Sustainability leadership, values and culturePresentation Transcript
Sustainability: Leadership, Values and Culture Richard BarrettMay 2011
The Global Sustainability Challenge?
Global Sustainability Issues Pollution Global Terrorism Global Economy Energy Resilience Pandemics Natural Disasters The significant problems we face cannot be solved at the same level of thinking that created them. Climate Change Species Extinction Food Resilience Water Shortages Waste Disposal Poverty Reduction
The Sustainability Challenge The problems of existence have become global but the decision-making structures we have for dealing with them are national. We cannot move forward without a high degree of global cooperation.
A NewLeadership Paradigm The paradigm that divides the world into the social sector, the private sector, and the governmental sector is not working. It creates artificial barriers. We are each a constituent of the problem, so we have to combine our forces, our efforts, and our competencies. Tex Gunning, Unilever, Best Foods Asia Private Sector Social Sector Public Sector
A NewLeadership Paradigm Average leaders take care of themselves and their families. Good leaders take care of themselves, their families, and some of the community. Great leaders—and great companies—not only take care of all stakeholders but also want to change the world. They want to leave the world better than they found it. Tex Gunning, Unilever, Best Foods Asia Private Sector Social Sector Public Sector
Sustainability and the New Leadership Paradigm Our Business Leaders 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.
What this means for Business and Politics Business leaders need to work with their competitors, political and societal leaders to define a framework of policies that support the evolution of our global society by developing industry charters that regulate the rules of competition between companies in a way that supports the societal common good. Political leaders must give up their parochial self-interest and exaggerated false belief in national sovereignty learn how to solve the problems of existence through international cooperation and collaboration. Building a sustainable future for everyone is not just societal imperative. It is business imperative, too.
A New Leadership Paradigm Ultimately, the problems of existence we face are issues of consciousness. We will only get beyond this stage of our collective evolution if we can put aside our narrow self-interest, focus on the whole system, and build a values-driven framework of policies that support the common good. Richard Barrett, The New Leadership Paradigm, 2011
A NewLeadership Paradigm WE NEED A NEW LEADERSHIP PARADIGM A shift in focus from “I” to “we” A shift from self-interest to the common good A shift from being the best in the world to the best for the world.
The Three Mantras of Culture Change
The Three Mantras of Culture Change Cultural Capital is the new frontier of competitive advantage. Organisational transformation begins with the personal transformation of the leaders. Measurement matters. If you can measure it you can manage it.
From Leader’s Values to Shareholder Value Corporate Sector Leader’s Values/ Behaviours Performance & Shareholder Value Corporate Culture Competitive Advantage & Resilience
From Leadership to Customer Satisfaction Public Sector Leader’s values/ behaviours Organisational Culture Customer Satisfaction Mission Assurance
The Good News
The Good News For the first time in human history we have the possibility of making the evolution of consciousness, conscious. Why now? Because we can measure it, both at a personal, organisational and national level. And if you can measure it, you can manage it. Richard Barrett, The New Leadership Paradigm, 2011
Models and Tools for Measuring Personal, Organisational and National Consciousness 1998 2011 1995 2006 Personal Growth and Transformation Organisational Growth and Transformation. Measuring Consciousness by Mapping Values Implementing Cultural Transformation. Eight Years Experience of Measuring Personal and Organisational Consciousness and Exploring Whole System Change A Text Book, Web Site, and Learning System for the 21st Century Leader
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 commitment. Know and Understand Deficiency Needs An individual gains no sense of lasting satisfaction from being able to meet these needs, but feels a sense of anxiety if these needs are not met. Abraham Maslow Self-esteem Love & Belonging Safety Physiological
Maslow’s Needs to Barrett’s Consciousness Self-Actualization Know and Understand Know and Understand Abraham Maslow Richard Barrett Self-esteem Love & Belonging Safety Physiological Needs Consciousness
Maslow’s Needs to Barrett’s Consciousness 1. Expansion of self-actualization into multiple levels. 2. Substitute ‘states of consciousness’for hierarchy of needs. 3. Each state of consciousness is defined by specific values and behaviours. Know and Understand Know and Understand Self-esteem Love & Belonging Safety Physiological Consciousness Needs
