Teal organization. Everything you need to know

April 2 2021

Teal organization. Everything you need to know

The employees co-create the company according to its mission. Everybody knows what it aims for, what are its values and responsibility. Everybody feels good and relaxed at work. So they like to come back. Decisions are made by the team rather than arbitrarily. Sounds like an utopia? No, this is the teal organization.

From red to teal evolution

The term “teal organization” was first used by Frederic Laloux in his book “Reinventing Organizations”. He distinguished 5 types of management concepts.

  • red organization – based on the model of a boss who issues instructions and a subordinate who implements them. Tasks are performed out of fear.
  • amber organization – is based on a hierarchical division of power. A leader is responsible for management, setting principles and controlling employees, who must follow arbitrary rules.
  • orange organization – is based on a hierarchical division of power. The focus is on employee competence and the leader is not the most important here.
  • green organization – the customer’s satisfaction and product or service development is crucial. The employee and long-term goals are what matters.

Teal organization – is based on a flat organization structure and employee freedom of action. There is no boss and no leader. The team achieves long-term goals through mutual support.

See also: Five simple rules – employee advocacy

– Surely a teal organization is not for everyone. If you believe that employees should be watched and are only motivated by money – choose the orange model of business management. However, if you believe that employees care about doing their best at work and you will treat them as partners – then the teal organization is for you – says Marta Kamińska from Solutions.Rent.

Teal organization cornerstones 

It is not that easy to introduce teal organization in your company. Start by determining the values shared by all employees and the company as a whole. They are the reason for the team members identifying themselves with the company’s mission and vision, but they also don’t just work to get a paycheck.

According to Frederic Laloux, a teal organization is articulated around three main cornerstones:

  • evolutionary purpose – the mission and vision that the team members help to implement,
  • self-organization – self-management of employees and responsibility for their actions,
  • fullness – the ability to feel yourself at work, full acceptance.

The next step is to build a team that can work together and, above all, is not afraid of responsibility and does not need to be led “by the hand”.

Did you know…

Central to a teal organization is communication and the flow of information between employees. It is worth creating a space where employees share knowledge, exchange ideas and experiences.

It is also important to be transparent in your dealings with employees. There are no secrets in a teal organization and the team is aware of both the profits and costs of the company. However, the financial motivation systems are not the most important here. What is crucial is the sense of meaning in the work being done.

Teal organization advantages

The greatest advantage of a teal organization is good atmosphere at work. The team performs tasks with pleasure, employees enjoy what they do and appreciate their teammates. There is no place for competition and the atmosphere itself motivates people to act. Employees don’t feel frustrated because their boss isn’t controlling them and total trust translates into greater productivity. Everyone feels fully valued as an employee and a part of the company.  

Read also: Business meetings – the importance of savoir-vivre

A teal organization is a great place for ambitious and creative people who know their strengths and weaknesses. Working without a boss and strict rules provide the perfect conditions for growth. And knowing that employees are the company’s main and most important resource further motivates them to act.

Are you looking for a comfortable place to work for your team? Click here and check out Solutions.Rent offices.  

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