Embracing Pandacracy: WWF-Brazil's Innovative Path to Environmental Impact

The RenDanHeYi model, developed by Haier Group CEO Zhang Ruimin in 2005, is revolutionary management philosophy aimed at transforming traditional hierarchical corporate structures into highly adaptive, customer-centric ecosystems. Rooted in the belief that employees (Ren) and their entrepreneurial capabilities should align with customer needs (Dan) to create value, the model emphasizes individual accountability and dynamic organizational roles (HeYi). By dismantling conventional silos, the RenDanHeYi model fosters a network of autonomous micro-enterprises within the larger corporate entity, transforming the organization into a nimble startup factory.

To develop and share the idea of Zero Distance and its broader management philosophy of RenDanHeYi, Haier hosts an annual forum to celebrate the world's most progressive organizations. This September marks the 8th edition of the forum, taking place in Haier’s hometown, Qingdao, on September 20. Working with the Business Ecosystem Alliance and the Management Lab, the Haier Model Institute will release the inaugural listing of the progressive companies which are putting Zero Distance and related ideas into practice.

These organizations are characterized by:

• Zero Distance to customer | Decision what to build is based on insights from the marketplace

• Autonomy | Small teams with full decision-making autonomy enable speed in execution

• Shared Rewards | Everyone in the micro-enterprise participates in its financial success

For the 2024 inaugural ZeroDX awards, Haier approached us to list 50 self-managed organizations that showcase the principles of RenDanHeYi in how they organise their work. WWF-Brazil is one of the 50 organisations we listed this year.

Introducing WWF-Brazil

WWF-Brazil is an environmental non-profit organization dedicated to reversing the trajectory of environmental degradation and fostering a future where society and nature coexist harmoniously. Established in 1996, the organization is part of the global WWF network, working extensively across Brazil's diverse ecosystems to support conservation efforts and sustainable development. WWF-Brazil collaborates with a variety of stakeholders, including traditional communities, local organizations, the corporate sector, and the government, to achieve its mission. Headquartered in Brasília, WWF-Brazil operates with 164 employees spread across various regions of the country.

WWF - Brazil is a prime example of RenDanHeYi in the NGO sector in Brazil. It has established decentralized structure organized around circles or domains and has largely distributed authority to ensure agility and responsiveness to the needs of its diverse stakeholders.

Organizational Structure

In 2019, WWF-Brazil embraced an innovative organizational structure known as "Pandacracy." This approach is inspired by Holacracy and O2 (Organic Organization) principles, designed to create a more responsive and agile organization capable of driving large-scale impact. Pandacracy emphasizes decentralization, minimal formal hierarchy, and self-management, empowering employees at all levels.

The structure is organized into "circles" and "roles," each with specific purposes, accountabilities, domains, and policies. Circles contain essential roles such as Lead Link, Rep Link, Secretary, and Facilitator. These roles facilitate smooth operations and ensure alignment with the organization's mission.

WWF-Brazil's Pandacracy framework allows for flexibility and adaptability, crucial for an organization working in dynamic and diverse environmental landscapes. Tactical and Governance Meetings are integral parts of this system. Tactical Meetings focus on operational problem-solving and progress visibility, while Governance Meetings address structural changes and elections for roles within circles.

Zero Distance to Key Stakeholders

WWF-Brazil's decentralized structure allows for self-managing teams with the autonomy and authority to make decisions directly impacting stakeholders. While the organization does not interact with traditional customers, it focuses on supporting local communities and collaborating with donors. The Pandacracy framework grants individuals the authority to make decisions related to project delivery and necessary changes, especially involving those affected locally.

WWF-Brazil enhances value for stakeholders by focusing on collaborative efforts that strengthen communities and conservation initiatives. The organization's approach to Pandacracy allows for a high degree of responsiveness and adaptability, ensuring that projects are aligned with the needs and priorities of local communities.

