Spiral Dynamics in Business: What Color Is Your Company?
Spiral Dynamics is a model developed by Clare Graves in the 1970s. Originally designed to explain the evolution of human values and societal structures, it’s also an incredibly useful tool for understanding how businesses grow and change.
In a business context, Spiral Dynamics helps to make sense of company development and how leadership, structure, and culture evolve. Each level represents a distinct approach to business operations.
In a business context, Spiral Dynamics helps to make sense of company development and how leadership, structure, and culture evolve. Each level represents a distinct approach to business operations.
Spiral Dynamics offers an insightful framework for understanding how companies evolve and the corresponding shifts in leadership, management, and talent needs.
It’s especially interesting to see how talent acquisition changes from the scrappy, survival-focused Beige stage to the more purpose-driven, globally-minded Turquoise stage. Each level requires a different type of employee, with unique motivations and skill sets.
Recognizing this progression can help companies not only grow but attract the right people to fuel that growth.
The Stages of Spiral Dynamics in Companies: Real-World Examples
Beige (Basic Survival Instincts)
At the Beige level, companies are in survival mode, focusing on just staying afloat. This is common in early-stage startups, where the primary concern is securing customers, getting cash flow, and figuring out basic processes.
Talent Acquisition: At this stage, talent acquisition is barebones and scrappy. The company is looking for people who are flexible, willing to do whatever it takes, and don’t mind the lack of structure.
Fractional HR solutions like those offered by UnitiQ can be incredibly helpful here, allowing startups to access HR expertise without the overhead of a full-time HR department. Hiring is often through personal networks, word of mouth, or local job boards.
Example: Small startups or local services like a neighborhood café or a freelance web design business. These companies are typically bootstrapped, operating on minimal budgets, and need employees or partners who can take on multiple roles.
Purple (Tribal Stage)
Companies at the Purple stage are heavily based on relationships and trust. This is common for family-run businesses or those with deep community roots. Decision-making tends to be informal, and much of the business is conducted based on personal relationships.
Talent Acquisition: Hiring here revolves around personal referrals and trust. Talent is often brought in through family connections or long-standing relationships. Again, UnitiQ’s Fractional HR Solutions can be a valuable tool, providing structure to an otherwise informal process, helping ensure that even small family businesses remain compliant and competitive in their hiring. Flexibility, loyalty, and cultural fit are key traits companies look for.
Example: Family-owned restaurants or local manufacturing businesses, where much of the workforce is comprised of relatives or long-time friends. Decision-making is often informal, and roles may evolve based on who is available and trusted, rather than on a formal job description.
Red (Power and Control)
At the Red stage, companies are driven by a strong, central leader who makes all the major decisions. Power is highly concentrated, and employees are expected to follow orders with little room for independent thought.
Talent Acquisition: Here, recruitment is often top-down, driven by the leader’s personal preferences. Strong personalities who can thrive under authoritative leadership are prioritized.
UnitiQ plays an important role here as well, providing tools and services to help formalize HR structures and introduce some consistency into the hiring process, which can be overly subjective at this stage. The leader’s vision and charisma are often the main draws for talent.
Example: Companies like Uber in its early days, where a visionary, forceful leader drove innovation but also created a demanding work culture. Employees were expected to work hard and follow the direction without question, drawn by the leader’s clear vision of success.
Blue (Order and Hierarchy)
Companies in the Blue stage emphasize order, structure, and discipline. Processes are standardized, and there’s a clear chain of command. The focus is on efficiency and following established procedures to minimize risk.
Talent Acquisition: Recruitment at this level is formalized, often involving structured interviews, competency tests, and defined job roles.
Companies look for individuals who are comfortable working within a strict hierarchy and following rules. Stability, clear roles, and long-term career prospects are the key selling points.
Example: Large, hierarchical organizations like General Electric (GE) or Siemens, where employees must adhere to strict protocols and there’s a heavy emphasis on following procedures.
Orange (Achievement and Success)
At the Orange level, companies prioritize innovation, competition, and measurable success. The focus is on growth, profitability, and performance, and the company seeks out top talent who can drive these outcomes.
Talent Acquisition: Recruitment becomes highly competitive at this stage, with a focus on finding high-performers and specialists who can innovate and drive growth.
Companies invest heavily in employer branding, competitive salaries, and benefits to attract the best. Headhunting and poaching top talent from competitors become common.
Example: Companies like Google or Salesforce, where high performance, innovation, and market leadership are the key drivers. The recruitment process is rigorous, and top talent is rewarded with excellent compensation and career growth opportunities.
