At Backspace we have adopted an organizational structure based on Holacracy. But Backspace is neither a traditional service company nor a product company. We are a startup studio. This causes us to deviate from the official rules you would find in a Holacracy manual. We opted to start with a simplified implementation and expand on that as we learn.
Holacracy is a social technology in which authority and decision-making are distributed throughout self-organizing teams rather than being vested in a management hierarchy.
Simply said: in Holacracy decision making is not done at the top of the pyramid. Decision making is distributed among the teams closest to the action.