The Values Driven Organisation
Richard Barrett
MY SPEECH TODAY
HOW TO BUILD, MEASURE AND MANAGE
A VALUES-DRIVEN CULTURE
WHY A VALUES-DRIVEN CULTURE?
BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST
SUCCESSFUL ON THE PLANET
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
4
WHY ARE VALUES-DRIVEN CULTURES...
… THEY ALSO CARE ABOUT THE NEEDS
OF ALL THEIR STAKEHOLDERS
Suppliers Community
VALUES-DRIVEN CULTURES
PRACTICE CONSCIOUS CAPITALISM
2007 2012 2014
THE TENETS OF CONSCIOUS CAPITALISM
PURPOSE
CULTURE
LEADERSHIP
STAKEHOLDER
CONSCIOUS
BUSINESS
Higher Purpose
Conscious Lead...
Eighteen Firms of Endearment
Average
Annualized
Return
13.10%
Average
Annualized
Return
4.12%
$140m
$280m
$420m
$560m
S&P ...
Eighteen Firms of Endearment
*Amazon.com Inc.
*Best Buy Co Inc.
BMW
*CarMax Inc.
*Caterpillar Inc.
*Commerce Bankshares In...
S&P 500
Average
Annualized
Return
16.39%
Average
Annualized
Return
4.12%
BCWF
The Best Companies to Work For engender high...
The Top 40 Best Companies to Work For (USA)
Adobe Systems Inc.
Adobe Systems Inc.
Aflac Inc.
Amazon.com Inc.
American Expr...
“Culture eats strategy for breakfast.”
“No matter how far reaching the vision or how brilliant
the strategy, neither will ...
Richard Barrett has made
extraordinary contributions to our
understanding of organisational
values and culture. His frame-...
The Leader and the Values
Peters and Waterman, “In Search of Excellence:
Lessons from America’s best run companies”, 1983
...
Why values are more important than beliefs
In a stable, non-evolving world,
where what happened in a previous
time period ...
What are Values?
A shorthand way of describing
our individual and collective
motivations and what is
important to us.
They...
Positive of Potentially Limiting?
Values can be positive or
potentially limiting.
Positive Values: Trust, creativity,
pass...
Let’s explore our values
Values, Beliefs and Behaviours
1. Create a 2x3 grid on a blank piece of paper.
Values, Beliefs and Behaviours
1. Create a 2x3 grid on a blank piece of paper.
2. Choose 2 values that are important to
yo...
Values, Beliefs and Behaviours
1. Create a 2x3 grid on a blank piece of paper
2. Choose 2 values that are important to you...
Values, Beliefs and Behaviours
1. Create a 2x3 grid on a blank piece of paper
2. Choose 2 values that are important to you...
Now let’s share our Values
AT ANY GIVEN MOMENT IN TIME, the
values that are most important to us are
a reflection of the needs of the stage of
psycho...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
Stages of Psychological Development
Surviving: Learning to stay alive by meeting your
basic physiological needs—warmth, hu...
LEVELS OF CONSCIOUSNESS
WE GROW IN STAGES (OF PSYCHOLOGICAL
DEVELOPMENT) AND WE OPERATE AT LEVELS (OF
CONSCIOUSNESS). ALL ...
What We Value at Each Level of Consciousness
Financial stability, wealth, employment
opportunities, health and safety.
Ope...
TO BUILD A VALUES-DRIVEN CULTURE
WE NEED UNDERSTAND WHAT LEVELS OF
CONSCIOUSNESS EMPLOYEES ARE OPERATING
FROM AND TO WHAT ...
WE ALSO NEED TO INTRODUCE
A NEW LEADERSHIP PARADIGM
A SHIFT FROM “I” TO “WE”
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
37
I WILL SPEAK ABOUT LEADERSHIP...
The Three Mantras of
Organizational Performance
Cultural Capital is the new frontier of
competitive advantage.
Mantras Imp...
