Laloux Culture Model

Originated from Frederic Laloux’s famous book “Reinventing Organizations,” Laloux Culture Model has been widely used as a guiding tool in agile transformation and as an influential reference in agile related discussions. As its name implies, this model not only distinguishes different management philosophies in various businesses, but also sheds light on the aspect of culture change that goes side by side with organizational evolution.

In agile context, Laloux Culture Model reveals five levels of maturity in terms of organizational agility in correspondence to agile culture development:

Level 1: Red Organizations

Red organizations are analogized to a wolf pack. Power is highly concentrated in one or a few persons — the chieftain(s), and exerted through generating fear. They’re highly short-term focused and very effective in chaotic environments. Typical examples are mafia, street gangs, and tribal militias.

Level 2: Amber Organizations

Amber organizations are similar to armies. They are featured by a strict hierarchy with highly formal roles and straight reporting lines. This type of organization thrives in stable and predictable environments. Good examples include public schools, traditional churches, and government agencies.