Teal Organization: Everything You Need to Know

What if there was a way to transform your organization into a dynamic, agile, and purpose-driven entity? Well, that’s what a teal organization is all about! Pioneered by Frederic Laloux's research, this governance model is described as the most advanced stage of organizational evolution. 

A teal organization not only challenges conventional wisdom, but also opens up new avenues for innovation, resilience, and employee empowerment. If you’re looking to implement more agile ways of working, then listen up: this is for you! In this article, we delve into what makes an organization teal, the benefits of such a transformation, how to achieve it, and which tools can help you along the way.

What is a Teal Organization?

Definition

A teal organization is an entity that transcends traditional hierarchical structures, and seeks to embrace three core principles: self-management, wholeness, and an evolutionary purpose. 

Core Principles

Self-management means that team members don’t need to ask for their managers’ approval to make a decision. Instead, decisions are made through seeking advice from colleagues and taking advantage of collective intelligence.

Wholeness means that employees are encouraged to be themselves and freely express their emotions at work. This helps create a work environment where personal and professional growth go hand in hand.

Evolutionary purpose means that a teal organization is continually evolving and adapting to its environment. Instead of adhering to a fixed plan, it embraces change as a natural process to achieve its purpose.

Watch this webinar to understand how this works, and how a teal organization is structured.

Background and History

The journey to understanding teal organizations began in 2014 with Frederic Laloux's book, "Reinventing Organizations". In this book, he outlines five stages of organizational development:

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1. Red organizations, which are characterized by their impulsive, power-driven nature.
2. Amber organizations, which rely on strict hierarchies and roles to maintain order.
3. Orange organizations, which are achievement-oriented, driven by innovation and success metrics.
4. Green organizations, which focus on equality and community involvement, valuing people over process.
5. Teal organizations, which transcend these models by integrating self-management, wholeness, and an evolutionary purpose into their core operations.

If you’re curious about what makes an organization red, amber, orange, green or teal, then have a look at the video below.

Contrary to traditional models, teal organizations prioritize flexibility, employee empowerment, and a holistic approach to organizational success. Since they’re the latest stage of organizational development, they’re thus considered as the response to the increasing complexity of today’s business landscape.

In a teal organization, work is not only about achieving goals; it’s also about personal growth and contributing to a greater good. Therefore, transitioning to teal is more than an organizational change. It requires a cultural shift that challenges deeply ingrained beliefs about authority, control, and success.  

What Are the Benefits of Going Teal?

Embracing a teal organization structure offers numerous advantages. Here are some of the key benefits to bear in mind:

• Enhanced agility and flexibility. In a teal organization, decision-making is decentralized, allowing teams to respond swiftly to changes and opportunities. This agility is crucial in today's fast-paced business environment, where adaptability can be a competitive advantage.

• Increased employee engagement and satisfaction. By promoting self-management, teal organizations empower employees, giving them a sense of ownership and responsibility for their work. This empowerment leads to higher levels of engagement, job satisfaction, and productivity.

• Better innovation and creativity. With a culture that values each individual's contributions and perspectives, teal organizations naturally cultivate innovation. Employees are encouraged to bring their whole selves to work, leading to more diverse ideas and creative solutions.

• Stronger organizational alignment and purpose. Teal organizations operate with a clear, evolutionary purpose, ensuring that all efforts are aligned towards a common goal. This shared vision fosters a strong sense of community and belonging among employees, driving motivation and commitment.

• Improved well-being and work-life balance. The emphasis on wholeness and acknowledging the personal needs and aspirations of employees leads to a healthier work-life balance. In teal organizations, the well-being of employees is a priority, contributing to a positive and supportive work environment.

• Greater resilience and sustainability. The combination of flexibility, strong community, and alignment with purpose equips teal organizations to navigate challenges and uncertainties more effectively. This resilience ensures long-term sustainability and success.

In short, transitioning to a teal organization not only revolutionizes the way work is done, but also contributes to a more fulfilling and meaningful work experience for everyone involved.

Also read: The Pros & Cons of Going Teal

How Can You Assess if Your Organization Is Ready for Teal?

Before embarking on the journey to become a teal organization, it's crucial to assess whether your organization is ready for it. Here are key factors to consider before going all in:

• Leadership willingness. The transition to teal begins at the top. Leaders must be willing to relinquish control and trust in the self-management capabilities of their teams. They should be ready to embrace vulnerability, admit they don't have all the answers, and be open to learning alongside their employees.

• Cultural alignment. Assess whether your organizational culture is open to significant changes. A culture that values transparency, trust, psychological safety and empowerment is more conducive to adopting teal principles. Resistance from within can significantly hinder the transformation process.