The Seven Levels of Consciousness Model
EVERYTHING YOU NEED TO KNOW ABOUT
BUILDING A VALUES-DRIVEN CULTURE
Origins of the Cultural Transformation Tools
Growth Needs
When these needs are fulfilled they do not
go away, they engende...
Need s Con s ciou s n es s
Self-Actualization
Richard Barrett
Safety
Love & Belonging
Self-esteem
Physiological
Safety
Lov...
Maslow’s Needs to Barrett’s Consciousness
Need s Con s ciou s n es s
1. Expansion of self-actualization
into multiple leve...
Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
Service
Makingadifference
Internal Co...
Positive Focus / Excessive Focus
Financial Stability
Shareholdervalue,organisationalgrowth,
employeehealth,safety.Control,...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
46
BUILDING A VALUES-DRIVEN ORGA...
The Values Survey
PERSONAL VALUES
Which of the following values and behaviours most reflect who you are?
Pick ten.
CURRENT...
Placement of Values by Level (100 employees)
Top Ten Values
1. tradition (L) (59)
2. diversity (54)
3. control (L) (53)
4....
11%
1
2
3
4
5
6
7
Cultural
Entropy
Placement of Values by Level (100 employees)
Current Culture
Service
Makingadifference
...
Cultural Entropy and Engagement
Cultural entropy
significantly
impacts
employee
engagement.
25%
35%
45%
55%
65%
75%
85%
0%...
Entropy and Engagement
Cultural Entropy Most employees
are ….
10% or less Highly Engaged
11% to 20% Engaged
21% to 30% Bec...
Five Levels of Employee Engagement
Highly Engaged Employees bring passion, purpose and discretionary energy
to their work....
Highly Engaged Employees
 Highly engaged employees identify with the company.
 They care passionately about the future o...
What is Cultural Entropy?
The amount of energy that is consumed in an organisation
doing unnecessary or unproductive work ...
Cultural entropy is a function of the personal
entropy of the current leaders of an
organisation and institutional legacy ...
What is Personal Entropy?
Personal entropy is the amount of fear-driven
energy that a person expresses in his or her day-
...
continuous learning 11 Level 4
generosity 11 Level 5
commitment 10 Level 5
positive attitude 10 Level 5
vision 10 Level 7
...
Cultural Evolution Begins with Personal Evolution
power (L) 11 Level 3
blame (L) 10 Level 2
demanding (L) 10 Level 2
manip...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
59
BUILDING A VALUES-DRIVEN CULT...
SA Bank: Group (2011)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desir...
1%
0%
1%
5%
16%
16%
26%
4%
7%
24%
0% 20% 40%
1
2
3
4
5
6
7
3%
3%
5%
5%
11%
20%
13%
14%
6%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
...
SA Bank: Evolution of Current Culture
1. cost-consciousness
2. profit
3. accountability
4. community involvement
5. client...
SA Bank: Evolution of Current Culture
2009 2010 2011
1. accountability
2. client-driven
3. client satisfaction
4. cost-con...
Evolution of Number of Survey Participants
8%
25%
38%
51%
67%
73%
77%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005 2006...
Cultural Entropy Evolution
Cultural entropy
reduction led to
improved performance
through increased
employee
engagement, i...
Revenue Evolution
0%
5%
10%
15%
20%
25%
30%
0
5000
10000
15000
20000
25000
30000
35000
2005 2006 2007 2008 2009 2010 2011 ...
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1000
1200
2005 2006 2007 2008 2009 2010 2011 2012
Revenue per Capita Cultural ...
0%
5%
10%
15%
20%
25%
30%
0
5000
10000
15000
20000
2005 2006 2007 2008 2009 2010 2011 2012
Share Price Cutlural Entropy
Sh...
THE NEW LEADERSHIP PARADIGM
“A first class summary of how to take
the leap into a new paradigm of being
and lead with grac...