Green (Community and Participation)
Green-stage companies value employee engagement, social responsibility, and corporate culture. There’s a focus on sustainability, community, and creating an inclusive, participative work environment.
Talent Acquisition: Green companies attract talent by emphasizing their values and culture. Recruitment focuses on people who align with the company’s mission, are collaborative, and have a high level of emotional intelligence.
Hiring for cultural fit becomes as very important as technical skills, and recruitment often highlights work-life balance, diversity, and inclusivity.
Example: Patagonia, known for its environmental activism and commitment to responsible business practices, is a prime example of a Green company. Employees are drawn not just by salary, but by the opportunity to work for a company that aligns with their personal values.
Yellow (Systemic Thinking and Flexibility)
At the Yellow stage, companies embrace complexity, flexibility, and systems thinking. They need individuals who can see the big picture, think strategically, and adapt to change quickly.
Talent Acquisition: Recruitment is focused on finding well-rounded, adaptable individuals who can think strategically and solve complex problems. These companies value autonomy and flexibility, so the hiring process is often highly selective and focused on finding individuals with a broad range of skills and perspectives.
Example: Amazon is a great example here. The company’s ability to rapidly expand into new markets and industries—whether through cloud computing (AWS) or retail innovation—requires hiring people who are flexible, systems thinkers who can operate across different domains.
Turquoise (Global Concern)
Companies operating at the Turquoise level are focused on solving global problems and making a positive impact on the world. These businesses aren’t just about profits—they’re about changing the world for the better.
Talent Acquisition: At this level, companies look for visionary leaders and individuals who are passionate about global issues like sustainability, human rights, or global health. Recruitment is often global, targeting people who are motivated by purpose over profit.
Example: Tesla, under Elon Musk, has a Turquoise-level mission of advancing sustainable energy on a global scale. Employees are motivated by the chance to work on meaningful projects that have a real-world impact, rather than just financial rewards.
How Understanding Spiral Dynamics Helps in Business
Assessing Your Company’s Growth Stage
Knowing where your company falls on the Spiral Dynamics model can help you anticipate what comes next. For instance, a company operating at the Blue stage might need to adopt more innovative strategies (Orange stage) to stay competitive. On the other hand, a Green-stage company might need to incorporate systems thinking from the Yellow stage to scale effectively.
Managing Change Effectively
Spiral Dynamics helps predict which strategies will be most effective for moving your company forward. For example, if your business is currently at the Green stage (focused on participation and culture), introducing more systemic, flexible thinking from the Yellow stage can help ensure long-term adaptability and success. Leveraging task-tracking tools for improving internal communication is an example of using a Yellow-stage approach.
Building Corporate Culture
By identifying where your business is on the Spiral Dynamics scale, you can better shape your corporate culture. Whether it’s fostering a close-knit, loyalty-based environment at the Purple stage or emphasizing social responsibility at the Green stage, Spiral Dynamics helps align corporate culture with company goals.
Here I call it "Corporate Culture", but in reality before the business becomes a corporation, I prefer to call it Company Culture, which is one of the key parts of building sustainably growing business.
Here I call it "Corporate Culture", but in reality before the business becomes a corporation, I prefer to call it Company Culture, which is one of the key parts of building sustainably growing business.
Thoughts
By utilizing services like UnitiQ's Fractional HR Solutions, companies in the early stages can formalize and structure their hiring processes, ensuring they attract the right talent even when resources are limited. As companies evolve through the Spiral Dynamics model, their recruitment strategies become more sophisticated, eventually focusing on purpose-driven individuals who seek to make a global impact, ensuring that talent acquisition is always aligned with the company’s current goals and values.
UnitiQ: On-Demand Fractional HR Services for Scalable Business Growth
UnitiQ offers flexible, on-demand fractional HR services, designed to provide immediate access to HR expertise without the need for full-time staff. Whether it’s talent acquisition, HR operations, or developing a comprehensive people strategy, UnitiQ supports businesses by handling specific tasks or managing their complete HR needs.
Their services are ideal for companies looking to scale HR functions cost-effectively while ensuring they hire the right talent aligned with their values and culture. With a pool of industry experts, a dedicated point of contact, and a focus on enhancing engagement and compliance, UnitiQ provides valuable external perspectives that help businesses grow and thrive.
We are happy to help you with Talent Acquisition and HR tasks, please contact me, Olga Fedoseeva, Founder at UnitiQ, directly:
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