Conscious capitalism may 2012

Conscious Capitalism ConferenceMeasuring Conscious Culturesand Conscious LeadershipRichard BarrettMay 2012 www.valuescentre.comwww.valuescentre.com 1www.valuescentre.com

The Tenets ofConscious Capitalism 2

Why Conscious Capitalism? We need to recognise that:Business is a wholly owned subsidiary of society, and society is wholly owned subsidiary of the environment. If we lose our environment and our life-support systems, our society will perish. If we lose our society, we will lose our economy and our businesses will perish too. 3

A New Leadership Paradigm Conscious Capitalism is based on a New Leadership Paradigm• A shift from “I” to “we”• A shift from “what’s in it for me” to “what’s bestfor the common good”• A shift from being the “best in the world” to the“best for the world” 4

The Four Tenets of Conscious Capitalism Conscious Capitalism is Values-Driven Higher Stakeholder Purpose Integration Values Conscious Conscious Culture Leadership 5

Leadership and Values The real role of the leader is to manage the values of the corporation.Tom Peters, “In Search of Excellence:Lessons from America’s best runcompanies”, 1983 6

How do you know if you are being successfulat living the tenets of Conscious Capitalism? You need to: 1. Measure the Consciousness of the Leaders 2. Measure the Consciousness of the Organization as perceived by employees 3. Measure the Consciousness of the Organization as perceived by customers and society 7

Measuring Consciousness by Mapping Values Cultural Transformation Tools Higher Stakeholder Purpose Integration ValuesWe can measure this We can measure this Conscious Conscious with a Cultural Culture Leadership with a Leadership Values Assessment Values Assessment (CVA) (LVA) 8

Measuring the Cultures of Organisations and Mapping the Values of Leaders Cultural Transformation Tools (CTT) Values-Driven Values-Driven Cultures Leadership 1998 2006 2011 9

Barrett Values Centre World-wide Activities 10

The Three Mantras ofOrganisational Performance 11

The Three Mantras of Organizational PerformanceMantras Implications Who you are and what your Cultural Capital is the new frontier organization stands for of competitive advantage. is vitally important. Focus on Vision, Mission and ValuesThe Culture of an organizations is a Organizational transformation reflection of leadership begins with the personal consciousness transformation of the leaders Begins with Self Leadership Measurement matters. If you can You can make the evolution of measure consciousness, consciousness, conscious you can manage it. Measure and Map the Values 12

Measuring OrganizationalConsciousness 13

Origins of the Cultural Transformation Tools Self Actualization Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of motivation and Know and commitment. UnderstandAbraham Maslow Self-esteem Deficiency Needs An individual gains no Love & Belonging sense of lasting satisfaction from being able to meet these Safety needs, but feels a sense of anxiety if these needs Physiological are not met. 14

Maslow’s Needs to Barrett’s Consciousness Self-Actualization Know and Know and Understand UnderstandAbraham Maslow Self-esteem Richard Barrett Love & Belonging Safety Physiological Needs Consciousness 15

Maslow’s Needs to Barrett’s Consciousness 1. Expansion of self-actualization Know and Know and into multiple levels. Understand Understand 2. Substitute ‘states of consciousness’ Self-esteem for hierarchy of needs.Love & Belonging 3. Each state of consciousness is defined by specific values Safety and behaviours. Physiological Needs Consciousness 16

Stages in the Development of Personal Consciousness Positive Focus / Excessive Focus Service to Humanity and the Planet Devoting your life in self-less service Service to your purpose and vision Collaborating with Partners Making a difference Working with others to make a positive difference by actively implementing your purpose and vision Finding Personal MeaningInternal Cohesion Uncovering your sense of purpose and creating a vision for the future you want to create Personal Growth Transformation Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Self-worth Self-esteem Feeling a positive sense of pride in self and ability to manage your life. Power, status Belonging Relationship Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Financial Security & Safety Survival Creating a safe secure environment for self and significant others. Control, greed 17

