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Leadership Styles (With a Meditation on the Tao)

Steve Harris

Arizona State University

OGL365: Reinventing Organizations

Dr. Michael Przydia, PhD

April 27, 2023

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Leadership Styles (With a Meditation on the Tao)

In his book, Reinventing Organizations, Frederick Laloux takes us on a journey of analysis

and exploration of the most common organizational leadership paradigms which exist within our

world today, how each one historically evolved from the other, and based on his research, he

presents a compelling case for what the next evolutionary paradigm might be. Laloux identifies

four primary paradigms, or what he suggests as being “stages of consciousness”: (1) Red, (2)

Amber, (3) Orange, (4) Green, and he proposes a fifth, evolutionary style which he calls “Teal.”

(Laloux, 2014). As each paradigm evolves from the previous, Laloux illustrates how the

leadership approach evolves with it. There is quite a transformation from “Red” to “Teal.” On

one side of the spectrum there is the “Red” paradigm where fear and totalitarianism rules, and

on the far opposing side (Teal), self-management, wholeness, and evolutionary purpose are

foundational leadership pillars (Laloux, 2014). We’ll unpack most of these in more detail.

This assignment is comprised of two parts. The first part will focus on identified leaders

who work within each of the four “core” styles, excluding “Teal.” The second part will focus on

John Heider’s book, The Tao of Leadership: Lao Tzu’s “Tao Te Ching” Adopted for a New Age.

Specifically, I’ll be providing my own analysis of how Teal leaders possess the knowledge of the

Tao, my thoughts on this style of leadership, and how select passages have personally impacted

me.

PART ONE – Organizational Paradigms and Leaders

Organizational Leadership Style: Red - Kim Jong Un, North Korea

Red organizations first appeared nearly 10,000 years ago in the form of small armies, when the

more powerful chiefdoms grew into proto empires. Laloux provides more color to the defining

characteristics of this paradigm in that:

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Their glue is the continuous exercise of power in interpersonal relationships. Wolf packs provide

a good metaphor: rather like the “alpha wolf” uses power when needed to maintain his status

within the pack, the chief of a Red organization must demonstrate overwhelming power and

bend others to his will to stay in position. The minute his power is in doubt, someone else will

topple him. (LaLoux, 2014, p. 37)

While the most common forms of these organizations are in the form of mafias and street gangs, one of

the most prolific examples of a “Red” leader in our world today is the Supreme Leader of North Korea,

Kim Jong Un. Kim Jong Un ascended into his present role due to the passing of his father, Kim Jong-Il in

2011. Since that time, he’s established a reputation as ruling his country “with extreme brutality, making

his nation among the worst human rights violators in the world” (Aoki, 2021, para. 2).

One of the hallmark traits of a Red leader is the ability to lead through fear, and in Kim Jong Un’s

case, one of the more popular ways to do this is through his history of public displays of cruelty and

punishment (Laloux, 2014). For example, in 2013, the second most powerful official in the country, Jang

Song-Thaek, was publicly executed by anti-aircraft guns and then incinerated with flamethrowers

(Mullany, 2017). Or, in 2015, he publicly executed his own defense minister, Hyon Yong-Chol, also with

an anti-aircraft gun after he fell asleep during a meeting. His crime, according to Un: Disloyalty (Salam &

Haag, 2018). The effectiveness of this is two-fold: (1) it displays his absolute power, and (2) it deters

anyone from challenging his position of authority (and protects his rule from disintegrating) (Laloux,

2014).

Red leaders, to provide stability in their power structure, will surround themselves with family

members who tend to be more loyal and will often buy their allegiance with gifts (Laloux, 2014). A

consistent theme for Kim Jong Un is to “dispatch” anyone around him, family or not, that he feels would

threaten his power. However, those who are in his “inner circle” are well cared for and regularly
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showered with gifts. Examples of these include Danish dairy products, Black Sea caviar, French cognac

and Japanese electronics, courtesy of his North Korean diplomats abroad (Sang-Hun, 2016).

Based on the aforementioned examples of Kim Jong Un’s history of behaviors, it’s fair to suggest

he operates from the Red paradigm.

Organizational Leadership Style: Amber - Pope Francis, The Catholic Church

Amber paradigms are the next evolutionary level from Red. Individuals who operate in this stage

“have simple morals based on one accepted, right way of doing things. The Conformist -Amber

worldview is static: there are immutable laws that make for a just world, where things are right or

wrong” (Laloux, 2014, p. 39). In Amber Organizations, the ability to define right and wrong are linked to

a role, rather than through a powerful personality as found in Red (Laloux, 2014). As Laloux (2014)

suggests, “Amber Organizations brought about two major breakthroughs: Organizations can now plan

for the medium and long term, and they can create organizational structures that are stable and can

scale” (p. 40). The Catholic Church is the very definition of this, and as a result, Pope Francis is the

quintessential Amber leader.

