Professional Documents
Culture Documents
To ensure that a teal organization is effective, a space where all employees feel safe
to reveal their true selves, to explore their individual and collective wholeness needs
to be created. Practices like setting explicit ground rules, conflict resolution
processes, meeting practices help in this regard. The human resource (HR) policies
are also reframed to strengthen the organizational effectiveness.
Training
Employees are responsible for their own learnings. At Buurtzorg, teams can spend
three percent of their revenue on training without consulting anyone. (Laloux, 2014
p.178) The company also has a peer coaching program called “Intervesie” which
helps individuals resolve a problem or issues with the teams help. (Training 2016)
Performance Management
The responsibility of performance management lies with team. Peers give individual
assessment and feedback, not bosses. In Buurtzorg’s case, since all teams deliver
similar work, teams are compared with each other for their productivity. Those who
fare poorly are motivated and are supported by other teams. (Feedback 2016)
Scalability and Applicability of Teal Structures
An important question to ask is if such self-governing organizations can grow beyond
a hundred or thousand employees and still retain their efficacies? Can such
organizations go global, dealing with an amalgamation of cultures? Can such
organizational structures survive in all sectors?
Applied Energy Services (AES) is a global energy provider and it saw an enormous
growth in 1990s with self-management principles at its core. It had a strength of
40000 employees by 2000. This shows that Self governing organizations can be
scaled globally while retaining their essence.
These principles can also be applied across industries. Research shows that the
following companies have adopted self-governing principles in their nuanced way.
FAVI (metal manufacturing), Patagonia (Apparel manufacturer), Sun hydraulics
(Hydraulic components), BSO/Origin (IT consulting). These examples show that teal
organizations can work well in both manufacturing and service sectors. (Laloux,
2014 p.58)
The main necessary criteria that the top management (Board of directors and top
leaders) should have a dedication to go towards a self-governing to achieve
significant efficiencies.
Laloux, F. (2014). Reinventing organizations: a guide to creating organizations
inspired by the next stage of human consciousness. Brussels, Belgium: Nelson
Parker.