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The uplifting message of Reinventing Organizations has resonated with readers all over the world. They have turned it, one conversation at a time, into a true wordof-mouth phenomenon. The book has helped shift the conversation from what’s broken with management today to what’s possible. It is inspiring thousands of organizations—corporations and nonprofits, schools and hospitals—to adopt radically more powerful, soulful, and purposeful The book resonates widely, but not everyone has time to devote to a dense 360-page management book. This illustrated version conveys the main ideas of the original book and shares many of its real-life stories in a lively, engaging way. Don’t be surprised if you find it hard to put down and end up reading it almost in one sitting. Welcome to the conversation on next-stage organizations! practices. Praise for Reinventing Organizations “A stimulating and inspiring read!” — Robert Kegan, Harvard University “This is truly pioneering work.” — Ken Wilber, author of A Brief History of Everything FREDERIC LALOUX Join the conversation on next-stage organizations F R E D E R I C L A L O U X ILLUSTRATIONS BY ETIENNE APPER T n o i t a t i v n I d e t on a n r o i t t a s s r u l e l v I n o An to Join the C n iz at i o n s ga r O e g a t S t N ex “This book is a world changer!” — Jenny Wade, Ph.D. author of Changes of Mind Copyright © 2016 by Frederic Laloux. First edition. Published by Nelson Parker. All rights reserved. No parts of this book may be used, reproduced, stored in or introduced into a retrieval system, or transmitted, in any forms, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses. Cover design: Véronique Geubelle. Praise for the original edition of Reinventing Organizations “A stimulating and inspiring read!” Robert Kegan, Harvard University’s Meehan Professor of Adult Learning and author of In Over Our Heads “Everything you need to know about building a new paradigm organization!” Richard Barrett, chairman and founder of the Barrett Values Centre “Congratulations on a spectacular treatise.” Ken Wilber, author of A Brief History of Everything “Ground-breaker! Game-changer! Brilliant!” Jenny Wade, Ph.D., author of Changes of Mind “Frederic Laloux has done business people and professionals everywhere a signal service.” Bill Torbert, author of Action Inquiry “The most important and inspiring business book I’ve ever read.” Tony Schwartz, author of The Way We're Working Isn't Working “A book like Reinventing Organizations only comes along once in a decade.” Norman Wolfe, author of The Living Organization “Frederic Laloux is one of the few management leaders exploring what comes next. It's deeply different.” Bill Drayton, founder, Ashoka: Innovators for the Public If you purchased this book, or chose the pay-what feels-right option The organizations I write about in this book believe in trust—they start with the premise that their employees are trustworthy and want to do the right thing. In the same spirit, I decided not to protect this book with DRM, which so often proves annoying when you decide to read the book on a different screen than the one from which you bought it. I trust that you value this as your personal copy. You can point people interested in this book to www.reinventingorganizations.com. There they can buy the book or download it in “pay what feels right” mode, so there is no need for sending them your copy. Please don’t forward it. If this book was somehow forwarded to you I invite you to take a moment, once you’ve read it, to sense what amount you would like to give back to me and Etienne. You can do so on www.reinventingorganizations.com. One thing I've heard from many readers: if you choose to gift back an amount that feels right to you, you are also likely to feel good about it! Your gift will be a beautiful reward for the long, long hours we put into creating this book. I enjoy the "gift economy" for another reason too: I I feel it creates a bond between us, even if we never meet, in a way a paid transaction doesn’t. And more broadly, I believe that practicing trust in such simple ways can invisibly but powerfully nurture a broader culture of trust in the world. Try it out! :-) 7 INTRODUCTION 13 PART 1 41 PART 2 133 This doesn’t quite look like a management book Could we be about to invent a whole new management paradigm? How do these new organizations work, then? 57 Self-management 81 Wholeness 111 Evolutionary purpose PART 3 So… how do we get there? INTRODUCTION This doesn’t quite look like a management book 7 Introduction Many people seem truly inspired to hear that a whole new kind of organization is emerging … but not everyone has time to read a 360-page management book about it. 9 Reinventing Organizations is one of those rare books that has become a true word-of-mouth phenomenon. Its hopeful message that we can build radically more powerful, soulful, and purposeful organizations has resonated with readers all around the world. The most amazing things have started happening. Readers in many countries spontaneously reached out to publishers to insist on a translation. Two readers in Chile decided not to wait and paid for a translation themselves, and so did a reader in Ukraine for a Russian translation. Someone in the US bought himself a home studio to record an audio version. Other readers are busy creating a computer game from the book, and an increasing number of university professors have integrated the book into the curriculum of their business schools. As a result of all this momentum, I’m hearing from lots and lots of organizations, large and small, that have committed to fundamentally reinvent themselves. That so many people resonate with the book has to do, I believe, with the fact that almost everyone today feels that something is broken in our organizations. We can all tell sad stories of how management, as we practice it today, drains life and energy out of the workplace: organizations where bureaucracy has taken over; workplaces fraught with ego trips and power games, infighting, and silos; organizations where people at the top make decisions that leave people below scratching their heads in bewilderment, if not outright frustration … A great number among us yearn for something more and resonate with the hopeful message that a better way to run businesses and nonprofits, schools and hospitals is emerging. But—can you believe it?—I’ve been told not everyone wants to read a whole management book about it. A reader suggested that I add illustrations to my book, and she introduced me to Etienne, a wonderfully gifted illustrator who has become a friend. That’s when the idea emerged not just to add a few illustrations to the existing book, but to create a new one—an illustrated, introductory version to the ideas of Reinventing Organizations! Introduction What this book is A lively introduction to the main ideas of Reinventing Organizations that you can read almost in one sitting. It’s a book you can easily share with other people. A book that helps shift the conversation from what’s broken to what’s possible. A book that shares how some companies have found ways to be truly powerful, soulful, and purposeful … and that invites you to imagine a new future for your own organization. What this book is not An exhaustive handbook of new management practices. This book highlights a few of the critical elements of the new organizational model that is emerging, just enough, I believe, for you to get a really good sense of what it’s all about. It is a shorter but not a dumbed-down version of the original. Just like the original, it might well shake some deep-held assumptions you have about life, about people, and about work. Be prepared for some real food for thought!