Sustainability leadership, values and culture

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Sustainability leadership, values and culture

  1. 1. Sustainability: Leadership, Values and Culture Richard BarrettMay 2011<br />
  2. 2. The Global Sustainability Challenge? <br />
  3. 3. Global Sustainability Issues<br />Pollution<br />Global<br />Terrorism<br />Global <br />Economy<br />Energy <br />Resilience<br />Pandemics<br />Natural <br />Disasters<br />The significant problems we face cannot be solved at the same level of thinking that created them.<br /> Climate <br />Change<br />Species <br />Extinction<br />Food <br />Resilience<br /> Water<br />Shortages<br />Waste <br />Disposal<br />Poverty <br />Reduction<br />
  4. 4. The Sustainability Challenge<br />The problems of existence have become global but the decision-making structures we have for dealing with them <br />are national.<br />We cannot move forward without a <br />high degree of global cooperation.<br />
  5. 5. A NewLeadership Paradigm <br />The paradigm that divides the world into the social sector, the private sector, and the governmental sector <br />is not working. <br />It creates artificial barriers. <br />We are each a constituent of the problem, so we have to combine our forces, our efforts, and our competencies. <br />Tex Gunning, Unilever, Best Foods Asia<br />Private Sector<br />Social Sector<br />Public Sector<br />
  6. 6. A NewLeadership Paradigm <br />Average leaders take care of themselves and their families. <br />Good leaders take care of themselves, their families, and some of the community. <br />Great leaders—and great companies—not only take care of all stakeholders but also want to change the world. <br />They want to leave the world better than they found it.<br />Tex Gunning, Unilever, Best Foods Asia<br />Private Sector<br />Social Sector<br />Public Sector<br />
  7. 7. Sustainability and the New Leadership Paradigm<br />Our Business Leaders need to recognise that:<br />Business is a wholly owned subsidiary of society, and society <br />is wholly owned subsidiary of the environment. <br />If we lose our environment and our life-support systems, <br />our society will perish. <br />If we lose our society, we will lose our economy and <br />our businesses will perish too.<br />
  8. 8. What this means for Business and Politics<br />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 <br />the societal common good.<br />Political leaders must give up their parochial self-interest and<br />exaggerated false belief in national sovereignty learn how to solve the problems of existence through international cooperation and collaboration.<br />Building a sustainable future for everyone is not just societal imperative. It is business imperative, too.<br />
  9. 9. A New Leadership Paradigm<br />Ultimately, the problems of existence we face are issues of consciousness.<br />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.<br />Richard Barrett, The New Leadership Paradigm, 2011<br />
  10. 10. A NewLeadership Paradigm <br />WE NEED A NEW LEADERSHIP PARADIGM<br />A shift in focus from “I” to “we”<br />A shift from self-interest to the common good<br />A shift from being the best in the world to the best for the world. <br />
  11. 11. The Three Mantras of Culture Change<br />
  12. 12. The Three Mantras of Culture Change<br />Cultural Capital is the new frontier of competitive advantage.<br />Organisational transformation begins with the personal transformation of the leaders.<br />Measurement matters. If you can measure it you can manage it.<br />
  13. 13. From Leader’s Values to Shareholder Value<br />Corporate Sector<br />Leader’s Values/ Behaviours <br />Performance & Shareholder <br />Value<br />Corporate <br />Culture<br />Competitive<br />Advantage &<br />Resilience <br />
  14. 14. From Leadership to Customer Satisfaction<br />Public Sector<br />Leader’s values/ behaviours <br />Organisational<br />Culture<br />Customer<br />Satisfaction<br />Mission <br />Assurance<br />
  15. 15. The Good News<br />
  16. 16. The Good News<br />For the first time in human history we have the possibility of making the evolution of consciousness, conscious. <br />Why now? Because we can measure it, both at a personal, organisational and national level.<br />And if you can measure it, <br />you can manage it.<br />Richard Barrett, The New Leadership Paradigm, 2011<br />
  17. 17. Models and Tools for Measuring Personal, Organisational and National Consciousness <br />1998<br />2011<br />1995<br />2006<br />Personal Growth and Transformation<br />Organisational Growth and Transformation.<br />Measuring Consciousness by Mapping Values<br />Implementing Cultural Transformation.<br />Eight Years Experience of Measuring Personal and Organisational Consciousness and Exploring Whole System Change<br />A Text Book, <br />Web Site, and <br />Learning System <br />for the 21st<br />Century Leader<br />
