Field Note: Before we come for Managers, we need to look at Organizations
I suppose the purpose of this class session was "Do we still Managers?" and will AI replace them? I fully expected Peyman to present us with question early on. Instead, we dove into the meta a bit. Before we can really analyze the role of managers in organizations, need to talk about organizations themselves - and how they evolve (and sometimes don't).
organizational paradigms
In “Reinventing Organizations”, author Frederic Laloux writes that “_[a]n organization cannot evolve beyond its leadership’s stage of [consciousness]._” He describes specific stages of organizational paradigms:
- Red - organizations ruled with a absolute power, limited to the immediate reach and influence of their leader. Red organizations are often described as wolf packs or the mafia. Everyone is motivated by fear, change is management can happen through a change in power dynamics. - Amber - organizations with a top down conformist structure of power with rigid stages of management and hierarchies to pass down stable, replicable processes to large groups of people. Consider the Catholic Church or an army. - Orange - typical organizations that make decisions based on evidence, acting like machines - setting goals, breaking those into benchmarks or OKRS, and then working towards them. These goals can be driven by shareholder value for example. Most companies exist at this orange stage. - Green - a newer model for organizations that is values driven, with a culture of empowerment, multi stakeholders that share in decisions and benefits of those decisions. Individuals in these organizations are able to drive things forward. - Teal - is an evolutionary model for organizations - where everyone is a manager, and everyone has the autonomy and authority to fix issues themselves. Distributed, remote teams are in a key position to take advantage of this new model, because the architecture and real estate of a physical workspace can’t play into reinforcing a hierarchy.
What struck me about this analysis of organizational paradigms was slotting in the organizations that I've worked for and reflecting on how they've moved along the scale - which is certainly not linear. Because in every organization, there are pockets of teal - where employees have autonomy and authority to act, vs pockets of red - where a VP might have absolute power, say, and control. I also considered the fact that organizations don't always evolve forward, they often regress.
Under the pressure of the market, scarce resources, or industry's rapid change, even mature green organizations can slide back into tightly controlled, slower decision processes, and higher amounts of centralization. For example, towards an IPO, even the employees with the most autonomy might find themselves following beauocratic hierarchical processes due to compliance needs.
A question that was posed in class was - _in a genuinely good culture or system, can you leave it up to people to decide what they should do?_ this is an interesting one to think about in reference to AI agents and the future of work.
organizational reshuffles
Organisational reshuffles is also an interesting lens here. When structures change, people often _rethink the organisation itself,_ its values, its rules, what is actually allowed. That moment of ambiguity can feel destabilising, but it might also be one of the few times real reflection becomes possible. Space to rethink isn’t always a failure mode; sometimes it’s the point.
activity - management activities
We ran an activity in class: list “management activities” and then sort them into categories:
things that don’t need management at all, things that are necessary and centralized, things that may be necessary depending on context, and things that aren’t necessary.
The exercise quietly dismantled the idea that “management” is a single role. Instead, it’s a bundle of functions, some structural, some cultural, some political. And some bundles of tasks, we found over discussion, weren't even necessary for the manager to do.
Doesn’t have to be management Organising product Project management (doesn’t need to be centralised) Time allocation Initiative / experimentation
Necessary and centralised Consensus mechanisms Policy enforcement * Core strategy / value-setting (emerging core strategy / value team)
Can be necessary (context-dependent) Product management (depends on scale and cross-functionality) Project management (varies by context) Governance under scarcity Resource prioritisation during limited resources or reshuffles
Not necessary Vision setting “Corporate BS”
This is where the fantasy of fully distributed, future-leaning teams started to fray. Many such models assume abundance: enough time, enough money, enough attention. In reality, teams operate under limited resources. You can decentralise how people allocate their time, but the _consensus mechanisms_ - what ultimately gets prioritised, funded, or enforced - often remain centralised. Scarcity pulls authority back toward the centre.
Product and project management surfaced as examples. In theory, they could be decentralized. In practice, they rarely are, especially when dependencies stack up. Policy enforcement, even more so, tends to centralize by necessity. This isn’t a moral failure; it’s an organizational gravity well.
culture vs process
That tension showed up again in the discussion of culture versus process. Is it more important to have a handbook, or an open form of discussion? A static policy, or a living document? The more interesting framing wasn’t either/or, but _what the handbook actually does_. Handbooks are often ignored and yet they generate discussion. People argue with them, interpret them, feel constrained or protected by them. Their real value may lie less in compliance and more in the sense-making they provoke.
Which leads to a harder question: is there a level of discomfort we should be willing to tolerate in order to create the change we say we want?
Expense policies is another example. Clear rules can feel restrictive, but they also reduce ambiguity and unfairness. Looser, emergent norms can feel freer, but risk uneven application and hidden power. Is it possible to evolve policies that are flexible _and_ fair, freer in practice, without abandoning guidance or reasonableness?
bias for action
Wanting people to try things and learn from attempts isn’t enough. You have to make it _successful to try_. Bias for action turns out to be a skill, not a slogan and it has maturity levels. At its best, it looks like controlled experimentation, not reckless motion. It requires scaffolding.
python vs C
To illustrate this situation, let's take a look at two programming languages.
Python encourages action: forgiving defaults, fast feedback, easy rollback.
C demands precision, upfront correctness, and carries higher consequences for mistakes.
Neither is inherently better (although you might find that enthusiasts disagree with this take) but they produce very different behaviors. Organizations, like languages, encode values into their constraints.
Some conditions for a healthy bias-for-action culture are:
- fast feedback mechanisms and rollback paths, - well-understood impact and blast radius, - frameworks for experimentation with explicit gates for lower risk, - and crucially, structure even in “permission-less” environments.
permission-less cultures
I probably need a whole separate field note on permission-less cultures, because I don't believe they exist - and it hit close to home. Trying to be action-oriented without clear boundaries often creates _more_ ambiguity, not less. Even anarchist systems have rules. “No permission needed” still requires shared understanding of limits.
The phrase “go and act” came up repeatedly, mostly as a warning. It doesn’t work. For many people, playing it safe is more natural, especially in civic or institutional contexts where failure carries reputational or moral weight. Even with frameworks in place, acting can feel risky.
So the real challenge becomes perceptual: how do you show people that the risk is actually small? Could you test something in one year instead of three? Can you make reversibility visible? Signals matter and organizations are constantly sending them, often unintentionally.
culture change takes time
Finally, culture change takes time. It takes months for an organization to acclimate to a new culture and it happens very, very slowly. Institutional safety and psychological safety are distinct but intertwined. And that global contexts complicate everything what feels safe, fast, or acceptable in one region may not in another.
I left class with the sense that the real question isn’t whether we still need managers, but what managers are actually for. If autonomy is the goal, someone still has to design the conditions that make autonomy survivable. Goals, values, guardrails, feedback loops, this is the work that doesn’t disappear just because hierarchy does.
In the next class, we will take a deeper look at the goals, values, and conditions for bias for action, empowerment - and whether managers are no longer needed if processes can be decentralized.
reinventingorganizations.com ↗