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Reinvesting organizations

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Most books on organizations are written for people hoping to find the secret key to gaining market share, beating competition and increasing profits. They offer advice on how to better play the game of success within the current management paradigm. It is written for people founders of organizations, leaders, coaches, and advisors who sense that something is broken in the way we run organizations today and who feel that something entirely different is called for… but wonder what that might be.

It explains how every time humanity has shifted to a new stage of consciousness, it has also invented a radically more productive organizational model. Could we be facing another critical juncture today? Could we be about to make such a leap again? Part 2 serves as a practical handbook. Using stories from real-life case examples businesses and nonprofits, schools and hospitals , this section describes in detail how this new, soulful way to run an organization works.

It explains how every time humanity has shifted to a new stage of consciousness, it has also invented a radically more productive organisational model and suggest we are facing another critical juncture today.

Part 2 serves as a practical handbook. Using stories from real-life case examples businesses and non-profits, schools and hospitals , this part describes in detail how this new, spiritual way to run an organisation works. The second part of the book describes the structures, core practices and culture of Teal Organisations through a series of case studies. The twelve cases in the book consist of profit and non-profit organisations of various sizes from the United States and Europe.

Part 3 examines the conditions for these new organisations to thrive and what is needed to start an organisation on this new model. It also describes what is needed to transform existing organisations. The way we manage organisations seems increasingly out of date and unable to cope with the complexity and challenge of modern times.

Deep inside we sense that more is possible and we long for workplaces which nurture human development, authenticity, community, passion, and purpose. Free of politics, bureaucracy, and infighting; free of stress and burnout; free of resignation, resentment and apathy; free of posturing at the top and the drudgery at the bottom? Is it possible to reinvent organisations, to devise a new model that makes work productive, fulfilling and meaningful? Can we create soulful workplaces — schools, hospitals, businesses and non-profits — where our talent can bloom and our callings can be honoured?

We need something more: enlightened leaders and enlightened organisational structures and practices. This book demonstrates that this is possible and already exists in a few organisations. Laloux uses the Integral Theory and its colour scheme to describe these historical developments of human organisations. The diagram below outlines the stages and the key characteristics that humans have undergone in tribes and organisations in the last , years.

Humans first lived in family kinships. Next, tribes were formed, and life was controlled by magical rituals. Then the first chiefdoms were formed, ruled by power and suppression. The main stages this book concerns itself with are those that arose in the last 50, years: Amber, Orange, Green and Teal. After the early stages, the first organisational structures originated. In the Amber-Conformist view, authority is linked to a role like a police officer.

There is one accepted right way of to do things, conforming is necessary. Thinking and doing are strictly separated. The underlying belief is that employees tend to be lazy and dishonest, and should be kept in line. Their clothes reflect their rank, they wear a social mask. The next organisational stage is Achievement. This is the model of most organisations today. The view on human behaviour is that people need to be pushed, incentivised and controlled.

An organisation is seen as a machine, of which the output profit can and should be steadily increased. And when the cogs the people get stuck, a soft intervention like injecting oil will solve each problem. While there is much talk about customer service, profit is more important than serving the customers. However, the amount of freedom at this level increases.

It makes use of the professional knowledge and problem-solving power in the organisation. This is done by management by objectives and by studying cause and effect. While workers are given more autonomy, managers still keep the right to formulate the strategy. The rise of the Achievement-Orange organisations brought prosperity to those who achieve.

However, disadvantages surfaced, like the depletion of the earth and the problems in the financial sector. Achievement-Orange organisations often become disconnected from their purpose and make employees feel empty and soulless. The first resistance against this occurred during the s, the flower-power period.

They operated from a socially responsible Pluralistic-Green cooperative companies with servant leaders. This was the era of equal opportunity and employee rights that still operate today. However, they still are not as free, agile and energetic as birds in flight. If you want that, a transition to a complete new organisational stage is needed, Evolutionary-Teal. Indeed, the rise of organisations that have at least a number of Teal or blue-green characteristics can be seen.