Amber organizations incorporate the use of formal titles, rigid hierarchies, and organizational

charts to stabilize power (Laloux, 2014). For the Catholic Church, Pope Francis represents the very top.

Beneath him are numerous layers including cardinals, archbishops, bishops, priests and so on. There is a

clear chain of command, specific processes to follow, and clear-cut guidance defining who can do what

(Laloux, 2014). When guidance is passed down from the Catholic Church, it usually comes in the form of

globally published bulletins from Pope Francis himself. One such example of Pope Francis’ authority is

showcased whenever what is known as the Statute of the Institute for the Works of Religion, is

published. This is a formal bulletin created by the Pope that addresses any recent administrative and/or

operational changes associated with the Vatican Bank. Whenever any changes prove necessary, even if
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they are temporary in nature, it is only under the approval of the Pope (Vatican, n.d.). When these

bulletins are published, they are always written in a first-person format, and include such language as

“Having been approved by me” and “I further decree” (Vatican, n.d., para. 16). They showcase his

authority, position within the organizational hierarchy, and will often provide specific instructions for his

“foot soldiers” to follow (Laloux, 2014). Again, this is consistent behavior of an Amber leader.

In addition to the adoption of a formal hierarchy, ranks and titles, Amber Organizations were the

first to introduce the uniform as a way of identifying a person’s role. The Catholic Church employs this

component as part of their stable processes. The clothing and accessories each member is allowed

and/or required to wear in public is determined by their title within the organization. For example, the

Pope has more autonomy and freedoms in clothing and accessories than those below him. However, he

will often wear his white robe, known as a cassock, along with a coordinating mozzetta, a short cape that

symbolizes his authority (“The Meaning Behind”,2015). This by itself, illustrates Pope Francis’ adoption

of the tenets of the Amber Organization. Based on these two examples alone, I’d unequivocally suggest

that Pope Francis is a textbook example of an Amber leader.

Organizational Leadership Style: Orange - Lou Gerstner, IBM

The next level of organizational paradigms is “Orange.” Unlike members in Amber, Individuals

within this paradigm believe there is no longer an absolute right or wrong, there are simply some things

that work better than others (Laloux, 2014). The goal in life is to “achieve,” which usually includes some

form of measurable or materialistic outcome.

Companies who operate under this paradigm are built with a pyramid, hierarchical-like

structure, “but they drill holes into rigid functional and hierarchical boundaries within groups, virtual

teams, cross-functional initiatives, expert staff functions, and internal consultants, to speed up

communication and foster innovation” (Laloux, 2014, p. 47). They have an expanded organizational
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chart which includes divisions not found within Amber companies. Examples of these would include

marketing, research and development, and product management. This paradigm represents the largest

percentage of companies operating in the world today. They often have a multi-national component and

are highly process and project driven, which contrasts Amber companies, which are strictly process

driven. “Orange” views innovation as an opportunity, instead of as a threat (Laloux, 2014). Leaders of

these companies are focused on operating the organization as a machine. They are “typically goal-

oriented, focused on solving tangible problems, putting tasks over relationships” (Laloux, 2014, p. 51). In

the end, it’s all about materialistic performance and achievement.

A great example of an “Orange” leader is Lou Gerstner, who served as the Chairman and CEO of

International Business Machines (IBM) from 1993 until 2002. When he was hired on, IBM was on the

verge of financial collapse due to their inability to react and reorganize their business to meet the

changes occurring within their industry landscape. In response, Gerstner evaluated their existing

business strategy and determined it to be no longer effective. This soon led to him enlisting his

management team, including the help of the division general managers who were closer to the front

line, to overhaul their operating structure. The objective was to improve their processes in gathering

strategic insight, while being able to more effectively execute the initiatives which stemmed from it.

Consistent with Orange paradigms, top management defines the business objectives for the lower levels

to achieve and this is showcased here.

As mentioned earlier, innovation is an important element to the Orange Organization. According

to Laloux (2014), “To innovate more and faster than others, it becomes a competitive advantage to tap

into the intelligence of many brains in the organization. Larger parts of the organization must be given

room to maneuver and must be empowered and trusted to think and execute” (p. 48). Gerstner’s

approach was a great example of this. However, in this case, the innovation initially started off as being
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a tool for survival before it later became a competitive advantage. The creation of what would later be

known as the “IBM Business Leadership Model” (Harreld et al, 2007), was instrumental for IBM’s rebirth

in the marketplace. Innovation is typically synonymous with the development of a new product or

service, but in this case, it meant the complete re-design of the operating structure of the business.

