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Sustainability what has to change

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  • 1. Sustainability: What has to change in our leadership and management models?Richard BarrettMay 2011
  • 2. The Global Sustainability Challenge?
  • 3. 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.
    Richard Barrett: The New Leadership Paradigm, 2011
  • 4. 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
  • 5. Two Types of Problem*
    Type 1: Convergent Problems…
    …are about finding technical solutions by manipulating the material universe. After a while, and a few trials and errors, solutions tend to converge.
    We can find technical solutions to global warming and sustainability, it is just a matter of time, resources and intelligence.
    *E. F. Schumacher: A Guide for the Perplexed
  • 6. Two Types of Problem*
    Type 2: Divergent Problems…
    …are about finding agreements on divergent points of view that occur in the world of ideas, beliefs, world views and philosophies.
    Divergent problems can only be solved by transcending the level of consciousness on which the opposites meet by moving to a higher level of meaning (consciousness).
    *E. F. Schumacher: A Guide for the Perplexed
  • 7. 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
  • 8. 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
  • 9. Firms of Endearment*
    Investor returns over 3, 5 and 10 years comparing S&P 500, Good to Great and Firms of Endearment.
    “... the distinguishing feature of “firms of endearment” is that they treat all stakeholders—employees, customers, investors, partners, and society—equally. In addition, they fully recognize that they are a part of an economic ecosystem with many interdependent participants. They are committed to exemplary citizenship, and they embrace the concept of servant leadership.
    * Rajendra S. Sisodia, David B. Wolfe, and Jagdish N. Seth, Firms of Endearment: The Pursuit of Purpose and Profit (Upper Saddle River, N.J.: Wharton School of Publishing, 2007).
  • 10. Firms of Endearment
    “FoEs share five primary elements in their corporate visions.
    • A broader purpose than wealth generation
    • 11. Dedication to servant leadership
    • 12. Emotionally intelligent leadership
    • 13. Commitment to exemplary citizenship
    • 14. Recognition that they are part of an economic ecosystem
    with many interdependent participants”
    Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, David Wolfe, 2006
  • 15. 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.
  • 16. 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.
  • 17. A Crisis in Leadership
  • 18. A Crisis in Leadership
    John Kotter, Harvard Business School
    After conducting fourteen formal studies and more than a thousand interviews, directly observing dozens of executives in action, and compiling innumerable surveys, I am completely convinced that most organisations today lack the leadership they need.
    John P. Kotter and James L. Heskett, Corporate Culture and Performance (New York: The Free Press, 1992).
  • 19. A Crisis in Leadership
    ShoshanaZuboff, Harvard Business School
    I have come to believe that much of what my colleagues and I taught has caused real suffering, suppressed wealth creation, destabilized the world economy, and accelerated the demise of the 20th century capitalism.
    We managed to produce a generation of managers and business professionals that is deeply mistrusted and despised by a majority of people in our society and around the world. This is a terrible failure.
    ShoshanaZuboff, “The Old Solutions Have Become the New Problems,” Business Week, Viewpoint, July 2, 2009.
  • 20. A Crisis in Leadership
    Bill George, Harvard Business School
    An enormous vacuum in leadership exists today—in business, politics, government, education, religion, and nonprofit organisations. Yet there is no shortage of people with the capacity for leadership.
    The problem is we have a wrongheaded notion of what constitutes a leader, driven by an obsession with leaders at the top.
    Bill George, True North: Discover Your Authentic Leadership (San Francisco: Jossey-Bass, 2007).
  • 21. 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.
  • 22. 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
  • 23. What Evolution can teach us about the New Leadership Paradigm
  • 24. What is Evolution?
    Evolution: The continually unfolding ability to respond to increasingly complex life conditions.
    At each stage of evolution – from atoms, to cells, to creatures – there was not only an expansion in awareness, but also an expansion in the range of possible reactions or responses that an entity could make to changes in its internal or external environment.
    An increase in external complexity demanded an increase in
    internal complexity
  • 25. The Universal Stages of Evolution
    From the Big Bang … to the Present Day
    Stage 1
    Entities learn how to become viable and independent in their frameworks of existence.
    Stage 2
    As life conditions become more complex, viable independent entities bond with each other to create a group structures.
    Stage 3
    Viable independent group structures then cooperate with each other to form a higher order entity.
    Energy Atoms Molecules CellsOrganisms CreaturesHomo sapiens
  • 26. The Universal Stages of Evolution
    Levels of Being
    Homo sapiens
    Humanity
    Nations
    Eukaryotic cell
    Creatures
    Organisms
    Carbon atom
    Cells
    Molecules
    Particles/waves of information existing in a quantum energy field.
