The new leadership paradigm Richard Barrett and Ashley Munday

The New Leadership ParadigmRichard Barrett & Ashley MundayMarch 2012 www.valuescentre.comwww.valuescentre.com 1www.valuescentre.com

A Crisis in Leadership 2

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). 3

A Crisis in Leadership Shoshana Zuboff, 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. Shoshana Zuboff, ―The Old Solutions Have Become the New Problems,‖ Business Week, Viewpoint, July 2, 2009. 4

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). 5

A Crisis in Leadership Bill George, Harvard Business School Every successful business leader has to make the shift from ―I‖ to ―we.‖ Bill George, True North: Discover Your Authentic Leadership (San Francisco: Jossey-Bass, 2007). 6

The Global SustainabilityChallenge? 7

Global Sustainability Issues Global Pollution Global Terrorism Energy Economy ResilienceNatural PandemicsDisasters The significant problems we face cannot be solved at the same level of thinking that created them.Climate SpeciesChange Extinction Water Food Shortages Poverty Waste Resilience Reduction Disposal 8

The Sustainability Challenge The problems of existence have becomeglobal but the decision-making structures we have for dealing with them are national. We cannot move forward without a high degree of global cooperation. 9

A New Leadership Paradigm The paradigm that divides the world into the social sector, the private sector, and the governmental sector is not working. Private It creates artificial barriers. Sector We are each a constituent of the problem, so we have to combine our forces, ourPublic Social efforts, and our competencies.Sector Sector Tex Gunning, Unilever, Best Foods Asia 10

Sustainability and the New Leadership ParadigmOur 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. 11

A New Leadership ParadigmWE 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. 12

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 ournarrow 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 13

The Book A Leadership Development Text Book for the 21st Century Leader (530 pages) Part 1: Fundamentals Part 2: Leading Self Part 3: Leading Others Part 4: Leading an Organisation Part 5: Leading in Society Part 6: Annexes Annex 1: The Learning System Annex 2: Cultural Transformation Tools Annex 3: The Seven Levels of Consciousness 14

Love, Fear and the Destiny of Nations Volume 1: Volume 2: The Impact of the Evolution of Building SuccessfulConsciousness on World Affairs Communities and Nations Spring 2012 Spring 2013 15

Table of Contents• Part 1: Human Destiny• 1. Introduction• 2. Universal Patterns of Evolution• 3. Human Patterns of Evolution• 4. Cultural Patterns of Evolution• 5. The Level of Fear in Nations• 6. The Sources and Levels of Cultural Fear• 7. Democracy—Freedom from Fear• 8. Measuring the Culture of a Nation•• Part 2: The Evolution of Democracy• 9. The Role of Democracy in the Evolution of Human Consciousness• 10. The Journey from Freedom to Trust• 11. Freedom• 12. Equality• 13. Accountability• 14. Fairness• 15. Openness• 16. Transparency• 17. Trust•• Part 3: The Destiny of Nations• 18. The Need for Global Governance• 19. Failure and Hope• 20. Empathy• 21. Compassion• 22. The Way Forward 16

What Evolution can teach usabout theNew Leadership Paradigm • Three Universal Principles • Five Characteristics/Strategies • Six Levels of Decision Making 17

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 18

The Universal Stages of EvolutionFrom 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 Cells Organisms Creatures Homo sapiens 19

The Universal Stages of Evolution Homo sapiens Nations HumanityLevels of Being Eukaryotic cell Organisms Creatures Carbon atom Molecules Cells Big Bang: Particles/waves of information existing in a quantum energy field. Evolution Stage 3: Stage 1: Stage 2: Viable Entities learn how As life conditions independent group to become viable become more structures then and independent complex, viable cooperate with in their independent each other to form frameworks of entities bond with a higher order existence. each other to entity. create a group structures. 20

The Human Body Stage 1: Cells are viable independent entities that know what to do to maintain internal stability and external equilibrium Stage 2: Cells bonded together to form group structures called organs. Stage 3: Organs cooperate with each other to form a higher order entity. YOU! 21

The New Leadership ParadigmLearning System More than a Book... And also ... A Leadership A Manual for Development Personal Evolutionary Learning System for the Coaching 21st Century Leader 22

