. Growth Management Challenges: Despite a 25% compound annual growth rate, the
corporation had growing pains as a result of its quick expansion. In order to manage growth,
iQmetrix frequently had to restructure or implement new strategies, such the management training
program and attempts to employ "management by objectives," which did not fit well with the
company's independent culture.

4. Ineffective Strategic Choices and New Ventures: The failure of the iQmedX business line's
attempt to expand into the medical records sector was attributed to a lack of agreement between
mobile sellers and medical clinics' software requirements. This mistake, coupled with other
disappointments like the abandoned multi-million dollar project for a U.S. wireless carrier,
demonstrated challenges in taking on new projects and adjusting to shifting market demands.

5. Absence of Performance Tracking and Accountability: Due to the company's independent

culture, employees were free to decline participation in some activities, which resulted in missed
deadlines and a lack of accountability. This was attempted to be addressed with the introduction
of performance tracking tools like the "Commitments" system and agile software, but the problems
remained.

6. Unable to Complete Big Projects: Large-scale project management flaws were made clear
when a custom software application for a major U.S. wireless carrier was not delivered on time.
The project exposed problems with coordination, communication, and process management,
indicating that the organization did not have the infrastructure in place to manage complicated
projects successfully.

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 Holacracy's Effect on Decision-Making
1. Decentralized Authority:

 Employee Empowerment: Instead of being concentrated in a small number of

managers, decision-making power is shared among staff members in a Holarctic
organization. With this empowerment, people can take charge of their work, which
promotes accountability and responsibility. Without waiting for management
clearance, employees are more likely to take immediate action on opportunities or
obstacles, which can improve responsiveness to market shifts and consumer needs.

 Encouraging Action: Employees are more inclined to suggest creative fixes and
enhancements when they are aware that they have the power to make judgments.
This proactive approach may result in a culture that values innovation and
experimentation, ultimately propelling the business's expansion and flexibility.

2. Role Clarity:

 Defined duties: Holacracy helps to remove uncertainty regarding who is in charge of

what by explicitly outlining roles and duties. This clarity improves operational
efficiency by lowering the possibility of redundant work or neglected duties.

 Focused Decision-Making: When positions are given specific accountability,

individuals are able to make well-informed decisions that have an immediate effect
on their areas of responsibility. Because people don't have to ask superiors for
permission to do anything, this targeted strategy reduces decision-making delays.

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3. Adaptability:

 Responsive Structures: Holacracy permits teams to be formed and disbanded

following the demands of the project at hand. Because of its adaptability, iQmetrix
can swiftly adjust to changes in the corporate market. For example, teams can be
formed quickly to meet a need without bureaucratic delays if a new opportunity
develops in a different retail industry.

 Ongoing Enhancement: Holacratic organizations frequently conduct routine

evaluations of their procedures and results. This iterative strategy continuously
enhances decision-making procedures and overall efficacy by encouraging teams to
evaluate what works and what doesn't.

Effect on communication
1. Greater Transparency:

 Free Exchange of Information: A transparent culture where information is freely

exchanged within the organization is fostered by holacracy. This transparency
promotes trust among team members and aids employees in understanding the
context of decisions. When everyone has access to pertinent information,
miscommunications are less prevalent and efforts are directed toward shared
objectives.

 Consistency with Organizational Objectives: Employees are better able to match

their work with the strategic goals of the organization when they have clear visibility
into each other's jobs and projects. To make sure that everyone on the team is
working toward the same objectives and supporting the overall business goals, this
alignment is essential.

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 2. Structured Meetings:

 Effective Use of Time: Holacracy places a strong emphasis on meeting forms that
are structured and goal-oriented. This methodical approach can reduce the
amount of time spent in ineffective meetings and promote more fruitful
conversations. Meetings with well-defined roles and agendas guarantee that
decisions are reached quickly and that discussions stay on course.

 Improved Cooperation: Teamwork is encouraged via regularly planned meetings

with specific goals. A more informed decision-making process results from
encouraging involvement and input from a variety of viewpoints when everyone is
aware of the time and method of decision-making.

3. Feedback Loops:

 Continuous Feedback Culture: Instead of depending just on top-down assessments,

holacracy promotes continuous peer feedback. People can find areas for
improvement in real-time and have more fruitful conversations as a result of this
feedback culture.

