Teal organisation explained

Teal organization describes an organization that adheres to an organizational theory based on workers' self-management. The term was coined in 2014 by Frederic Laloux in his book Reinventing Organizations. Laloux uses a descriptive model in which he describes different types of organizations in terms of colour, and he cites studies by evolutionary and social psychologists including Jean Gebser, Clare W. Graves, Don Edward Beck, Chris Cowan and Ken Wilber.^[1]

Model

Laloux defines a "teal" organisation as one where the management is based on worker autonomy and peer relationships.^[2] He contrasts this to:^[3]

• Red Organizations: Characterized by authoritarian structures and control through fear.
• Amber Organizations: Structured around rigid hierarchies and top-down command.
• Orange Organizations: Operate on meritocratic principles, emphasizing competition and performance.
• Green Organizations: Focus on consensus and stakeholder values, often emphasizing culture and empowerment.

The theory of Teal organizations is built on three core concepts: self-management, wholeness, and evolutionary purpose.^[4]

Self-management replaces traditional hierarchy with a system where employees manage themselves and collaborate on decisions, distributing authority more evenly.

Wholeness encourages employees to integrate their personal and professional identities, fostering a work environment that prioritizes emotional well-being and authenticity.

Evolutionary purpose sees Teal organizations as living entities that adapt and evolve naturally, guided by their own sense of direction rather than rigid strategic plans or profit motives.

Examples

A number of notable organisations around the world have adopted and operate with the Teal organisation model^[5] some of which are in the table below:

Organization	Business, mission, or activity	Office location(s)	Ref.
	food processing	United States	^[6]
Culture Unplugged	Socio-Cultural Activism + Integral Health	Global, since 2007	Web site: Socio-Cultural Mission . Culture Unplugged Studios . cultureunplugged.com . Web site: Global Documentary Platform . Culture Unplugged Studios . cultureunplugged.com .
Raise	Recruitment Services		Website
	apparel
AES	energy sector
ESBZ	K–12 school
Hatmill
Heiligenfeld	mental health hospitals
	steel manufacturing
Thomsen Trampedach			^[7]

See also

• Alternative Theory of Organization and Management
• Sociocracy
• Holacracy
• Organizational culture
• Organization development

Further reading

• Frederic Laloux, Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness. Nelson Parker.February 9, 2014.
• Brown, S. L., & Eisenhardt, K. M. 1997. The Art of Continuous Change: Linking Complexity Theory and Time-paced Evolution in Relentlessly Shifting Organizations. Administrative Science Quarterly, 42: 1–34
• Burns, S., & Stalker, G. M. 1961. The Management of Innovation. London: Tavistock Publications
• Wheatley, M. & Kellner-Rogers, M. 1999. A Simpler Way. San Francisco: Berrett-Koehler

Notes and References

1. Web site: Laloux . Frederic . The Future of Management Is Teal . Strategy + Business . July 6, 2015 . 30 October 2021.
2. Web site: The Rise and Fall of a Teal NGO . ssir.org . Farag . Mahmoud . 31 May 2017 . 30 October 2021.
3. Web site: Rossingol . Natalia . Apr 25, 2023 . Teal Organizations - Say What? The Definition, Pillars & Examples . 2024-06-24 . www.runn.io . en.
4. Web site: H. . Valeriia . June 19, 2021 . What exactly is a teal company? . 2024-06-24 . EmpTech.
5. Web site: The design principles evolve "naturally" in the workplace and the need for a scientific foundation . Prosocial World . June 2, 2017.
6. Web site: Self-Management . The Morning Star Company . morningstarco.com .
7. Web site: Thomsen Trampedach GmbH.