Components of the New Leadership Paradigm Learning System The The Book Multi-media Web site The Workbooks and Journals 23

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 24

Stages of Leadership Development Leaders as Leaders as a Coach a Servant Leading an Leading Self Leading a Team Organisation Stage 3: Stage 3: Stage 3: External Cohesion External Cohesion External Cohesion Cooperating with other Cooperating with other Cooperating with other individuals who share the Teams who share the Organizations who share same values and mission same values and vision the same values and to leverage impact vision Stage 2: Stage 2: Stage 2: Internal Cohesion Internal Cohesion Internal CohesionEvolution Aligning the motivations Aligning the motivations Aligning the motivations of the Ego with the Soul of Team members with of Staff members with (bonding) to become an the mission of the Team the vision and values of authentic individual for team alignment the Organization Stage 1: Stage 1: Stage 1: Personal Mastery Team Mastery Personal Mastery Overcoming the fears of Overcoming the fears of Overcoming the fears of the Ego to become viable individual Team members individual Staff members and independent in your To minimize cultural to minimize cultural framework of existence entropy entropy 25

The Web Site A State-of-the- Art, Multi-media, Web site that is constantly updated based on the feedback of users and as new articles, videos, books and other materials become www.newleadershipparadigm.com available 26

The Journals/Workbooks Leading Self (43 Exercises) Leading a Team (28 Exercises) Leading an Organisation (33 Exercises) Leading in Society (30 Exercises) 27

Who Will Be Using the Learning System?• Consultants and Coaches who are supporting the nextgeneration of leaders• Change agents and OD practitioners who are looking for new,cost effective ways to make leadership training available tolarge numbers of people in their organizations• Universities and Business Schools searching for cutting-edgetraining materials to support their undergraduate and maturestudents• Individuals who want to grow, develop and become all theycan become 28

The Good News 29

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 30

The Three Mantras ofOrganisational Performance 31

The Three Mantras of Organizational PerformanceMantras Implications Who you are and what your Cultural Capital is the new frontier organization stands for of competitive advantage. is vitally important. Focus on Vision, Mission and ValuesThe Culture of an organizations is a Organizational transformation reflection of leadership begins with the personal consciousness transformation of the leaders Begins with Self Leadership Measurement matters. If you can You can make the evolution of measure consciousness, consciousness, conscious you can manage it. Measure and Map the Values 32

The Leader and the ValuesThe real role of the leaderis to manage the valuesof the corporation.Tom Peters, ―In Search of Excellence:Lessons from America‘s best runcompanies‖, 1983 33

Whole System Transformation (Evolution) Interior Exterior Personality Character Individual Values and Actions and Beliefs of the Behaviours Leaders of the Leaders Culture Society Collective Values and Actions and Beliefs of the Behaviours of the Organization Organization Based on the Four Quadrants of Ken Wilber 34

Whole System Transformation (Evolution) When the The leaders leaders values behaviours change Interior Exterior change Individual 1 2 Collective 3 4Thevalues of the Behaviours of organization organization change change 35

Four Conditions for Whole System Change The Four Conditions for Whole System Change Interior Exterior Character: Personality: Actions and Values and Personal Alignment Behaviours Beliefs of anIndividual of an Individual Individual Mission Alignment Values Alignment Social Culture: Values and Structures: Actions and Beliefs BehavioursCollective of a Group of a Group Structural Alignment 36

Four Conditions for Whole System Change Measuring Entropy, Alignment and Resonance Whole System Transformation 1 Cultural Entropy Lack of personal alignment and structural alignment Personal Alignment creates personal entropy and cultural entropy Mission Alignment Values Alignment 2 Values Alignment creates internal cohesion Employee Engagement Structural Alignment 3 Mission Alignment and shared purpose creates resonanceEntropy is the degree of dysfunction in a system (lack of cohesion, order, andstructure). The amount of energy that is unavailable for useful work.High entropy leads to low employee engagement. Low entropy leads to highemployee engagement. 37

