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