Through their roles, the team members are able to decide based on the needs of those impacted how the budget of the project will be distributed among activities and also if changes to the initial plan become necessary. A simple example might be if the project is related to reforestation and there has not been enough rain, the team member will decide which will be the new course of action to take within the budget set for that activity.

Since the adoption of Pandacracy fully in 2020, WWF-Brazil has increased its revenue by 97% as this new structure allowed the organization to work more efficiently towards its strategy. They have changed the way they fundraise from a more passive position in which they would focus on projects to an approach in which their strategy directs their efforts. Every year, a review of the milestones for the 2030 vision of the transformations in which the strategy is based is reviewed in a co-constructed process considering risks and lessons learned to adapt plans. Through governance meetings it is defined if circles will be created or eliminated to adapt to demands and context. One example is that an Emergency Circle was created with the purpose of supporting WWF Brazil's partners to fight fires in the Amazon and Pantanal regions in response to an emerging need. This review process also brought along the creation of an International Advocacy Circle as Brazil will host COP 30 in 2025. Circles can also change their strategy due to external needs. For example, the Protected Areas strategy was to defend the already existing areas during the Bolsonaro government. With the change of President and a more positive environmental agenda, the strategy now works to expand protected areas within the country.

This new structure also brought the organization closer to other offices within the WWF Network which are major donors based on the clear and ambitious strategy and efficient use of financial resources to reach social environmental impacts within the country.

It is also important to note that the circles whose purpose is directly related to the implementation of our projects (approx. 18 circles) and where its members have truly embraced Pandacracy and its principles are the circles that have been more successful in fundraising. The circles in which members are still struggling to change from a “command and control” to a “ sense and response” mindset are less efficient and less likely to use financial resources in a more impactful manner.

By working closely with traditional communities, local organizations, the corporate sector, and the government, WWF-Brazil fosters partnerships that drive meaningful change. The organization's emphasis on dialogue and collaboration enables it to address complex environmental challenges and promote sustainable development across Brazil's diverse biomes.

Internal Culture

WWF-Brazil's internal culture is built on principles of transparency, accountability, and continuous improvement. Circles and roles are accountable for their results, which are regularly tracked and reviewed through Tactical Meetings. Metrics and progress are monitored to ensure alignment with the organization's mission and goals.

The Lead Link plays a crucial role in ensuring that circles achieve their purpose and clarifies expectations for team members. The organization's impact is further tracked through a comprehensive monitoring system and rituals such as planning tactical results and follow-up.

WWF-Brazil's culture of accountability is complemented by a commitment to learning and adaptation. Employees are encouraged to experiment, learn from successes and failures, and continuously refine their approaches to achieve greater impact.

Internally, one of the processes they have been experimenting with is how to grant merits and promotions to the team. Brazilian labor laws are very strict and allow very little flexibility. For example, companies are not able to lower salaries so that if one person´s job description changes to a lower level of responsibilities, he/she will still remain with the former salary. This poses a challenge when structured in roles that can constantly change.

Their compensation system is based on two criteria: performance (deliveries) and behaviors (values in action). Each employee has the opportunity to apply for a salary raise and it is required that a self evaluation be completed as well as to add lessons learned based on feedback received by colleagues. All applications are reviewed by the “team movement” circle which has the domain to grant or refuse salary raises. This circle also considers the level of the job each applicant is currently on. This process is quite new and is still being adapted and improved based on internal necessities.

Conclusion

WWF-Brazil's adoption of Pandacracy represents a bold and innovative approach to organizational structure and culture. By embracing decentralization, self-management, and accountability, the organization is well-positioned to achieve its mission of promoting a healthier future for society and nature. WWF-Brazil's commitment to empowering employees, fostering collaboration, and enhancing value for stakeholders serves as a model for other organizations seeking to drive large-scale impacts in complex and dynamic environments. The success of the new organizational model is another testament of the value of zero-distance practices for every stakeholder of the organization.