A Leadership Development
Text Book for the 21st Century
Part 1: Fundamentals
Part 2: Leading Self
Part 3: Leading Others
P...
THE NEW LEADERSHIP PARADIGM
LEADERSHIP DEVELOPMENT
LEARNING PLATFORM
THE NEW LEADERSHIP
PARADIGM FOOTPRINT
New Leadership Paradigm Learning System
Leading Self
Leading Others
Leading an Organisation Leading in Society
Feedback
Loops
Feedback
Loops
If you cannot
lead/ma...
A customisable internet-based learning platform for
Organisations, Universities, Consultants and Coaches
Designed to facil...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
76
For More Information
www.valu...
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The values driven organisation brazil may 2014 uk version

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This is the English version of a presentation I will be doing to 800 HR professionals in Rio de Janeiro next week. I will also be launching The New Leadership Paradigm and The Values Driven Organisation in Portuguese.

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  1. 1. The Values Driven Organisation Richard Barrett
  2. 2. MY SPEECH TODAY HOW TO BUILD, MEASURE AND MANAGE A VALUES-DRIVEN CULTURE
  3. 3. WHY A VALUES-DRIVEN CULTURE? BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET
  4. 4. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 4 WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL? BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES, AND …
  5. 5. … THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS Suppliers Community
  6. 6. VALUES-DRIVEN CULTURES PRACTICE CONSCIOUS CAPITALISM 2007 2012 2014
  7. 7. THE TENETS OF CONSCIOUS CAPITALISM PURPOSE CULTURE LEADERSHIP STAKEHOLDER CONSCIOUS BUSINESS Higher Purpose Conscious Leadership Stakeholder Orientation Conscious Culture
  8. 8. Eighteen Firms of Endearment Average Annualized Return 13.10% Average Annualized Return 4.12% $140m $280m $420m $560m S&P 500 PortfolioValue 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
  9. 9. Eighteen Firms of Endearment *Amazon.com Inc. *Best Buy Co Inc. BMW *CarMax Inc. *Caterpillar Inc. *Commerce Bankshares Inc. Container Store *Costco Wholesale Corporation *eBay Inc. *Google Inc. Class A. *Harley-Davidson Inc. *Honda Motor Co. IDEO IKEA *Jet Blue *Johnson & Johnson Jordan’s Furniture L.L. Bean New Balance Patagonia Progressive Insurance REI *Southwest Airlines Co. *Starbucks Corporation *Timberland Inc. *Toyota Motor Corp. Trader Joe's *UPS Inc. Wegmans *Whole Foods Markets, Inc. * Firms of Endearment for which financial data were readily available for their North America operations.
  10. 10. S&P 500 Average Annualized Return 16.39% Average Annualized Return 4.12% BCWF The Best Companies to Work For engender high levels of employee engagement and commitment, because the leaders of these organisations focus on meeting their employee’s needs. The Top 40 Best Companies to Work For (USA)
  11. 11. The Top 40 Best Companies to Work For (USA) Adobe Systems Inc. Adobe Systems Inc. Aflac Inc. Amazon.com Inc. American Express Co. Autodesk Inc. Build-A-Bear Workshop Inc. Capital Trust Inc. Class A. Chesapeake Energy Corp. Devon Energy Corp. Dreamworks Animation SKG Inc. EOG Resources FactSet Research Systems Inc. General Mills Inc. Goldman Sachs Group Inc. Goldman Sachs Group Inc. Google Inc. Class A. Hasbro, Inc. Intel Corp. Intuit Inc. Marriott International Inc. Mattel Inc. Medical Properties Trust Inc. Men’s Wearhouse Microsoft Corp. National Instruments Corp. NetApp Inc. Nordstrom Inc. Novo Nordisk, A/S ADR Novo Nordisk, A/S ADR Nustar Energy, L.P. Publix Super Mkts, Inc. Qualcomm Inc. Rackspace Hosting Inc. Salesforce.com Inc. Southern Michigan Bankcorp. St Jude Medical, Inc. Starbucks Corporation Stryker Corporation SVB Financial Group Ultimate Software Group, Inc. Umpqua Holdings Corporation Whole Food Markets, Inc.
