A Teal enterprise is an enterprise that prioritizes people and society’s collective wellbeing over maximizing shareholder’s profit. It creates effortless sustainability and exponentially higher profits relative to conventional enterprises. The logic is simple: instead of wasting energy on internal politics and competitions, a Teal enterprise aligns purposes, fosters collaborations and cultivates self-leadership. It takes a holistic approach to maximize financial and social benefits for all stakeholders, including employees, customers, suppliers, society, founders and investors.
Every endeavor comprises these four elements: who, why, what and how. “Who” is in charge of the enterprise. “Why” is the purpose the enterprise serves. “What” represents key resources needed. “How” refers to the methods used to run the enterprise. To illustrate with a road trip, “who” is the driver, “why” is the direction, “what” is the fuel and “how” is the vehicle.
Conventional enterprises represent these four elements with shareholders, profit, capital and management system, respectively.
Capital includes financial capital and what it brings. For instance, financial capital can purchase real estate, pay for human capital, who will then bring skills, experience and technology. Management systems in conventional enterprises entail a control focused management approach.
A Teal enterprise transforms these relationships from competition to collaboration, from conflict to alignment, and from separation to unity. A Teal enterprise is holistic and bigger in scope. It serves as a vehicle for maximizing collective benefit, be it a team, a community or the larger society. It offers a safe space for people to engage in personal-growth and to tap into the 95% of hidden human potential.
Structurally, it replaces top-down authority with self-management. Here, self-management refers to visible system innovation to enable autonomy. Personal-growth refers to invisible mindset change to unleash creativity.
A Teal model is not merely the redistribution of profit from shareholders to stakeholders. It enlarges the existing pie of conventional enterprises, then rewards all stakeholders, including shareholders, who contributed to the value creation.
A Teal enterprise does not reject the pillars of conventional enterprises – profit, capital and system. On the contrary, it embraces them. Consider profit, capital and system as the hardware, what Teal business model offers is infinite possibilities derived from advanced software. A Teal enterprise upgrades the hardward to serve a bigger and more noble mission. For example, a Teal enterprise isn’t anti-boss, but transforms conventional bosses to leaders and mentors. It recognizes that people are not human resources or objects to be exploited, but spiritual beings whose purpose on earth is to experience, to learn, to grow and to create.
A Teal enterprise is not utopia, but represents an inevitable global trend that 99% of the people on earth will embrace once we understand what it truly is. Being naturally holistic and complex, it adds more dimensions, from simply maximizing profit at any cost to considering the interests of people and society without losing focus on creating great products or services and generating healthy profit. It is a marathon that requires conviction and persistence. The meaning is not arriving the destiny but starting the journey.
Teal Village is here to offer guidance.