The aim of our thesis is to provide an insight into self-managing organizations (SMOs), particularly referencing holacratic and teal organizations, and connecting them with the consequent innovative process. Global markets are changing rapidly, and competition is increasing, as the pressure on companies to adapt to these fast-paced changes. There is an increasing demand for constant innovative idea flows to keep up with the dynamics of the global market economy. New flexible management tools are needed in order to maintain balance. Starting from the premise that SMO tools are part of the response to the dynamics of enterprises, we aim to outline how SMOs operate. We also analyze the innovative process within SMOs and try to answer whether innovation is inherently connected to holacratic and teal organizations. This will be achieved by conducting interviews on case subjects using qualitative analysis and elaborating on the findings to form a discussion. As this is a revolutionary new phenomenon that shifts the management's responsibility from one person to the entire organization, few companies as of yet have adopted this strategy. This adds limitations to our study but opens the door for further research.