  12. 12. “Culture eats strategy for breakfast.” “No matter how far reaching the vision or how brilliant the strategy, neither will be realized if it is not supported by the organisational culture.” Luther Johnson Peter Drucker
  13. 13. Richard Barrett has made extraordinary contributions to our understanding of organisational values and culture. His frame- works for measuring culture and enabling whole system change are elegant. His reservoir of know- ledge is vast and his connection to timeless wisdom is profound. Raj Sisodia Co-founder and co-chairman of Conscious Capitalism Inc. and Professor of Marketing at Bentley University Building a Values-driven Culture
  14. 14. The Leader and the Values Peters and Waterman, “In Search of Excellence: Lessons from America’s best run companies”, 1983 Clarifying the value system and breathing life into it are the greatest contributions a leader can make.
  15. 15. Why values are more important than beliefs In a stable, non-evolving world, where what happened in a previous time period is a good predictor of what will happen in the future, we can happily use our beliefs to make decisions. But in a world where complexity is increasing by the day, we need a more solid basis for making decisions. Values-based decision-making is more suited to our complex modern world because we make decisions based on what is important to us.
  16. 16. What are Values? A shorthand way of describing our individual and collective motivations and what is important to us. They are the energetic containers of our aspirations and intentions.
  17. 17. Positive of Potentially Limiting? Values can be positive or potentially limiting. Positive Values: Trust, creativity, passion, honesty, integrity, clarity Potentially Limiting Values: Bureaucracy, power, blame, greed, hierarchy, status-seeking
  18. 18. Let’s explore our values
  19. 19. Values, Beliefs and Behaviours 1. Create a 2x3 grid on a blank piece of paper.
  20. 20. Values, Beliefs and Behaviours 1. Create a 2x3 grid on a blank piece of paper. 2. Choose 2 values that are important to you and enter them in the left hand column of the worksheet Accountability Achievement Balance (home/work) Commitment Compassion Continuous learning Cooperation Courage Creativity Enthusiasm Efficiency Excellence Fairness Family Friendship Health Honesty Humor/fun Independence Integrity Openness Personal growth Respect Responsibility Self-discipline Trust Value 1 Value 2
  21. 21. Values, Beliefs and Behaviours 1. Create a 2x3 grid on a blank piece of paper 2. Choose 2 values that are important to you and enter them in the left hand column of the worksheet 3. Write down your beliefs that support these values in middle column Value 1 Value 2 Belief Belief
  22. 22. Values, Beliefs and Behaviours 1. Create a 2x3 grid on a blank piece of paper 2. Choose 2 values that are important to you and enter them in the left hand column of the worksheet 3. Write down your beliefs that supports these values in middle column 4. Write down the behaviours you exhibit that support these values in the last column Value 1 Value 2 Belief Belief Behaviour Behaviour
  23. 23. Now let’s share our Values
  24. 24. AT ANY GIVEN MOMENT IN TIME, the values that are most important to us are a reflection of the needs of the stage of psychological development we have reached and the unmet needs of the stages of psychological development we have passed through but have not yet mastered. What motivates employees is the satisfaction of their needs. Our needs (what we value) have always been, and always will be the principal drivers of our behaviors and actions.
