Sociocracy (also called dynamic governance or circular organization) is a governance system designed to balance efficiency and equity in group decision-making. It has been adopted by many cohousing and intentional communities as an alternative to both top-down management and slow consensus processes.

The key innovations of sociocracy include: governance by circles (semi-autonomous teams responsible for specific domains), double-linking between circles (two-way information and accountability flow), consent-based decision-making (decisions are accepted when no one has a principled objection, without requiring enthusiasm from all), and role-based leadership (specific roles with defined domains of authority elected by the circle).

Sociocracy is not a panacea but it provides useful structures for communities that want more efficiency than pure consensus without reverting to top-down authority. Many communities use a hybrid approach: sociocratic structure for operational domains with full consensus for major community-wide decisions.