Cultural Evolution Begins with Personal Evolution Culture Values Leader‘s Values CVA Current Culture LV A Feedback 14 AssessorsThe culture ofan organisationis a reflectionof the leadershipconsciousness. PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0 Cultural Entropy 38% Personal Entropy 64% 1. short-term focus (L) 13 Level 1 power (L) 11 Level 3 2. blame (L) 11 Level 2 blame (L) 10 Level 2 demanding (L) 10 Level 2 3. manipulation (L) 10 Level 2 manipulative (L) 10 Level 2 4. caution (L) 7 Level 1 experience 9 Level 3 5. cynicism (L) 7 Level 3 controlling (L) 8 Level 1 6. bureaucracy (L) 6 Level 3 arrogant (L) 7 Level 3 7. control (L) 6 Level 1 authoritarian (L) 6 Level 1 8. cost reduction 5 Level 1 exploitative (L) 6 Level 1 9. empire building (L) 5 Level 2 ruthless (L) 6 Level 1 10. image (L) 5 Level 3 11. long hours (L) 5 Level 3 38

Cultural Evolution Begins with Personal Evolution Culture Values Leader‘s Values CVA Current Culture LV A Feedback 27 AssessorsThe culture ofan organisationis a reflectionof the leadershipconsciousness. PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 Cultural Entropy 7% Personal Entropy 9% 1. customer satisfaction 16 Level 2 continuous learning 11 Level 4 2. commitment 11 Level 5 generosity 11 Level 5 3. continuous learning 11 Level 4 commitment 10 Level 5 4. making a difference 11 Level 6 positive attitude 10 Level 5 5. global perspective 9 Level 3 vision 10 Level 7 6. mentoring 9 Level 6 ambitious 9 Level 3 7. enthusiasm 8 Level 5 making a difference 8 Level 6 8. leadership development 8 Level 6 results orientation 8 Level 3 9. integrity 7 Level 5 honesty 7 Level 5 10. open communication 7 Level 2 integrity 7 Level 5 11. optimism 7 Level 5 intuition 7 Level 6 12. shared values 7 Level 5 leadership developer 7 Level 6 39

Impact of Personal EntropyPersonal entropyrepresents the degree of dysfunction of an individual Entropy Impact 0 -6% Healthy: Authentic individual. Decision-making not driven by fears. 7-10% Minor Issues: Requiring leaders to examine how their behaviours and actions are affecting people around them, their decision-making processes or their degree of work/life balance. 11-15% Significant Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals. 16-20% Serious Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals. 21%+ Critical Issues: Requiring leaders to examine how their behaviours might be compromising their personal integrity and their ability to inspire and lead the people around them. 40

Impact of Cultural EntropyCultural entropyrepresents the degree of dysfunction in a culture Entropy Impact 0 -10% Healthy: This is a low and healthy level of cultural entropy. 11-20% Minor Issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment. 21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching. 31-40% Serious Issues: This level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching. 41%+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching. 41

Average Entropy in Organisations (2007-2011)Total CVAs: 1,011Industries: 40Countries: 36 42

Values Alignment vs. Entropy Band 5Number ofmatching 4top tenCurrent 3and 2DesiredCulture 1Values 0 0-10% 11-20% 21-30% 31-40% >40% Entropy 43

Low Highentropy entropy 44

Models and Tools for Personal and Cultural Transformation 1995 1998 2006 2012 The Values- Driven Organisation Organisational Implementing Personal An update of Growth and Cultural Growth and Liberating the Transformation. Transformation.Transformation Corporate Soul and Measuring Eight Years Experience of Building a Values- Consciousness Driven by Mapping Measuring Personal and Organisation Values With New Research Organisational Consciousness and a focus on and Exploring Conscious Whole System Capitalism Change 45

Organisational (Cultural)Values Assessments 46

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. 47

What are Values?Values - A shorthandmethod of describing ourindividual and collectivemotivations and what isimportant to us.Values can be positiveor potentially limiting.Positive Values:trust, creativity, passion, honesty, integrity, clarityPotentially Limiting Values:power, blame, greed, status, beingliked 48

Exercise: Values, Beliefs and Behaviours This exercise takes about 15 minutes 1. Choose 3 values that are important to you and enter them in the left hand column of the worksheet EXAMPLE: Clarity 2. Write down your beliefs that support this value in middle column EXAMPLE: Clarity bring focus to decision making 3. Write down the behaviours you exhibit that support this value EXAMPLE: Seek many opinions, synthesize multiple data points to understand the big picture 49