  25. 25. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. EvolutionofPersonalConsciousness Needs/Primary Motivations
  26. 26. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 0-2 years Needs/Primary Motivations
  27. 27. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 3-7 years Needs/Primary Motivations
  28. 28. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 8-29 years Needs/Primary Motivations
  29. 29. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 30-39 years Needs/Primary Motivations
  30. 30. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 40-49 years Needs/Primary Motivations
  31. 31. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 50-59 years Needs/Primary Motivations
  32. 32. Stages of Psychological Development Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cult- ural conditioning (beliefs) that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet. 60+ years Needs/Primary Motivations
  33. 33. LEVELS OF CONSCIOUSNESS WE GROW IN STAGES (OF PSYCHOLOGICAL DEVELOPMENT) AND WE OPERATE AT LEVELS (OF CONSCIOUSNESS). ALL THINGS BEING NORMAL, THE LEVEL OF CONSCIOUSNESS WE OPERATE AT WILL CORRESPOND TO THE STAGE OF PSYCHOLOGICAL DEVELOPMENT WE HAVE REACHED.
  34. 34. What We Value at Each Level of Consciousness Financial stability, wealth, employment opportunities, health and safety. Open communication, friendship, loyalty, caring, recognition, tradition, rituals. Pride, productivity, efficiency, quality, professional growth, confidence, excellence. Independence, adaptability, continuous learning, personal growth, balance, adventure, courage. Trust, fairness, honesty, integrity, openness, transparency, enthusiasm, commitment. Collaboration, alliances, environmental awareness, personal fulfilment, empathy. Social responsibility, social justice, wisdom, compassion, humility, forgiveness, ecology. Surviving: Learning to stay alive by meeting your basic physiological needs—warmth, hunger, etc. Conforming: Learning to keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Learning how to distinguish yourself from the crowd by honing your natural skills and talents. Individuating: Letting go of the aspects of your parental and cultural conditioning that no longer align with who you are. Self-actualizing: Learning to become more fully who you are by leading a values- and purpose-driven life with integrity. Integrating: Learning how to align with others who share the same values and purpose to create a better world. Serving: Fulfilling your destiny by caring for and serving the needs of humanity and/or the planet.
  35. 35. TO BUILD A VALUES-DRIVEN CULTURE WE NEED UNDERSTAND WHAT LEVELS OF CONSCIOUSNESS EMPLOYEES ARE OPERATING FROM AND TO WHAT EXTENT THE CULTURE SUPPORTS THEIR NEEDS
  36. 36. WE ALSO NEED TO INTRODUCE A NEW LEADERSHIP PARADIGM A SHIFT FROM “I” TO “WE”
  37. 37. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 37 I WILL SPEAK ABOUT LEADERSHIP DEVELOPMENT IN MORE DEPTH LATER IN MY PRESENTATION NOW LET US RETURN TO THE SUBJECT OF CULTURE AND VALUES
  38. 38. The Three Mantras of Organizational Performance Cultural Capital is the new frontier of competitive advantage. Mantras Implications The Culture of an organizations is a reflection of leadership consciousness Measurement matters. If you can measure it, you can manage it. Who you are and what your organization stands for is vitally important. Organizational transformation begins with the personal transformation of the leaders You can make the evolution of consciousness, conscious Focus on Vision, Mission and Values Begins with Leading Self Measure and Map the Values
  39. 39. The Seven Levels of Consciousness Model
  40. 40. EVERYTHING YOU NEED TO KNOW ABOUT BUILDING A VALUES-DRIVEN CULTURE
  41. 41. Origins of the Cultural Transformation Tools Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment. 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. Physiological Safety Love & Belonging Self-esteem Know and Understand Abraham Maslow Self Actualization
  42. 42. Need s Con s ciou s n es s Self-Actualization Richard Barrett Safety Love & Belonging Self-esteem Physiological Safety Love & Belonging Self-esteem Know and Understand Abraham Maslow Maslow’s Needs to Barrett’s Consciousness
  43. 43. Maslow’s Needs to Barrett’s Consciousness Need s Con s ciou s n es s 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. Physiological Safety Love & Belonging Self-esteem Know and Understand Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  44. 44. Stages in the Development of Personal Consciousness Positive Focus / Excessive Focus Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed Belonging Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status Personal Growth Understandingyourdeepestmotivations,experiencingresponsible freedombylettinggoofyourfears Finding Personal Meaning Uncovering your sense of purpose and creating a vision for the future you want to create Collaborating with Partners Working with others to make a positive difference by actively implementing your purpose and vision Service to Humanity and the Planet Devoting your life in self-less service to your purpose and vision
  45. 45. Positive Focus / Excessive Focus Financial Stability Shareholdervalue,organisationalgrowth, employeehealth,safety.Control,corruption,greed Belonging Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Building Corporate Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Stages in the Development of Organizational Consciousness Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  46. 46. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 46 BUILDING A VALUES-DRIVEN ORGANSIATION START WITH A VALUES SURVEY
  47. 47. The Values Survey PERSONAL VALUES Which of the following values and behaviours most reflect who you are? Pick ten. CURRENT CULTURE Which of the following values/behaviours most reflect how your organisation currently operates? Pick ten. DESIRED CULTURE Which of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.
