An adhocracy is a business model in which individual initiative is paramount. A business that functions as an adhocracy is highly decentralized, as opposed to a bureaucracy, which is highly centralized. The term was introduced into the lexicon by Alvin Toffler in the 1970s.

Adhocracies are seen as more viable in smaller companies, or in fast moving industries, where flexibility and speed are essential to success. In large organizations, however, adhocracies can lead to inefficiencies and task duplication, which is why the bureaucratic model is found in most large companies and governments.