Laloux Culture Model - Explained
What is the Laloux Culture Model?
Written by Jason Gordon
Updated at October 5th, 2022
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is the Laloux Culture Model?
The Laloux Culture Model, created by Frederic Laloux, classifies organizations based upon agility or agile culture development.
The Laloux Culture Model reveals five levels of organizational maturity in terms of organizational agility and agile culture development:
- Level 1: RED ORGANIZATIONS - Red organizations are analogized to a wolf pack. Power is highly concentrated in one or a few persons—the chieftain(s), and exerted through generating fear. They're highly short-term focused and very effective in chaotic environments.
- Level 2: AMBER ORGANIZATIONS - Amber organizations are similar to armies. They are featured by a strict hierarchy with highly formal roles and straight reporting lines. This type of organization thrives in stable and predictable environments. Good examples include public schools, traditional churches, and government agencies.
- Level 3: ORANGE ORGANIZATIONS - Orange organizations are metaphorized to machines. They aim at beating competition and achieving profit and growth through innovation. They are result-oriented; accountability and meritocracy based on delivered results are reflected in their management processes and reward systems.
- Level 4: GREEN ORGANIZATIONS - Green organizations resemble families. Although still operating in a hierarchy, they focus on empowerment and motivate people by a shared purpose and value-driven culture that are beyond profit—creating value for all stakeholders in a balanced way. This type of organization applies participative, servant leadership that encourages consensus decision making and employee engagement.
- Level 5: TEAL ORGANIZATIONS - The best metaphor for teal organizations is a living organism. Power is shared and decentralized into autonomous teams. Hierarchical pyramid is replaced by self-management, as people are trusted to make major decisions themselves and to be held accountable for business results. The organization is truly like a living system that adapts and evolves organically and continuously.