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The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
The values driven organisation v 10
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The values driven organisation v 10

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This is a slide deck that accompanies my new book...The Values-driven Organisation: Unleashing human potential for performance and profit.

This is a slide deck that accompanies my new book...The Values-driven Organisation: Unleashing human potential for performance and profit.

Published in: Business, Technology
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  • What I like about this work is that the research shows that it has been applied, so it's more than theoretical. It is a good question to ask will this work as a blueprint for the future. I say yes; why?
    Because it's not rooted in what the markets do or don't do and economic theory...which is proving to be highly theoretical. It's rooted in one unchanging characteristics - human beings.

    Whatever book you read from A. Maslow's Motivation & Personality - first published in 1954, to D. H. Pink's 'Drive' in 2010 to Barratt 2013 one thing doesn't change - the motivations of the human spirit. All these books, and many others say humans are motivated by (i) Wanting to use their gifts and talents to the best of their ability (mastery/self-esteem/Idividualisation), living a life of purpose (self-actualisation) and wanting to make a contribution to make the world a better place (service). Human Psychology work has validated this, as has the writings of the great religions so it dates back pre-Maslow and is unchanging.

    Barratt's work connects the dots in a way that is easy for the average person to apply- no need for a degree in psychology to understand it. It brings the body of knowledge together so we are seeing the full picture and understanding more, but in essence the message is simple: Organizations are lead and made great by people. Work out the motivations of people, develop them and you get a high performing organization!

    Great work
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  • This all seems highly theoretical. We shall see if the 40 best companies are still the 40 best in 10 years time. The problem with both Collins and Barrett is they look at what succeeded in the past and guess what.....companies that succeeded in the past did similar things. The skill is in understanding what will work in the future
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  • very well done!
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  • 1. THE VALUES-DRIVEN ORGANISATION Unleashing Human Potential for Performance and Profit
  • 2. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 2 Richard Barrett’s Books 1998 2006 2010 2011 2012 Learning Modules: Leading Self Leading a Team Leading an Organisation Leading in Society Update and new research 2013
  • 3. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 3
  • 4. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 4 THE BIG QUESTION WHY ARE VALUES-DRIVEN ORGANISATIONS THE MOST SUCCESSFUL ORGANISATIONS ON THE PLANET? WHAT DO THEY FOCUS ON? WHAT MAKES THEM SUCCESSFUL? THEY CARE ABOUT THE NEEDS OF THEIR PEOPLE
  • 5. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 5 Q. WHERE CAN WE FIND SUCH ORGANISATIONS? A. THE BEST COMPANIES TO WORK FOR.
  • 6. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 6 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 employee’s basic needs and satisfying their growth needs: they focus on helping their employees feel happy and fulfilled. The Top 40 Best Companies to Work For (USA)
  • 7. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 7 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.
  • 8. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 8 Eighteen Firms of Endearment FOE Average Annualized Return 13.10% S&P 500 Average Annualized Return 4.12%$140m $280m $420m $560m PortfolioValue 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Firms of Endearment focus on meeting all stakeholders needs. The four pillars of FoE are Conscious Leadership, Conscious Culture, Stakeholder Integration and a Higher Purpose supported by Core Values.
  • 9. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 10 Conscious Capitalism Movement 20122007
  • 11. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 11 GtG Average Annualized Return 5.32% S&P 500 Average Annualized Return 4.12% $60m $100m $140m $180m PortfolioValue 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20m The 10 Good to Great Companies (Jim Collins) The seven characteristics Collins identified in the so-called Good to Great companies, on their own, are not sufficient for long-term success. Focusing on the needs of your employees and the culture of the company are more important.
  • 12. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 12 Abbott Laboratories Abbott Laboratories *Circuit City **Fannie Mae Gillette Company Kimberly-Clark Kimberley-Clark Kroger Co. Nucor Corp. Philip Morris International Inc. Pitney Bowes Inc. Pitney Bowes Inc. Walgreen Company ***Wells Fargo & Co. * No longer trading. ** Involved in a home mortgage scandal. *** Received $25 billion bailout from the Troubled Asset Relief Program (TARP) as part of the United States government’s response to the subprime mortgage crisis of 2008. The 10 Good to Great Companies
  • 13. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 13 THE DIFFERENCE BETWEEN THE BEST COMPANIES TO WORK FOR AND OTHER COMPANIES IS THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES– THEY CARE ABOUT WHAT THEIR EMPLOYEES VALUE.
