Turquoise management – what is it?

Turquoise management is a disruptive management model that transforms traditional hierarchies in organisations by promoting self-organisation, flexibility and deep integration of employee values with business goals.

From this article you will learn:

• What is turquoise management?
• What are the relationships between turquoise management and a turquoise organisation?
• What are the relationships between turquoise management and other management methods?
• How to implement turquoise management?
• What are some examples of companies using turquoise management?
• What are the limitations of turquoise management?
• What can be gained from turquoise management?

Turquoise management – definition

Turquoise management is a concept in business and work organisation that grew out of the concept of holacracy. The approach emphasises self-organisation, decentralisation and a holistic view of the company. The main idea of turquoise management is to create an environment and working atmosphere whereby all people are equally important and decisions are made through consensus or democratic decision-making processes. Great importance is placed on the development of employees, their emotional wellbeing and building a sense of community and cooperation. It is also important to see the organisation as a living organism that reacts dynamically to external conditions.

Turquoise management is an organisational approach based on a flat structure, decentralisation of decisions, and a holistic view of work, emphasising self-organisation, responsibility and personal development of employees.

Definition of turquoise management

The history of turquoise management dates back to the 1990s – at which time business and management theorists began to develop new organisational models that were more flexible and adapted to a rapidly changing world. The concept gained popularity after the publication of Frederic Laloux’s book Reinventing Organisations in 2014. In it, Laloux presented several case studies of organisations that had successfully applied the principles of turquoise management, demonstrating their effectiveness in different industries.

Turquoise management contrasts with traditional hierarchical management models based on rigid structures and centralisation of power. In this approach, hierarchy is flat and power is dispersed, fostering greater creativity, innovation and employee engagement.

Relationships between turquoise management and the turquoise organisation

Turquoise management and the turquoise organisation represent slightly different aspects of the same approach. The former refers to the management style and methods of the organisation, while the latter describes the structure and culture of the organisation resulting from the management methods used.

The turquoise organisation is characterised by a flat structure, with traditional hierarchies being replaced by a network of autonomous teams and individuals. Employees have greater autonomy and can make decisions that are within their sphere of competence. Such an organisation is also distinguished by a strong emphasis on integrity, transparency and social responsibility.

Turquoise management in a traditionally organised company can encounter difficulties due to rigid structures and procedures, and attempting to create a turquoise organisation without using appropriate management methods can lead to chaos and a lack of clear direction.

Relationships between turquoise management and other management methods

Turquoise management differs significantly from other management models, particularly those of a more traditional, hierarchical nature. In traditional models, such as Management by Objectives (MBO) or Management by Exception (MBE), decisions are made at higher levels of the hierarchy and communication runs from the top down. In turquoise management, decisions are distributed and often made by employees at different levels.

Another popular model is lean management, which focuses on eliminating waste and continuously improving processes. Although turquoise management and lean methodology may have some similarities (for example, a focus on continuous development), the former places more emphasis on human and organisational aspects. Also agile management, which is popular in the IT industry, has some similarities with turquoise management, especially when it comes to adaptability, responsiveness to change and teamwork.

Implementing turquoise management

Implementing turquoise management requires both strategic planning and gradual adaptation. This cannot be achieved without an understanding of and commitment to the concept, which requires a deep analysis of the current management methodology and organisational culture within the company. Elements that contradict Turquoise principles must be identified and a plan developed to modify or eliminate them.

Equally important is the education of employees and leaders – all members of the organisation should understand what turquoise management is, the benefits it can bring and the changes that will occur, which may require a series of workshops and training. It is also worth remembering to introduce changes in organisational structure and processes gradually – instead of jumping in at the deep end, it is better to focus on carefully redefining roles and responsibilities, introducing systems that support self-organisation and decentralisation of decisions, as well as creating space for open communication.

To become a turquoise organisation, it is necessary to work on building a culture based on trust, transparency and shared values. This often requires not only changes in policies and procedures, but also in everyday behaviour and interactions, which requires leaders to lead by example through openness to feedback, willingness to experiment and acceptance of mistakes as part of the learning process.

Examples of companies using turquoise management

Examples of turquoise management can be found in different industries and types of organisations around the world. Many of them are discussed in the book Reinventing Organisations by Frederic Laloux. One of the most commonly cited is Buurtzorg, a Dutch company that provides healthcare services – the teams of nurses that make up the company work autonomously, managing their own schedules and making decisions, regarding patient care. The company has minimised the role of the board and managers, focusing on the professional development and autonomy of its employees.

Another example is Morning Star, a US-based tomato preserves company. Its employees create their own roles and take ownership of projects, working directly with colleagues and customers, without the intermediation of managers. A turquoise organisation is also Gore & Associates, known for producing Gore-Tex (a waterproof, breathable material for outdoor clothing). At this company, there are no formal titles or hierarchies, and employees are encouraged to initiate their own projects.

It is worth noting that although turquoise management is used in a variety of industries, not every company will be successful with this model. Effectiveness depends on a number of factors, including organisational culture, industry, company size and willingness to experiment. However, these examples show that, under the right conditions, turquoise management can bring significant benefits to both employees and organisational effectiveness.

Limitations of turquoise management

Turquoise management, despite its many advantages, has some limitations. One of the main challenges is adapting to this model in organisations with deeply entrenched, traditional management structures. In companies with a dominant hierarchy and centralised decision-making, the move to a flatter structure may be met with resistance – both at management level and among employees.

Another constraint is the requirement for a high level of emotional maturity and professionalism among employees. Turquoise management implies a high degree of autonomy and responsibility on the part of individuals, which requires the ability to make decisions independently, resolve conflicts effectively and self-regulate. Not all individuals are ready or able to work in such an environment. A strong commitment to mission, vision and values of the company is also important – when employees or leaders are not fully committed, difficulties may arise.

Turquoise management may also be less effective in crisis situations or in dynamic and unpredictable environments, and in situations where rapid and central decision-making is needed.

Benefits of turquoise management

One of the main benefits of turquoise management is to increase employee engagement and satisfaction. By promoting autonomy, self-organisation and responsibility, they can feel more engaged at work, which can lead to increased productivity and creativity. Engaged employees are more willing to experiment because they feel they can influence company performance. Another benefit is improved communication and collaboration within the organisation. Turquoise management encourages open dialogue and the exchange of opinions, which promotes better understanding and can contribute to more effective project delivery.

By emphasising the personal and professional development of employees, organisations can better utilise and develop the talents of employees, which translates into long-term benefits for both the employees and the company. This promotes the building of strong and motivated teams. In addition, the decentralisation of decisions and a flat organisational structure enable faster responses to changes and challenges. It also helps to create an organisational culture based on shared values and mission, which can improve the corporate image, as well as relations with customers, investors and business partners.