It turns out that holacracy has limited contingencies for what happens if things start going south.
How Holacracy Is Killing Businesses
Infinite Beta

Holacracy does NOT prescribe you one particular way of how you should deal with difficult decisions. All it does it does is giving you the tools (Governance) so you can create the roles, accountabilities, policies, domains you need to answer this question for yourself and iterate your answer over time. It is true that Holacracy leaves it up to you to answer to these challenges as a company in your own way.

It becomes problematic when everyone waits on somebody else to process this kind of tension. If I sense such a tension in my own company I have everything I need to create a role accountable for hiring and firing or defining a process (via policy) in order to resolve this tension. Governance allows anyone in the organization to propose a solution. Without managers you need to hold each other accountable.

I guess like any game you can play the Holacracy game on many levels. If you suck at the basics like e.g. by NOT procession your tension (waiting on others to “save” you, maybe on your former boss) then you can only blame yourself.

Businesses fail for many reasons. Not dealing with reality is one of them. It is easy to put the blame on Holacracy and not so easy to look into the mirror and ask yourself, whether you have tried to process your own tension.