  • 14. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 14 UNDERSTANDING EMPLOYEE’S NEEDS—what people value (what makes them happy and brings meaning to their lives) —is the key to creating a high performing organisation. When you support employees in satisfying their needs, they respond with high levels of employee engagement—they bring their commitment and creativity to their work, and unleash their discretionary energy. They willingly go the extra mile to support the organisation in meeting its goals. IF YOU WANT TO BUILD A HIGH PERFORMANCE CULTURE THEN YOU NEED TO CARE ABOUT WHAT YOUR EMPLOYEES VALUE.
  • 15. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 15 AT ANY GIVEN MOMENT IN TIME, the values that are most important to us are a reflection of the stage of psychological development we have reached and our unmet basic needs,. Our needs (what we value) have always been, and always will be the principal drivers of our behaviors and actions. What motivates us is the satisfaction of our needs
  • 16. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 16 EvolutionofHumanConsciousness Physical Evolution The Evolution of Human Values Survival Relationship Self-esteem Transformation Internal cohesion Making a difference Service With the emergence of Homo Sapiens, evolution shifted from physical evolution to consciousness evolution BasicNeedsGrowthNeeds
  • 17. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 17 What Are Our Basic Needs and Growth Needs EvolutionofPersonalConsciousness Satisfying your physiological needs for security; staying alive and keeping your body healthy. Satisfying your emotional need for belonging, protection and connection. Satisfying your emotional need to be recognized for your skills, talents or qualities. Satisfying your need for autonomy, freedom, independence and adventure. Satisfying your need for authenticity and finding meaning and purpose in your life. Satisfying your need to actualize your purpose by influencing or impacting the world around you. Satisfying your need to leave a legacy—to have led a life of significance that will be remembered. Growth Needs Basic Needs At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.
  • 18. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 18 Figure 1: The Stages of Psychological Development EvolutionofPersonalConsciousness Surviving: Satisfying your physiological needs by learning how to stay alive, keep fit and healthy, and staying free from harm. Conforming: Keeping safe and nurtured by those around you by being loyal to your family, kin, colleagues and culture. Differentiating: Finding ways to be admired and recognized by your parents and peers by excelling at what you do best. Individuating: Letting go of the aspects of your parental and cultural conditioning that prevent you from becoming who you really are. Self-actualizing: Becoming fully who you are by finding your sense of purpose and leading a values-driven life. Integrating: Aligning with others who share your values and purpose to make a difference in the world. Serving: Fulfilling your destiny by leaving a legacy and using your gifts in service to the world.
  • 19. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 19 Three Stages of Mind Development In Immunity to Change Robert Kegan and Lisa Laskow Lahey identify three plateaus of adult psychological development (ability to handle complexity)—the socialized mind, the self- authoring mind and self-transforming mind. Robert Kegan and Lisa Laskow Lahey, Immunity to Change (Boston: Harvard Business School Publishing), 2009, pp.16-21.
  • 20. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 20 Three Stages of Mind Development THE SOCIALISED MIND is focused on meeting its survival, relationship and self-esteem needs. People operating with a socialised mind think of their work as a job—a way of earning a living. They may enjoy their work and colleagues, but are not passionate about what they do. THE SELF-AUTHORING MIND is focused on achievement and ambition. People operating with a self-authoring mind seek opportunities for advancement. They think of their work as career—a pathway to a better future. THE SELF-TRANSFORMING MIND is focused on leading a values and purpose-driven life. People operating with a self-transforming mind see their work as a mission. They want to leave a legacy and be of service to the world.
  • 21. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 21 Complexity of Thinking THE SOCIALISED (Dependent) MIND Communication is strongly influenced by what others need to hear so it can fit into its social context. Filters what it hears so that it can maintain alignment with others. Limited ability for independent thinking. THE SELF-AUTHORING (Independent) MIND Communication is strongly influenced by what others need to hear to further its agenda. It places a priority on receiving information that supports its mission. Prisoner to its filter. THE SELF-TRANSFORMING (Interdependent) MIND This mind is not a prisoner to its filter. It can stand back and look at it, not just through it. Open to considering different perspectives and modifying its thinking and direction.
  • 22. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 22 Motivating the Socialized Mind SURVIVAL: A safe environment and income and benefits that are sufficient to take care of our needs and the needs of our families. RELATIONSHIP: A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. SELF-ESTEEM: Opportunities to learn, grow and develop skills and talents with support, feedback and coaching from people we know and trust.
