What is Teal and Why Should I Care?

by Natalie Ethier

Do you find yourself wondering, what is a teal organization and why should I care? You’re not alone!

Teal is a relatively new organizational model, introduced by Frederic Laloux in his 2014 book, Reinventing Organizations. It’s an approach that seeks to simplify the traditional organizational models we are accustomed to by putting all team members on a level playing field and allowing them to grow into the strongest, healthiest versions of themselves through a more intuitive and natural way of doing things.

Here’s the catch, this inherently involves a degree of unlearning, as the more traditional orange and green organizational models are so ingrained in modern-day work culture. Now you may be thinking, I was already lost at teal, so what the heck do you mean by orange and green?

In a nutshell, orange organizations view the world as predictable, something that can be scientifically understood and controlled to achieve a desired outcome. Collaboration at this level is often in the form of innovation, accountability, and meritocracy. Green organizations tend to be governed by principles of inclusion and equality, working together in a way that is driven by empowerment and a values-driven culture.

Enter Teal

By inviting team members to contribute based on their unique potential, teal organizations recognize and celebrate the ways in which each individual contributes something unique. Characterized by self-management, wholeness, and evolutionary purpose, decision-making is more broadly distributed than in the traditional top-down management styles many of us are accustomed to. This can manifest in a work culture that veers away from traditional management roles, progress reports and performance reviews, and moves toward collective decision-making, organizational growth, and collaboration.

Whereas many orange and green organizations continue to operate within a hierarchical structure, teal organizations embrace a system of distributed-authority, where natural hierarchies may form or dissipate based on the needs of a specific project/client. Hierarchies are situational and not fixed. Team members work together to establish clarity and synergies between roles, continually evolving by recognizing and adapting to new opportunities (and challenges). Existing roles can be redefined at any time and new ones can be created as the needs of the organization shift and evolve.

Teal organizations invite the whole self into the workplace. Counter to the traditional professional persona that shows up every morning, team members are encouraged to express their emotional, intuitive, creative, and spiritual selves, all of which can enrich both client and team relationships, contributing to the overall work culture and productivity in a variety of ways. It empowers people to be real and fosters a sense of camaraderie.

Two of the most well-known examples of companies operating within the teal model are the American clothing company Patagonia, and the internationally acclaimed Dutch home-care organization Buurtzorg, which translates to ‘neighbourhood-care’.

So why should you care about teal? Some of the most respected, productive and future shaping companies in the world are realizing that teal management is key for people, planet and profit to grow in sync. Leaders all over the world are shifting toward a different way of leading - organizing and delivering innovative solutions to the world's most pressing problems with a more holistic, collaborative, and human-centred approach.

There are many ways to practice teal and there is no right or wrong way to do it. Nobody has it all figured out, but those that are committed to working in this way have very unique and dynamic workplaces. Teal organizations operate outside of the box and are continually evolving, striving to work toward a shared purpose or vision without being tied to a predictable or controlled path. This embraces shifts, encourages adaptability, and fosters growth for all team members and the organization as a whole. 

To learn more about the teal model and how to introduce it into your workplace, drop us a line at hello@areteinitiative.ca.