• Employee engagement. The success of transitioning to teal heavily relies on the engagement and willingness of all employees to adopt a new way of working. Organizations with a workforce that is already leaning towards autonomy, collaboration, and innovation will find the shift more natural.

• Current organizational structure. Consider how your current organizational structure will adapt to the shift towards self-management. Organizations with rigid hierarchies may face more challenges than those already operating with some level of flexibility and decentralization.

• Readiness for evolutionary purpose. Evaluate if your organization is ready to let its purpose evolve. This means moving beyond fixed goals to a dynamic understanding of the organization's role, guided by its members and their interactions with the wider ecosystem.

• Financial stability: Ensure your organization is financially stable enough to invest in the transition. While the long-term benefits of becoming teal are significant, the process itself may require resources for training, restructuring, and potentially, new technology.

Also read: Where To Start When Going Teal?

How Can You Organization Become Teal?

Implementing teal is a profound journey that involves rethinking traditional structures and practices. Here’s a roadmap to guide your organization through this transformative process.

Create a Shared Understanding and Vision

First, begin by educating leaders and employees about teal principles. Share resources, organize workshops, and invite speakers to inspire your organization with success stories of teal transformations.

Facilitate discussions to co-create a shared vision of what becoming a teal organization means for everyone involved. And make sure this vision aligns with your organization's evolutionary purpose.

Also read: How To Approach Onboarding in Teal Organizations

Empower Through Self-Management

Implement structures that empower individuals and teams to make decisions relevant to their work. For example, this can involve setting up cross-functional teams with the autonomy to lead projects.

Encourage teams to set their own goals, manage their resources, and take accountability for outcomes. Provide training and support to help them develop the necessary skills for becoming a self-managed team.

PS: watch this webinar to know what it takes to implement self-management 💪

Cultivate Wholeness

Create an environment that supports personal and professional growth. This includes offering opportunities for learning, reflection, and sharing personal insights and experiences.

Implement practices that encourage open and honest communication, such as regular check-ins, feedback loops, and specific channels for sharing ideas and concerns.

Align with Evolutionary Purpose

Engage the whole organization in discussions to clarify and articulate your evolutionary purpose. This purpose should then guide decision-making, strategy, and daily operations.

Encourage an organizational mindset that is open to change. Make it a practice to regularly review and adapt your purpose, strategies, and operations based on internal feedback and external changes.

Support Continuous Learning and Adjustments

Treat the transition to teal as an iterative process. Regularly gather feedback from all levels of the organization to understand what is working and what isn't. Then use it to make informed adjustments to your organization’s practices, structures, and processes. 

Approach obstacles and setbacks as chances to learn and grow. Encourage discussion of challenges to collectively find solutions and deepen the organization's resilience and adaptability.

How Can You Leverage Holaspirit for Your Teal Transition?

Implementing a self-management platform like Holaspirit is a great way to get started with teal. It can help you improve your organization’s transparency, empower your teams, accelerate decision-making, and make sure everyone is aligned with your purpose. 

Holaspirit offers several features that are designed exactly for this:

• Dynamic organizational chart: This helps everyone clearly understand who does what, who’s accountable to who, and for what purpose.
• Meeting templates: These are a great way to keep your meetings organized and capture your teams’ routines. Also, they’re completely customizable!
• Tasks: This feature helps you coordinate and monitor all the projects of your self-managed teams, as well as the tasks you’re assigned to.
• OKRs (Objectives and Key Results): These help you set ambitious goals with measurable results that are aligned with your company’s purpose.

Since we understand the challenges that come with going teal, we also partner with experienced coaches who specialize in guiding organizations through this process. So wherever you are in your teal journey, feel free to ask for our help!

PS: Check out this webinar to see how our platform Holaspirit works and what services we offer. Or simply schedule a demo call with our team by clicking on the button below 👇

To conclude

By embracing the principles of self-management, wholeness, and evolutionary purpose, teal organizations can unlock unprecedented levels of agility, innovation, and employee engagement.

However, the transition to teal is not without its challenges. It requires a deep commitment from all levels of the organization, a willingness to embrace uncertainty, and a dedication to continuous learning and adaptation.

Now if you're interested in teal organizations, you probably still have questions. For example, what's difference between teal and other organizational models? How can you choose the right model for your organization? And what are the best practices for successfully implementing it? Well, look no further, we have all the answers that you need in our new white paper 👇

Access White Paper

In our white paper "The Ultimate Guide to Organizational Models", you'll get: a comprehensive overview of innovative organizational models (like Agile, Teal, Holacracy, Constitutional Management, and more), testimonials from pioneer organizations that have successfully adopted it, best practices for choosing, implementing and measuring the effectiveness of our model, as well as digital tools to facilitate the transition.