A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness
Learn about an organizational structure that will change the way we work.
How do you determine your daily tasks and priorities in the workplace? Many individuals, unless they work for themselves, are often influenced by the decisions of their supervisors.
Even with a certain level of autonomy in the workplace, it is essential to respect and follow the instructions of your manager.
Why is this the case? Many individuals continue to work within hierarchical organizations. At the highest level, there is a CEO leading the organization, with multiple layers of management beneath them and the employees forming the foundation.
This outdated system is no longer relevant in today's world. But what steps can we take to bring about change? Which system is more effective? In this summary, you will learn about the organizational method that is expected to become prevalent in future workplaces. To get a head start, continue reading!
In the following summary, you'll find
Why it's beneficial to have your furry friend accompany you at the office;
Why would a company offer a $3,000 incentive for new employees to leave?
In the future, the primary role of CEOs will shift away from exercising power.
1. Human organizations have undergone various transformations throughout history and are still evolving.
Consider the significant progress we have made over the last 10,000 years. Humans have come a long way, transitioning from scattered groups of hunter-gatherers to living in bustling, densely populated cities that are organized into nation-states.
A similar transformation took place within organizations. Furthermore, psychologists have identified distinct stages that outline the process, categorized by different colours.
Our ancestors lived during a different era. During this period, organizations operated chaotically and aggressively, driven by a culture of fear and a self-centred mindset. The leader of a particular organization always felt the need to establish his authority and control over the rest of the group, fearing that any display of vulnerability would make him susceptible to being replaced.
The advancement of agriculture resulted in the AMBER stage. During this period, there was a growing emphasis on the importance of planning, although traditional hierarchies continued to be rigid.
As an example, the Catholic Church was established on a set of beliefs and maintained a robust system of authority, focused on centralizing and maintaining control at the highest level. This structure has been regarded as divinely ordained, a belief that persists to this day. Although heretics are no longer executed, the authority of the pope remains unchallenged.
Next came ORANGE organizations, which were slightly more flexible in order to encourage innovation and creativity. Many of these organizations follow the management-by-objectives approach, where the focus is on achieving goals rather than the specific methods used.
While the ORANGE model is prevalent in large, multinational companies, there has been a rise in GREEN organizations as well. GREEN companies prioritize breaking down hierarchies and fostering a solid shared culture in the workplace.
At Southwest Airlines, employees are encouraged to create a lively and enjoyable work environment. As part of her job, one stewardess brings her hobby to work by playing the harmonica to entertain customers on board.
However, the process continues beyond this point. In the following summary, you will discover an even more advanced stage of organization known as the TEAL organization.
2. Empower your organization by decentralizing decision-making and eliminating hierarchical structures.
There is a global emergence of new types of companies, signalling the transition to the next phase of organization: the TEAL stage. This stage represents a higher level of self-management.
In TEAL companies, the traditional hierarchical structure is replaced by flat hierarchies, empowering every employee to make independent decisions.
What is driving the widespread adoption of the TEAL model by many companies? One reason is that effective self-management can significantly enhance organizational effectiveness and profitability.
Take a look at the Dutch home nursing company Buurtzorg. Instead of having a manager solely responsible for decision-making, management tasks are distributed among all nurses. Each individual has the freedom to determine which priorities to pursue on their own.
This approach is efficient. In a 2009 study, it was found that Buurtzorg spends 40 per cent less time with each client.
The findings of the study are truly impressive, especially when you take into account the way Buurtzorg nurses prioritize building relationships with their clients. Instead of just focusing on the clock and treating customers as mere "products," they take the time to have coffee and engage in meaningful conversations.
In addition, the study suggests that implementing the Buurtzorg model as a home care standard in the Netherlands could result in annual savings of up to 2 billion Euros.
Clearly, the TEAL model demonstrates its effectiveness, but what are the factors that contribute to its success?
Eliminating hierarchical structures empowers employees to tap into their full potential, resulting in a highly motivated and skilled workforce.
With clear managerial hierarchies, individuals are able to delegate decisions to their coworkers. Individuals must confront challenges on their own, even in the face of adversity. While this system requires a higher level of effort from each employee, it also offers significant rewards.
At Buurtzorg, nurses were pleasantly surprised by the increase in motivation and energy they experienced when they were no longer being micromanaged by their superiors.
3. At the new organization, employees adhere to an advice process to ensure streamlined decision-making.
Wouldn't allowing everyone to have autonomy within an organization result in chaos?
Actually, no. In the TEAL model, efficient decision-making is ensured through an advice process.
Within a TEAL organization, decision-making involves seeking advice from affected parties and individuals with expertise, ensuring that anyone can contribute to the process. It's crucial to understand that while someone may offer opposing advice, the ultimate decision rests with the individual seeking guidance.