Stages in the Development of Personal Consciousness Positive Focus / Excessive Focus Service to Humanity and the Planet Devoting your life in self-less service to your purpose and vision Service Collaborating with Partners Working with others to make a positive difference by actively implementing your purpose and vision Making a difference Finding Personal Meaning Uncovering your sense of purpose and creating a vision for the future you want to create Internal Cohesion Personal Growth Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Transformation Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status Self-esteem Belonging Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Relationship Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed Survival
Stages in the Development of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Service Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Making a difference Building Corporate Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Internal Cohesion Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Transformation High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Self-esteem Belonging Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Relationship Financial Stability Shareholder value, organisational growth, employee health, safety. Control, corruption, greed Survival
Stages in the Development of National Consciousness Positive Focus / Excessive Focus Global Sustainability Human Rights, Future Generations, Ecological Resilience. Service Strategic Alliances with Other Nations Regional Collaboration, Environmental Awareness, Quality Of Life. Making a difference Strong Cohesive National Identity Trust, Openness, Transparency, Shared Vision and Values, Fairness. Internal Cohesion Democratic Processes Equality, Freedom of Speech, Consensus, Adaptability, Accountability. Transformation Institutional Effectiveness Rule of Law, National Pride, Governmental Efficiency. Bureaucracy, Elitism, Power Self-esteem Social Stability Conflict Resolution, Racial Harmony, Rituals. Discrimination, Intolerance Relationship Economic Stability Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence Survival
Placement of Values by Level Current Culture 100 Employees Top Ten Values 1. tradition (L) (59) 2. diversity (54) 3. control (L) (53) 4. goals orientation (46) 5. knowledge (43) 6. creativity (42) 7. productivity (37) 8. image (L) (36) 9. profit (36) 10. open communication (31) Service Making a difference 6 Internal Cohesion Transformation 4 2 5 Self-esteem 7 8 10 1 10 Relationship 9 3 Survival
Distribution of Values by Level Current Culture 100 Employees 7 Service 6 Making a difference 5 Internal Cohesion 4 Transformation Cultural Entropy Self-esteem 3 11% 2 Relationship 1 Survival
Individual Values Assessments (IVA)
What are Values? Values- A shorthand method of describing our individual and collective motivations and what is important to us. Values can be positive or potentially limiting. Positive Values: trust, creativity, passion, honesty, integrity, clarity Potentially Limiting Values: power, blame, greed, status, being liked
Personal Values Pick ten values/behaviours that most reflect who you are, not who you desired to become.
Current Culture Values Pick ten values/behaviours that most reflect how your organisation currently operates.
Desired Culture Values Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.
What Henry believes is necessary for the company to achieve its full potential Henry Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 The values that are important to Henry in his personal life. IRS (P)= 5-5-0 | IRS (L)= 0-0-0 IROS (P)= 0-0-5-0 | IROS (L)= 1-3-1-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 Matches PV - CC 0 CC - DC 1 PV - DC 1 Health Index (PL) PV: 10-0 CC: 5-5 DC: 10-0 Black Underline= PV & CCOrange= CC & DCP = PositiveL = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC(white circle) R = Relationship S = Societal How Henry experiences the company - What is working well? What is undermining the sustainability of the company. Values Plot Copyright 2009 Barrett Values Centre May 2009
Henry Top current culture values Top desired culture values Current Culture Values Desired Culture Values Finance Finance Client Relations Fitness Evolution Culture Societal Contribution Societal Contribution Top current culture values assigned to Business Needs Scorecard Top desired culture values assigned to Business Needs Scorecard Business Needs Copyright 2009 Barrett Values Centre May 2009
Organisational (Cultural) Values Assessments
What is Culture? “The way things are done around here” The culture of an organisation or any group of individuals is a reflection of the values, beliefs and behaviours of leaders of the group and the legacy of past leaders.