 Encouragement of Open Dialogue: When openness and communication are

prioritized, staff members could feel more at ease sharing ideas and talking about
difficulties. As team members work together to solve problems, this open
communication can result in faster invention and problem-solving.

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 Effectiveness of the Organization
1. Enhanced Innovation:

 Encouraging Creativity: A holacracy fosters an innovative atmosphere by allowing

workers to take charge and make choices. When team members believe their
contributions are appreciated, they are more willing to try out novel concepts and
methods.

 Quick Execution of Concepts: Thanks to the decentralized decision-making system,

creative ideas can be swiftly implemented without undergoing several levels of
approval. In the tech sector, this agility can be a big competitive advantage.

2. Employee Engagement:

 Increased Job Satisfaction: When employees are free to make decisions about their
work, they are more likely to feel motivated and dedicated to the company's success.

 Retention of Talent: A culture that celebrates autonomy, transparency, and

collaboration can help retain top talent because empowered employees are less
likely to look for opportunities elsewhere, lowering turnover costs and preserving
organizational knowledge.

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3. Scalability Challenges:

 Maintaining Cohesion: Under a holocratic organization, it may be difficult to keep a

larger number of personnel cohesive as iQmetrix expands. Careful management is
needed to guarantee that all staff members share the company's goal while
permitting independent decision-making.

 Potential for Confusion: Although holacracy encourages adaptability, it can also

cause misunderstandings if roles and duties are not made clear as the company
grows. As teams expand, it will be crucial to establish clear policies and procedures
to avoid misunderstanding.

4. Balancing Autonomy with Accountability:

 Risk of Fragmentation: Teams may become fragmented as a result of the absence

of traditional management structures if they fail to effectively communicate or match
their aims with those of the organization as a whole. Maintaining effectiveness will
depend on making sure that every team is aware of how their efforts fit into the overall
objectives of the business.

 Creating Accountability Mechanisms: Although holacracy promotes independence, it

also needs to create accountability systems to make sure workers fulfil their
obligations. In a decentralized architecture, responsibility can be preserved by putting
performance indicators or frequent check-ins into practice.

Madhan Kumar Rai (03230162)

Sonam Tshomo (03230302)
Sonam Wangchuk (03230305)

8|Page
Question 2
If holacracy can solve iQMetrix’s problems, can it be made to fit with the current
organizational culture?

Holacracy, as a system of self-management, offers potential resolutions to the obstacles that

iQMetrix is facing regarding growth and maintaining a culture that is different from the traditional
hierarchy of command. However, to determine its fit with the company’s organizational culture
and ensure a successful adoption, this system must be compatible with iQMetrix’s current values
and practices.

The Organizational Culture of iQMetrix

 Values and Beliefs:

This software development company aspires to create a space where their employees
can thrive as driven individuals who work collectively for a common purpose. Their culture
is non-traditional, aiming to be the “ultimate organization” that fosters creativity and
innovation. Krywulak states that his company does not resonate with hierarchy, rules and
policies; and instead believes in building an environment where people want to work.

 Leadership at iQMetrix:

Provided that their beliefs and values reflect a progressive and autonomous system,
iQMetrix’s leadership style leans more towards a decentralized approach. Here, leaders
encourage their employees to make decisions and take ownership of their work, all the
while cultivating an inclusive and collaborative workplace.

Unfortunately, there are some issues pertaining such a style of leadership. In a

decentralized environment, it becomes difficult to constantly ensure everyone is aligned
with the company’s values. Power struggles are also common, due to the lack of hierarchy.

 Employee Engagement and Communication:

iQMetrix has a flat decision-making structure that gives their members access to required
information and the authority to make decisions. This reveals high consideration for
employee engagement and effective communication means. Their non-traditional strategy
of removing bureaucracy and enabling authority to everyone shows their employees the
trust and respect they have for them. Hence, iQMetrix exhibits a wonderful culture of
openness to individuals and their ideas.

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The company IQ metrix is even more comfortable to fit Holacracy into their organizational culture.
This is mainly due to the following points such as;

1. Alignment with iQMetrix’s Non-Traditional Culture:

iQMetrix rejects typical corporate hierarchies in favor of innovation, transparency, and autonomy.
Similar ideas underpin holacracy, which takes a decentralized approach. It stresses dispersing
decision-making authority across all organizational levels and rejects the conventional top-down
hierarchical structure. Holacracy might further foster the kind of innovative and adaptable work
environment that iQMetrix has always aimed to preserve by enabling employees to self-organize
into roles and responsibilities that change dynamically depending on the demands of the
business.