Stages in the Development of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity And The Planet Social responsibility, future generations, long-term Service perspective, ethics, compassion, humility Strategic Alliances and Partnerships Making a difference Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Building Corporate CommunityInternal Cohesion Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Continuous Renewal and Learning Transformation Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth High Performance Self-esteem Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Belonging Relationship Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Financial Stability Survival Shareholder value, organisational growth, employee health, safety. Control, corruption, greed 18

Placement of Values by LevelCurrent Culture 100 Employees Service Top Ten Values 1. tradition (L) (59) Making a difference 2. diversity (54)Internal Cohesion 6 3. control (L) (53) 4. goals orientation (46) Transformation 2 4 5 5. knowledge (43) Self-esteem 6. creativity (42) 7 8 7. productivity (37) Relationship 10 10 1 8. image (L) (36) 9. profit (36) 9 3 Survival 10. open communication (31) 19

Distribution of Values by LevelCurrent Culture 100 Employees Service 7 Making a difference 6 Internal Cohesion 5 Transformation 4 Cultural Self-esteem 3 Entropy Relationship 2 11% 1 Survival 20

The Values SurveyThree Questions:PERSONAL VALUESWhich of the following values and behaviours most reflect who youare? Pick ten.CURRENT CULTUREWhich of the following values/behaviours most reflect how yourorganisation currently operates? Pick ten.DESIRED CULTUREWhich of the following values/behaviours most reflect how youwould like your organisation to operate? Pick ten. 21 21

Engineering and Projects Company (339) What employees believe is Personal Values Current Culture Values Desired Culture Values necessary Level 7 for the Level 6The values that companyare Level 5 important to to achieve employees in Level 4 its full their personal Level 3 potential lives. Level 2 Level 1 IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0 Matches 1. honesty 169 5(I) 1. continuous 111 4(O) 1. accountability 180 4(R) 2. accountability 165 4(R) improvement 2. customer 147 2(O) PV - CC 1 CC - DC 4 2. customer 111 2(O) satisfaction PV - DC 2 3. commitment 150 5(I) satisfaction 3. continuous 143 4(O) 4. continuous learning 92 4(I) Health 3. safety conscious 102 1(O) improvement Index (PL) 5. balance (home/work) 91 4(I) 4. cost reduction 88 1(O) 4. employee development 111 4(O) 6. family 91 2(R) PV: 10-0 5. job insecurity (L) 77 1(O) 5. employee recognition 96 2(R) CC: 7-3 7. self-discipline 91 1(I) DC: 10-0 6. inconsistent (L) 75 3(I) 6. commitment 95 5(I) 8. responsibility 89 4(I) 7. teamwork 74 4(R) 7. inspirational leadership 95 6(O) 9. respect 81 2(R) 8. accountability 71 4(R) 8. employee fulfilment 94 6(O) 10. open communication 76 2(R) 9. blame (L) 71 2(R) 9. teamwork 90 4(R) 10. corporate image 64 3(O) 10. professionalism 80 3(O) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC How employees experience the company - What isR = Relationship Blue = PV & DC (white circle) S = Societal working well? What is undermining the sustainability Values Plot Copyright 2011 Barrett Values Centre February 2011 22 of the company.

Engineering and Projects Company (339) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0 Matches 1. honesty 169 5(I) 1. continuous 111 4(O) 1. accountability 180 4(R) 2. accountability 165 4(R) improvement 2. customer 147 2(O)PV - CC 1CC - DC 4 2. customer 111 2(O) satisfactionPV - DC 2 3. commitment 150 5(I) satisfaction 3. continuous 143 4(O) 4. continuous learning 92 4(I) Health 3. safety conscious 102 1(O) improvementIndex (PL) 5. balance (home/work) 91 4(I) 4. cost reduction 88 1(O) 4. employee development 111 4(O) 6. family 91 2(R) PV: 10-0 5. job insecurity (L) 77 1(O) 5. employee recognition 96 2(R) CC: 7-3 7. self-discipline 91 1(I) DC: 10-0 6. inconsistent (L) 75 3(I) 6. commitment 95 5(I) 8. responsibility 89 4(I) 7. teamwork 74 4(R) 7. inspirational leadership 95 6(O) 9. respect 81 2(R) 8. accountability 71 4(R) 8. employee fulfilment 94 6(O) 10. open communication 76 2(R) 9. blame (L) 71 2(R) 9. teamwork 90 4(R) 10. corporate image 64 3(O) 10. professionalism 80 3(O) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2011 Barrett Values Centre February 2011 23