Companies strive for more freedom, more meaning, more joy and more self-management at work, and want to operate with less harm to the natural environment. The stages of human and organisation development at the core of the book are based on Integral Theory developed by Ken Wilber.

Catholic Church. Laloux identifies three breakthroughs that characterise the organisations that are pioneers of the new Teal model of workplaces. He sees these as bold departures from current management practice:. Self-management — replace the constraints of traditional hierarchical control systems with flexible collaborative, self-organising systems.

This does not mean taking the hierarchy out of an organisation and running everything democratically based on consensus. Self-management, like the previous pyramidal models, works with an interlocking set of structures and practices to support new ways of sharing information, making decisions and resolving conflict. To make self-management possible, teams are trained and coached to be effective solvers of problems and decision-makers.

This purpose evolves and emerges through its people and its service rather than being defined from above. The following sample list describes an ideal enlightened organisation and would deeply challenge many conventional organisational cultures:. Teal Organisations operate as a living organism or living system. They are a self-organising system of cells, without a central command system. Laloux argues that there are two conditions which are the only make-or-break factors. No other factors are critical to running organisations for the Evolutionary Teal paradigm.

Organisations can never become developed, self-managing and evolutionary organisations unless they meet these two conditions. Laloux describes how an organisation goes back to Orange when the Board is not aligned with an evolutionary CEO.

So the key role of a CEO is in holding the space so that teams can self-manage. It means keeping others, like investors, from messing things up which is difficult in a short-term, market-driven economy. Laloux suggests carefully selecting investors or doing without them by financing the growth of the organisation through cash reserves and bank loans, even if it means slower growth. In most traditional organisations it is the role of the leader to determine the vision and the strategy and then determine executive plans to get there.

That way of thinking makes sense if you believe organisations are static, inanimate objects or machines. Further, the CEO in all the progressive organisations were visionary leaders and played a key role in setting the vision at the highest level.

They held the vision for the whole organisation even though the strategy and operational decisions were made by others. There is much interest today in mindfulness practices in organisations. Even Wall Street banks are starting to offer their overworked bankers courses in mindfulness. Mindfulness is used as a way to help people deal with pressure, stress and unhealthy corporate cultures. It is interesting to note that the new Integral organisations weave mindfulness deeply into the fabric of the organisations.

It is no longer an add-on. The organisations researched by Laloux spent considerable time talking about mindfulness. Closely aligned to mindfulness is incorporating practices that help keep self-interest and egos at bay. At Buurtzorg staff and clients use hand symbols whenever he or she feels that someone is speaking from their ego. If someone is trying to win an argument for the sake of winning an argument, serving themselves and their career, or group, someone chimes two bells.

The rule is while the bell rings everyone is supposed to be silent for a minute and ask themselves who they are trying to serve. Am I serving me? Or am I hear in service of something greater. All Team Organisations have similar meeting practices because meetings tend to be these places where egos tend to come out. Meetings without egos are only possible when people have been trained in active listening, non-violent communication.

A public school in Berlin is entirely self-managing and is very good in helping kids truly be themselves. Everyone in the school, staff and kids, gather every Friday afternoon, for 45 minutes and start by singing. Then they have a practice of open microphone, and the rule is you walk up to the microphone to thank someone or make a compliment.

People tell mini-stories and what they are revealing is things about themselves. Adolescents thank their classmates for helping them in all sorts of things. The kids are daring to be authentic and vulnerable in front of people. This school has no violence problems and kids are passionate to learn because they are accepted for how they are with no masks. Frederic Laloux not only thinks this is possible, he describes where it is already happening.

He studied 12 organisations that rely to a large extent on self-management. Case 1 — Buurtzorg: Since the 19th century, every neighbourhood in the Netherlands had a neighbourhood nurse who would make home visits to care for the sick and the elderly.

In the s, the health insurance system came up with a logical idea: why not group the neighbourhood nurses into organisations which would lead to obvious economies of scale and skill. Organisations that grouped the nurses started merging themselves, in pursuit of ever more scale.