What employees believe is necessary for the company to achieve its full potential 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 The values that are important to employees in their personal lives. 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 PV - CC 1 CC - DC 4 PV - DC 2 Health Index (PL) PV: 10-0 CC: 7-3 DC: 10-0 Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal How employees experience the company - What is working well? What is undermining the sustainability of the company. Values Plot Copyright 2011 Barrett Values Centre February 2011
Personal Values Current Culture Values Desired Culture Values Engineering and Projects Company (339) C Common Good Transformation T Self Interest S Total number of votes for all values at each level CTS = 38-21-41 Entropy = 3% CTS = 25-20-55 Entropy = 23% CTS = 37-27-36 Entropy = 2% C = Common Good T = Transformation S = Self-Interest Cultural Entropy % of Votes for Limiting Values Positive Values Potentially Limiting Values Values Distribution Copyright 2011 Barrett Values Centre February 2011
Definition of Cultural Entropy Cultural Entropy Cultural entropy is the amount of energy consumed in unproductive work. It is a measure of the conflict, friction, and frustration that exists within an organisation or social system.
Cultural Entropy in Organisations Cultural Entropy
Value Jumps Value Jumps Votes for Values in Current Culture Votes for Values in Desired Culture 39
Espoused Values Analysis Espoused Values Analysis Votes for Values in Current Culture Votes for Values in Desired Culture 40
Nedbank, South Africa: An Example of Cultural Evolution
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. Entropy risk bands <10% Healthy functioning 10-19% Some problems requiring careful monitoring 20-29% Significant problems requiring attention 30-39% Crisis situation requiring immediate change 40%> Impending risk of implosion, bankruptcy or failure
Cultural entropy represents the degree of dysfunction in a culture Cultural Entropy
Nedbank: Response Rate to Values Survey 63.0% Response rate 50.4% 35.5% number of participants 28.0% 20.2% 28,898 employees in 2009
Nedbank: Cultural Evolution Nedbank Staff Survey Scores
Nedbank: Financial Impact of Cultural Evolution Share Price grewon average 20.4% (CAGR) per year from 2004 to 2007 Revenue grew on average 16.9% (CAGR) per year from 2004 to 2007 CAGR : Compound Annual Growth Rate
Values in Organisations Tom Boardman Former CEO of Nedbank, South Africa
National and Regional Values Assessments
National/Regional Values Assessments Denmark Latvia Sweden Canada Iceland Bhutan USA Belgium Australia UK North West) Brazil Finland Venezuela Argentina Macedonia (Skopje) Spain (Extremadura)
Entropy Percentages by Nation (2007 – 2010) Cultural entropy is a measure of the dysfunction in a social system
National Assessment Sweden: Group (1030) The values that citizens want to see more of in the country. Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 The values that are important to people in their personal lives. IROS (P)= 1-0-1-2 | IROS (L)= 2-1-3-0 IROS (P)= 1-1-2-6 | IROS (L)= 0-0-0-0 IRS (P)= 5-5-0 | IRS (L)= 0-0-0 Matches PV - CC 0 CC - DC 2 PV - DC 0 Health Index (PL) PV: 10-0 CC: 4-6 DC: 10-0 Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal How citizens experience the values in Sweden. Values Plot Copyright 2011 Barrett Values Centre March 2011
Personal Values Current Culture Values Desired Culture Values National Assessment Sweden: Group (1030) C T S CTS = 42-21-37 Entropy = 5% CTS = 25-16-59 Entropy = 42% CTS = 41-24-35 Entropy = 2% C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values Values Distribution Copyright 2011 Barrett Values Centre March 2011
Cultural Entropy Impacts in Nations Cultural Entropy in Nations
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