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 Know and commitment. UnderstandAbraham Maslow Self-esteem Deficiency Needs An individual gains no Love & Belonging sense of lasting satisfaction from being able to meet these Safety needs, but feels a sense of anxiety if these needs Physiological are not met. 50

Maslow‘s Needs to Barrett‘s Consciousness Self-Actualization Know and Know and Understand UnderstandAbraham Maslow Self-esteem Richard Barrett Love & Belonging Safety Physiological Needs Consciousness 51

Maslow‘s Needs to Barrett‘s Consciousness 1. Expansion of self-actualization Know and Know and into multiple levels. Understand Understand 2. Substitute ‗states of consciousness‘ Self-esteem for hierarchy of needs.Love & Belonging 3. Each state of consciousness is defined by specific values Safety and behaviours. Physiological Needs Consciousness 52

Stages in the Development of Personal Consciousness Positive Focus / Excessive Focus Service to Humanity and the Planet Devoting your life in self-less service Service to your purpose and vision Collaborating with Partners Making a difference Working with others to make a positive difference by actively implementing your purpose and vision Finding Personal MeaningInternal Cohesion Uncovering your sense of purpose and creating a vision for the future you want to create Personal Growth Transformation Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Self-worth Self-esteem Feeling a positive sense of pride in self and ability to manage your life. Power, status Belonging Relationship Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Financial Security & Safety Survival Creating a safe secure environment for self and significant others. Control, greed 53

Stages in the Development of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity And The Planet Social responsibility, future generations, long-term Service perspective, ethics, compassion, humility Strategic Alliances and Partnerships Environmental awareness, community Making a difference involvement, employee fulfillment, coaching/mentoring Building Corporate CommunityInternal Cohesion Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Continuous Renewal and Learning Transformation Accountability, adaptability, empowerment, teamwor k, goals orientation, personal growth High Performance Self-esteem Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Belonging Relationship Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Financial Stability Survival Shareholder value, organisational growth, employee health, safety. Control, corruption, greed 54

Placement of Values by LevelCurrent Culture 100 Employees Service Top Ten Values 1. tradition (L) (59) Making a difference 2. diversity (54)Internal Cohesion 6 3. control (L) (53) 4. goals orientation (46) Transformation 2 4 5 5. knowledge (43) Self-esteem 6. creativity (42) 7 8 7. productivity (37) Relationship 10 10 1 8. image (L) (36) 9. profit (36) 9 3 Survival 10. open communication (31) 55

Distribution of Values by LevelCurrent Culture 100 Employees Service 7 Making a difference 6 Internal Cohesion 5 Transformation 4 Cultural Self-esteem 3 Entropy Relationship 2 11% 1 Survival 56

Engineering and Projects Company (339) What employees believe is Personal Values Current Culture Values Desired Culture Values necessary Level 7 for the Level 6The values that companyare Level 5 important to to achieve employees in Level 4 its full their personal Level 3 potential lives. Level 2 Level 1 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 1. honesty 169 5(I) 1. continuous 111 4(O) 1. accountability 180 4(R) 2. accountability 165 4(R) improvement 2. customer 147 2(O) PV - CC 1 CC - DC 4 2. customer 111 2(O) satisfaction PV - DC 2 3. commitment 150 5(I) satisfaction 3. continuous 143 4(O) 4. continuous learning 92 4(I) Health 3. safety conscious 102 1(O) improvement Index (PL) 5. balance (home/work) 91 4(I) 4. cost reduction 88 1(O) 4. employee development 111 4(O) 6. family 91 2(R) PV: 10-0 5. job insecurity (L) 77 1(O) 5. employee recognition 96 2(R) CC: 7-3 7. self-discipline 91 1(I) DC: 10-0 6. inconsistent (L) 75 3(I) 6. commitment 95 5(I) 8. responsibility 89 4(I) 7. teamwork 74 4(R) 7. inspirational leadership 95 6(O) 9. respect 81 2(R) 8. accountability 71 4(R) 8. employee fulfilment 94 6(O) 10. open communication 76 2(R) 9. blame (L) 71 2(R) 9. teamwork 90 4(R) 10. corporate image 64 3(O) 10. professionalism 80 3(O) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC How employees experience the company - What isR = Relationship Blue = PV & DC (white circle) S = Societal working well? What is undermining the sustainability Values Plot Copyright 2011 Barrett Values Centre February 2011 57 of the company.

