3 Pillars of Teal Management

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Organizational Development has progressed with the evolution of human civilization. At least 5 main organizational management systems have been recognized through anthropological research throughout human history.

Numerous professionals have offered numerous explanations for this phenomena. In 2014, Frederic Laloux started analyzing emerging businesses whose management style distinguished them from established organizations.

Laloux used Ken Wilbur’s system of utilizing colors to represent the non-linear development of human civilizations in order to name the distinct stages of management evolution.

The colors red, amber, orange, green, and teal represent the 5 key organizational development stages that correspond to the growth of human civilization.

When establishing the concept of Teal Management, the major purpose was to capitalize on complementary employee abilities by consolidating and integrating their expertise at all levels.

Companies that reject hierarchical and organizational frameworks and embrace modern social and employment trends are categorized as Teal. Teal Organizations are independent and seen as constantly evolving entities with a focus on maximizing their potential.

Frederic Laloux established that the organizational model of Teal Management based on 3 basic pillars:

1. Self-Management

2. Evolutionary Purpose

3. Wholeness

Leaders pay attention to the understanding of their other, more profound characteristics, building an attitude of shared trust and presumed success.

Let’s go a little more into the particulars of the 3 main pillars.


Traditional organization structures are hierarchical, while Teal organizations are not. They use decentralization, which implies order and direction. Even large-scale companies are able to function well with a structure built on peer relationships.

Employers often entrust employees with decision-making tasks because they have confidence in their individual and collective expertise. Structures and processes are implemented so that employees have more autonomy in their individual fields and are accountable for cooperating with others.

Teal organizations foster an atmosphere in which employees are able to fully express themselves. As a result, their potential is maximized.

Evolutionary Objective

Teal organizations are in a constant state of evolution and advancement. In an endeavor to grow, all employees participate in a process of reflection, investigation, and discovery.

Even while none of the evaluated Teal Organizations have yet reached the scale of Orange or Green Organizations, their performance suggests that a new era in Organizational Management is developing.

Teal Organizations have 3 significant advantages over other kinds of organizations:

- Human Factor

- Integrated View of Success

- Learning

There are just 2 essential conditions for an organization to qualify as a Teal Organization, according to research:

- Executive Leadership

- Ownership

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Organizational Design (AKA Organizational Re-design) involves the creation of roles, processes, and structures to ensure that the organization’s goals can be realized. Organizational Design span across various levels of the organization. It includes:

1. The overall organizational “architecture” (e.g. decentralized vs. centralized model).

2. The design of business areas and business units within a larger organization.

3. The design of departments and other sub-units within a business unit.

4. The design of individual roles.

In the current Digital Age, there is an accelerating pace of strategic change driven by the disruption of industries. As a result, to remain competitive, Organizational Design efforts are becoming more frequent and pervasive — with the majority of organizations having experienced redesign within the past 3 years. This has only been exacerbated by COVID-19.

Frustratingly, only less than a quarter of these Organizational Design efforts are successful. Most organizations lack the best practice know-how to guide them through these Transformations effectively.

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I blog about various management frameworks, from Strategic Planning to Digital Transformation to Change Management. https://flevy.com

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Mark Bridges

I blog about various management frameworks, from Strategic Planning to Digital Transformation to Change Management. https://flevy.com