  48. 48. Placement of Values by Level (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) 10 42 5 7 9 6 8 3 110 Current Culture Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  49. 49. 11% 1 2 3 4 5 6 7 Cultural Entropy Placement of Values by Level (100 employees) Current Culture Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  50. 50. Cultural Entropy and Engagement Cultural entropy significantly impacts employee engagement. 25% 35% 45% 55% 65% 75% 85% 0% 5% 10% 15% 20% 25% 30% Cultural Entropy EmployeeEngagement Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008. Low Entropy = High Engagement High Entropy = Low Engagement
  51. 51. Entropy and Engagement Cultural Entropy Most employees are …. 10% or less Highly Engaged 11% to 20% Engaged 21% to 30% Becoming Disengaged 31% to 40% Disengaged 41% or more Highly Disengaged
  52. 52. Five Levels of Employee Engagement Highly Engaged Employees bring passion, purpose and discretionary energy to their work. They are emotionally attached and committed to the organisation and want to do the right thing. Engaged Employees are willing to go the extra mile to support the company in achieving its goals and objectives as long as they can also satisfy their own goals and objectives. Becoming Disengaged Employees are becoming frustrated, anxious and fearful about not being able to satisfy their needs. Disengaged Employees do what they have to do to get through the day, but are unwilling to put in any extra effort to meet deadlines or support their colleagues in difficult times. Highly Disengaged Employees are unhappy at their work and act out their unhappiness by actively undermining the company, and denigrating those who want to succeed.
  53. 53. Highly Engaged Employees  Highly engaged employees identify with the company.  They care passionately about the future of the company.  They bring passion and purpose to their work.  They are willing to invest their discretionary effort to make the company a success.  They want the company to do the right thing.  They want to feel pride in the way the company behaves.
  54. 54. What is Cultural Entropy? The amount of energy that is consumed in an organisation doing unnecessary or unproductive work that does not add value. It is a measure of the conflict, friction and frustration that employees encounter in their day-to-day activities that prevent the organisation from operating at peak performance.
  55. 55. Cultural entropy is a function of the personal entropy of the current leaders of an organisation and institutional legacy of past leaders as embedded in the structures, systems, policies and procedures. How Does Cultural Entropy Arise?
  56. 56. What is Personal Entropy? Personal entropy is the amount of fear-driven energy that a person expresses in his or her day- to-day interactions with other people. It is a measure of a lack of a person’s lack of personal mastery skills. Fear-driven energy arises from the conscious and subconscious fear-based beliefs of the ego about meeting its deficiency needs.
