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Sustainability leadership, values and culture
 

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    Sustainability leadership, values and culture Sustainability leadership, values and culture Presentation 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: Current Culture Evolution
      2005
      2006
      2007
      2008
      2009
      1. accountability
      2. client-driven
      3. client satisfaction
      4. cost-consciousness
      5. community involvement
      6. achievement
      7. teamwork
      8. employee recognition
      9. being the best
      10. performance driven
      1. client-driven
      2. accountability
      3. client satisfaction
      4. cost-consciousness
      5. community involvement
      6. performance driven
      7. profit
      8. achievement
      9. being the best
      10. results orientation
      1. accountability
      2. client-driven
      3. client satisfaction
      4. community involvement
      5. achievement
      6. cost-consciousness
      7. teamwork
      8. performance driven
      9. being the best
      10. delivery
      1. cost-consciousness
      2. profit
      3. accountability
      4. community involvement
      5. client-driven
      6. process-driven
      7. bureaucracy (L)
      8. results orientation
      9. client satisfaction
      10. silo mentality (L)
      1. cost-consciousness
      2. accountability
      3. client-driven
      4. client satisfaction
      5. results orientation
      6. performance driven
      7. profit
      8. bureaucracy (L)
      9. teamwork
      10. community involvement
      4 matches
      6 matches
      4 matches
      5 matches
      3 matches
      Entropy 14%
      Entropy 25%
      Entropy 13%
      Entropy 19%
      Entropy 17%
    • 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
    • To get a copy of this presentation: http://www.slideshare.net/BarrettValues
      Other relevant Web sites:
      • www.richardbarrett.net
      • www.newleadershiparadigm.com
      • www.valuesjournal.com
      • www.valuescentre.com