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Forex market useful or harmful And when the cogs the people get stuck, a soft intervention like injecting oil will solve each problem. So if your current workplace sucks life out of its employees, it's because its top management believes that doing so is fair in exchange for salary, and this book will not give you a secret power to easily change that. Bernstein organizations: formal hierarchies Reinvesting organizations about years ago amber organizationswhich are characterized by formal hierarchies, stability and control. Over the years, this has become an increasingly complex organizational structure. Could it help us invent a radically more soulful source purposeful way to run our businesses and nonprofits, schools and hospitals? How high an employee reaches depends on their talents, their interests, their character, and the support they inspire from colleagues; it is no longer artificially constrained by the organisation chart. You may send this item to up to five recipients.
Reinvesting organizations Something less material? It is a weakness because the overall model is something of a collage. I don't know. Michael Fox is a senior consultant and coach with Integral Development. Finding libraries that hold this item Social responsibility of business. Be the first.
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Reinvesting organizations The book has inspired me to think more broadly and here about my work, about how it might be applied, about the difference it can make, and about doing and being more. Like all archetypes, taking it too literally as an ideal will make you blind to the challenges associated with achieving that ideal. Can we do reinvesting organizations He shows how at this moment we are at another historical junction. No one has direction. The problem, which, however, behind red organizations is the strong focus of the short-term perspective, whereby long-term success cannot be guaranteed.

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The seven types of organizations, color coded for easier understanding, are: 1. Fear and unpredictability hold the organization together. Highly reactive with a short-term focus, well-suited to thrive in chaotic environments. Wolf packs are a good metaphor for Red organizations. This led to the formation of bureaucratic institutions, and nation states, many of which have survived for centuries. Amber organizations strive for stability and are characterized by clear roles and ranks within a hierarchical structure.

Leadership is exercised through command and control and compliance is expected throughout the organization. Breakthroughs of Amber 1. Long Term Perspective stable processes 2. Size and Stability formal hierarchies 5. The world is seen as a complex machine whose inner workings and natural laws can be investigated and understood.

This view has brought unprecedented levels of prosperity and life expectancy. Current management thinking, which is focused on competition, innovation and performance. Breakthroughs of Orange 1. Innovation 2. Accountability 3. Meritocracy 6. While retaining a pyramidal structure, Green organizations focus on empowerment to lift motivation.

They go beyond the shareholder focus of Orange to embrace all stakeholders. Family is the dominant metaphor. Empowerment 2. Values-driven culture and inspirational purpose 3. Multiple stakeholder perspective 7. Teal organizations are characterized by self-organization and self-management. The hierarchical "predict and control" pyramid is replaced with a decentralized structure consisting of small teams that take responsibility for their own governance.

Assigned positions and job descriptions are replaced with a multiplicity of roles, often self-selected and fluid. Structure in Teal is characterized by rapid change and adaptation. Self-management 2. Wholeness - invite us to reclaim our inner wholeness and bring all of who we are to work.

Evolutionary Purpose - members of the organization are invited to listen in and understand what the organization wants to become, what purpose it wants to serve. Furthermore, some organizations exhibit combinations of the different types, although all organizations have a dominant type.

Research for the book was done by extensively examining 12 different existent teal organizations that organically emerged and predate the book. The 12 organizations range from car parts factory in France, a leading pasta sauce plant in California, a Swedish State funded at-home nationwide nursing company, a software developer, and a multinational power generation company with over 40, employees. From the various examples, Laloux shows how this new teal organizational paradigm allowed the companies to achieve tremendous and quick success in their respective domains, which he uses to advocate the philosophy.

Most of the chapters of the book are so optimistic and so often fail to acknowledge counter arguments, that I began to draw many of my own. Of the many questions, two major ones were thankfully addressed. In questioning the efficacy of teal in times of crisis, chapter 2. The question of how employees, who can hire and fire themselves, may behave when their company is on the verge of bankruptcy is acknowledged as an untested scenario, in the text. The format of the book itself is broken down into three major sections: Part one is an historical and developmental perspective of organizations; part two defines: the structures, practices, and cultures of Teal Organizations; and part 3 is about the Emergence of teal organizations: necessary conditions, how to start a teal organization, transform a current one, and implications of a teal society.