Engineering and Projects Company (339) Personal Current Culture Desired Culture Values Values Values 6% 5% 5% 7 7 7 C 8% 9% 13% 6 6 6Common Good 24% 11% 19% 5 5 5 T 21% 20% 27%Transformation 4 4 4 17% 14% 16% 3 1% 3 12% 3 0%Self Interest S 2 1% 12% 2 8% 5% 2 1% 12% 9% 10% 6% 1 1% 1 6% 1 1% 0% 20% 40% 0% 20% 40% 0% 20% 40% Total number of CTS = 38-21-41 CTS = 25-20-55 CTS = 37-27-36 votes for all Entropy = 3% Entropy = 23% Entropy = 2% values at each level C = Common Good Positive Values T = Transformation Cultural Entropy Potentially Limiting S = Self-Interest % of Votes for Values Values Distribution Limiting Values Copyright 2011 Barrett Values Centre February 201124

Barrett Values Centre: Group (18) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 9-2-1 | IRS (L)= 0-0-0 IROS (P)= 1-0-8-1 | IROS (L)= 0-0-0-0 IROS (P)= 2-3-5-1 | IROS (L)= 0-0-0-0 Matches 1. making a difference 9 6(S) 1. commitment 13 5(I) 1. commitment 10 5(I)PV - CC 4 2. accountability 8 4(R) 2. humor/ fun 13 5(O) 2. customer collaboration 10 6(O)CC - DC 6PV - DC 4 3. commitment 8 5(I) 3. making a difference 12 6(S) 3. teamwork 10 4(R) 4. humor/ fun 8 5(I) 4. balance (home/work) 11 4(O) 4. employee fulfillment 9 6(O) Health Index 5. integrity 8 5(I) 5. customer satisfaction 11 2(O) 5. continuous 8 4(O) (PL) improvement 6. continuous learning 7 4(I) 6. continuous 10 4(O) PV: 12-0 well-being (physical/ 7 6(I) improvement CC: 10-0 7. 6. accountability 7 4(R) DC: 11-0 emotional/ mental/ spiritual) 7. employee fulfillment 10 6(O) 7. humor/ fun 7 5(O) 8. financial stability 8 1(O) 8. innovation 7 4(I) 8. balance (home/work) 6 4(I) 9. information sharing 6 4(O) 9. making a difference 7 6(S) 9. family 6 2(R) 10. shared vision 6 5(O) 10. shared vision 7 5(O) 10. efficiency 5 3(I) 11. trust 7 5(R) 11. excellence 5 3(I) 12. honesty 5 5(I) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2011 Barrett Values Centre December 2011

Barrett Values Centre: Group (18) Personal Current Culture Desired Culture Values Values Values 10% 5% 4% 7 7 7 C 14% 18% 24% 6 6 6 29% 27% 25% 5 5 5 T 23% 26% 28% 4 4 4 11% 8% 8% 3 0% 3 2% 3 0% S 2 0% 10% 2 0% 8% 2 5% 0% 3% 5% 5% 1 0% 1 1% 1 1% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 53-23-24 CTS = 50-26-24 CTS = 53-28-19 Entropy = 0% Entropy = 3% Entropy = 1% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesValues Distribution Copyright 2011 Barrett Values Centre December 2011

