Article: Working without a boss? Sounds absurd but that's called a TEAL organisation

Performance Management

Working without a boss? Sounds absurd but that's called a TEAL organisation

Many companies adopt "bossless" TEAL models, encouraging autonomy, collaboration, and decentralised decision-making for a more effective and humane work environment.
Working without a boss? Sounds absurd but that's called a TEAL organisation

Working without a boss? Anarchy and disorder? Not necessarily. Although, for many, the very idea of a business without hierarchies may seem absurd, there are indeed many companies that operate successfully in this manner.

The concept is not new, but since the pandemic, working methods have become more flexible, and thousands of freelancers now have more than one boss (working for several companies) or are their own boss.

However, imagining a company structure with dozens of employees working independently without a boss is a bit more challenging, isn't it? Well, this complex challenge has been embraced by thousands of businesses.

In fact, for many young people in the new generations of the workforce, this is not an entirely foreign concept. Their professional careers are often non-linear, and they are not dedicated to a single company or leader but offer their talents to several simultaneously. In this changing scenario, which is the result of many factors, the traditional figure of a single leader is diluted, giving way to more flexible and innovative models.

What is a TEAL organisational model?

The "bossless" business model has a name and a history: TEAL company, an organisation that follows the model proposed by Frederic Laloux in his book Reinventing Organizations. It refers to adaptable yet effective companies where traditional hierarchies are replaced by a more organic and fluid structure.

In a TEAL company, self-management, distributed authority, and decentralised decision-making are promoted. Teams enjoy a high degree of autonomy, and collaboration and transparency are encouraged. This model aims to create more humane work environments where individuals feel valued and motivated, and can contribute fully. Purpose-driven autonomy and holistic development are key concepts in these organisations.

A different way of working

In companies following this model, operations are conducted differently. For example, salaries are decided collectively and work efficiency is enhanced through trust in employees.

TEAL companies operate on the belief that individuals possess the inherent capacity to self-organise and make collective decisions, eliminating the need for traditional managerial oversight. Unlike conventional top-down structures, where power and authority are centralised, TEAL organisations distribute responsibility and decision-making authority among all employees.

This model fosters a culture of trust, empowerment, and collaboration, where every member is encouraged to contribute their unique insights and talents towards common goals.

Furthermore, TEAL companies embrace a holistic approach to organisational development, recognising the interconnectedness of individuals, teams, and the broader ecosystem in which they operate. They prioritise personal growth and well-being, offering opportunities for continuous learning, self-reflection, and skill development.

Prominent examples of TEAL companies

The digital consulting firm Basetis, founded in Catalonia, Spain, is one of the successful companies with the TEAL model. Marc Castells, founder of Basetis, attests to this success.

"In just five years, we have grown in terms of number of employees, turnover, customer diversity, and service portfolio. Competitiveness is skyrocketing," Castells said. "Instead of having a few bosses making decisions, we have almost 400 people with the capacity to decide and lead. This is priceless."

Basetis is one of the largest companies with this model in Spain, where hierarchies have been eliminated and employees fulfil temporary roles. It has 384 employees and, in 2022, it reached a record turnover of 16.5 million euros.

There are several examples of successful TEAL companies. Here are some of them:

Buurtzorg is a Dutch home nursing care company that has grown from four to 14,000 employees in just 10 years. It also boasts the best results in customer satisfaction in its sector, thanks to its model based on 1,000 autonomous teams that manage the entire nursing care process. At headquarters, they have 50 people and 18 coaches who support teams needing assistance.

Morning Star is a US tomato processing company responsible for 40% of California's tomato production. Employees do not have bosses but report to their colleagues. In 2008, this company established the Self-Management Institute to teach its practices to other companies and conduct research on their implementation.

Cyberclick is a Spanish company focused on keeping employees happy and motivated at the office. The company's experience is documented in the book "The Happiest Company in the World".

IDEO, founded in California, is an American company with an organisational culture based on a flat hierarchy, creativity, individual autonomy, and collaboration between project teams.

Zappos is a completely self-managed US online retailer with no bosses or departments. In this innovative model, there are now "lead links" and circles instead of departments.

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Topics: Performance Management, Culture, Business

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