Change Management: Reinventing Organisations Essay


Discuss about the Change Management for Reinventing Organisations.



The life of the organisation can be disappointing for the workers. There are many people who take a little satisfaction in their jobs. The efforts taken by the managers of the organisation to fix corporate culture bring lots of problems. For the gratification of the people in the company, there is a need of developing a new stage which can be established on trust & teamwork. Fredric Laloux has discussed the evolution of the organisation over time in the line of seven important stages of the development of human and that is called as paradigms. Laloux says that Teal Organisations is the fundamental study of the healthy & soulful organisations (, 2017).

The book makes a theoretical study on the history of the development of the organisation and types of consciousness that contributed to the structures of the organisation that leads to the present time (, 2017). Laloux states that we believe the later stage is better than the previous stage. This is an interpretation of dealing with the world. He says that each stage is correctly adapted to certain context. Laloux says that a shift of consciousness permits for the range of behaviours. These behaviours are suited for the context that we ourselves find in. He categorises these behaviours as the colours. He says that the most evolved stage of development of the organisation is teal. Laloux says that teal is the new black. The core argument in the book, Reinventing Organisations is that the most healthy & soulful organisations are the Teal Organisations. In the complex times, most of the organisations wish to make their destination teal. The new black is different from Red and Amber.

In the second part of the book, Laloux discusses the core practices & culture of Teal Organisations. He has discussed twelve case studies. These are the various sizes profit and non-profit organisations of the United States & Europe. He compares the organisation as a living system. He discussed three important characteristics of the teal organisations. They are:

  1. Self-management
  2. Wholeness
  3. Evolutionary purpose

Self-management is a pattern that is based on the relationships of the peer. Here there is no hierarchy. Wholeness refers to the set of practices that make people work. The purpose of the evolution refers to the need of understanding what the organisation expects from the members of the organisation. Laloux discusses these three characteristics in the twelve case study organisations.

Laloux discusses the self-management practice that is found in Teal Organisation. Self-management is treated as self-organising teams. The interior design of a teal organisation is self-decorated and there is no status marker. Laloux says that the culture of the organisation is shaped by the context& by the organisation’s purpose. The culture is not based on the assumptions of the persons, norm or the leaders’ concern.

Laloux says that one organisation can be Teal Organisation when the culture of the organisation is not based on the assumption of the individual person. Top Leadership & Ownership should have an integrated development of worldview & psychological. Holding the space is the primary concern of the top leader. The Teal-Leader leads non-teal group and the group is being operated from a non-Teal place. Laloux says that the growth of the Teal Organisation is possible by making finance growth with the help of bank loan & by their own cash flow. The equity investors are required to be selected those are with a teal perspective (Zhu, 2008).

Laloux in his book has discussed eleven paradoxes of leadership. These 11 paradoxes are asked to manage by the leaders. The paradoxes state that the leaders require building rapport with the staff and also require keeping an appropriate distance. The leaders should have the ability to lead the people and can hold himself or herself in the background. (, 2017) The leader requires trusting the staff and should be very vigilant to the happenings. The leader is very tolerant and should know the way the work should function. The leader remains loyal to the organisation and keeps in his or her mind the goal of the organisation. In order to implement the planning successfully, he or she spends appropriate time and always remain flexible with the schedule (Barrett, 2010). The leader is a visionary, diplomat and also knows where and when to talk and where to keep quite. The leaders through his or her policy try to win consensus. The leader is dynamic & reflective. The leader is humble and remains sure of his or her work (Zhu, 2008). It is very important to enhance the capability and to handle the paradoxes for the successful management.

An analysis of strengths and weakness

It is very difficult to free the workplace from politics, bureaucracy, stress, apathy and resignation. It is difficult to create a soulful workplace where the talent can bloom. The idea of no more hierarchy states a wrong idea. There cannot be flatland in an organisation. Holacracy discusses the hierarchy of power & people. The employees who do not work and lazy always prefer their boss to command them. In that case, the productivity becomes very less.

A consensus decision is all about a practice of taking a decision without any hierarchy. Everyone gets an equal voice. This is difficult to accommodate the wishes of all people in the process of the decision making (Lim, et al., 2007). Everybody cannot make pleading all for any decision that has to be taken by all.

Decision making through consensus also creates another problem. The responsibility is also diluted. In the process of the making final decision, nobody remains accountable. The real proposer of the decision gets frustrated when his or her idea is not recognized. The group takes the credit of decision making. Thus it is found that many decisions are taken half-heartedly. The plan remains unclear.

For most of the managers, organisations appear as machines. Due to the demotivated people and bureaucracy, the managers can do the things that they feel are good. This has resulted in giving more responsibilities to the employees (Fred & Jonathan, 2009).

It is an important question to discuss the ability of the workers to manage themselves and if they require a target and the managers in order to manage themselves. It is very important to study whether the workers of the organisation can be given freedom (Govindarajan, 2007). The collective intelligence of the workers can direct the company in the correct direction.

Fredric Laloux says that this can be possible. The author has studied twelve organisations in his book. He has studied about the importance of the self-management. He has given the examples of the Dutch neighborhood nursing organisation called Burtzorg, FAVI, the French brass foundry and Morning Star, the American company of the tomato processing

Laloux says there is need for a paradigm shift required for the achievement of the same. In every Teal organisation, all can act as a co-entrepreneur. The fear & control of the top-down management should be replaced by self-management (Vogel & Davidson, 2015). This will be based on trust and giving. Laloux also defined that the intrinsic motivators can replace the extrinsic motivators like money and status. The employees will be provided to do what they feel right for the organisation. The organisation will get profit if the employees are given freedom (, 2017).

Laloux gives importance to the democratic organisations. He believes that there is a need of coaching for the self-managing organisation. The self-managing organisation should follow some tools and techniques. These are the resolutions of conflict, mediation by the colleagues, offering feedback and also the importance of organizing the meetings that are meant for solution driven (Earl, 2010).

Findings and an insightful analysis

Laloux says that people are like the prisoners of their own view of the world. This has resulted in limiting the way we think about our own organisation. There is always a need of interaction for the achievement of the goals of the organisation. The increasing freedom will bring changes in the organisation (Frederic, 2014).

Laloux says that teal organisations develop a set of rules that help them to grow. Self-management will help the employees to focus more on the work. Teal organisation also requires creating safe & supportive environment so that employees will help each other in their work. For the healthy, safe & productive collaboration, the organisation will train the people about the ground rules (Drucker, 2014). In the case study this has been found that Morning Star has its documents called Organisational vision, Colleague Principles & Statement of General Business Philosophy. Holacracy its Constitution is also an important document of FAVI. The documents offer a vision for the productive workplace that will be managed with safety. Laloux also focuses on the importance of reflective spaces (Frederic, 2014).


There is always a need of the self-reflection. This can be possible in group practices such as supervision of the team, group coaching, reflections of large group. The trust is created in the employees of the organisation by telling success stories. Stories bring people together. Regular meetings of the employees also help in interaction between the workers. The relationship with colleagues removes conflicts. The employees manage their conflicts and the employees get to know their job specification and job description. The conflicts are resolved when all knows their work and the limits of the work.


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