Engineering and Projects Company (339) Personal Current Culture Desired Culture Values Values Values 6% 5% 5% 7 7 7 C 8% 9% 13% 6 6 6Common Good 24% 11% 19% 5 5 5 T 21% 20% 27%Transformation 4 4 4 17% 14% 16% 3 1% 3 12% 3 0%Self Interest S 2 1% 12% 2 8% 5% 2 1% 12% 9% 10% 6% 1 1% 1 6% 1 1% 0% 20% 40% 0% 20% 40% 0% 20% 40% Total number of CTS = 38-21-41 CTS = 25-20-55 CTS = 37-27-36 votes for all Entropy = 3% Entropy = 23% Entropy = 2% values at each level C = Common Good Positive Values T = Transformation Cultural Entropy Potentially Limiting S = Self-Interest % of Votes for Values Values Distribution Limiting Values Copyright 2011 Barrett Values Centre February 2011

Nedbank, South Africa:An Example of Cultural Evolution 59

Nedbank and CTT 60

Nedbank: Current Culture Evolution 2005 2006 2007 20081. cost-consciousness 1. cost-consciousness 1. client-driven 1. accountability2. profit 2. accountability 2. accountability 2. client-driven3. accountability 3. client-driven 3. client satisfaction 3. client satisfaction4. community involvement 4. client satisfaction 4. cost-consciousness 4. community involvement5. client-driven 5. results orientation 5. community involvement 5. achievement6. process-driven 6. performance driven 6. performance driven 6. cost-consciousness7. bureaucracy (L) 7. profit 7. profit 7. teamwork8. results orientation 8. bureaucracy (L) 8. achievement 8. performance driven9. client satisfaction 9. teamwork 9. being the best 9. being the best10. silo mentality (L) 10. community involvement 10. results orientation 10. delivery 3 matches 4 matches 4 matches 5 matches Entropy 25% Entropy 19% Entropy 17% Entropy 14% 61

Nedbank: Current Culture Evolution 2009 2010 2011 1. accountability 1. accountability 1. accountability 2. client-driven 2. client satisfaction 2. client-driven 3. client satisfaction 3. client-driven 3. client satisfaction 4. cost-consciousness 4. teamwork 4. brand reputation 5. community involvement 5. brand reputation 5. achievement 6. achievement 6. being the best 6. teamwork 7. teamwork 7. achievement 7. environmental awareness 8. employee recognition 8. commitment 8. commitment 9. being the best 9. community involvement 9. being the best 10. performance driven 10. cost-consciousness 10. cost-consciousness 6 matches 6 matches 6 matches Entropy 13% Entropy 13% Entropy 11% 62

Nedbank: Group (2011) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0 Matches 1. accountability 8576 4(R) 1. accountability 5464 4(R) 1. accountability 6987 4(R)PV - CC 2 2. honesty 6133 5(I) 2. client-driven 4571 6(O) 2. balance (home/work) 4183 4(O)CC - DC 6PV - DC 4 3. commitment 5221 5(I) 3. client satisfaction 3486 2(O) 3. client-driven 3864 6(O) 4. respect 4420 2(R) 4. brand reputation 2740 3(O) 4. client satisfaction 3742 2(O) HealthIndex (PL) 5. family 4057 2(R) 5. achievement 2491 3(I) 5. employee recognition 3297 2(R) 6. integrity 4023 5(I) 6. teamwork 2408 4(R) 6. honesty 3053 5(I) PV: 10-0 CC: 10-0 7. caring 3568 2(R) 7. environmental 2372 6(S) 7. commitment 2953 5(I) DC: 10-0 8. balance (home/work) 3526 4(I) awareness 8. achievement 2809 3(I) 9. responsibility 3279 4(I) 8. commitment 2263 5(I) 9. teamwork 2744 4(R) 10. efficiency 3085 3(I) 9. being the best 2218 3(O) 10. employee satisfaction 2687 2(O) 10. cost-consciousness 2187 3(O) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2011 Barrett Values Centre April 2011 63