  • 23. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 23 Motivating the Self-Authoring Mind TRANSFORMATION: Opportunities to use my gifts and talents by being made accountable for challenging projects or process changes which meet the goals or objectives of the organisation. INTERNAL COHESION: Opportunities to lead a values- and purpose-driven life that is meaningful to me and supports me and the organisation in meeting its objectives.
  • 24. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 24 Figure 4: Motivating the Self-Transforming Mind MAKING A DIFFERENCE: Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. SERVICE: Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
  • 25. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 25 Happiness YOU FEEL HAPPY when you are able to meet your basic needs, but you feel anxious or fearful when you are prevented from meeting these needs or when the satisfaction of these needs is under threat—when you lose a job, when you lose a friend or a close companion or when you feel people do not respect you. Happiness is the feeling you get when you achieve internal stability and external equilibrium at the ego level of existence—when you are able to satisfy your basic needs.
  • 26. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 26 Meaning THE ABILITY TO MEET your growth needs engenders a deeper feeling than happiness, and consequently a deeper level of motivation and commitment to the satisfaction of these needs. You experience joy and contentment when you are able to satisfy your growth needs because you are experiencing a deeper sense of alignment with who you truly are. You are discovering your authentic (soul) self and finding meaning and purpose for your life. Joy and contentment are the feelings you get when you are able to satisfy your growth needs.
  • 27. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 27 How We Find Happiness/Meaning at Each Stage of Development Stage of Development (Level of Consciousness) Cause of Happiness/Joy 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
  • 28. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 28 Causes of Happiness/Meaning: What We Value from our Work Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
  • 29. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 29 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. SURVIVAL: WHAT WE VALUE A safe environment and income and benefits that are sufficient to take care of our needs and the needs of our families.
  • 30. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 30 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. RELATIONSHIP: WHAT WE VALUE A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
  • 31. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 31 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities to learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. SELF-ESTEEM: WHAT WE VALUE Opportunities to learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
  • 32. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 32 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. TRANSFORMATION: WHAT WE VALUE Opportunities to use our gifts and talents by being made accountable for challenging projects or process changes of significance to ourselves or others.
  • 33. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 33 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. INTERNAL COHESION: WHAT WE VALUE Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting its objectives.
  • 34. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 34 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. MAKING A DIFFERENCE: WHAT WE VALUE Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
  • 35. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 35 What We Value at Different Levels of Consciousness Stage of Development (Level of Consciousness) Cause of Happiness/Joy What We Value from our Work 7 Serving (Service) Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Integrating (Making a difference) Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Self-actualizing (Internal cohesion) Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives. 4 Individuating (Transformation) Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Differentiation (Self-esteem) Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Conforming (Relationship) Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival (Survival) Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. SERVICE: WHAT WE VALUE Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
  • 36. The Four Conditions for Employee Engagement
  • 37. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 37 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.
  • 38. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 38 Four 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. They serve the greater good. 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. 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.
  • 39. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 39 Types of Mind/Level of Engagement/Potential Risk Socialised Mind (Staff) Self-Authoring Mind (Managers) Self-Transforming Mind (Leaders) Highly Engaged n.a. (A) Low Risk Low Risk Engaged Low Risk Medium Risk Low Risk Disengaged Medium Risk High Risk n.a. (B) Highly Disengaged High Risk n.a. (B) n.a. (B) n.a. = Not applicable. Unlikely to find someone with this type of mind at this level of engagement in the organisation. (A) People with a socialized mind tend not to be highly engaged with their work. They are more focused on their lives outside of work. (B) As soon as people with self-authoring and self-transforming minds become disengaged they tend to seek out other employment where they can satisfy their ambitions
  • 40. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 40 Human Group Structures Individual Collective Interior Exterior Character Personality Culture Society Based on the Four Quadrants of Ken Wilbur
  • 41. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 41 Four Conditions for Employee Engagement Individual Collective Interior Exterior Character Personality Culture Society Personal Alignment Structural Alignment Mission Alignment Values Alignment Employee Engagement
