Future of management is teal or not. do you agree or disagree with the quote.
The justification should mainly include how strategy execution tools like levers and capabilities in the framework attached, plans , strategy maps, KPIs are getting redundant. It should include evidence through examples like in the case of Buurtzorg (teal organization) going from orange to teal.
Try to focus mainly on the trend of startegy execution tools.
The organizations in today’s world are being stretched to its limit due to the way they are run. There are people in the top tier of the organization who have realized this fact and numerous amount of survey conducted show that the organizations are being considered as place of fear and hard work rather than being a place of passion and purpose (Moreira, 2017). This sense of disappointment has affected schools, nonprofit organizations, hospitals and government agencies. Moreover, this phenomenon is not restricted to the low levels of the hierarchy and many top leaders are weary of the endless power games and internal strife. They are pretending to be successful and happy but in midst of their busy schedule they are feeling a hazy sense of emptiness within their own selves. The personnel irrespective of their position in the hierarchy desire for a working environment in which all the members in the hierarchy can work together to achieve the desired goal. They are longing for a work place, which is more soulful and helps to nurture the talents of the employees and the earnest ambitions of the personnel’s are honored (Bolman & Deal, 2017). Humanity is at the verge of breaking down and is ready to adapt to a new type of organization structure. Many profit and nonprofit organization in different sectors have already adapted to the new management practices and organization structures. The new organization model has already proved to be a successful and meaningful and the model portrays a different approach of dealing with the complexities in the workplace culture. The new model also throws a light on the various ways in which the work can be used as a place for personal growth and accomplishment. The new model shows how the previous models are outdated and have become more and more obsolete with the passage of time (Warrick, 2017).
There are various concepts, which suggest that human being do not evolve in the linear way but they grow in progressive stages of complexity, maturity and consciousness. The evolution of humanity has been named in different stages by different researchers and one such model is the color scheme in which the organizational structure has been divided into red, amber, orange, green and teal (Andersson & Nordenson, 2015). The various colors represent the organizational structure starting from the ancient history, they depict how the leadership style changed, and organizations prospered with the progress in time. The orange color scheme is the most prevalent in the world and has been used by most of the multinational companies, charter schools and investment banking (Laloux, 2014). The management practices for the orange scheme have generated extraordinary levels of prosperity but with the increase in dominance of this system, many practices developed which were not in alignment with the sustainability of the surrounding environment. The orange scheme of management provided encouragement to the practices like corporate greed, short-term thinking, overconsumption and uncontrolled misuse of the resources and the environment. Eventually all the levels of hierarchy realized that the practices that were followed in this paradigm is not sustainable. This had lead to the emergence of new paradigms such as green and teal, which focuses more on the organizational culture, values and teamwork over the outdated strategic aspects. The new paradigm focuses on serving all the stakeholders rather than focusing mainly on the shareholders and they believe in the empowerment of the employees (Laloux, 2014). The latest stage of consciousness is teal and slowly more and more leaders are adapting to this style of organizational management. The leaders are trying to control their impulse and environment so that they can accomplish good work and this shows that they are ready move on to the next level of model, which is Teal.
Teal Model and its Implications
The Teal model considers life as a journey and does not believe in the old concept of pre-planned goals. The company believes in the internal comparison so that one can develop their true nature and work towards something one assumes to be right (Banner, 2016). The model considers life successful if it leads in a good way and mainly focuses on the strengths of the organization or the individual. The wrongs and failures of the organization are not focused on and every new mistake is considered as an opportunity of learning and not as a gruesome mistake (Wilson & Wilson, 2017). The model advises to be wiser than being rational. The model does not believe in conditionality and wants the individual to incorporate their mind, soul and body for their respective organization. The model focuses on self-honesty and advises one to strive for completeness within self and others.
The new model comes with a few breakthroughs, which are important for the management of the organizations. Self-management is the first key break through and is based on the relationship among the peer group (Banner, 2016). According to this management system the employees are accountable for communicating with others and they have high level of autonomy over their respective domain. The control and power are distributed throughout the organization and is not in the hands of the few leaders at the higher level of hierarchy. Wholeness is the next breakthrough in this model and the model encourages the employees to regain their inner fulfillment by expressing their true self. This will help in developing a working environment, which is full of passion, creativity and zeal. Evolutionary purpose is the final level of breakthrough where the organization develops their strategy based on the demands of the organization. The model focuses on the value of the stakeholders rather than believing in the value of the shareholders. This helps the organization earn more profit than its corresponding rivals do (Romme, 2017).
Buurtzorg is a nursing care center located in the Netherlands is one of the examples of the organizations who have shifted their paradigm. The organization in Netherlands originally practiced the orange model but then they shifted to teal model, which is the appropriate model of the sustainability of the company. The company initially followed the orange model, which believed in maximizing the profit and reduction of the expenses (Brandon, 2017). The company kept on growing and they added more level of management to the existing management system only to increase their net operating profit. The outcome has caused distress to the patients and the employees; the patients had repeatedly described their medical to the nurses and the nurses were not provided with enough to listen to their medical history. The working conditions for the staffs were degrading and the whole organization system was exposed to a series of conflicts, errors and complaints (Maurits, Groenewegen & Francke, 2017). The owner of Buurtzorg who himself was a nurse set up the organization based on the principle of self-management. The organization was extremely successful and it grew from 4000 nurses to 9000 nurses in 8years. The nurses were divided into teams and they were allocated to the fixed number of patients. The purpose of the organization was to help the patients to live a life, which is rich and self-sufficient. The results were extraordinary, the patients were extremely happy with the service, and often they form intimate bond with the caregivers. This increased the popularity of the Buurtzorg and the results show that the amount of time required by this approach is 40 % of the conventional approach (Hughes, 2017). This is because of the fact that the patients become autonomous in quick succession of time and there have been a drastic reduction in the admission of the emergency hospitals. The nurses are divided in-group and all the responsibilities are divided among them. There are no team leaders and the management of the group is divided among the individuals in the group. They monitor their own performances and rectify the changes required when there is a drop in the productivity. There is a misconception about self-management that all the decisions are based on the agreement but that is not the case (Monsen & Jos de Blok, 2018).