2. Enhanced Communication and Transparency:

Lack of communication and coordination across several teams is one of the primary problems at
iQMetrix that has been discovered. Informal communication methods that were successful for
smaller organizations were less and less effective as iQMetrix grew. As demonstrated by the 2014
XQ software launch debacle, the organization experienced serious communication breakdowns
that affected project outcomes, and employees frequently had no idea what their coworkers in
other departments were working on. The distributed authority structure of a holacracy is intended
to increase openness; it necessitates frequent governance meetings and operational clarity.
Employee alignment with the company's objectives is maintained through regular, scheduled
meetings, which also enable prompt resolution of any problems or misalignments. The role
structure of a holacracy also helps workers understand who is in charge of what, which improves
communication between various offices.

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 3. Support for Long-Term Growth:

As iQMetrix keeps expanding, it's getting harder to keep up its creative culture and make sure
that everyone in the company works together and communicates well. As holacracy offers a
scalable structure of governance, it could facilitate this growth. Holacracy's adaptability enables
the formation of new circles, or teams, as a business undertakes new initiatives or enters new
markets. Due to this, iQMetrix would be able to remain responsive and agile as its personnel and
operational complexity grow. Furthermore, Krywulak's long-term goal for iQMetrix is to be a
business that can prosper for the next 100 years, and this is in line with the structure's natural
flexibility. Holacracy's capacity to change with the company guarantees that should iQMetrix face
new difficulties, its internal framework may adapt to fulfil those needs without compromising the
fundamental principles of autonomy, creativity, and innovation that define the company.

Considering the aforementioned elements, iQMetrix can be deemed a fairly adjustable

organization. This suggests that their culture is rather welcoming and can work well with the
principles of Holacracy which includes self-management and empowerment. Hence, it can be
made to fit with the current organizational culture.

Sangay Dolma (03230257)

Chhimi Wangmo (03230019)

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Question 3
If iQMetrix decides to take the pilot approach, which office would be a good site for the
pilot, and what should the pilot look like?

To determine the best office for a pilot approach for implementing holacracy at iQmetrix, we need
to consider the characteristics and dynamics of each office location. Here’s an analysis of the
offices and a recommendation for the pilot site:

Office Analysis
1. Regina Office:

Characteristics: Original founding office with a diverse range of functions. Employees are likely
to have long-term commitments.

Pros: Strong familiarity with the company culture and values. Employees may be more receptive
to changes that align with the company's founding principles.

Cons: Potential resistance to change if employees are deeply ingrained in traditional practices.

2. Vancouver Office:

Characteristics: Home to senior executives; focuses on new product development. Employees

are likely to be more mobile and may have different expectations regarding corporate culture.

Pros: A dynamic environment with a mix of experienced and new talent. The presence of
leadership may facilitate quicker decision-making and support.

Cons: The traditional corporate culture may clash with the principles of holacracy, leading to
potential pushback.

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3. Winnipeg Office:

Characteristics: Similar to Regina, with a focus on new product development. Employees tend
to stay for the long term.

Pros: Stability and a commitment to the organization. Employees may be open to experimenting
with new structures.

Cons: Limited senior leadership presence may hinder the pilot’s visibility and support.

4. Charlotte Office:

Characteristics: Focused on business development and professional services, with no software

developers.

Pros: A more traditional corporate culture that may benefit from the transparency and
accountability of holacracy.

Cons: The lack of software development may limit the applicability of holacratic principles in a
tech-centric company.

Recommended Pilot Site

Vancouver Office:

Rationale:

Leadership Presence: The presence of senior executives will provide strong support and visibility
for the pilot, which can help in addressing challenges and facilitating buy-in.

Dynamic Environment: The Vancouver office's focus on new product development aligns with the
innovative spirit of holacracy, making it a suitable testing ground for self-organizing teams.

Potential for Learning: Given its mix of experienced and newer employees, the Vancouver office
can provide valuable insights into how holacracy can be adapted to different employee
expectations and work styles.