Gerstner’s strategy would result in his legacy being cemented as the one who saved IBM from a looming

disaster (Harreld et al, 2007).

A final example of Gerstner’s Orange leadership is best illustrated through his use of financial

incentives as a motivator, which is consistent with this paradigm. As Laloux (2019) indicates, “Orange

Organizations have invented a host of incentive processes to motivate employees to reach the targets

that have been set, including performance appraisals, bonus schemes, quality awards, and stock

options” (p. 48). According to Forbes, “Gerstner and his advisers decided to tie employee compensation

to the performance of the whole company rather than to the employee's particular division” (“How Lou

Gerstner, 2002, para. 13). Again, Gerstner had several elements of Orange leadership on display during

his tenure as CEO.

Organizational Leadership Style: Green - Andy Taylor, Enterprise Holdings

“Green” is the next level in organizational development. Within this stage, the metaphor shifts

from the Orange Organization operating as a “Machine” to the Green Organization being that of a

“Family” (Laloux, 2014). While there still is an element of a hierarchical structure, empowerment exists

at all levels throughout the organization which contributes to shaping the culture; servant leadership

abounds; team members feel valued and are aligned with a common shared purpose; and collaborations

often start from the bottom-up, instead of from the top-down.

Andy Taylor, who served as Chief Executive Officer of Enterprise Holdings (which started out as

Enterprise Rent a Car) from 1990 until 2013, is a great example of a leader within a “Green”
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organization. The privately held company was started by the Late Jack Taylor, Andy’s Dad, back in 1957.

It is now the largest rental car company in the world with no signs of slowing down. Andy started with

Enterprise after graduating college in 1980. Between he and his dad, they built the business on a

principle that still stands today: “Provide customers with exceptional service, our employees with well-

deserved respect and ample career opportunities, and market growth and profitability will follow”

(“Straight Talk”, 2004, para. 2). For Green Organizations, an operational strategy is focused on a

purpose, which is in direct contrast to Orange, which is focused on profits (Laloux, 2014). Based on this

principle alone, I’d suggest Enterprise was (and is still) focused on fulfilling a purpose first. If they do that

well, then “profits” are the ancillary benefit. This approach is consistent with a Green Organization, and

it is a testament to Andy’s leadership.

That said, Enterprise’s purpose wasn’t something posted on a wall as a “check-the-box” activity;

every level in the organizational chart lived out this mission, even at the top. For example, Andy would

make frequent trips throughout the country to thank all his team for their daily efforts. He told a story

that occurred during one of those trips:

While visiting a rental branch in San Francisco, a customer needed a ride back to his hotel, so I

offered to drive him,” Taylor recalls. “On the way he asked what I did for Enterprise. I told him I

worked at the home office. ‘What exactly do you do?’ he inquired. I told him I was the CEO, and

he told me to drop him off at the next corner. (Sommar, 2002, para.15)

As Andy continued, it turns out it was the one customer request that he refused to honor, as he “kept

driving and charmed him into renting another car the following week” (Sommar, 2002, para.16). Green

Organizations depend on a strong, shared culture as being the glue that keeps them from falling apart,

and this is a great example of a leader who embraced the company’s purpose by his actions, which

reinforced the continued authenticity behind that purpose (Laloux, 2014).

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As mentioned earlier, empowerment at all levels in the organization is an important factor in

shaping a Green Organization. During an interview with The Black Collegian, when asked about the

corporate culture at Enterprise, Andy replied with ““We give smart, hard-working people the autonomy

they need to build and operate strong local businesses--and then we reward that great performance

through profit sharing and greater career opportunities” (“Straight Talk”, 2004, para. 15). In order to

accomplish this, Enterprise makes a significant investment in every person they hire into their

management training program. (In full disclosure, I have first-hand experience with this as earlier in my

career, I worked in several roles within the company.) Everyone who starts at Enterprise, regardless of

experience level or degree, starts at the bottom as a management trainee (MT). The MT’s will navigate

their way through the multi-phased training, which lasts 12-16 months, before being eligible for

subsequent promotions in assistant manager and eventually branch manager roles in the company.

During the program, each candidate will receive extensive training in order to: (1) have the operational

skills to run a location, and (2) be effective servant leaders, and (3) be equipped to effectively develop

their own team members into future servant leaders, which then perpetuates the cycle. It is important

to note that even when someone is a trainee stage, they are still empowered to make decisions that

someone in an “Orange” organization would likely not be able to make without consulting with a

manager beforehand. This is what “green” leadership looks like within an organization, and once again,

Andy Taylor is one of the chief architects behind the creation of it.