Overall, the book does provide several insights that I believe truly are revolutionary. First, the system of labeling the different organizational structures in history into memorable color coding, gives us a vocabulary to discuss and a mental way to compartmentalize common existent organizational systems around the world. Secondly, the 12 teal organizations, which are discussed at length, are remarkable in the fact that they can not only function properly, but also thrive with their bottom up management with lack of traditional hierarchies.

I would recommend this text for anyone who may be interested in either partially changing their business or overhauling it with the revolutionary teal model, which may improve performance and employee satisfaction. Useful chapters to take a quick look at are: 1. Great book for conceptualizing not how to fix what's broken in organizations currently but how to think completely differently about why that keeps breaking and what might stop that cycle. The case studies really bring the concepts to life and prove that this isn't a theoretical discussion - this is a way of working and living that the evidence shows can dramatically improve our experience of working together.

One person found this helpful. There seems to be a quantum leap in the evolution of organizations, which is described analytically and specifically, not as theory or speculation, but as observation of organizations that are evolving in real time. Laloux begins by discussing the development of organizational structure, historically, and then points to a shift that has taken place, not just in the structure of organizations, but in the fundamental assumptions and purposes around which specific organizations have formed.

Watzlawick would describe this shift as "second-order change", rather than first - change of hierarchical form, and not simply more sophisticated versions of it. There are few books that are wholly evolutionary. This is one! It gives a history of the evolution of This book is amazing. It gives a history of the evolution of organizations and many examples of the next wave.

While it has some really a few examples that endanger the authors credibility to some the concepts conveyed are amazing and should be taken very seriously. If you want to start or convert an organization to this newer, more dynamic and cutting edge style, get this book and highlight applicable areas as you are going through it so you can reference pieces and incorporate them in your methods.

Fantastic book, but if you want traditional, this is NOT for you. If you are open to anything that works, don't even question it We keep hearing how top talent and millenials are leaving the corporate world. Laloux offers an elegant explanation and solution - a way to reinvigorate organizations that isn't just the latest mystical mumbo jumbo or wishful thinking or contrived business book.

The "Teal" organization as he calls it - and the Teal person - are well documented and repeatable, if still evolving concepts. I for one will be integrating the lessons from this book into all future organizational work I do. I was quite impressed by the new perspectives presented.

I do not agree on everything expecially when the author examins the more philosophical aspects which from the basis of this quite surprising way to imagine the corporate world. As seasoned professional, I find difficult to see a complete homo homini deus way of working expecially in a very competitive also from a carrier path world. The challenge to the existing organizational paradigms is extremely stimulating and innovative. I would like read of further developments and analysis on this topic.

See all reviews. Top reviews from other countries. It's tough to write a leading-edge book. If it is ahead of its time, there will not be all the evidence yet. It is also a hostage to fortune - as we learn more, we may find it is not entirely correct. If Teal organisations were long-established this book would be pointless.

Laloux deserves to be read in the context of where we are. His examples are by and large new and different. The principles he offers are interesting and worthy of exploration. Some my be inspired by the vision of what is possible. Other may look at how far most organisations are from this possible future, how many constraints there are that will prevent change, and how it is unrealistic to even consider it. Reviews sometimes say as much about the reviewers as the book in question.

Laloux makes use of a simplified version of Spiral Dynamics integral as the developmental scaffolding for this book. He does not explain that theory and his presentation is necessarily an over-simplification. To do otherwise would have cluttered the story he is telling. But as one who knows what lies beneath, I encourage readers to trust that there is more here than is being supplied. According to that theory, books like this would be showing up now because our life conditions make it necessary that we find such solutions.

It is my belief in the validity of the underlying theory which makes me confident that Laloux will turn out to have got a great deal right, and to have signposted the future with some accuracy. Time will tell. A fascinating book that synthesises the history of organisations around five colour themed models: red, amber, orange green and teal.

