What Is Teal Management And What Are Its Characteristics?

The concept of working in an organization with no leader, no defined responsibilities, and no control may seem a bit abstract. Does it even work? Yes, that is precisely what a teal organization is. While there are still very few companies based on this concept, the idea itself is becoming increasingly popular as it offers many benefits for teams.

Where does the name “teal organization” come from? Why teal?

The term “teal organization” comes from the color teal, which symbolizes balance and harmony. Above all, teal is a color associated with values such as responsibility, honesty, respect, and tolerance, which are important in a teal organization. As for the origins of the teal organization, there are at least two theories about the creation of this management model.

A teal organization is an innovative organizational model inspired by the groundbreaking book by French author Frederic Laloux, Reinventing Organizations, published in 2014, which became a bestseller worldwide. Laloux specializes in the analysis and development of modern, innovative organizations. In his book, he defined different levels of human consciousness, which also translate into the types of organizations that have emerged over millennia.

Laloux identified five management models. He assigned each a symbolic color and ranked them from the most authoritarian to the most democratic. In this ranking, “evolutionary teal” is placed at the top as the highest level of organizational management consciousness.

However, there is also considerable information suggesting that the teal organization was pioneered by John Seddon, a British management specialist, who developed a management model based on holistic business principles. The combination of organizations and teal has been well-received and has been functioning in the market for many years, gaining increasing popularity with each passing year.

What Is Teal Management

A teal organization is one that applies the teal management model and is characterized by a balance between achieving business goals and meeting social and ethical objectives, while also caring for employee well-being and sustainable development.

In strong theory, a teal organization is based on a holistic approach to business, considering all aspects of the organization’s activities, such as economic, social, ethical, cultural, and ecological. A teal organization emphasizes open and transparent communication, allowing employees to participate in decision-making processes and exchange views and ideas. Motivating employees becomes simpler because they manage all the processes themselves.

The organization also strives for sustainable development and care for the natural environment. It can be an attractive workplace for those who value aspects such as flexibility, work-life balance, and opportunities for professional growth. But how does this look in practice? Let’s skip some of the theory…

Teal organization in practice

The structure in a teal organization is, in fact, the absence of structure. A teal organization is essentially a self-managing organization. Employees are no longer subordinates because there is no boss. There is no hierarchy, and everyone is equal to one another. People assign tasks to themselves based on their skills and the current needs of the company. Decisions are made by those who are best suited to make them.

There are no bonuses, commissions, orders, competition, control, or positions, but instead trust, cooperation, partnership, and freedom. Employees decide how much they earn, usually receiving a share of the profits. They share knowledge and help each other develop skills. The organization is transparent, and the team has access to all information, including each other’s salaries.

Of course, this is a very broad approach in practice, as not every company working in the teal model must adhere to all these principles. Everything remains flexible and adaptable to the specific nature of work in a given company. From experience, we know that many companies today partially use the teal management model, finding a so-called “golden middle” in management.

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A hypothetical example of a company using the teal model

A hypothetical example of a teal organization could be a company producing clothing from organic materials that adopts the teal management model. This company emphasizes a balance between achieving business goals, such as profit, and achieving social and ethical goals, such as environmental protection and employee well-being.

The company follows a holistic approach to business, considering all aspects of its operations, including economic, social, ethical, cultural, and ecological. It ensures that its products are made from organic materials in an environmentally friendly manner. Job titles hold no significance, and actions are taken by each team member, regardless of hierarchy, as it does not exist. Responsibility is not placed on leaders but is shared by the entire team.

In teal organizations, open and transparent communication is practiced, allowing employees to participate in decision-making processes and exchange views and ideas. The company strives for sustainable development, focusing on long-term goals and environmental care. Team members support one another and work together towards success. Teal organizations present many ongoing challenges for everyone in the team, where decisions are made by anyone who feels competent to do so.

This organization offers employees a friendly and safe work environment, as well as opportunities for professional development and participation in social projects. Employee satisfaction and well-being are recognized as important for business success, and the company seeks to promote these values at every stage of collaboration.

