Teal organization – the future of management or just a utopia?
“When we act with deep honesty and respond positively to the calling within us, the universe does everything to help us.” Many companies that have adopted Frederic Laloux’s concept have successfully created teal organizations, distinguished by innovative management approaches. “Acting with deep honesty” means aligning actions with one’s value system and being aware that our work provides real benefits to others and contributes to the greater good. This mindset fulfills one of the fundamental human needs—the sense of pride in one’s achievements.
Table of Contents:
- Introduction
- What is a teal organization?
- Benefits of the teal model
- How to build a teal organization?
- Conclusion
1. Introduction
In recent years, the idea of teal organizations has gained significant traction, attracting the attention of both management theorists and practitioners. Can this model become the future of work, or is it merely an idealistic dream? Teal organizations operate based on trust, collaboration, and a holistic approach to people—their emotions, needs, and potential. These are places where work takes on a deeper meaning, enabling self-realization and the creation of value not only for the company but also for society. Does this way of functioning offer a solution to modern challenges in management?
2. What is a teal organization?
A teal organization is a management model based on autonomy and collaboration. Employees in such companies are viewed not as tools for completing tasks, but as individuals with their own emotions, intuition, and beliefs. This perspective eliminates traditional hierarchies and managerial positions. Employees are responsible for what they do and have the space to fulfill their potential. The teal model is based on three pillars: self-management, wholeness, and evolutionary purpose. There is no division of leadership in these organizations. Employees work in teams that independently make decisions. Each team member has an influence on what and how things are done, and responsibility is shared by all members of the group. Teal organizations create space for building healthy relationships at work. This allows employees to align their professional life with their personal values. This means that employees are encouraged to be themselves at work—with their emotions, values, and unique perspectives. Teal organizations do not operate solely for profit. Each one has a higher purpose—a mission that gives meaning to all actions taken. Rather than imposing goals from above, these organizations allow vision and development directions to evolve naturally, in alignment with the needs of the environment and the commitment of the team.
3. Benefits of the teal model
One of the biggest advantages of teal organizations is their ability to effectively engage employees. The absence of the traditional division between managers and subordinates promotes a partnership-based collaboration founded on mutual respect. In such an environment, everyone feels that their voice matters, leading to higher levels of satisfaction and engagement. A holistic approach to management allows for the harmonious integration of personal values with professional goals. Work in a teal organization is not merely seen as a duty—it should bring joy, support development, and inspire action. Through the decentralization of decision-making processes, employees gain the freedom to initiate ideas, fostering creativity and innovation. The ability to propose new solutions without waiting for managerial approval paves the way for the dynamic growth of both individuals and the organization as a whole. This approach allows each employee to bring their best—talents, ideas, and dedication—to the team. Working in alignment with personal values and preferences strengthens the sense of purpose and motivation, resulting not only in employee satisfaction but also in the success of the entire organization.
4. How to build a teal organization?
Building a teal organization is a process that requires a holistic approach to every aspect of the company’s functioning—ranging from organizational culture and structure to management practices. A key starting point is to create an inspiring vision and clearly defined business goals that will engage all employees. The success of a teal organization also depends on caring for employees. Providing opportunities for professional and emotional development helps employees better understand themselves and others, which leads to deeper engagement in their work and improved relationships with colleagues. For employees to feel that their voice is important and their opinions influence decisions, it is crucial to promote openness and honesty in internal communication. It is also important to create an environment where mistakes are not seen as failures but as opportunities for learning and growth. An organization that is open to feedback should continuously strive to improve its processes, products, and services based on suggestions from its employees. Teal organizations also have a high degree of employee autonomy. HR departments should recruit according to the principles of a teal organization. They should seek individuals who not only possess the right skills but also fit the company’s organizational culture and share its values.
5. Conclusion
Building a teal organization is a challenge that requires commitment, courage, and consistency. However, the benefits of this model—greater employee motivation, higher levels of innovation, and improved business outcomes—make the effort worthwhile. Teal organizations are not just about changing management structures; they also redefine the relationships between employees and organizations. In this model, work becomes a means of self-realization, bringing benefits both to employees and the company itself. In the face of modern challenges in management, teal organizations could be the answer to the needs of today’s job market.