Implementation of Teal in Buurtzorg
The employee having eagerness and expertise in the desired field of work makes the decision and this requires unambiguous training. The management system is totally based on the strong internal network system which helps to achieve effective communication among the all the nurses. This requires training in the field of the listening, interaction, communication skills, methods for conducting meetings, taking decisions and techniques of mentoring each other. The employees in organizations, which follow orange, green and amber model, try to hide their own true self and because of which they lose some of their traits (Monsen, & Jos de Blok, 2018). The organization becomes lifeless, as the employees do not bring life in to the organization and the organizations like Buurtzorg tries to work place, which is lively. The employees are encouraged to bring out their true self and the people themselves feel that they do not have to put on a mask in the work place. The company has clearly stated its purpose unlike other organizations following different models for management and this brings wholeness to the organization (Hughes, 2017). The organization believes in sharing of information and knowledge than competing with the other companies. The owner of the company considers the whole point of competition as vague and has no sense. The companies following the orange management system plans their strategy for the next 5years while the companies following the teal management system prefers to think like farmers. They try to make perception of the next 20 years but the strategy is made only for the next day. Buurtzorg tries to sense the situation at first and then responds to it depending on the situation (Brandon, 2017). An organization, which is self-managing and purpose driven change can be initiated from any person who has sensed the change. The innovation cannot be attained with a proper plan of action and it is attained only in the edges. When a person in the organization senses a change in the corresponding environment and takes regulatory measure then only innovation can be achieved.
The major companies in the world are following the strategic execution system and it shows that the results have been quite good. The execution system mainly focuses on the various strategic aspect of profit maximization (Kirchmer, 2017). There are major companies who are following this orange scheme of management. The strategic execution system focuses on the various levers included in the strategic management of the organization. The company describes a mission and vision statement, which is quite unclear in nature and the organization leaders, used this system as a tool to achieve the operational efficiency (Warrick, 2017). The companies using this tool is focusing on the profit margin of the company and are using evaluation system to measure, monitor and control the outcome. This type of companies develop a strategic plan of action for the next five years and try to control the outcome with the help of the various levers in the strategic execution system (Hinault, Lemaire & Touron, 2017). They implement processes like balance scorecard and key performance indicators which helps the company to achieve their desired goal. This form of management mainly focuses on the goals of the company and avoids changes in the working environment of the company. The companies using this kind of management system believes in being rational and constantly focuses on the growth of the company (Martyn et al., 2016). The leaders at the top of the hierarchy are the persons making all the decisions and the remaining persons in the lower end of the hierarchy system are only supposed to carry out the given orders. The execution system for the strategy does not focus on the working environment and personal development of their employees (Hourani, 2017).
The teal system of management is a type of management system in which the organization is considered as a living entity and has particular evolutionary function. This form of management mainly focuses on the trust among the employees. The business information’s are provided to everyone and it is believed that everyone is capable of handling sensitive information (Hamilton, 2017). Teal management system believes in the joint intelligence and all decision is made on the basis of advice. Every individual in the organization is responsible and accountable for the organization. The employees are also accountable of the other employees and they ought to provide feedbacks to each for avoiding any kind of mistakes. The employees are not differentiated with and they are considered of equal worth to the organization. The work place is made to be caring where the employees do not have to put on a mask and they can freely behave bringing out their own personalities. The problems and mistakes are considered to be an opportunity for learning (Robledo, 2016). The employees are advised to freely admit and discuss their failures so that they can learn from the mistakes. Feedback and reverential argument are methods, which help in growth of the employees. The focus is mainly on the strength and the opportunities rather than being on the problems and the weaknesses of the individual. This management system practices advice the employees to focus on their own selves.
The organization is a place where conflicts are natural. However, the system advices that it not possible to change other people and people can only change their own selves. The employees are not supposed to talk behind the back and al the disagreements are to be settled in a face-to-face conversation (Kriger, & Zhovtobryukh, 2016). The employees should not be dragged in to the problems of other individuals and advised self-introspection instead of putting the blame on others. The teal management system focuses on both collective and individual purpose where no decision is forced upon the organization and the employees try sense out the purpose for the organization. The employees also try to find out their individual purpose, and how they are in alignment with the purpose of the organization. The management system never tries to control and predict the future instead forecasting is only done for the specific requirements (Thomas, Ambrosini, & Hughes, 2016). The company mainly focuses on sensing and responding where the organization believes in the counter measures. The management system focuses on the purpose of the organization and they believe that if the purpose is achieved, profit will automatically be achieved.
Thus, it can be concluded that Teal is the future paradigm for management and it will revolutionized the working system of various multinational organization. The instances of various companies adapting to this form of management model shows that the model is feasible and profitable. The management models change with the change in consciousness of the organization and the evolutionary theory shows how the organization culture changed from the start of the civilization. This model is the solution to all the problems faced by the organizations following the other models of management. There are companies like Zappos, Buurtzorg and Morning Star who have shifted from the convention organizational structure to the teal paradigm. The companies have managed to overcome all the problems they were facing and drastically made an improvement in the work culture and productivity. This paradigm is the breakthrough, which will change the perspective of all the major organization and slowly more and more companies will restructure their organization.
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