Organisational models: the evolution in 7 stages

Throughout history, humanity has gone through a series of evolutionary stages, each of which is characterised by an increase in our cognitive, moral and psychological capacities to relate to the world around us. According to authors such as Laloux, Loevinger and Wade, the passage of these stages also corresponds to a new form of collaboration between human beings, an increase in complexity that leads to a new organisational model and which has common stage characteristics.

First stage: Infrared-Reactive (100,000-50,000 BC)

This stage is placed between 100,000 and 50,000 B.C. and is characterised by the presence of small family communities of a dozen people. There is no division of labour, so there is no organisational model. The ability to manage the complexity of interpersonal relationships is very limited, also dictated by the fact that, in this period, human beings have little awareness of themselves and the world around them.

Second stage: Magenta-Magic (around 15,000 BC)

At this stage, humans begin to become self-aware and see themselves as an individual separate from others and the universe. However, complete rationality has not yet developed, so much so that the phenomena that occur are explained through magic. The complexity of the social structure begins to grow and from communities of families we move on to larger tribes, in which an embryonic form of division of labour emerges, but complex forms of organisation are still lacking.

Third stage: Red-Impulsive (8,000 BC)

In this stage, man becomes fully aware of himself and his individuality. And it is precisely individuality that is the cornerstone of this stage. There is a dichotomous view of the world, society is divided into ‘us’ versus ‘them’ and the aim is to overpower others through the use of force . It is at this stage that slavery is born and, consequently, a differentiation of roles and work within society. This stage is also associated with the first organisational model, that of the red organisations. These organisations arise from two turns from the previous stage:

• the division of labour, although there is still no formal hierarchical structure or defined job titles,
• the authority based on command and violence.

This model, which we still find today in hostile environments, generally does not expand beyond four hierarchical levels, due to theimpulsiveness and violence that characterise it. The lack of long-term planning and strategy makes it a model unsuitable for stable and predictable contexts, but highly suitable for violent and unstable environments, where it is necessary to quickly seize opportunities that arise and respond quickly to threats. Examples of organisations that fit this model are criminal gangs or mafias.

Fourth stage: Ambrato-Conformist (4,000 BC)

This stage, dating from around 4,000 BC, is characterised by the division of roles, no longer dictated by violence, and the emergence of complex state apparatuses. An ethnocentric view of the world is presented: the human being is the centre of the universe, ego and self-esteem depend on the opinion of others, there is a strong need to belong to one’s reference group and conformism. Rational thinking develops, but there is only one truth, absolute and generally imposed, which cannot be questioned.

At the organisational level, this stage results in the amber organisations, which present two major turns from the previous model:

• the formalisation of roles,
• the emergence of processes.

The formalisation of roles leads to the emergence of rigid hierarchies, with activities being planned at the top and carried out operationally at the bottom. This leads to a shift in perspective from the short to the medium and long term and thus to the emergence of processes, with the quest for stability (and monopoly) as the primary objective, through elaborate control mechanisms. The formalisation of roles is strong to the point of creating an identification of employees in their roles; it is work that determines who you are as a person and where you fit in society. Examples of these structures are the army and the church.

Fifth stage: Orange-Results (Renaissance)

The next evolutionary stage is the Orange-Results stage, corresponding to the Renaissance. This stage is characterised by a sharp increase in complexity in all areas, there are no longer absolute truths or inescapable rules, everything is questioned, with a view to achieving better results and increasing efficiency. However, façade conformism persists, once the status quo is overcome, forms of social stratification are recreated that mimic what has just been overcome. Materialism and exploitation of resources characterise this phase, with a political vision oriented towards short-term results.

In the organisational sphere, the orange-results stage finds its expression in the orange organisations, which present three turns from previous models:

• Innovation: dictated by the fact that everything is questioned with a view to achieving better results, hence project teams are created,
• Accountability: understood as the use of forecasting and control mechanisms to beat the competition, make profits and grow,
• Meritocracy: within an orange organisation anyone can climb the hierarchy, regardless of their social background, a revolutionary aspect compared to amber organisations

The downside of this organisational model is the constant creation of new needs, dictated by out-of-control innovation, and the consequent reckless exploitation of resources. Examples of such organisations are large multinationals such as Coca Cola and Walmart.

Sixth stage: Green-Pluralistic (‘700)

In contrast to the Orange-Results stage, the Green-Pluralistic stage was born at the end of the 18th century with the first movements for the abolition of slavery. It found its highest expression in the counter-cultures of the 1960s and 1970s.

The Green-Pluralistic stage is characterised by a strong concern for others and the environment, all human beings are considered equal, the bonds that are created are close and harmonious. The values that are pursued are those of equality, harmony and cooperation, all opinions have equal weight and importance, leadership must be totally at the service of others and must pursue what is right not only for the community, but for all humanity, present and future.

This type of paradigm has proven to be very strong and effective in breaking down old structures, but unable in practice to propose viable alternatives.

In organisational terms, this stage translates into the green organisations, where a hierarchical form is still present, even if it is viewed with suspicion. These organisations introduce three turns from the previous structures:

• The first turn is empowerment: workers are given decision-making power, whereby they can make certain decisions themselves, while leaders must act as support.
• The second turning point is the emergence of a corporate culture based on shared values, which guide the work of the organisation; there is no need for strict rules and structured policies, the behaviour of employees is governed by the workers’ adherence to the organisation’s values that form the corporate culture.
• The third turning point is the emergence of a multi-stakeholder perspective. The company no longer operates to maximise shareholder returns, as was the case with the other models, but must consider the interests of all those who gravitate around the organisation. Examples of organisations that have adopted the green model are cooperatives.

Stage Seven: Teal-Evolutionary

The last stage to emerge is the Teal-Evolutionary stage, whose pivotal principle is inner correctness, being consistent with oneself for any decision. Harmony with others and the environment is maintained by the Green-Pluralistic stage, but is never pursued to the detriment of one’s inner well-being. In the Teal-Evolutive stage, adversities are perceived as opportunities for growth and confrontations as opportunities for confrontation; there is thus a positive view of the world and the future. The goal is to live one’s life to the full, cultivating one’s interests and revealing the untapped potential of one’s strengths. Success and recognition come as a consequence of this path, not pursued as an end.

These principles are translated into the Teal organisations, which are characterised by three main aspects.

• The first is self-management: there are no hierarchical or pyramid systems, but rather work teams, in which decisions are not taken on the basis of majority consensus, as is the case with green models, but directly by those affected by the consequences of decisions, after consultation with colleagues.
• The second principle is that of fullness: the working environment becomes a full expression of oneself for workers, a place where all aspects of the person are considered and exalted in their entirety, a work-life balance is no longer necessary because the two worlds are not separated, one is at all times totally oneself.
• The third characteristic is that of evolutionary purpose: Teal organisations have a life of their own, they do not act on the basis of market forecasts and trends, but pursue and serve the mission for which they were born.

An example of an organisation that has adopted this model is Patagonia, a sportswear company.

Although the Teal model seems to be the benchmark for organisations of the future, these models should not be seen as the next one is better than the previous one, but each one is suited to different contexts and environments. Furthermore, there is rarely such a clear-cut adherence to one of the models by organisations, there is rather a leaning towards one model, but accompanied by other characteristics.