Barrett Values Centre: Group (18) Current Culture Values Desired Culture Values Desired Current Culture Culture Finance Finance Finance financial stability Fitness accountability Client Client customer customer Fitness Relations Relations satisfaction collaboration continuous continuous improvement Evolution improvement innovation teamwork humor/ fun employee balance fulfillmentEvolution Culture (home/work) Culture humor/ fun employee fulfillment shared vision shared vision trust Societal Societal Societal making a making a Contribution Contribution Contribution difference differenceBusiness Needs Copyright 2011 Barrett Values Centre December 2011

Barrett Values Centre: Group (18) Values Jumps A value jump occurs when there are more votes for a value in the Desired Culture than in the Current Culture. Listed below are the values with the largest increase in votes. The values in bold are represented in the Desired Culture. Current Desired Value Culture Culture Jump Votes Votes teamwork 4 10 6 customer collaboration 5 10 5 accountability 2 7 5 innovation 2 7 5 strategic alliances 0 5 5 adaptability 1 5 4 trust 4 7 3 coaching/ mentoring 1 4 3 leadership development 0 3 3 professional growth 1 3 2 employee recognition 0 2 2 passion 0 2 2Values Jumps Table Copyright 2011 Barrett Values Centre December 2011

Impact of Cultural EntropyCultural entropyrepresents the degree of dysfunction in a culture Entropy Impact 0 -10% Healthy: This is a low and healthy level of cultural entropy. 11-20% Minor Issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment. 21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching. 31-40% Serious Issues: This level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching. 41%+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching. 29

Average Entropy in Organisations (2007-2011)Total CVAs: 1,011Industries: 40Countries: 36 30

Values Alignment vs. Entropy Band 5Number ofmatching 4top tenCurrent 3andDesired 2Culture 1Values 0 0-10% 11-20% 21-30% 31-40% >40% Entropy 31

Low Highentropy entropy 32

CustomerValues Assessments 33

Barrett Values Centre: Customer Feedback(100) Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC) 7 6 5 4 3 2 1 IRS (P)=6-3-1 IRS (L)=0-0-0 IROS (P)=1-0-7-2 IROS (L)=0-0-0-0 IROS (P)=1-2-7-1 IROS (L)=0-0-0-0 making a difference 63 6(S) making a difference 54 6(S) customer collaboration 54 6(O) Matches coaching/ mentoring 39 6(R) continuous improvement 50 4(O) strategic alliances 43 6(O) PV - CC 1 continuous learning 37 4(I) customer collaboration 44 6(O) innovation 42 4(I) CC - DC 5 PV - DC 3 well-being (physical/ commitment 34 5(I) making a difference 41 6(S) emotional/ mental/ 37 6(I) information sharing 34 4(O) continuous improvement 39 4(O) spiritual)Health Index future generations 30 7(S) partnerships 35 6(O) humour/ fun 36 5(I) (PL) professionalism 27 3(O) information sharing 33 4(O) integrity 33 5(I) PV-10-0 CC-10-0 customer satisfaction 24 2(O) shared vision 31 5(O) family 32 2(R) DC - 11-0 shared values 24 5(O) coaching/ mentoring 27 6(R) vision 28 7(I) shared vision 24 5(O) continuous learning 25 4(O) accountability 26 4(R) creativity 26 5(I) transparency 25 5(R)Black Underline = PV & CC Orange = CC & DC P = Positive I = Individual O = OrganisationalOrange = PV, CC & DC Blue = PV & DC L = Potentially Limiting (white circle) R = Relationship S = Societal Values Plot Copyright 2012 Barrett Values Centre May 1, 2012

Barrett Values Centre: Customer Feedback (100) VALUES JUMPS A value jump occurs when there are more votes for a value in the Desired Culture than in the Current Culture. Listed below are the values with the largest increase in votes. The values in bold are represented in the Desired Culture. VALUE Current Culture Votes Desired Culture Votes Jump innovation 15 42 27 strategic alliances 17 43 26 excellence 4 22 18 partnerships 22 35 13 coaching/ mentoring 15 27 12 transparency 14 25 11 creativity 3 14 11 customer collaboration 44 54 10 entrepreneurial 9 19 10 wisdom 7 17 10Values Jumps Table Copyright 2012 Barrett Values Centre May 1, 2012