    Evolution
    Stage 1:
    Entities learn how to become viable and independent in their frameworks of existence.
    Stage 2:
    As life conditions become more complex, viable independent entities bond with each other to create a group structures.
    Stage 3:
    Viable independent group structures then cooperate with each other to form a higher order entity.
  • 27. Leading Yourself
    If you can’t lead yourself, then you will not be able to lead others
    If you can’t lead others, then you will not be able to lead an organisation
    If you can’t lead an organisation, then you will not be able to lead a
    community or a nation
  • 28. Priorities for Leadership Development
    Leading an Organisation
    Leading Self
    Leading Others
    Stage 3:
    External Cohesion
    Cooperating with other individuals who share the same values and mission to leverage impact
    Stage 3:
    External Cohesion
    Cooperating with other Teams who share the same values and vision
    Stage 3:
    External Cohesion
    Cooperating with other Organizations who share the same values and vision
    Evolution
    Stage 2:
    Internal Cohesion
    Aligning the motivations of the Ego with the Soul (bonding) to become an authentic individual
    Stage 2:
    Internal Cohesion
    Aligning the motivations of Team members with the mission of the Team for team alignment
    Stage 2:
    Internal Cohesion
    Aligning the motivations of Staff members with the vision and values of the Organization
    Stage 1:
    Personal Mastery
    Overcoming the fears of the Ego to become viable and independent in your framework of existence
    Stage 1:
    Team Mastery
    Overcoming the fears of individual Team members
    To minimize cultural entropy
    Stage 1:
    Personal Mastery
    Overcoming the fears of individual Staff members to minimize cultural entropy
  • 29. Components of the New Leadership Paradigm Learning System
    The
    Book
    The
    Multi-media
    Web site
    The Workbooks and Journals
  • 30. The Good News
  • 31. 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
  • 32. 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
  • 33. Three-Stage Leadership Development
    STAGE 3: EXTERNAL COHESIONEncourage those teams and business units to collaborate together to form a higher order entity known as the organization
    Evolution
    Human
    Consciousness
    (World Views)
    Stages of Evolution
    Stage 3
    STAGE 2: INTERNAL COHESION
    Encourage those individuals to bond together to form teams and business units with common values and a sense of Shared mission and vision
    Stage 2
    Stage 1
    STAGE 1: PERSONAL MASTERY
    Encourage individuals to become viable independent (be accountable and responsible for their work
  • 34. The Three Mantras of Culture Change
  • 35. 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.
  • 36. From Leader’s Values to Shareholder Value
    Corporate Sector
    Leader’s Values/ Behaviours
    Performance & Shareholder
    Value
    Corporate
    Culture
    Competitive
    Advantage &
    Resilience
  • 37. From Leadership to Customer Satisfaction
    Public Sector
    Leader’s values/ behaviours
    Organisational
    Culture
    Customer
    Satisfaction
    Mission
    Assurance
  • 38. Personal Alignment of the Leaders
    When leaders change their beliefs and values (1), their behaviours change (2).
    This influences the culture of the group (3), which in turn changes the behaviours of the group (4).
    1
    2
    Organisational transformation begins with the personal transformation of the leaders. Organisations don’t transform. People do.
    3
    4
    Wilber’s Four Quadrants
  • 39. The Leader and the 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 run companies”, 1983
  • 40. Nedbank, South Africa: An Example of Cultural Evolution
  • 41.
  • 42. Values in Organisations
    Tom Boardman Former CEO of Nedbank, South Africa
  • 43. 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%
  • 44. 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
  • 45. 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
  • 46. Nedbank: Cultural Evolution
    Nedbank Staff Survey Scores
  • 47. 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
  • 48. National and Regional Values Assessments
  • 49. National/Regional Values Assessments
    Denmark
    Latvia
    Sweden
    Canada
    Iceland
    Bhutan
    USA
    Belgium
    Australia
    UK North West)
    Brazil
    Finland
    Venezuela
    Argentina
    Macedonia (Skopje)
    Spain (Extremadura)
  • 50. Entropy Percentages by Nation (2007 – 2010)
    Cultural entropy is a measure of the dysfunction in a social system
  • 51. 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
  • 52. 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
  • 53. Cultural Entropy Impacts in Nations
    Cultural Entropy in Nations
  • 54. To get a copy of this presentation: http://www.slideshare.net/BarrettValues
    Other relevant Web sites:
    • www.richardbarrett.net
    • 55. www.newleadershiparadigm.com
    • 56. www.valuesjournal.com
    • 57. www.valuescentre.com

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