About ten thousand years ago, small clans and tribes coalesced into large societies. Those societies were much more complex, so the role of chief emerged to enforce social order - often through brutal force. These types of societies/groups are referred to by Laloux as “red” or “Impulsive” organizations, and the metaphor used is that of a wolfpack. Loyalty is the glue that keep this organization together, and a leader showing weakness is toppled by a younger alpha-male. Today, organized crime gangs operate as this type of organization. But “Red” organizations made two contributions: division of labor and top-down authority.

Amber organizations started emerging around 4000 BC as societies became more complex, stratified, and agrarian. They gained control over impulsiveness, internalized rules and exercised self-discipline in service of a common belief. Guilt and shame were the glue that held these organizations together, and people spent time and energy trying to fit in. Many armies, religious institutions, government agencies, school systems, and universities run along the lines of Amber organizations. Amber organizations contributed replicable processes and stable organizational charts (not dependent on a specific person).

Orange organizations represent the scientific and industrial revolutions. They are focused on achievement and believe that being faster, better, stronger will achieve more success. The main metaphor of an Orange organization is “machine.” They can hum with efficient activity, but feel lifeless and soulless. Examples include Wall Street banks, publicly traded companies, etc. They contributed innovation, accountability, and meritocracy to the organizational landscape.

Green organizations are more pluralistic came about in response to the shadow side of Orange companies: materialistic obsession, social inequity, loss of community through staunch individualism, etc. Green companies are more matrixed, collaborative, and feel like a family vs. a machine. Green companies have contributed empowerment, values-driven culture, and a focus on stakeholder (vs. shareholder) value. Southwest Airlines, Ben & Jerry’s, and the Container Store are some contemporary examples of pluralistic “green” companies.

Finally, Laloux predicts that the next evolutionary stage of organizations is “teal.” Teal organizations blur the work/life boundaries and create a place for both personal and collective growth. The workplace is seen as contributing to a person’s sense of purpose and “wholeness.” There are some organizations that have gotten close to this stage. For example, a 9,000 person healthcare company in the Netherlands called Buurtzorg operates with no hierarchy and only self-managed teams.