LeadershipValues Assessments 36

Leadership Values AssessmentThe Leadership Values Assessment isa feedback instrument that comparesa leader’s perception of the values heor she believes best describe his orher management/operational stylewith their colleagues’ perception oftheir management/operational style.The instrument also comparesleader’s perception of their ownstrengths, and the behaviours thatthey believe they need to improve orstop, with the assessors’ perceptionsand measures personal entropy. 37

Cultural Evolution Begins with Personal Evolution Culture Values Leader’s Values CVA Current Culture LV A Feedback 14 AssessorsThe culture ofan organisationis a reflectionof the leadershipconsciousness. PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0 Cultural Entropy 38% Personal Entropy 64% 1. short-term focus (L) 13 Level 1 power (L) 11 Level 3 2. blame (L) 11 Level 2 blame (L) 10 Level 2 demanding (L) 10 Level 2 3. manipulation (L) 10 Level 2 manipulative (L) 10 Level 2 4. caution (L) 7 Level 1 experience 9 Level 3 5. cynicism (L) 7 Level 3 controlling (L) 8 Level 1 6. bureaucracy (L) 6 Level 3 arrogant (L) 7 Level 3 7. control (L) 6 Level 1 authoritarian (L) 6 Level 1 8. cost reduction 5 Level 1 exploitative (L) 6 Level 1 9. empire building (L) 5 Level 2 ruthless (L) 6 Level 1 10. image (L) 5 Level 3 11. long hours (L) 5 Level 3 38

Cultural Evolution Begins with Personal Evolution Culture Values Leader’s Values CVA Current Culture LV A Feedback 27 AssessorsThe culture ofan organisationis a reflectionof the leadershipconsciousness. PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 Cultural Entropy 7% Personal Entropy 9% 1. customer satisfaction 16 Level 2 continuous learning 11 Level 4 2. commitment 11 Level 5 generosity 11 Level 5 3. continuous learning 11 Level 4 commitment 10 Level 5 4. making a difference 11 Level 6 positive attitude 10 Level 5 5. global perspective 9 Level 3 vision 10 Level 7 6. mentoring 9 Level 6 ambitious 9 Level 3 7. enthusiasm 8 Level 5 making a difference 8 Level 6 8. leadership development 8 Level 6 results orientation 8 Level 3 9. integrity 7 Level 5 honesty 7 Level 5 10. open communication 7 Level 2 integrity 7 Level 5 11. optimism 7 Level 5 intuition 7 Level 6 12. shared values 7 Level 5 leadership developer 7 Level 6 39

Personal Alignment of the LeadersWhen leaders change their beliefs andvalues (1), their behaviours change (2).This influences the culture of the group 1 2(3), which in turn changes thebehaviours of the group (4). Organisational transformation begins with the personal 3 4 transformation of the leaders. Organisations don’t transform. People do. Wilber’s Four Quadrants 40

Analysis of 100 Leaders from Australia, Belgium, Brazil, Canada, Czech Republic, France, Germany, India, TheNetherlands, Norway, Peru, Poland, South Africa, Sweden, Trinidad & Tobago, Turkey, UK, USA, and Venezuela. 41

Jeff Vader Jeffs Values Assessors Top 11 Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2Matching Level 1 Values PL = 10-0 | IRO (P) = 4-5-1 | IRO (L) = 0-0-0 PL = 11-0 | IRO (P) = 3-7-1 | IRO (L) = 0-0-0 How balance Level 6 Others Matches 5 balance (home/work) Level 4 (physical/emotional/m see Jeff balance Level 6 ental/spiritual) (physical/emotional/ compassion Level 7 mental/spiritual) empathy Level 6 empathy Level 6 employee development Level 4 fairness Level 5 forgiveness Level 7 internal community Level 5 builder humor/fun Level 5 nurturing Level 6 listener Level 2 personal relationships Level 2 mentoring Level 6How Jeff positive attitude Level 5 nurturing Level 6 sees trustworthy Level 5 personal relationships Level 2himself wisdom Level 7 positive attitude Level 5 Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008