PART TWO – Teal Leadership and the Tao

Upon the conclusion of reading the assigned passages in John Heider’s book, The Tao of Leadership,

there were three passages that really stood out from the rest to me, and they were especially

applicable to that of a Teal Leader. They are as follows:

Passage # 3 - Being Oneself

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An effective teal leader needs to be the most authenticate version of themselves. As Laloux

(2014) mentions, they “need to show up with all of who they are” (pg. 186) and be free of any masks;

their previously divided selves are integrated and the truth of their soul honored (Laloux, 2014). Egos

are no more. It is the responsibility of the Teal leader to maintain an emotionally and spiritually safe

work environment, as we have learned this is the conduit to creativity and innovation (Laloux, 2014).

The Tao aligns with this truth, as it says “The wise leader pays respectful attention to all behavior.

Thus, the group becomes open to more and more possibilities of behavior. People learn a great deal

when they are open to everything and not just figuring out what pleases the teacher” (Heider, 1985,

p. 169). However, before the Teal leader embraces the wholeness of others, he or she must

experience wholeness themselves. Wholeness, at its core, is the very epicenter of the Teal paradigm

(Laloux, 2014). It sets the Teal Organization apart from any others. As such, it’s imperative that Teal

leaders live this out themselves by authentically “Being Oneself.”

Passage # 7 - Selflessness

Control is the enemy of Teal Leaders. They must see through a lens of humility, courage, and trust

(Laloux, 2014). They “must be willing to surrender their power to the group…their voice has the same

weight as anybody else’s, not more…They must trust that the collective sensing of the group will

come up with better answers than they could on their own” (Laloux, 2014, p. 261). Laloux further

illustrates this with the notion that for Teal leaders to avoid being full of themselves, they must strive

to be self-less and in service of a higher purpose (Laloux, 2014). The Tao underscores this truth in

that “Enlightened leadership is service, not selfishness. The leader grows more and lasts longer by

placing the well-being of all above the well-being of self alone (Heider, 1985, p. 210).

Passage # 23 – Be Still
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In this passage of The Tao, it highlights an essential principle for the Teal leader principle in that “The

leader who knows how to be still and feel deeply will probably be effective. But the leader who

chatters and boasts and tries to impress the group has no center and carries little weight…Remember

that the method is awareness-of-process. Reflect. Be Still” (Heider, 1985, p. 367). This speaks to the

importance of Teal leaders remembering they are part of an organization which acts as a living

system. They do not, individually, determine its course or provide direction by way of satisfying their

ego to achieve (Laloux, 2014). Within the Teal Organization, self-management structures do not yield

to individual pursuits and teal leaders need to remember that their work is in service of a greater

purpose that transcends them individually (Laloux, 2014). Teal leaders simply need to let go, be still,

and experience the abundance of life.

Final Thoughts on Teal Leadership

Over the past several weeks, I’ve been on an exploratory journey of the “Teal” Leadership

paradigm, and it has several elements of merit that I align with. These include the way these

organizations trust their people, the fluidity and flexibility of roles within the organization, the

transparency of information, and so on. Moreover, the fact that new efficiencies in productivity

abound, profit is displaced by “doing the right thing”, and egos are substituted with humility and

mindfulness, certainly makes the Teal paradigm even more appealing. What’s not to like about any of

these merits?!! That said, one of the potential barriers I see to this being adopted into full fruition is

that we are living in an “I” culture that, by in large, focuses squarely on materialism and measurable

success. This is in direct opposition to the principles of the Teal Paradigm. Granted, Laloux has

showcased a few companies with similar principles which for most of them, proved to be successful

and sustainable. However, even Laloux (2014) admits “The research for this book doesn’t provide the

grounds, in statistical terms, to prove or disprove the claim that Teal Organizations will deliver
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another leap in overall human performance” (p. 357). In this case, I believe only time will tell.

For me personally, if I was provided the opportunity to build a business from the ground-up

with myself being the CEO, in full transparency, I’m probably not comfortable with integrating all the

necessary components of this paradigm. At least not yet. That is not to say I won’t get there down the

road. Having said that, I do see myself being able to integrate into a company where Teal principles

are already established. The notion of being able to bring my entire self to work, to be empowered in

new and dynamic ways, and to experience a new level of “wholeness”, brings a certain level of

excitement and attraction I believe many people are searching for, and for some, might be beyond

what they could even imagine. I look forward to seeing how this unfolds.
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