Successful Supervisor 50 – Moving Toward a Teal Environment

October 28, 2017

In 2015, my dear friend and fellow author, Bob Vanourek introduced me to a book entitled “Reinventing Organizations,” by Frederick LaLoux.

It was a great read, and since that time I have brought some of the thinking process into my own consulting work, since it is entirely compatible with my views on enlightened leadership.

I wanted to introduce the concepts in this series for supervisors because moving in the direction of what Frederick called a “Teal Organization” is a thinking process that can take one very far down the road toward a more fully engaged workforce.

Defining a Teal Environment

When Frederick described the characteristics of organizations, he outlined a sort of progression where organizations can move from being hierarchical and rigid to being much more self directed and fluid.

He gave several typical organizations names of colors so they would be more memorable. Here are some of the colors in his progression.

1. Red Organizations

Red organizations are like power structures where the group with the most authority lords over all of the other groups. They are characterized by fear and submission.

The leader is all powerful and runs the organization with a firm hand. The model is one of impulse. It is a game of survival of the fittest, and many organizations today are run on a red model.

2. Amber Organizations

These groups are strong and very hierarchical. For example, a military organization might take on the characteristics of an amber organization. It is the traditional organizational pyramid that is so familiar.

The idea is to have stable, well controlled processes that are replicable and predictable. There are many rituals that must be adhered to, and individualism is discouraged. To thrive in an amber organization, you need to stay in your box and do your job as prescribed.

3. Orange Organizations

Here we see a wider view of what must be done, and processes are well defined. Innovation is encouraged. Advancement is based on merit and tenacity.

The key element to describe an orange culture is achievement. This type of organization fueled the industrial revolution and the explosive growth after World War II.

4. Green Organizations

As we progress toward more teamwork and a family feeling toward work, we see some signs of empowerment showing up. The world of the green organization is more pluralistic.

Here people are encouraged to think for themselves as long as they stay consistent with the organization’s values. The focus of green organizations is on maximizing shareholder value.

4. Teal Organizations

LaLoux goes on to envision a type of organization where the focus has shifted to where the ego elements are less pronounced and people become free to do what they believe is right.

The focus is on a kind of wholeness that takes a broader view of why the organization exists in the first place. The emphasis shifts from pleasing shareholders (owners) to serving all stakeholders, including the environment and society.

Individuals engage in the work because they truly believe in the cause, not to just earn a paycheck.

Moving in the direction of Teal

I recently did some training work for an organization that is on the path toward a Teal Culture. My observation is that you never completely arrive at the perfect system, you are always seeking to grow and morph into a better paradigm.

The road is not without hazards and twists and turns to navigate, but having a vision of a more thoughtful approach to doing work and having all people actively involved in the journey is a pleasant way to get things done.

My observation is that people are much more satisfied when working in this environment. It is not a picnic for everyone, however. Some people would rather be told what to do and even how to do it.

To manage a Teal environment means giving up the rigid authority of the Amber or Orange style of management in favor of a more engaging culture where a broader slice of the population participates in the decisions and hence has a larger stake in the success of the organization.

This higher level of ownership means greater productivity and satisfaction in the end.

If this idea sounds intriguing, you might want to pick up a copy of “Reinventing Organizations” by Frederick LaLoux. You will find it entertaining, and it will probably have you thinking of moving to a more Teal-like culture for your place of work.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Is Labor an expense or an asset?

June 28, 2014

 

Construction workerI am surprised by how different managers view the commodity called “labor.” In most organizations, the perspective is that labor is an expense.

It is handled on the financial statements as an expense. In most cases labor is the highest monthly expense for an operation. It is the payment made in order to secure the resources needed to create the products or services sold by the organization.

As the largest expense for many operations, labor is watched and managed very closely. The profitability of the operation is directly impacted by how many workers there are, so all kinds of techniques are used to keep this variable under tight control.

You want to have exactly the right number of people on the roster, so perhaps you utilize temporary workers during peak times to mitigate overtime. You need to be careful because you still have to train the temporary workers so there are no safety issues or quality lapses.

In most professional settings, the workers are stretched to the elastic limit and beyond. Managers ask individuals to take on responsibilities that were formerly done by two people or even more.

This is done in the pursuit of maximum productivity, which is thought to be the prime governing mechanism for profit.

In the budgeting process, managers at various levels play games trying to pump up the size of the workforce realizing there will be cuts down the road. Alternatively some managers cut the estimated number of people to the bone in order to show positive yearly trends in productivity.

The sequence goes on year after year in the majority of organizations. The game is well known by managers at all levels, and the posturing or tactics sometimes go beyond annoying and are truly outrageous.

In the significant minority are organizations who view employees not as expense items but as assets. Oh sure, most companies have a value on the plaque in the lobby that states, “People are our most important asset,” but the managers’ daily actions reveal the hypocrisy of that platitude.

If people were the most important asset, then during times of low demand, the managers would be selling inventory or buildings and training the employees for future service. Instead, you inevitably see layoffs or at least furloughs to control labor expenses in slack times.

What if we really did think of employees as assets rather than expenses? Would that provide some unique and amazing possibilities for profits? I think so. Here are some benefits you would see…

1. People would feel valued.

In most organizations, people feel like pawns. The investment is always minimal, and the expectation is that employment is a temporary condition at the whim of management and the vicissitudes of the fickle marketplace. Treating people as valued assets would bring out the best in people because they would feel more engaged in the business. The magnitude of this effect can only be estimated, but it is a lot larger than most leaders realize.

For example, several studies have shown that the productivity multiplier between low trust groups and high trust groups is two to five times. When people are engaged in the work, they perform significantly better because they feel valued.

2. Development of people would be emphasized.

The mindset of treating employees as assets would lead to continual training. When you invest in an asset, you take care of it and make sure it is performing at peak levels. This creates a situation where employees truly want to stay with an organization, which reduces the issue of turnover.

Turnover is often the most controllable expense in an organization, yet the true cost is hidden somewhat. World class organizations achieve turnover rates below 5%, while many organizations habitually live with a 30% or higher turnover rate. Which would you rather have?  You do have that choice.

3. The culture would be uplifting.

When employees are learning and growing, they become more valuable not only for what they can do but for how they influence others. The workplace takes on a feeling of freedom and joy rather than of being an oarsman on a Viking ship.

When people are treated like assets, they band together as a strong team or family that is unstoppable. The power of synergy is obvious, and the productivity gained from lack of quarreling is immense.

4. The focus would be on the right stuff.

In most organizations, the daily focus is myopic. People are grumbling about each other and trying to protect their turf and future. The atmosphere is one of scarcity where the resources are not there to do what is needed to survive.

When people are assets, the atmosphere is one of abundance where there is high value internally, so people focus on the customer and on the mission of the unit. Since there is no longer a need to protect your back, you have the ability to move beyond just satisfying the customer or even delighting the customer to actually amazing the customer. That focus becomes a competitive weapon which further entrenches security for the future.

5. Organizations could be made flatter.

The need for numerous hierarchical levels has to do with control. When people are treated as expense items, they need to be kept in line. That means the span of control for any one manager cannot be too great. There is a lot of accounting work that needs to be done in order to assure the expense of labor is optimized.

When people are treated as assets, trust grows naturally. That dynamic means less supervision is required, so over time the hierarchy can become more flat. The overhead cost savings available to most organizations is staggering.

These are just five ways an organization can prosper by considering employees as assets instead of expenses. The operation can be much more profitable with this kind of mindset. Try it in your organization and experience the difference for yourself.