Insufficient "administrators": the absence of self-rule in Russian corporations explained
In the rapidly evolving business landscape, the concept of teal organisations - characterised by high employee engagement, self-management, and increased responsibility - has gained traction. However, the implementation of this revolutionary approach in Russia faces distinct challenges and successes that diverge notably from those in Western companies, largely due to Russia’s unique political, economic, and institutional context.
### Challenges in Implementing Teal Organisations in Russia
Russia’s corporate environment, especially in strategic sectors like energy and defence, is heavily dominated by state corporations and closely linked to government institutions. This entrenched top-down control and centralised decision-making culture pose significant barriers to teal principles such as self-management, decentralised authority, and employee autonomy.
The Russian market's size and gradual withdrawal from cheaper international inputs impact manufacturing and innovation capacity. This restricts the experimentation and adaptability often needed in teal organisations to evolve organically and respond to stakeholder needs.
There is an acute shortage of suitably trained personnel and educational infrastructure to support modern, flexible work models. The decline in workforce quality and quantity, coupled with outdated technologies, complicates the adoption of teal’s emphasis on individual responsibility and continuous learning.
The security and political focus in Russia’s strategic sectors lead to prioritizing control, secrecy, and hierarchy over transparency and organisational freedom, which are crucial for teal organisations.
### Successes and Positive Aspects
Russia’s intense focus on maintaining technological sovereignty and investing in key industries like Arctic development shows potential for some teal tenets such as long-term vision and stakeholder engagement, albeit within a rigid framework.
Some Russian entities engage in practical adaptations like modernising old equipment and systems, reflecting a form of innovation and decentralised problem-solving somewhat aligned with teal’s evolutionary purpose principle, though within strict limits.
### Differences Compared to Western Companies
| Aspect | Russian Teal Implementation Challenges | Western Teal Implementation Characteristics | |---------------------------------|-------------------------------------------------------------|-----------------------------------------------------| | **Organizational Culture** | Predominantly hierarchical and state-controlled | Generally flatter, more participatory | | **Decision-making** | Centralised, politically influenced | Decentralised, autonomous | | **Workforce Development** | Limited training, outdated technologies | Emphasis on continuous learning and upskilling | | **Market and Innovation Environment** | Smaller, constrained by sanctions and local content mandates | Larger, more open to global collaboration and innovation | | **Security and Transparency** | Control prioritized due to geopolitical concerns | Transparency and trust are key | | **Adaptation and Flexibility** | Innovation occurs, but within strict state parameters | Strong culture of experimentation and adaptability |
In essence, while some foundations for teal principles may exist in Russia in the form of state-led innovation and adaptation, the dominant political control, hierarchical culture, and economic limitations pose serious barriers to full teal implementation. This contrasts with Western companies, where greater emphasis on employee autonomy, transparency, and learning can more naturally foster teal organisational models.
The Russian context thus requires significant structural and cultural shifts for teal principles to thrive as they do in many Western environments. Many workers prefer clear hierarchies and clear instructions, and do not strive for freedom in decision-making. Building a 'teal organisation' in Russia requires owners and employees to work on themselves and corporate culture. Leaders in such a company will have to become more vulnerable, able to see less obvious systemic dynamics, and cultivate the right to make mistakes.
Rules support the stability of the system, not hinder changes, and personal employee goals work for the common result. A common issue in 'teal' and 'around-teal' companies is the emergence of a hidden hierarchy and implicit power structures, causing anxiety. It's important to support and update corporate storytelling, transform the company culture, and develop conflict normalization and resolution procedures.
- The challenge in implementing teal organizations in Russia rests upon the country's corporate environment, primarily in sectors like energy and defense, which are heavily influenced by state control, resulting in a culture that discourages self-management, decentralized authority, and employee autonomy.
- Despite this, Russia's intense focus on technology sovereignty and key industry investments presents a potential for aspects of teal tenets, such as long-term vision and stakeholder engagement, albeit within a rigid framework.
- The success of teal organizations in Russia hinges on significant cultural and structural shifts, making employees more comfortable with autonomy, fostering transparency, and building a culture that values continuous learning and adaptation.