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.25% 25%20% 19% 17%15% 14% 13% 13% 11% Entropy risk bands10% 0 -10% Healthy functioning 11-20% Some problems5% 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation0% 2005 2006 2007 2008 2009 2010 2011 64

number of participants Nedbank: Response Rate to Values Survey 24000 22102 Responses 20184 20000 18206 16000 14091 12000 10155 8000 6083 4000 1827 0 2005 2006 2007 2008 2009 2010 2011 28,898 employees in 2009 65

Nedbank: Staff Engagement Nedbank Staff Survey Scores100% 79% 80% 71.5% 75.1% 71% 66.3% 67% 59.6% 60% 40% 20% 0% 2005 2006 2007 2008 2009 2010 2011 66

Nedbank: Financialon Financial Performance Nedbank: Impact Impact of Cultural Evolution Closing share price (Rand) 160 140 120 134 136 130 124 100 80 100 96 60 78 40 20 0 2004 2005 2006 2007 2008 2009 2010 67

Nedbank: Financialon Financial Performance Nedbank: Impact Impact of Cultural Evolution Revenue Rm (operating income) 25000 23630 20000 22428 22077 21570 18948 15000 15809 14027 10000 5000 0 2004 2005 2006 2007 2008 2009 2010 68

National and Regional ValuesAssessments 69

National Values AssessmentsDenmark Latvia Sweden CanadaIceland Bhutan USA BelgiumFinland UK North West) Australia BrazilSpain (Extremadura) Macedonia (Skopje) South Africa Switzerland 70

Stages in the Development of National Consciousness Positive Focus / Excessive Focus Global Sustainability Human Rights, Future Generations, Service Ecological Resilience. Strategic Alliances with Other Nations Making a difference Regional Collaboration, Environmental Awareness, Quality Of Life. Strong Cohesive National IdentityInternal Cohesion Trust, Openness, Transparency, Shared Vision and Values, Fairness. Democratic Processes Transformation Equality, Freedom of Speech, Consensus, Adaptability, Accountability. Institutional Effectiveness Rule of Law, National Pride, Governmental Self-esteem Efficiency. Bureaucracy, Elitism, Power Social Stability Conflict Resolution, Racial Harmony, Rituals. Relationship Discrimination, Intolerance Economic Stability Survival Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence 71

Cultural Entropy in Nations0.7 63%0.6 56% 53% 54% 51%0.5 47% 48% 43% 44%0.4 34% 32%0.3 26% 21%0.20.1 6% 0 Cultural entropy is a measure of the dysfunction, anxiety and fear in a social system 72

Development as ...Development as Economic Growth (GNP) USA, Iceland, CanadaDevelopment as Human Happiness (GNH) Bhutan Whatever you focus on and measure is what you get. 73

Iceland 74

Iceland: August 2008 (635) What citizens believe is Personal Values Current Culture Values Desired Culture Values necessary Level 7 for the Level 6 country toTheLevel 5 that values achieve itsare Level 4 important to fullcitizens in their potential Level 3 personal lives. Level 2 Level 1 PL= 11-0 | IRS (P)= 6-5-0 | IRS (L)= 0-0-0 PL= 2-8 | IROS (P)= 1-0-1-0 | IROS (L)= 2-3-3-0 PL= 10-0 | IROS (P)= 3-2-3-2 | IROS (L)= 0-0-0-0 Matches 1. family 420 Level 2 1. materialistic (L) 419 Level 1 1. accountability 352 Level 4 PV - CC 0 2. honesty 297 Level 5 2. short-term focus (L) 324 Level 1 2. family 307 Level 2 CC - DC 0 PV - DC 4 3. responsibility 258 Level 4 3. educational opportunities 275 Level 3 3. employment opportunities 281 Level 1 4. accountability 225 Level 4 4. uncertainty 275 Level 1 4. financial stability 249 Level 1 about the future (L) 5. financial stability 185 Level 1 5. optimism 233 Level 5 5. corruption (L) 269 Level 1 6. trust 181 Level 5 6. dependable public services 228 Level 3 6. elitism (L) 264 Level 3 7. friendship 175 Level 2 7. honesty 222 Level 5 7. material needs 224 Level 1 8. positive attitude 175 Level 5 8. social responsibility 174 Level 4 8. wasted resources (L) 207 Level 3 9. humor/fun 158 Level 5 9. human rights 163 Level 7 9. gender discrimination (L) 196 Level 2 10. adaptability 155 Level 4 10. poverty reduction 160 Level 1 10. blame (L) 177 Level 2 11. respect 155 Level 2 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = organisational Orange = PV, CC & DC How citizens experience the country - What is working Blue = PV & DC (white circle) R = Relationship S = Societal well? What is undermining the sustainability Values Plot Copyright 2008 Barrett Values Centre September 2008 of the country. 75