Jeff Vader Jeffs Assessors Values Values 10% 18% 7 7 C 30% 36% 6 6 40% 18% 5 5 T 10% 9% 4 4 0% 0% 3 0% 3 0% S 2 0% 10% 2 0% 18% 0% 0% Level of 1 1 0% 0% Personal Entropy 0% 20% 40% 60% 0% 20% 40% 60% CTS = 80-10-10 CTS = 72-9-19 Entropy = 0% Entropy = 0% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesLeadership Distribution Copyright 2008 Barrett Values Centre August 2008

Jim Vader Jims Values Assessors Top 11 Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2Matching Values Level 1 PL = 10-0 | IRO (P) = 3-4-3 | IRO (L) = 0-0-0 PL = 11-0 | IRO (P) = 4-5-2 | IRO (L) = 0-0-0 How balance Level 6 balance Level 6 Others Matches 3 (physical/emotional/ (physical/emotional/m see Jim mental/spiritual) ental/spiritual) goals orientation Level 4 compassion Level 7 listener Level 2 employee fulfillment Level 6 mission focus Level 4 humor/fun Level 5 organisational growth Level 1 listener Level 2 perseverance Level 4 mentoring Level 6 respect Level 2 personal relationships Level 2 results orientation Level 3 positive attitude Level 5How Jim team player Level 4 strategic alliances Level 6 sees trustworthy Level 5 team player Level 4himself vision Level 7 Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008

Jim Vader Jims Assessors Values Values 0% 18% 7 7 C 10% 36% 6 6 10% 18% 5 5 T 40% 9% 4 4 10% 0% 3 0% 3 0% S 2 0% 20% 2 0% 18% 10% 0% Level of 1 1 0% 0% Personal Entropy 0% 20% 40% 60% 0% 20% 40% 60% CTS = 20-40-40 CTS = 72-9-19 Entropy = 0% Entropy = 0% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesLeadership Distribution Copyright 2008 Barrett Values Centre August 2008

Darth Vader Darths Values Assessors Top 11 Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2Matching Values 1 Level PL = 10-0 | IRO (P) = 7-0-3 | IRO (L) = 0-0-0 PL = 7-4 | IRO (P) = 6-0-1 | IRO (L) = 0-4-0 ambitious Level 3 achievement Level 3 Matches 2 courage Level 4 authoritarian (L) Level 1 creativity Level 5 being the best Level 3 How excellence Level 3 competitive (L) Level 2 Others integrity Level 5 demanding (L) Level 2 see long-term perspective Level 7 determination Level 4 Darth passion Level 5 excellence Level 3 results orientation Level 3 knowledge Level 4 strategic alliances Level 6 power (L) Level 3 How vision Level 7 results orientation Level 3 Darth risk-taking Level 4 seeshimself Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008

Darth Vader Darths Assessors Values Values 20% 0% 7 7 C 10% 0% 6 6 30% 0% 5 5 T 10% 27% 4 4 30% 36% 3 0% 3 9% S 2 0% 0% 2 0% 18% 0% 0% Level of 1 1 0% 9% Personal Entropy 0% 20% 40% 60% 0% 20% 40% 60% CTS = 60-10-30 CTS = 0-27-73 Entropy = 0% Entropy = 36% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesLeadership Distribution Copyright 2008 Barrett Values Centre August 2008

Impact of Personal EntropyPersonal entropyrepresents the degree of dysfunction of an individual Entropy Impact 0 -6% Healthy: Authentic individual. Decision-making not driven by fears. 7-10% Minor Issues: Requiring leaders to examine how their behaviours and actions are affecting people around them, their decision-making processes or their degree of work/life balance. 11-15% Significant Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals. 16-20% Serious Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals. 21%+ Critical Issues: Requiring leaders to examine how their behaviours might be compromising their personal integrity and their ability to inspire and lead the people around them. 48

