Death and taxes, we’ve been told, are the two inevitable constants in life. Add ‘change’ to the mix, and we have a pretty good description of life in the third millennium. Indeed, while taxes are a more recent addition to the mix, death and change (aka evolution) are an essential part of ‘being human’.

As humans have evolved, from australopithecines, Neanderthals and any number of other species, into home sapiens, so too, our consciousness has evolved and, with it, society, economies, power structures and the role of religion. If, as has been claimed, the evolution of human consciousness is accelerating, then general societal change is also accelerating. Now, more than ever, people from different paradigms are living – and working – alongside each other.

Organisations are simply the expression of our current world-view which is, in turn, an expression of our current stage of development. In the same way, senior managers of these organisations are products of their social environment. The level of consciousness of any organisation cannot exceed the level of consciousness of its leaders.

Frederic Laloux, in his work on reinventing organisations, has linked levels of consciousness with human social development, which he has then incorporated into an overview of the main organisational paradigms:

Early humans lived as foraging bands – hunters and gatherers. They lived to survive. Laloux has coloured their level of consciousness as ‘infrared’. Over time, social structures would have developed and elders (who would still have been young by our standards) would have garnered more respect, probably for their experience and wisdom. Laloux coloured this level of consciousness ‘magenta’.

Move forward millennia. Human levels of consciousness would have evolved further: ‘red’ in Laloux’s terminology. As technology developed – Stone Age, Bronze Age, Iron Age, and hunter gatherers became herders and then agriculturists, societies became more complex. Powerful chieftains emerged to control communities, perhaps by generating fear in their subjects – more often, in the community in the next valley. The leadership style of these ancient chieftains is still reflected in some organisations. Lets call them IMPULSIVE organisations.

• Power is exercised through a predatory leadership style.
• Fear holds the organisation together.
• Absolute authority is wielded through command.
• There is a strict division of labour.
• There is little long-term focus.

Such organisations thrive in an essentially chaotic environment; so think the Mafia, street gangs.

Fast forward to the beginning of the last millennium. Laloux calls this the period of ‘amber’ human consciousness. In Europe, this was the era of feudalism. We can call organisations with an essentially feudal structure CONFORMIST organisations. Think the army, government agencies.

• There is formal, stable, top-down control through a hierarchy in a paternalistic-authoritative leadership style.
• Formal roles and processes are entrenched.
• The future tends to be a repetition of the past.
• This type of organisation does, at least, have a long-term perspective.

The latter half of the eighteenth century saw the Industrial Revolution in Europe and North America. Laloux calls this the era of ‘orange’ human consciousness. Unprecedented innovation meant that methods of production were revolutionized, and with this came the demand for (cheap) labour. Urbanisation soared and societies became more complex. ACHIEVER organisations, among them, multinationals, are shaped by the challenges of the first industrialists faced.

• The leadership style is decisive and goal/task oriented.
• The goal is to beat the competition and to achieve profit and growth.
• INNOVATION is the key to staying ahead.
• Management is decided by the objectives.
• Both accountability and meritocracy are important.

The twentieth century saw a major paradigm shift and by the early 21st century, the IT revolution and social media had radically changed everyday lives. Laloux coloured human consciousness as ‘green’. While PLURALISTIC organisations, reflecting the values of the time, are markedly different, there still exists a hierarchy of control.

• Leadership is asserted through concensus and participation.
• Organisational culture is values-driven.
• The ‘stakeholder model’ means that stakeholders are given more control.
• Stakeholders are motivated through culture and empowerment.
• The culture drives the organisation.
• Relationships are more important than outcomes.
• So what does this all mean for us, as senior managers?

First, we need to accept that what worked (and we’re talking here of organisational management) one hundred, or even ten, years ago probably won’t work now. And it definitely will not work in the future; any more than feudal social structures would be acceptable in the third millennium.

There has been a steady trend away from the strictly hierarchical, authoritative organisational management of the last century. Employees – and particularly, we’re told, the Millennials – now expect to enjoy their work. They expect to be valued as individuals, and they hope to exercise all their talents and abilities to fulfil their designated tasks.

Much, it would seem, is being asked of senior managers. The consensual, participative leadership style of recent decades needs to evolve once again. So, as leaders, what do we need to be aware of? As Peter Drucker said: “The greatest danger in times of turbulence is not the turbulence, it is to act with yesterday’s logic.” Don’t constrain your organisation by yesterday’s perceptions, or by share-holders’ expectations (probably a tough ask!).

The first step – and here the COVID lockdowns have surely given us a glimpse of the future – is to loosen the reins of management. Forget the hierarchical management pyramid of former years. Leave egos at home. Straight away there will be less office politics, less bureaucracy and, dare I say it? a happier working environment.

Self-management is the new buzz-word. We all need to trust our co-workers and have confidence in their abilities. Allow workers to bring their ‘whole selves’ to work. Allow them to apply all their talents, abilities, and different perspectives to the job at hand. They will be properly motivated once they are afforded real satisfaction from a job well done.

Give up formal, scheduled meetings. These should happen on an ad hoc basis. It follows from this that decision-making is no longer concentrated in top-management. Anyone, at any level, is empowered to make decisions as and when the need arises. And expect that the quality of the decisions will improve. And why not? The people actually involved in the tasks, no matter how ‘junior’ their status, will be making informed decisions which can be implemented immediately.

Respect your organisation as a living entity. You can guide it. You cannot control it. Allow its purpose to evolve and focus on this. You and your employees will be happier and profits WILL follow.

Levels of Consciousness throughout History

Further reading

Laloux, Frederic. Reinventing organizations. LannooCampus, 2016.

Reinventing Organisations Wiki : From the site description - "This wiki is based on the book Reinventing Organizations by Frédéric Laloux. Its primary purpose is to serve as a practical guide for leaders who are reinventing their organization and are looking for inspiration as they upgrade specific management practices in their organization. It is a labor of love, the work of a joyful community, dedicated to soulful organizations everywhere coming to life" 

 

Back to the Table of Contents of our Techno Fluency book