  18. 18. Origins of the Cultural Transformation Tools<br />Self Actualization<br />Growth Needs<br />When these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.<br />Know and Understand<br />Deficiency Needs<br />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. <br />Abraham Maslow<br />Self-esteem<br />Love & Belonging<br />Safety <br />Physiological <br />
  19. 19. Maslow’s Needs to Barrett’s Consciousness<br />Self-Actualization <br />Know and Understand<br />Know and Understand<br />Abraham Maslow <br />Richard Barrett<br />Self-esteem<br />Love & Belonging<br />Safety <br />Physiological <br />Needs<br />Consciousness<br />
  20. 20. Maslow’s Needs to Barrett’s Consciousness<br /> 1. Expansion of self-actualization into multiple levels.<br /> 2. Substitute ‘states of consciousness’for hierarchy of needs.<br />3. Each state of consciousness is defined by specific values and behaviours.<br />Know and Understand<br />Know and Understand<br />Self-esteem<br />Love & Belonging<br />Safety <br />Physiological <br />Consciousness<br />Needs<br />
  21. 21. Stages in the Development of Personal Consciousness<br />Positive Focus / Excessive Focus <br />Service to Humanity and the Planet<br />Devoting your life in self-less service to your purpose and vision<br />Service<br />Collaborating with Partners<br />Working with others to make a positive difference by actively implementing your purpose and vision<br />Making a difference<br />Finding Personal Meaning<br />Uncovering your sense of purpose and creating a vision for the future you want to create<br />Internal Cohesion<br />Personal Growth<br />Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears<br />Transformation<br />Self-worth <br />Feeling a positive sense of pride in self and ability to manage your life. Power, status<br />Self-esteem<br />Belonging<br />Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame<br />Relationship<br />Financial Security & Safety<br />Creating a safe secure environment for self and significant others. Control, greed <br />Survival<br />
  22. 22. Stages in the Development of Organisational Consciousness<br />Positive Focus / Excessive Focus <br />Service To Humanity And The Planet<br />Social responsibility, future generations, long-term perspective, ethics, compassion, humility<br />Service<br />Strategic Alliances and Partnerships<br />Environmental awareness, community involvement, employee fulfillment, coaching/mentoring<br />Making a difference<br />Building Corporate Community<br />Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency <br />Internal Cohesion<br />Continuous Renewal and Learning<br />Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth<br />Transformation<br />High Performance<br />Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency<br />Self-esteem<br />Belonging<br />Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame<br />Relationship<br />Financial Stability<br />Shareholder value, organisational growth, <br />employee health, safety. Control, corruption, greed<br />Survival<br />
  23. 23. Stages in the Development of National Consciousness<br />Positive Focus / Excessive Focus <br />Global Sustainability<br />Human Rights, Future Generations, Ecological Resilience.<br />Service<br />Strategic Alliances with Other Nations<br />Regional Collaboration, Environmental Awareness, Quality Of Life.<br />Making a difference<br />Strong Cohesive National Identity<br />Trust, Openness, Transparency, Shared Vision and Values, Fairness.<br />Internal Cohesion<br />Democratic Processes<br />Equality, Freedom of Speech, Consensus, Adaptability, Accountability.<br />Transformation<br />Institutional Effectiveness<br />Rule of Law, National Pride, Governmental Efficiency. Bureaucracy, Elitism, Power <br />Self-esteem<br />Social Stability<br />Conflict Resolution, Racial Harmony, Rituals. Discrimination, Intolerance<br />Relationship<br />Economic Stability <br />Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence <br />Survival<br />
  24. 24. Placement of Values by Level<br />Current Culture 100 Employees<br />Top Ten Values<br />1. tradition (L) (59)<br />2. diversity (54)<br />3. control (L) (53)<br />4. goals orientation (46)<br />5. knowledge (43)<br />6. creativity (42)<br />7. productivity (37)<br />8. image (L) (36) <br />9. profit (36)<br />10. open communication (31)<br />Service<br />Making a difference<br />6<br />Internal Cohesion<br />Transformation<br />4<br />2<br />5<br />Self-esteem<br />7<br />8<br />10<br />1<br />10<br />Relationship<br />9<br />3<br />Survival<br />
  25. 25. Distribution of Values by Level<br />Current Culture 100 Employees<br />7<br />Service<br />6<br />Making a difference<br />5<br />Internal Cohesion<br />4<br />Transformation<br />Cultural Entropy<br />Self-esteem<br />3<br />11%<br />2<br />Relationship<br />1<br />Survival<br />