The latter colour essentially represents what many would call the spiritual organisation, that leaves behind performance management based systems orange designed to feed or punish the ego, and sets in train an approach that powers front line workers to make strategically important decisions. The very concept of 'management' is challenged in the most fundamental way. Have not yet finished it but have a feeling I will be coming back to give it 5 stars. Really interesting read, great case studies and examples.

Clearly written and offers an insight that is less radical than rational given the need to adapt to the rapid changes in communities and business. Already making me think about how I can apply some of the learns from this book. It has encouraged me to visit the website which was really informative, some great links to videos and podcasts expanding my understanding of this work.

Think I will be recommending to all my leadership team. Report abuse. This is a very timely book and one that everybody who works in enterprises in which people need to organise, collaborate and compete really should read. I hesitate to use the word 'should' but as we collectively continue to march into the future blind to or in denial of the consequences of our current organisational ways of doing and being, and deaf to the voices of those calling for ways to engage the energy, creativity and good sense of millions of workers, it would be dumb not to at least grapple with sound arguments for change.

Frederic Laloux's book is exceedingly well researched and presented. His arguments cogent and compelling. There is some repetition it is true. But this is actually an important element as few people are likely to read the book cover to cover as I have. The book explores the growing malaise of individuals in organisations. The way managers work today is increasingly obsolete. More employees than ever before feel disengaged from their companies.

Large organisations are stifled by bureaucratic processes and have become largely incapable of change. Employees waste a lot of their time in useless meetings and pointless paperwork that leaves them frustrated and unhappy. We all look for more meaningful workplaces, community, purpose and authenticity. We want to bring all of who we are to work. Not only do we need more enlightened leaders, we also need different structures and practices that allow for meaning and purpose.

He worked for 10 years in an international strategy consulting firm before he became an independent corporate coach. In he self-published Reinventing Organizations in English. More than , copies have been sold in a little over two years. The book was translated into many different languages, including French in Explore more in our section: Decision Makers.

Most organisations today operate under limitative managerial paradigms. But only by offering new models can the old ones be made redundant. To change something, build a new model that makes the existing model obsolete. Our internet age accelerated the development of distributed intelligence and the decline of old-style hierarchy. Today we ought to change our value system and invent new ways to work more meaningfully.

Everyone can sense that current organisations have reached their limits. A lot of them produce a feeling of uselessness and emptiness. They make their employees unhappy, not only those at the bottom of the pyramid. At every level of the pyramid there is vacuity! How can organisations produce meaning and avoid cynicism? Laloux observed 12 pioneering organisations that have succeeded in creating a new more meaningful work model.

They provide us with very concrete ideas to help push our organisation forward and embrace the next evolutionary step. Throughout history, the types of organisations that have been invented have always matched the dominant worldview and level of consciousness.

We tend to think that liberated firms have no structure, no leadership and no management. Nothing could be further from the truth. You need inspiring leaders to share a strong vision. Purpose does need some kind of structure too. There is no perfect equality in liberated companies. Organic and natural hierarchies replace the fixed pyramidal hierarchy of the other organisations. Clear and structured processes are necessary to make individual autonomy possible and to ensure harmonious collective efficiency.

There is no one best way to achieve that. Each company must find its own method, which will depend on its history, culture, assets and specific challenges. In other words, there is no template: all the Teal organisations are unique. He describes the way they work in detail so the paradigm can no longer be said to be utopian and unrealistic. They all partially or totally did away with managers.

Centralised support functions are very small. Receive advice and information on new hiring companies directly in your inbox each week. An article from our expert. Laetitia Vitaud Future of work author and speaker. Creating a winning corporate culture: lessons from the greatest leaders.

Impulsive Red is the first organisational paradigm. These organisations are based on arbitrary violence. One leader exerts unlimited predatory power. The paradigm was dominant in the age of empires and kingdoms. It can still be found in mafias and gangs.

It is necessary in hostile environments but rapidly faces limits in stable and complex environments. The symbol of the Impulsive Red paradigm is the wolf pack. Conformist Amberis the second paradigm. It is based on a strict moral code, law, order, stability and predictability.