The pillars of a teal organization are…

In a teal organization, three elements can be defined, known as the three pillars of teal. These are:

• Self-management, meaning the ability of team members to manage themselves, take responsibility, and flexibly adapt to current challenges. Efficiency depends on interpersonal relationships and eliminating any resistance or habits related to traditional hierarchy. Each team member feels responsible for the organization.
• Wholeness – the sense that one can be their true self at work, without pretending or separating professional and personal life. Not only is the rational part acknowledged and respected, but also the emotional, spiritual, and intuitive aspects of coworkers. The team understands that everyone is deeply interconnected, as part of a larger whole. Instead of blaming others for problems, solutions are sought together.
• Evolutionary purpose – operations are viewed as part of a living, evolving organism that has a life purpose, and team members help to fulfill that purpose. The driving force may be the need to produce products and services that are valuable to customers, local communities, or the world.

What opportunities do employees have in teal organizations?

A teal organization can offer employees a range of development and engagement opportunities at work. Here are some key examples:

• Opportunity to co-create goals and strategies: A teal organization can give employees the chance to participate in shaping the company’s goals and strategies, allowing them to better understand the organization’s direction and align their actions with its overall objectives.
• Improved professional development: A company operating under the teal model may offer employees training and career development opportunities, enabling them to enhance their skills and advance their careers within the organization.
• More effective teamwork: A teal organization emphasizes collaboration among employees, allowing them to better utilize their skills and experience while improving problem-solving and goal achievement. There are no true leaders; everyone is equal and has an equal voice.
• Involvement in social projects: The company may encourage employees to participate in social and charitable projects, helping them become more engaged with the organization’s mission and values while fostering a deeper understanding of its goals.
• Influence on organizational decisions: The teal management model may provide employees with the ability to influence organizational decisions by participating in decision-making bodies or other forms of consultation and involvement in the decision-making process. It guarantees that team members have the power to make decisions.
• A chance to work in a friendly and safe environment: A teal organization can ensure a friendly and safe working environment, focusing on environmental protection and other related aspects.

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What other management models do we distinguish?

Teal is not everything; we can identify many other management models, most of which are named after colors. Some are more popular than others, but it’s worth getting familiar with each model. Perhaps one of them will become the future framework for your company?

Red Organization

The management model in a red organization is based on power exercised by a leader. The employer instills fear and treats subordinates as objects. Typically, the goals are short-term. A simple, yet negative example of a red organization would be gangs or the mafia, which can definitely be classified under this color.

Amber Organization

The structure of an amber organization is hierarchical, and control and management occur from the top down, but the perspective is long-term. Operations follow specific rules. This model is typical of most government organizations, the military, police, and public schools.

Orange Organization

Although the organizational structure remains rigid, the management model shifts to a goal-oriented approach. The planning perspective extends. Employees play a larger role, with a focus on their competencies. Innovation, responsibility, and efficiency are valued. The organization is focused on goals and profits. Corporations, banks, and public universities often operate under the orange model.

Green Organization

The green management model is centered on the individual, focusing on the values and interests of employees. The structure resembles a pyramid. The leader motivates and supports subordinates, who demonstrate creativity and engagement.

Teal management is a modern, decentralized organizational model that emphasizes balance between business goals and social, ethical, and environmental objectives. It operates without traditional hierarchies, promoting self-management, where employees take responsibility for their actions and decisions. The model encourages transparency, open communication, and collaboration, with no formal leaders, as decision-making is shared among all team members.

Teal organizations focus on three main pillars:

1. Self-management – Teams manage themselves without hierarchical leadership, and responsibility is shared by everyone.
2. Wholeness – Employees can bring their whole selves to work, including their emotional, spiritual, and intuitive aspects.
3. Evolutionary purpose – The organization operates as a living entity with a greater purpose, beyond profit, often focusing on sustainability and creating value for communities.

Teal organizations prioritize long-term goals, employee well-being, and environmental sustainability, offering employees the opportunity to contribute to decision-making, professional development, and social projects. The model is seen as an alternative to traditional, hierarchical management systems and can be adapted to various organizational needs.