  26. 26. Individual Values Assessments (IVA)<br />
  27. 27. What are Values?<br />Values- A shorthand method of describing our individual and collective motivations and what is important to us.<br />Values can be positive or potentially limiting.<br />Positive Values: trust, creativity, passion, honesty, integrity, clarity<br />Potentially Limiting Values: power, blame, greed, status, being liked<br />
  28. 28. Personal Values<br />Pick ten values/behaviours that most reflect who you are, not who you desired to become. <br />
  29. 29. Current Culture Values<br />Pick ten values/behaviours that most reflect how your organisation currently operates. <br />
  30. 30. Desired Culture Values<br />Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance. <br />
  31. 31. What Henry believes is necessary for the company to achieve its full potential<br />Henry<br />Personal Values<br />Current Culture Values<br />Desired Culture Values<br />Level 7<br />Level 6<br />Level 5<br />Level 4<br />Level 3<br />Level 2<br />Level 1<br />The values that are important to Henry in his personal life.<br />IRS (P)= 5-5-0 | IRS (L)= 0-0-0<br />IROS (P)= 0-0-5-0 | IROS (L)= 1-3-1-0<br />IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0<br />Matches<br />PV - CC 0<br />CC - DC 1<br />PV - DC 1<br />Health Index (PL)<br />PV: 10-0<br />CC: 5-5<br />DC: 10-0<br />Black Underline= PV & CCOrange= CC & DCP = PositiveL = Potentially Limiting I = Individual O = Organizational<br />Orange= PV, CC & DCBlue= PV & DC(white circle) R = Relationship S = Societal<br />How Henry experiences the company - What is working well? What is undermining the sustainability of the company.<br />Values Plot<br />Copyright 2009 Barrett Values Centre<br />May 2009<br />
  32. 32. Henry<br />Top current culture values<br />Top desired culture values<br />Current Culture Values<br />Desired Culture Values<br />Finance<br />Finance<br />Client Relations<br />Fitness<br />Evolution<br />Culture<br />Societal Contribution<br />Societal Contribution<br />Top current culture values assigned to Business Needs Scorecard<br />Top desired culture values assigned to Business Needs Scorecard<br />Business Needs<br />Copyright 2009 Barrett Values Centre<br />May 2009<br />
  33. 33. Organisational (Cultural) Values Assessments<br />
  34. 34. What is Culture?<br />“The way things are done around here”<br />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.<br />
  35. 35. What employees believe is necessary for the company to achieve its full potential<br />Engineering and Projects Company (339)<br />Personal Values<br />Current Culture Values<br />Desired Culture Values<br />Level 7<br />Level 6<br />Level 5<br />Level 4<br />Level 3<br />Level 2<br />Level 1<br />The values that are important to employees in their personal lives.<br />IRS (P)= 6-4-0 | IRS (L)= 0-0-0<br />IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0<br />IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0<br />Matches<br />PV - CC 1<br />CC - DC 4<br />PV - DC 2<br />Health Index (PL)<br />PV: 10-0<br />CC: 7-3<br />DC: 10-0<br />Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational<br />Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal<br />How employees experience the company - What is working well? What is undermining the sustainability of the company.<br />Values Plot<br />Copyright 2011 Barrett Values Centre<br />February 2011<br />
  36. 36. Personal Values<br />Current Culture Values<br />Desired Culture Values<br />Engineering and Projects Company (339)<br />C<br />Common Good <br />Transformation<br />T<br />Self Interest <br />S<br />Total number of votes for all values at each level<br />CTS = 38-21-41<br />Entropy = 3%<br />CTS = 25-20-55<br />Entropy = 23%<br />CTS = 37-27-36<br />Entropy = 2%<br />C = Common Good<br />T = Transformation<br />S = Self-Interest<br />Cultural Entropy % of Votes for Limiting Values<br />Positive Values<br />Potentially Limiting Values<br />Values Distribution<br />Copyright 2011 Barrett Values Centre<br />February 2011<br />
  37. 37. Definition of Cultural Entropy<br />Cultural Entropy<br />Cultural entropy is the amount of energy consumed in unproductive work. <br />It is a measure of the conflict, friction, and frustration that exists within an organisation or social system.<br />
  38. 38. Cultural Entropy in Organisations<br />Cultural Entropy<br />
  39. 39. Value Jumps<br />Value Jumps<br />Votes for Values in Current Culture<br />Votes for Values in Desired Culture<br />39<br />
  40. 40. Espoused Values Analysis<br />Espoused Values Analysis<br />Votes for Values in Current Culture<br />Votes for Values in Desired Culture<br />40<br />
  41. 41. Nedbank, South Africa: An Example of Cultural Evolution<br />
  42. 42.