Whole System Change 49

Whole System Transformation (Evolution) Interior Exterior Personality Character Individual Values and Actions and Beliefs of the Behaviours Leaders of the Leaders Culture Society Collective Values and Actions and Beliefs of the Behaviours of the Organization Organization Based on the Four Quadrants of Ken Wilber 50

Whole System Transformation (Evolution) When the The leaders leaders values behaviours change Interior Exterior change Individual 1 2 Collective 3 4Thevalues of the Behaviours of organization organization change change 51

Four Conditions for Whole System Change The Four Conditions for Whole System Change Interior Exterior Character: Personality: Actions and Values and Personal Alignment Behaviours Beliefs of anIndividual of an Individual Individual Mission Alignment Values Alignment Social Culture: Values and Structures: Actions and Beliefs BehavioursCollective of a Group of a Group Structural Alignment 52

Four Conditions for Whole System Change Measuring Entropy, Alignment and Resonance Whole System Transformation 1 Cultural Entropy Lack of personal alignment and structural alignment Personal Alignment creates personal entropy and cultural entropy Mission Alignment Values Alignment 2 Values Alignment creates internal cohesion Employee Engagement Structural Alignment 3 Mission Alignment and shared purpose creates resonanceEntropy is the degree of dysfunction in a system (lack of cohesion, order, andstructure). The amount of energy that is unavailable for useful work.High entropy leads to low employee engagement. Low entropy leads to highemployee engagement. 53

National and Regional ValuesAssessments 54

National/Regional Values AssessmentsAustralia France ArgentinaBelgium Latvia VenezuelaBhutan South Africa Not statistically validBrazil Spain (r) Sweden Requests fromCanada United Arab Emirates Trinidad Switzerland SingaporeDenmark New Zealand Israel United Kingdom (r) HungaryFinland Romania Slovakia USA NorwayIceland Puerto Rico Costa Rica ColumbiaMacedonia (r) As at Feb 2012 (r) = Region 55

Love, Fear and the Destiny of Nations Volume 1: Volume 2: The Impact of the Evolution of Building Successful NationsConsciousness on World Affairs and Communities May 2012 2013 56

Cultural Entropy in Nations0.7 63%0.6 56% 53% 54% 51%0.5 47% 48% 43% 44%0.4 34% 32%0.3 26% 21%0.20.1 6% 0 Cultural entropy is a measure of the dysfunction, anxiety and fear in a social system 57

Nedbank, South Africa:An Example of Cultural Evolution 58

Nedbank and CTT 59

Nedbank: Current Culture Evolution 2005 2006 2007 20081. cost-consciousness 1. cost-consciousness 1. client-driven 1. accountability2. profit 2. accountability 2. accountability 2. client-driven3. accountability 3. client-driven 3. client satisfaction 3. client satisfaction4. community involvement 4. client satisfaction 4. cost-consciousness 4. community involvement5. client-driven 5. results orientation 5. community involvement 5. achievement6. process-driven 6. performance driven 6. performance driven 6. cost-consciousness7. bureaucracy (L) 7. profit 7. profit 7. teamwork8. results orientation 8. bureaucracy (L) 8. achievement 8. performance driven9. client satisfaction 9. teamwork 9. being the best 9. being the best10. silo mentality (L) 10. community involvement 10. results orientation 10. delivery 3 matches 4 matches 4 matches 5 matches Entropy 25% Entropy 19% Entropy 17% Entropy 14% 60