Iceland: August 2008 (635) Personal Current Culture Desired Culture Values Values Values 8% 6% 11% 7 7 7 C 7% 7% 9% 6 6 6 24% 4% 18% 5 5 5 T 23% 12% 27% 4 4 4 8% 9% 11% 3 0% 3 12% 3 0% S 2 2% 17% 2 3% 13% 2 0% 11% 10% 5% 13% 1 2% 1 29% 1 0% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 39-23-38 CTS = 17-12-71 CTS = 38-27-35 Entropy = 4% Entropy = 54% Entropy = 0% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesValues Distribution Copyright 2008 Barrett Values Centre September 200876

Iceland: August 2008 (635) Potentially Limiting Values Potentially Limiting Values (votes) materialistic (419) short-term focus (324) uncertainty about the future (275) corruption (269) elitism (264) wasted resources (207) gender discrimination (196) blame (177) ethnic discrimination (171) bureaucracy (158) 77

Iceland 1200 Citizens + 300 Government, NGOs & Institution Leaders + 500 VolunteersThemes: Education, Economy, Equal rights, Family, Environment, Public administration, Welfare, Sustainability 78

USA 2009 79

USA: Group (1502) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 5-6-0 | IRS (L)= 0-0-0 IROS (P)= 0-0-0-0 | IROS (L)= 3-3-4-0 IROS (P)= 2-1-3-4 | IROS (L)= 0-0-0-0 Matches 1. family 691 2(R) 1. corruption (L) 748 1(O) 1. accountability 703 4(R) PV - CC 0 2. caring 657 2(R) 2. blame (L) 681 2(R) 2. concern for future 516 7(S) CC - DC 0 generations PV - DC 1 3. honesty 576 5(I) 3. bureaucracy (L) 681 3(O) 3. employment opportunities 497 1(O) Health 4. humor/fun 548 5(I) 4. crime/violence (L) 628 1(R) 4. caring for the elderly 467 4(S) Index (PL) 5. compassion 469 7(R) 5. uncertainty about the future 567 1(I) 5. affordable housing 429 1(O) PV: 11-0 (L) CC: 0-10 6. responsibility 461 4(I) 6. wasted resources (L) 552 3(O) 6. peace 429 7(S) DC: 10-0 7. friendship 407 2(R) 7. materialistic (L) 527 1(I) 7. caring for the disadvantaged 398 4(S) 8. respect 392 2(R) 8. unemployment (L) 466 1(O) 8. financial stability 368 1(I) 9. accountability 388 4(R) 9. conflict/aggression (L) 426 2(R) 9. quality of life 335 6(I) 10. independence 359 4(I) 10. poverty (L) 358 1(I) 10. poverty reduction 325 1(O) 11. patience 359 5(I) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2009 Barrett Values Centre January 2009 80

USA: Group (1502) Personal Current Culture Desired Culture Values Values Values 9% 7% 17% 7 7 7 C 5% 9% 13% 6 6 6 27% 5% 14% 5 5 5 T 19% 13% 22% 4 4 4 11% 8% 12% 3 1% 3 13% 3 2% S 2 2% 18% 2 3% 12% 2 6% 1% 4% 4% 11% 1 3% 1 27% 1 2% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 41-19-40 CTS = 21-13-66 CTS = 44-22-34 Entropy = 6% Entropy = 52% Entropy = 5% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesValues Distribution Copyright 2009 Barrett Values Centre January 200981

