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Teal Organizations - New Rules of Business
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Teal Organizations - New Rules of Business

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A management system, strict hierarchy, KPIs, and quarterly, annually, or decade planning are long-time staples in describing a successful organization. However, modern business is departing from this structure. Self-managing teams, common goals and values, trust, and the maximum empowerment of employees are the features of the businesses that will be successful in the future. When we build a business, we are looking for the most stable, reliable, and profitable organizational structure. Business guru Frederic Laloux identifies the five types of commercial organizations this way:

Type of Organization: Red — “wolf pack”

Impulsive organization that is structured around a strong leader who has absolute power over others.

Type of Organization: Amber — “army”

Cconformist organization that is characterized by clear roles and highly standardized processes within a hierarchical structure.

Type of Organization: Orange — “machine”

Elite organization with a high level of competition and innovation.

Type of Organization: Green — “family”

Pluralistic organization with employee empowerment and a value-driven culture.

Type of Organization: Teal — self-managing community

Employees are vested in company’s success. Thus, teal companies have no formal management or hierarchy. Moreover, teams choose their projects and development priorities. Employees work on what is interesting to them, and not what is handed down by the management. Many organizations are trying "the teal" way; for example, companies such as AES, Patagonia, Valve, and RHD. A lack of bureaucratic hurdles, quick decision-making processes, employee satisfaction in a job well-done — these are the basic principles of such businesses.* Even some of the state-owned banks are experimenting with implementing teal ideas. Are you ready to stop managing and begin evolving with your employees?


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Published on
December 21, 2017