After Decentralization, Why Do We Still Need to Stay Together?
Recorded in Chinese
An attempt to distinguish decentralized decision-making from teal organizations, drawing on education and my own work to explore self-management, wholeness, purpose, and the tensions of scaling.
00:00 Let me try to explain
00:02 decentralization and Teal organizations,
00:04 and how they relate.
00:09 Though I don't know
00:11 much about decentralization,
00:14 based on my limited understanding,
00:17 I think decentralization,
00:20 compared with Teal organizations,
00:23 is more about structural design.
00:29 For example,
00:30 it focuses on
00:33 how power and decisions are handled.
00:40 A Teal organization, to me,
00:42 is a living state of an organization,
00:46 or, to use a more formal term,
00:49 an organizational paradigm.
00:52 It includes decentralized design,
00:57 but goes beyond the design itself.
01:02 I first learned about Teal organizations
01:07 through a WeChat article, I think.
01:11 Then I looked up
01:13 more about them.
01:15 They have three main elements.
01:19 Those three are:
01:22 self-management,
01:24 wholeness,
01:26 and evolutionary purpose.
01:30 Specifically,
01:33 from the standpoint of decentralization,
01:41 an organization may be very decentralized,
01:46 yet member relations may be transactional.
01:51 They do not care about
01:54 the wholeness of anyone but themselves.
01:58 And the way
02:01 the organization operates—its purpose,
02:07 the purpose of the DAO—
02:09 is decided by token-holder votes.
02:13 That means those with more tokens
02:15 may have a greater say.
02:20 In itself, that doesn't seem
02:23 fully decentralized.
02:27 A Teal organization, meanwhile,
02:31 has
02:34 a very typical structure.
02:37 The organization is still there,
02:40 along with internal autonomy.
02:45 In some organizations I joined,
02:49 internal autonomy took
02:51 the form of project-based management.
02:55 This kind of flat management
02:58 is one expression of a Teal organization.
03:04 To sum it up,
03:06 decentralization focuses on
03:10 who makes decisions:
03:11 token holders can decide,
03:15 and more tokens mean a bigger say.
03:19 Teal organizations instead ask:
03:22 why do we
03:25 come together in this organization?
03:27 How do we relate
03:30 to the other people in it?
03:33 And where is the whole organization going?
03:37 So a Teal organization
03:40 includes a decentralized structure,
03:44 but
03:45 that structure alone
03:47 falls far short of explaining it.
03:52 Then I thought of some classic
03:55 Teal organizations in China.
03:59 One is Yichu Academy.
04:02 This organization—
04:04 if you know it,
04:06 you probably know
04:08 what kind of work it does.
04:12 If I look at an organization like this
04:16 through the Teal framework,
04:21 using those three keywords,
04:24 I would break it down like this.
04:27 First, self-management:
04:29 students can decide
04:33 what their own schedule looks like.
04:36 They customize their own schedules
04:39 and learn at their own pace.
04:42 They can also choose not to make one
04:46 or attend classes.
04:50 Then there's wholeness.
04:53 Within this organization,
04:55 students receive respect and acceptance.
05:00 Teachers also give them
05:02 what those students need.
05:05 And the teachers in the organization
05:08 discuss what they have
05:11 noticed or felt from students that day.
05:17 In other words,
05:19 they believe every child
05:21 has their own potential
05:23 and their own wholeness.
05:25 Then the third principle:
05:27 evolutionary purpose.
05:28 The organization
05:32 accepts students facing difficulties.
05:35 But in the real world,
05:40 difficulty itself
05:43 can't be quantified.
05:46 It is also
05:47 chaotic,
05:48 and constantly changing.
05:52 So the organization's goal may not be
05:55 to make sure, within a set period,
06:00 that a child returns to school.
06:04 Instead, it becomes
06:06 a more open-ended direction:
06:09 how can the child,
06:11 during their time with us,
06:16 find a way to grow that suits them?
06:19 Or find a goal that suits them?
06:24 Whether helping them find
06:26 their own way to grow,
06:28 or find their own goal,
06:31 there is no time limit at all.
06:35 Their work has no KPIs
06:41 and no presets of any kind.
06:45 And every direction they take,
06:48 every path they explore,
06:49 will change
06:51 as teachers understand the child better.
06:56 That's roughly how I see the organization
07:00 through those three concepts.
07:08 I think organizations like this
07:10 are extremely rare.
07:15 They also ask a great deal
07:19 of the people within them.
07:23 For example,
07:25 the teachers there:
07:28 how do they manage themselves,
07:32 their relationships with students,
07:36 and their own
07:37 pursuit of meaning, for example?
07:41 This also requires
07:48 an alignment with their own wholeness.
07:51 They have their own inner drive.
07:54 And what is that drive?
07:56 In most organizations,
07:58 it may come from
08:00 goals tied to success,
08:04 security, and so on.
08:06 But in a Teal organization like this,
08:12 each person's drive comes from meaning.
08:19 They ask themselves,
08:20 "Does what I'm doing matter?"
08:22 If it does,
08:23 they will do it well
08:26 and keep at it.
08:32 Then it struck me:
08:35 Teal organizations...
08:38 I truly envy
08:39 organizations like this.
08:40 Because I think
08:43 my personality is well suited
08:45 to living and working in one.
08:48 For example,
08:49 my first job was
08:53 at a newly founded school.
08:55 During that school's
08:58 first two years,
09:00 I was genuinely happy.
09:02 Everything was still chaotic
09:04 and uncertain.
09:08 The internal structure
09:09 was not yet fully formed.
09:11 But I could be happy then
09:13 because
09:15 I believed the organization's work
09:17 was meaningful
09:18 and valuable.
09:19 So I put
09:22 all my motivation and drive into
09:26 the work I was doing.
09:29 But later,
09:30 there was—
09:32 you know,
09:33 a school needs to scale.
09:36 Order emerges step by step.
09:39 Once that order takes full shape,
09:44 it begins to constrain
09:46 every individual in the organization,
09:48 and no one is exempt.
09:51 So during the transition
09:54 to a larger scale,
09:56 I felt it constrained me.
09:59 In the end, I decided
10:00 to leave the organization.
10:03 I really felt that
10:05 if it had allowed me
10:10 to act with fewer constraints,
10:16 I could have stayed.
10:20 Coming back to decentralization,
10:22 I actually think
10:25 complete decentralization doesn't exist.
10:29 As I mentioned, for example,
10:34 people with tokens
10:36 vote on decisions.
10:39 In that case,
10:41 people holding many tokens
10:43 naturally have more say.
10:46 So
10:47 well,
10:48 how is that any different
10:50 from a shareholders' meeting?
10:53 There isn't much difference, right?
10:56 So DAOs
11:02 may be truly ideal in theory,
11:05 but in practice
11:07 they inevitably face constraints,
11:09 especially around tokens.
11:11 Token holders themselves
11:14 are an obvious flaw.