Bhutan 82

Bhutan: Group (403) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 4-4-1 | IRS (L)= 1-0-0 IROS (P)= 1-0-8-2 | IROS (L)= 0-0-0-0 IROS (P)= 1-1-7-1 | IROS (L)= 0-0-0-0 Matches 1. friendship 180 2(R) 1. continuous improvement 195 4(O) 1. education 115 4(O) PV - CC 1 2. continuous learning 160 4(I) 2. environmental 104 1(O) 2. continuous improvement 113 4(O) CC - DC 6 protection PV - DC 2 3. compassion 128 7(R) 3. freedom of speech 113 4(O) 3. strict moral/religious 104 3(O) 4. caution (L) 122 1(I) codes 4. economic growth 107 1(O) Health Index (PL) 4. political rights 102 3(O) 5. sincerity 121 5(I) 5. social justice 100 4(S) PV: 9-1 CC: 11-0 5. education 100 4(O) 6. social justice 118 7(S) 6. contentment 93 5(I) DC: 10-0 6. nature conservancy 91 6(S) 7. self-discipline 102 1(I) 7. environmental protection 89 1(O) 7. shared vision 90 5(O) 8. optimism 95 5(I) 8. compassion 83 7(R) 8. information availability 88 3(O) 9. helpfulness 94 2(R) 9. full employment 82 3(O) 9. shared values 88 5(O) 10. caring 92 2(R) 10. strict moral/religious 82 3(O) codes 10. contentment 87 5(I) 11. social justice 87 4(S) Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2009 Barrett Values Centre January 2009 83

Bhutan: Group (403) Personal Current Culture Desired Culture Values Values Values 14% 9% 11% 7 7 7 C 10% 10% 10% 6 6 6 25% 18% 17% 5 5 5 T 19% 32% 31% 4 4 4 10% 13% 12% 3 2% 3 1% 3 1% S 2 1% 12% 2 1% 8% 2 1% 8% 5% 8% 8% 1 3% 1 2% 1 2% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 49-19-32 CTS = 37-32-31 CTS = 38-31-31 Entropy = 6% Entropy = 4% Entropy = 4% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesValues Distribution Copyright 2009 Barrett Values Centre January 200984

Canadian National Assessment: Group (1250) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IRS (P)= 5-5-0 | IRS (L)= 0-0-0 IROS (P)= 1-0-2-1 | IROS (L)= 1-1-4-0 IROS (P)= 0-1-5-4 | IROS (L)= 0-0-0-0 Matches 1. honesty 577 5(I) 1. bureaucracy (L) 471 3(O) 1. accountability 511 4(R) PV - CC 0 2. family 481 2(R) 2. human rights 444 7(S) 2. caring for the elderly 461 4(S) CC - DC 1 PV - DC 0 3. caring 436 2(R) 3. freedom of speech 375 4(O) 3. affordable housing 450 1(O) Health 4. humor/fun 427 5(I) 4. wasted resources (L) 371 3(O) 4. effective healthcare 400 1(O) Index (PL) 5. respect 371 2(R) 5. unemployment (L) 304 1(O) 5. caring for the 377 4(S) disadvantaged PV: 10-0 CC: 4-6 6. friendship 360 2(R) 6. crime/violence (L) 299 1(R) DC: 10-0 6. concern for future 356 7(S) 7. responsibility 353 4(I) 7. law enforcement 284 3(O) generations 8. positive attitude 324 5(I) 8. corruption (L) 274 1(O) 7. poverty reduction 342 1(O) 9. trust 322 5(R) 9. uncertainty about the 272 1(I) 8. employment opportunities 337 1(O) future (L) 10. patience 313 5(I) 9. human rights 320 7(S) 10. quality of life 259 6(I) 10. governmental 317 3(O) effectiveness Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = SocietalValues Plot Copyright 2009 Barrett Values Centre May 2009 85

Canadian National Assessment: Group (1250) Personal Current Culture Desired Culture Values Values Values 15 8% 12% 7 7 7 % 15 C 7% 12% 6 6 6 % 29 12 6% 5 % 5 5 % 18 23 T 19% 4 % 4 4 % 10 12 10% 3 1% % 3 3 2% % 10% 17 S 2 2% % 2 4% 6% 2 5% 1% 14 6% 6% 1 2% 1 1 2% % 16% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 44-18-38 CTS = 30-19-51 CTS = 42-23-35 Entropy = 5% Entropy = 32% Entropy = 5% C = Common Good Positive Values T = Transformation Potentially Limiting S = Self-Interest ValuesValues Distribution Copyright 2009 Barrett Values Centre May 200986

The new leadership paradigm Richard Barrett and Ashley Munday

by Richard Barrett on Mar 06, 2012

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