  57. 57. continuous learning 11 Level 4 generosity 11 Level 5 commitment 10 Level 5 positive attitude 10 Level 5 vision 10 Level 7 ambitious 9 Level 3 making a difference 8 Level 6 results orientation 8 Level 3 honesty 7 Level 5 integrity 7 Level 5 intuition 7 Level 6 leadership developer 7 Level 6 1. customer satisfaction 16 Level 2 2. commitment 11 Level 5 3. continuous learning 11 Level 4 4. making a difference 11 Level 6 5. global perspective 9 Level 3 6. mentoring 9 Level 6 7. enthusiasm 8 Level 5 8. leadership development 8 Level 6 9. integrity 7 Level 5 10. open communication 7 Level 2 11. optimism 7 Level 5 12. shared values 7 Level 5 Cultural Evolution Begins with Personal Evolution Cultural Entropy 7%Personal Entropy 9% Culture ValuesLeader’s Values The culture of an organisation is a reflection of leadership consciousness. CVA Current Culture PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 Internal Cohesion LVA Feedback 27 Assessors PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 Internal Cohesion
  58. 58. Cultural Evolution Begins with Personal Evolution power (L) 11 Level 3 blame (L) 10 Level 2 demanding (L) 10 Level 2 manipulative (L) 10 Level 2 experience 9 Level 3 controlling (L) 8 Level 1 arrogant (L) 7 Level 3 authoritarian (L) 6 Level 1 exploitative (L) 6 Level 1 ruthless (L) 6 Level 1 1. short-term focus (L) 13 Level 1 2. blame (L) 11 Level 2 3. manipulation (L) 10 Level 2 4. caution (L) 7 Level 1 5. cynicism (L) 7 Level 3 6. bureaucracy (L) 6 Level 3 7. control (L) 6 Level 1 8. cost reduction 5 Level 1 9. empire building (L) 5 Level 2 10. image (L) 5 Level 3 11. long hours (L) 5 Level 3 LV A Feedback 14 Assessors PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0 CVA Current Culture PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 Cultural Entropy 38%Personal Entropy 64% Culture ValuesLeader’s Values The culture of an organisation is a reflection of leadership consciousness.
  59. 59. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 59 BUILDING A VALUES-DRIVEN CULTURE THE JOURNEY
  60. 60. SA Bank: Group (2011) Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values 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 PV - CC 2 CC - DC 6 PV - DC 4 Health Index (PL) PV: 10-0 CC: 10-0 DC: 10-0 1. accountability 8576 4(R) 2. honesty 6133 5(I) 3. commitment 5221 5(I) 4. respect 4420 2(R) 5. family 4057 2(R) 6. integrity 4023 5(I) 7. caring 3568 2(R) 8. balance (home/work) 3526 4(I) 9. responsibility 3279 4(I) 10. efficiency 3085 3(I) 1. accountability 5464 4(R) 2. client-driven 4571 6(O) 3. client satisfaction 3486 2(O) 4. brand reputation 2740 3(O) 5. achievement 2491 3(I) 6. teamwork 2408 4(R) 7. environmental awareness 2372 6(S) 8. commitment 2263 5(I) 9. being the best 2218 3(O) 10. cost-consciousness 2187 3(O) 1. accountability 6987 4(R) 2. balance (home/work) 4183 4(O) 3. client-driven 3864 6(O) 4. client satisfaction 3742 2(O) 5. employee recognition 3297 2(R) 6. honesty 3053 5(I) 7. commitment 2953 5(I) 8. achievement 2809 3(I) 9. teamwork 2744 4(R) 10. employee satisfaction 2687 2(O) Values Plot Copyright 2011 Barrett Values Centre April 2011 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 = Societal
  61. 61. 1% 0% 1% 5% 16% 16% 26% 4% 7% 24% 0% 20% 40% 1 2 3 4 5 6 7 3% 3% 5% 5% 11% 20% 13% 14% 6% 20% 0% 20% 40% 1 2 3 4 5 6 7 1% 0% 0% 5% 15% 16% 21% 12% 5% 25% 0% 20% 40% 1 2 3 4 5 6 7 SA Bank: Group (2011) C T S Values Distribution Copyright 2011 Barrett Values Centre April 2011 C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values CTS = 37-24-39 Entropy = 2% CTS = 33-20-47 Entropy = 11% CTS = 38-25-37 Entropy = 1% Personal Values Current Culture Values Desired Culture Values
  62. 62. SA Bank: Evolution of Current Culture 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) 2005 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 2006 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 2007 2008 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 3 Matches CC-DC Entropy 25% 4 Matches CC-DC Entropy 19% 4 Matches CC-DC Entropy 17% 5 Matches CC-DC Entropy 14%
  63. 63. SA Bank: Evolution of Current Culture 2009 2010 2011 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. accountability 2. client satisfaction 3. client-driven 4. teamwork 5. brand reputation 6. being the best 7. achievement 8. commitment 9. community involvement 10. cost-consciousness 1. accountability 2. client-driven 3. client satisfaction 4. brand reputation 5. achievement 6. teamwork 7. environmental awareness 8. commitment 9. being the best 10. cost-consciousness 6 Matches CC-DC Entropy 13% 6 Matches CC-DC Entropy 13% 6 Matches CC-DC Entropy 11%
  64. 64. Evolution of Number of Survey Participants 8% 25% 38% 51% 67% 73% 77% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2005 2006 2007 2008 2009 2010 2011 2012 Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were paying attention to the results of the assessment.