  • 42. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 42 What Engaged Employees Experience Individual Collective Interior Exterior Character Personality Culture Society Mission Alignment Values Alignment
  • 43. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 43 What Leaders Must Do to Create Engagement Individual Collective Interior Exterior Character Personality Culture Society Personal Alignment Structural Alignment
  • 44. How Do You Create a Culture of Engagement
  • 45. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 45 THE CULTURE OF AN ORGANISATIONAL is a reflection of leadership consciousness—the stage of psychological development that the leaders have reached. ORGANISATIONAL TRANSFORMATION begins with the personal transformation of the leaders. Organisations don’t transform; people do. MEASUREMENT MATTERS: Whatever you measure (focus your attention on a regular basis ) tends to improve. The Three Mantras of Culture Change
  • 46. 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 CVA Current Culture PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 LVA Feedback 27 Assessors PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 Cultural Evolution Begins with Personal Evolution Cultural Entropy 7% Personal Entropy 9% Culture Values Leader’s Values The culture of an organisation is a reflection of leadership consciousness. Internal Cohesion Internal Cohesion
  • 47. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 47 What the Best Leaders Focus on … Based on 3600 Leadership Values Feedback carried out on 100 leaders from 19 countries (2008-2010). Commitment * Controlling (L) Ambitious Results orientation Demanding (L) Experience Goals orientation Authoritarian (L) Humor/fun * Power (L) Commitment * Positive attitude * Accessible Teamwork Trustworthy * Integrity * Accountability Customer satisfaction Enthusiasm * Fairness * Low Entropy Leaders (0-6%) High Entropy Leaders (21%+) Values that create internal cohesion … Internal Cohesion* Self- Esteem
  • 48. The Seven Levels of Consciousness Model
  • 49. 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
  • 50. Maslow’s Needs to Barrett’s Consciousness 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
  • 51. 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. Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship SurvivalPhysiological Safety Love & Belonging Self-esteem Know and Understand
  • 52. 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
  • 53. 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
  • 54. Placement of Values by Level 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 100 Employees Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  • 55. Distribution of Values by Level Current Culture 100 Employees 11% 1 2 3 4 5 6 7 Cultural Entropy Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  • 56. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 56 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. Employee Engagement vs. Cultural Entropy
  • 57. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 57 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. Employee Engagement vs. Cultural Entropy
  • 58. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 58 Cultural Entropy Most employees are …. Potentially limiting values showing up in current culture Culture Risk 10% or less Highly Engaged Low Risk 11% to 20% Engaged Low Risk 21% to 30% Becoming Disengaged Bureaucracy, Hierarchy, Confusion Medium Risk 31% to 40% Disengaged Bureaucracy, Hierarchy, Confusion, Control, Short-term focus, Silo- mentality, Long hours High Risk 41% or more Highly Disengaged Bureaucracy, Short-term focus, Hierarchy, Blame, Control, Confusion, Information Hoarding, Silo-mentality Very High Risk
  • 59. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 59 Low Cultural Entropy Leads to High Financial Returns Entropy Level 3 Year Revenue Growth % <10% 32.87% 10% – 19% 24.90% 20% – 29% 11.39% >29% 11.07% Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.
  • 60. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 60 What is Cultural Entropy? The amount of energy in an organisational culture that is consumed in doing unproductive work—work that does not add value. It is a measure of the conflict, friction and frustration that exists in an organisation due to potentially limiting values such as: bureaucracy, blame, power, greed … (self-interest) Cultural entropy is a function of the personal entropy of the current leaders of an organisation and the institutional legacy of past leaders as embedded in the structures, systems, policies and procedures.
  • 61. Cultural Entropy In Organisations Entropy Impact <10% Prime: Healthy Culture: This is a low and healthy level of cultural entropy. 11-20% Minor Issues: Minor issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment. It is important to reduce the level of cultural entropy to improve performance. 21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching. It is important to reduce the level of cultural entropy to improve performance. 31-40% Serious Issues: is level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching. It is important to reduce the level of entropy to improve performance. 41+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching. It is important to reduce the level of cultural entropy to improve performance.
  • 62. 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 Values Leader’s Values The culture of an organisation is a reflection of leadership consciousness.
  • 63. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 63 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.
  • 64. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 64 Fear-Based Beliefs Level 3: Self-esteem Consciousness: Limiting beliefs the individual holds about not being enough – a lack of self- esteem or confidence in themselves that causes them to over compensate through the excessive use of power, authority, or status seeking. Level 2: Relationship Consciousness: Limiting beliefs the individual holds about not belonging – a lack of acceptance or respect for themselves that causes them to over compensate by competing for attention, blaming others, and standing in judgement. Level 1: Survival Consciousness: Limiting beliefs the individual holds about not having enough – a lack of assurance that they will be safe and survive that causes them to over compensate through greediness, control, and excessive caution.