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If iQmetrix decides to take a pilot approach for implementing holacracy, the *Vancouver office*
would be a strong candidate for several reasons:

1. Diverse Expertise:

The Vancouver office is concentrated on new product creation and is staffed with some of the
firm’s most important senior executives due to which it is important to experiment with new
management styles.

2. Cultural Alignment:

Again, employees in Vancouver may be willing to test out the water with unorthodox management
styles since the city has a rich and thriving technological culture which supports Thams’ idea of
autonomy and innovative freedom.

3. Resource Availability:

The office is located in the large metropolitan area and thus there are great opportunities to recruit
and support if the pilot hired a complex professional services.

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 Pilot Structure
1. Define Clear Objectives:
The key objectives for the pilot should be defined, for instance, increasing the speed of
decision making, increasing transparency and the promotion of innovation. Key
performance indicators for success should therefore be the employee satisfaction, project
success rates, and interactions.

2. Role Identification:
Continuing with the notion of replacing conventional job titles, describe the position, not
by the usual name of the post, but the work being done at present. Make sure employees
know what they are accountable for and the power that they have as a part of their job.

3. Training and Support:

Teach the participants all of the necessary information concerning the holacracy system.
It may also be wise to hire a holacracy coach who would help implementing the process
and help resolve the problems that may occur during this process.

4. Establish Circles:
Assemble work processes into circles meeting specific project or organizational
requirements. They should show clear set of responsibilities and decision making
responsibilities as well as flexibility to adapt to the change.

5. Feedback Mechanism:

Set intake conferences and other forms of feedback meetings to review the impact of the pilot.
Promote sharing of good practices and lessons learned and avoided as well as used to
enhance organizational learning.

6. Iterative Approach:

Permit changes from the information given to the society, and other conditions arising in the
progress. This means that the pilot should be adaptable to allow teams to experiment with
processes and roles and find out what best practices.

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 7. Evaluate and Scale:

After a prescribed period of time (6-12 months) assess if the pilot has had a positive effect on
performance and employee morale and other business parameters. It is for this reason that
one can start utilizing these insights to improve the utilization of the strategy before going out
to use it on other offices. Hence, choosing the Vancouver’s office as a subject of the pilot
implementation and using a structured plan for the change, iQmetrix can experiment with
holacracy while staying loyal to the core values of the company.

By choosing the Vancouver office for the pilot approach, iQmetrix can leverage its leadership
presence and innovative culture to explore the effectiveness of holacracy. This pilot could serve
as a valuable learning experience, informing broader implementation across the organization
while fostering a culture of transparency and empowerment.

Tashi Choden (03230333)

Phuntsho Lhamo (03230121)

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Reference

Ijafb) Sulaiman, N., Abdullah, Z., & Man, N. (2023). The Effects Of Employee Communication

And Engagement On Organisational Performance: A Conceptual Study. International

Journal of Accounting, Finance and Business, 8(46), 233–251.

https://doi.org/10.55573/IJAFB.084616

How iQmetrix drives a self-managed company culture with PeopleGoal’s custom workflows.

(n.d.). Www.peoplegoal.com. https://www.peoplegoal.com/resources/case-studies/how-

iqmetrix-drives-a-self-managed-company-culture-with-peoplegoal-custom-workflows

Case Solution Evaluating Holacracy at iQmetrix - Evaluating Holacracy at iQmetrix Case Study -

Studocu. (2024). Studocu. https://www.studocu.com/en-gb/document/morley-

college/fashion-and-textiles-processes/case-solution-evaluating-holacracy-at-

iqmetrix/83756972

Learn About Our Story, People, and Philosophy. (2018). IQmetrix.

https://www.iqmetrix.com/company/about-iqmetrix

The Holacracy Decision: Expanding Autonomy and Communication at | Course Hero. (2023).

Coursehero.com. https://www.coursehero.com/file/218893021/iQmetrix-Case-Study-

Parker-Karasekdocx/

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 Rubrics

Total
Exemplary
Criteria Inadequate (40%) Minimal (60%) Adequate (80%) Poin
(100%)
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 Total
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(100%)
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required questions questions are questions are questions are

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questions asked. ideas, but it developed ideas requirements

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 Total
Exemplary
Criteria Inadequate (40%) Minimal (60%) Adequate (80%) Poin
(100%)
ts

Conclusions drawn repeats with sufficient asked. Original

are unsupported, information and firm thought supports
illogical or merely provided and/ or evidence. Clearly the topic, and is
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