  43. 43. Nedbank: Current Culture Evolution<br />2005<br />2006<br />2007<br />2008<br />2009<br />1. accountability<br />2. client-driven<br />3. client satisfaction <br />4. cost-consciousness<br />5. community involvement <br />6. achievement<br />7. teamwork<br />8. employee recognition <br />9. being the best<br />10. performance driven <br />1. client-driven<br />2. accountability<br />3. client satisfaction <br />4. cost-consciousness<br />5. community involvement<br />6. performance driven <br />7. profit<br />8. achievement<br />9. being the best <br />10. results orientation <br />1. accountability<br />2. client-driven<br />3. client satisfaction <br />4. community involvement <br />5. achievement<br />6. cost-consciousness<br />7. teamwork<br />8. performance driven<br />9. being the best <br />10. delivery<br />1. cost-consciousness<br />2. profit <br />3. accountability<br />4. community involvement <br />5. client-driven<br />6. process-driven<br />7. bureaucracy (L)<br />8. results orientation <br />9. client satisfaction<br />10. silo mentality (L)<br />1. cost-consciousness<br />2. accountability<br />3. client-driven<br />4. client satisfaction <br />5. results orientation <br />6. performance driven<br />7. profit<br />8. bureaucracy (L)<br />9. teamwork<br />10. community involvement <br />4 matches<br />6 matches<br />4 matches<br />5 matches<br />3 matches<br />Entropy 14%<br />Entropy 25%<br />Entropy 13%<br />Entropy 19%<br />Entropy 17%<br />
  44. 44. Nedbank: Cultural Evolution<br />Entropy Scores<br />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.<br />Entropy risk bands<br /><10% Healthy functioning<br />10-19% Some problems requiring careful monitoring<br />20-29% Significant problems requiring attention<br />30-39% Crisis situation requiring immediate change<br />40%> Impending risk of implosion, bankruptcy or failure<br />
  45. 45. Cultural entropy represents the degree of dysfunction in a culture<br />Cultural Entropy<br />
  46. 46. Nedbank: Response Rate to Values Survey<br />63.0% <br />Response rate <br />50.4% <br />35.5% <br />number of participants<br />28.0% <br />20.2% <br />28,898 employees in 2009<br />
  47. 47. Nedbank: Cultural Evolution<br />Nedbank Staff Survey Scores<br />
  48. 48. Nedbank: Financial Impact of Cultural Evolution<br />Share Price grewon average 20.4% (CAGR) <br />per year from 2004 to 2007<br />Revenue grew on average 16.9% (CAGR) <br />per year from 2004 to 2007<br />CAGR : Compound Annual Growth Rate<br />
  49. 49. Values in Organisations<br />Tom Boardman Former CEO of Nedbank, South Africa<br />
  50. 50. National and Regional Values Assessments<br />
  51. 51. National/Regional Values Assessments <br />Denmark<br />Latvia<br />Sweden<br />Canada<br />Iceland<br />Bhutan<br />USA<br />Belgium<br />Australia<br />UK North West)<br />Brazil<br />Finland<br />Venezuela<br />Argentina <br />Macedonia (Skopje) <br />Spain (Extremadura)<br />
  52. 52. Entropy Percentages by Nation (2007 – 2010)<br />Cultural entropy is a measure of the dysfunction in a social system<br />
  53. 53. National Assessment Sweden: Group (1030)<br />The values that citizens want to see more of in the country. <br />Personal Values<br />Current Culture Values<br />Desired Culture Values<br />Level 7<br />Level 6<br />Level 5<br />Level 4<br />Level 3<br />Level 2<br />Level 1<br />The values that are important to people in their personal lives.<br />IROS (P)= 1-0-1-2 | IROS (L)= 2-1-3-0<br />IROS (P)= 1-1-2-6 | IROS (L)= 0-0-0-0<br />IRS (P)= 5-5-0 | IRS (L)= 0-0-0<br />Matches<br />PV - CC 0<br />CC - DC 2<br />PV - DC 0<br />Health Index (PL)<br />PV: 10-0<br />CC: 4-6<br />DC: 10-0<br />Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational<br />Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal<br />How citizens experience the values in Sweden.<br />Values Plot<br />Copyright 2011 Barrett Values Centre<br />March 2011<br />
  54. 54. Personal Values<br />Current Culture Values<br />Desired Culture Values<br />National Assessment Sweden: Group (1030)<br />C<br />T<br />S<br />CTS = 42-21-37<br />Entropy = 5%<br />CTS = 25-16-59<br />Entropy = 42%<br />CTS = 41-24-35<br />Entropy = 2%<br />C = Common Good<br />T = Transformation<br />S = Self-Interest<br />Positive Values<br />Potentially Limiting Values<br />Values Distribution<br />Copyright 2011 Barrett Values Centre<br />March 2011<br />
  55. 55. Cultural Entropy Impacts in Nations <br />Cultural Entropy in Nations<br />
  56. 56. To get a copy of this presentation: http://www.slideshare.net/BarrettValues<br />Other relevant Web sites:<br /><ul><li>www.richardbarrett.net
  57. 57. www.newleadershiparadigm.com
  58. 58. www.valuesjournal.com
  59. 59. www.valuescentre.com</li>

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