  65. 65. Cultural Entropy Evolution Cultural entropy reduction led to improved performance through increased employee engagement, increased revenues, improved productivity, and increase in share price. 25% 19% 17% 14% 13% 13% 11% 10% 0% 5% 10% 15% 20% 25% 30% 2005 2006 2007 2008 2009 2010 2011 2012 Cutlural Entropy
  66. 66. Revenue Evolution 0% 5% 10% 15% 20% 25% 30% 0 5000 10000 15000 20000 25000 30000 35000 2005 2006 2007 2008 2009 2010 2011 2012 Revenue Cultural Entropy Annual revenue increases as cultural entropy falls. Global Economic Meltdown
  67. 67. 0% 5% 10% 15% 20% 25% 30% 0 200 400 600 800 1000 1200 2005 2006 2007 2008 2009 2010 2011 2012 Revenue per Capita Cultural Entropy Revenue per capita increases as cultural entropy falls. Productivity Evolution Global Economic Meltdown
  68. 68. 0% 5% 10% 15% 20% 25% 30% 0 5000 10000 15000 20000 2005 2006 2007 2008 2009 2010 2011 2012 Share Price Cutlural Entropy Share price (cents) increases as cultural entropy falls. Share Price Evolution Global Economic Meltdown
  69. 69. THE NEW LEADERSHIP PARADIGM “A first class summary of how to take the leap into a new paradigm of being and lead with grace, love and intuitive insight. This book builds on all the great leadership writers combining intelligent research, first hand results and spiritual depth of understanding.” – Kath Roberts
  70. 70. A Leadership Development Text Book for the 21st Century Part 1: Fundamentals Part 2: Leading Self Part 3: Leading Others Part 4: Leading an Organisation Part 5: Leading in Society
  71. 71. THE NEW LEADERSHIP PARADIGM LEADERSHIP DEVELOPMENT LEARNING PLATFORM
  72. 72. THE NEW LEADERSHIP PARADIGM FOOTPRINT
  73. 73. New Leadership Paradigm Learning System
  74. 74. Leading Self Leading Others Leading an Organisation Leading in Society Feedback Loops Feedback Loops If you cannot lead/manage yourself, you cannot lead a team If you cannot lead a team, you cannot lead an organisation If you cannot lead an organisation, you cannot lead in society The New Leadership Paradigm Learning Modules
  75. 75. A customisable internet-based learning platform for Organisations, Universities, Consultants and Coaches Designed to facilitate Self-directed Learning, Facilitated Learning in an Open Group, and Facilitated Learning in a Team or Work Group Affordable for large and small organisations Available in English July/August 2014 The New Leadership Paradigm Learning Platform
  76. 76. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 76 For More Information www.valuescentre.com www.richardbarrett.net To get a copy of this presentation go to: http://www.slideshare.net/BarrettValues
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