When Shazad Qasim, a financial analyst at U.S. electrical company AES, expressed his interest in exploring the potential of establishing a power plant in Pakistan to the CEO, there was initial scepticism.
Despite the company's adherence to the advice process, Qasim decided to proceed with his idea. Ultimately, Qasim made the decision to invest $200 million in the new plant, independent of the CEO or executive board. Two years later, the plant had achieved remarkable success, with a value of $700 million.
In TEAL organizations, employees do not have rigid job titles but instead take on multiple roles. As long as they adhere to the recommended process, employees have the freedom to establish new positions for themselves.
In a formal setting, this happens in accordance with a management framework known as holacracy.
Within a holacratic company, discussions on roles and collaboration take place during regular company-wide "governance meetings." These meetings adhere to a structured process and are facilitated to ensure fair decision-making without any individual overpowering the conversation.
At these meetings, individuals have the opportunity to propose ideas for new roles or other changes and can expect fair consideration.
Despite initial perceptions, research indicates that the majority of employees perceive this process as empowering and highly effective.
4. Are dogs allowed in the workplace? Is it time for meditation? New companies prioritize your holistic identity.
Why is it that our workplaces frequently have such a gloomy atmosphere? Why is there often a disconnect between work and the other aspects of our lives?
Imagine working at a company where you can indeed be yourself. And wouldn't it be great to have the opportunity to bring your furry friend to the office as well?
TEAL organizations foster a warm and inclusive environment that values individuals as a whole, not just as workers. As an example, the Colorado-based spiritual publishing company SoundsTrue has a policy that allows dogs in the office, with owners being required to follow a "three poops and you're out" rule.
Allowing dogs in the workplace has had a calming effect on the company, leading to improved decision-making, according to employees. In addition, it fosters a strong sense of camaraderie among the organization's 90 staff members.
TEAL organizations prioritize creating a supportive environment that values reflection and encourages individuals to take time for introspection.
Heiligenfeld, a German medical rehabilitation company, exemplifies this principle. Every week, employees gather for an hour to collectively discuss essential subjects such as conflict resolution, company values, risk management, mindfulness, and handling failure.
This practice has been incredibly successful. When Heiligenfeld was recognized as Europe's "Best Workplace" in the healthcare sector, numerous employees highlighted these sessions as a valuable aspect of their experience at the company.
However, these reflection sessions can be pretty practical, and reflection doesn't always need to be structured or organized. As part of their professional development, numerous TEAL organizations promote the practice of dedicating 15 or 20 minutes to silent meditation at employees' desks.
5. Create a recruitment process that aligns with your company culture and encourages transparency.
Job interviews can be uncomfortable. Presenting the best image of oneself can often lead to feelings of nervousness. Interviewers also find themselves in a challenging position, trying to persuade you to consider a job.
Is this truly the most effective method for matching job seekers to jobs? Is it about time to explore fresh possibilities?
TEAL organizations have a unique approach to recruitment, focusing on creating processes that provide a genuine understanding of both the applicant and the employer.
Interviews, for example, are conducted by future teammates instead of human resources personnel. This allows for a more genuine discussion about the actual environment of the workplace, as opposed to being driven solely by recruitment targets.
Zappos, an online retailer, provides a unique opportunity for new hires to receive a $3,000 payout if they choose to depart from the company within the initial four weeks of orientation. This ensures that individuals who are genuinely committed to the company remain as employees.
The effectiveness of this approach is evident from the numbers: Only 2 per cent of new hires opted for the monetary alternative.
Companies that prioritize the TEAL hiring process, like Zappos, place a significant emphasis on onboarding new employees. It is common for company CEOs to personally engage in every aspect of the new-hire training process.
Given the emphasis on self-management in TEAL organizations, it is common for new hires to require additional time to acclimate to the concept of complete autonomy in decision-making.
TEAL trainings prioritize equipping employees with the necessary skills to make decisions that align with the company's objectives. These trainings focus on instilling company values, enhancing communication processes, and effectively addressing and learning from failures.
6. In the new organization, the focus is on purpose rather than profit. By sharing best practices, everyone can benefit and achieve success.
Emphasizing personal gain above all else can be seen as advantageous. This well-known Wall Street motto encapsulates the prevailing philosophy of the majority of companies. Maximizing profits is of utmost importance, and a solid competitive mindset is essential.
However, there is a shift happening. In today's business landscape, an increasing number of companies are recognizing the importance of fostering a sense of purpose and collaboration rather than solely focusing on maximizing profits and outdoing competitors.