Nedbank: Current Culture Evolution 2009 2010 2011 1. accountability 1. accountability 1. accountability 2. client-driven 2. client satisfaction 2. client-driven 3. client satisfaction 3. client-driven 3. client satisfaction 4. cost-consciousness 4. teamwork 4. brand reputation 5. community involvement 5. brand reputation 5. achievement 6. achievement 6. being the best 6. teamwork 7. teamwork 7. achievement 7. environmental awareness 8. employee recognition 8. commitment 8. commitment 9. being the best 9. community involvement 9. being the best 10. performance driven 10. cost-consciousness 10. cost-consciousness 6 matches 6 matches 6 matches Entropy 13% Entropy 13% Entropy 11% 61

Nedbank: Group (2011) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0 Matches 1. accountability 8576 4(R) 1. accountability 5464 4(R) 1. accountability 6987 4(R)PV - CC 2 2. honesty 6133 5(I) 2. client-driven 4571 6(O) 2. balance (home/work) 4183 4(O)CC - DC 6PV - DC 4 3. commitment 5221 5(I) 3. client satisfaction 3486 2(O) 3. client-driven 3864 6(O) 4. respect 4420 2(R) 4. brand reputation 2740 3(O) 4. client satisfaction 3742 2(O) HealthIndex (PL) 5. family 4057 2(R) 5. achievement 2491 3(I) 5. employee recognition 3297 2(R) 6. integrity 4023 5(I) 6. teamwork 2408 4(R) 6. honesty 3053 5(I) PV: 10-0 CC: 10-0 7. caring 3568 2(R) 7. environmental 2372 6(S) 7. commitment 2953 5(I) DC: 10-0 8. balance (home/work) 3526 4(I) awareness 8. achievement 2809 3(I) 9. responsibility 3279 4(I) 8. commitment 2263 5(I) 9. teamwork 2744 4(R) 10. efficiency 3085 3(I) 9. being the best 2218 3(O) 10. employee satisfaction 2687 2(O) 10. cost-consciousness 2187 3(O) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2011 Barrett Values Centre April 2011 62

Nedbank: Group (2011) Personal Current Culture Desired Culture Values Values Values 7% 6% 5% 7 7 7 4% 14% 12% C 6 6 6 26% 13% 21% 5 5 5 24% 20% 25% 4 4 4 T 16% 20% 16% 3 1% 3 5% 3 0% 16% 11% 15% 2 2 2 S 0% 3% 0% 5% 5% 5% 1 1% 1 3% 1 1% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 37-24-39 CTS = 33-20-47 CTS = 38-25-37 Entropy = 2% Entropy = 11% Entropy = 1% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesValues Distribution Copyright 2011 Barrett Values Centre April 201163

Nedbank: Cultural Evolution Entropy Scores Entropy reduction leads to improved performance—increased revenues, profits and share price. Working toward entropy of <10% will result in healthy functioning of the organisation and improvement of staff morale.25% 25%20% 19% 17%15% 14% 13% 13% 11% Entropy risk bands10% 0 -10% Healthy functioning 11-20% Some problems5% 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation0% 2005 2006 2007 2008 2009 2010 2011 64

number of participants Nedbank: Response Rate to Values Survey 24000 22102 Responses 20184 20000 18206 16000 14091 12000 10155 8000 6083 4000 1827 0 2005 2006 2007 2008 2009 2010 2011 28,898 employees in 2009 65

Nedbank: Staff Engagement Nedbank Staff Survey Scores100% 79% 80% 71.5% 75.1% 71% 66.3% 67% 59.6% 60% 40% 20% 0% 2005 2006 2007 2008 2009 2010 2011 66

Nedbank: Financialon Financial Performance Nedbank: Impact Impact of Cultural Evolution Closing share price (Rand) 160 140 120 134 136 130 124 100 80 100 96 60 78 40 20 0 2004 2005 2006 2007 2008 2009 2010 67

Nedbank: Financialon Financial Performance Nedbank: Impact Impact of Cultural Evolution Revenue Rm (operating income) 25000 23630 20000 22428 22077 21570 18948 15000 15809 14027 10000 5000 0 2004 2005 2006 2007 2008 2009 2010 68

Conscious capitalism may 2012

by Richard Barrett

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