In contrast to conventional organizations, where many employees (and even CEOs) often lack awareness of the company's mission statement, TEAL companies are guided by a unifying purpose.
For instance, Patagonia, an outdoor clothing retailer, is dedicated to elevating environmental standards within the clothing industry. Patagonia demonstrates its unwavering dedication to its mission by creating advertisements that encourage consumers to reconsider their purchases, emphasizing the idea that many individuals already possess an abundance of belongings.
Patagonia prioritizes waste reduction by manufacturing clothing that is exceptionally durable and providing customers with a repair service.
TEAL organizations are willing to share their knowledge with industry competitors in addition to their mission-driven approach.
As an example, the CEO of home care provider Buurtzorg frequently agrees to invitations from competing companies to share insights and provide an explanation of the company's operations.
Buurtzorg does not view its operational strategy as a confidential formula that must be safeguarded at any expense. On the contrary, the company strongly believes in the principle of reciprocity.
Just as a professional development trainer would do, it is essential for Buurtzorg to not only focus on making money but also on helping people lead healthier and more meaningful lives. Therefore, it is logical for them to share their knowledge with companies that share their mission.
7. CEOs have shifted their approach and now prioritize creating a culture of trust to maintain a flat hierarchy.
Within a self-management structure, the workforce is empowered to make decisions that are typically reserved for CEOs.
Simply put, there are no shots to call, no targets to set, and no one to fire. So what remains for the CEO?
CEOs of TEAL companies prioritize the maintenance of flat hierarchies through the promotion of trust.
Consider it from this perspective. In traditional companies, when there is an issue, management often resorts to implementing additional controls as a response. TEAL company CEOs handle setbacks by prioritizing trust and actively working to prevent outdated practices and hierarchies from infiltrating the organization.
After discovering that an employee at Philadelphia-based non-profit Resources of Human Development (RHD) had given a company car to her son without authorization, some employees expressed the need for increased supervision and control over all employees.
However, the CEO believed that one unfortunate incident should not limit the freedom of employees. He successfully convinced the team to maintain their trust in one another and resist implementing additional controls.
TEAL company CEOs not only promote trust but also exemplify self-management as role models. Even in a flat hierarchy, the CEO remains the representative of the company in various ways. She must embrace the principles of self-management and avoid the temptation to exert authority from a superior position.
As an expert in professional development, the CEO of RHD recognized the opportune moment to address the needs of convicts struggling with drug addiction and other challenges. To foster open dialogue and collaboration, he facilitated a meeting where employees could explore and discuss this idea. By the conclusion of the meeting, the employees reached a consensus to designate a "point person" to assume the leadership role. From that point forward, the project gained momentum and evolved independently.
As evident from the situation, the CEO effectively guided the company while respecting the principles of self-management and empowering employees to make their own decisions.
8. Change takes time. Gradually incorporate aspects of self-management into your organization.
Transforming a more traditional company into a TEAL organization requires more than just making minor adjustments. Instead, the focus is on changing the core of the operational structure and instilling a completely fresh perspective.
It can be quite a demanding task, requiring you to be fully prepared.
Persuading individuals about the benefits of TEAL practices, particularly self-management, can be challenging. According to the chief of AES, whenever a new factory is opened, employees tend to be sceptical of the organizational structure and raise various objections to self-management.
CEOs and leaders who have implemented self-management in their organizations have observed similar patterns. They have found that employees at lower levels, who usually have limited influence in traditional structures, are particularly enthusiastic about adopting TEAL practices.
However, middle and high-level managers often find it challenging to accept a loss of power.
Introducing a TEAL organization to a workplace can pose a challenge in terms of familiarizing people with the concept of embracing their authentic selves at work. That's because employees who have spent their lives working in more traditional companies may find this principle intimidating or even frightening.
Ultimately, the most effective approach is to gradually introduce some of the related practices, such as daily meditation, in order to win them over.
As an expert in professional development, one approach is to shift the focus away from performance reviews that solely analyze numbers and targets. Instead, encourage discussions that delve into the employee's passions and strengths, exploring how these qualities can be leveraged to benefit the company.
Consider incorporating non-hierarchal group approach methods, such as Future Search. This approach involves inviting all employees, and sometimes even partners, clients, and suppliers, to share their passions and concerns. By doing so, you can actively involve everyone in shaping the future of the organization.
Meetings like these are usually highly invigorating for the company, showcasing the benefits of the TEAL model.
Final Summary
Across the globe, an increasing number of companies are adopting flat hierarchies, replacing traditional organizational structures. By placing a strong focus on self-management, valuing employees' complete identities, and prioritizing purpose over profit, these companies are revolutionizing the concept of a productive and fulfilling work environment.