  • 65. Measuring the Culture by Mapping Values
  • 66. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 66 World-Wide Use
  • 67. Personal Values Pick ten values/behaviours that most reflect who you are, not who you desired to become.
  • 68. Current Culture Values Pick ten values/behaviours that most reflect how your organisation currently operates.
  • 69. Desired Culture Values Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.
  • 70. Engineering and Projects Company (339) 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)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0 Matches PV - CC 1 CC - DC 4 PV - DC 2 Health Index (PL) PV: 10-0 CC: 7-3 DC: 10-0 1. honesty 169 5(I) 2. accountability 165 4(R) 3. commitment 150 5(I) 4. continuous learning 92 4(I) 5. balance (home/work) 91 4(I) 6. family 91 2(R) 7. self-discipline 91 1(I) 8. responsibility 89 4(I) 9. respect 81 2(R) 10. open communication 76 2(R) 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 1. continuous improvement 111 4(O) 2. customer satisfaction 111 2(O) 3. safety conscious 102 1(O) 4. cost reduction 88 1(O) 5. job insecurity (L) 77 1(O) 6. inconsistent (L) 75 3(I) 7. teamwork 74 4(R) 8. accountability 71 4(R) 9. blame (L) 71 2(R) 10. corporate image 64 3(O) 1. accountability 180 4(R) 2. customer satisfaction 147 2(O) 3. continuous improvement 143 4(O) 4. employee development 111 4(O) 5. employee recognition 96 2(R) 6. commitment 95 5(I) 7. inspirational leadership 95 6(O) 8. employee fulfilment 94 6(O) 9. teamwork 90 4(R) 10. professionalism 80 3(O) Values Plot Copyright 2011 Barrett Values Centre February 2011 The values that are important to employees in their personal lives. How employees experience the company - What is working well? What is undermining the sustainability of the company. What employees believe is necessary for the company to achieve its full potential
  • 71. 1% 1% 1% 9% 12% 17% 24% 8% 6% 21% 0% 20% 40% 1 2 3 4 5 6 7 6% 5% 12% 10% 8% 14% 11% 9% 5% 20% 0% 20% 40% 1 2 3 4 5 6 7 1% 1% 0% 6% 12% 16% 19% 13% 5% 27% 0% 20% 40% 1 2 3 4 5 6 7 Engineering and Projects Company (339) C T S Values Distribution Copyright 2011 Barrett Values Centre February 2011 C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values CTS = 38-21-41 Entropy = 3% CTS = 25-20-55 Entropy = 23% CTS = 37-27-36 Entropy = 2% Personal Values Current Culture Values Desired Culture Values Total number of votes for all values at each level Cultural Entropy % of Votes for Limiting Values Common Good Transformation Self Interest
  • 72. Value Current Culture Votes Desired Culture Votes Value Jump accountability 71 180 109 inspirational leadership 15 95 80 employee fulfilment 23 94 71 employee recognition 28 96 68 employee development 57 111 54 professionalism 36 80 44 efficiency 30 74 44 commitment 55 95 40 honesty 33 70 37 balance (home/work) 29 66 37 Value JumpsValue Jumps
  • 73. ESPOUSED VALUE CC VOTES DC VOTES Difference* Customer satisfaction 111 147 +10% Accountability 71 180 +32% Honesty 33 70 +11% Employee fulfilment 23 94 +21% Espoused Values Analysis Espoused Values Analysis
  • 74. Examples of Cultural Evolution
  • 75. An Example of Cultural Evolution
  • 76. Entropy 14%Entropy 25% Entropy 19% Entropy 17% Nedbank: Current Culture Evolution 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 4 matches4 matches3 matches 5 matches
  • 77. Entropy 14% Entropy 13% Entropy 13% Entropy 11% Nedbank: Current Culture Evolution 2009 2010 2011 6 matches6 matches6 matches 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
  • 78. Nedbank: 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
  • 79. 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 Nedbank: 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
  • 80. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 80 Evolution 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 not just paying attention to the results of the assessment, but were taking actions to reduce cultural entropy and increase the values and mission alignment every year.
  • 81. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 81 Cultural Entropy Evolution Entropy risk bands 0 -10% Healthy functioning 11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation Entropy reduced or stayed the same every year. Entropy reduction led to improved performance through increased employee engagement—increased revenues, productivity, share price, etc. Working toward entropy of 10% will result in healthy functioning of the organisation and improved staff morale. 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
  • 82. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 82 Values Alignment and Mission Alignment 1 1 1 1 2 2 2 43 4 4 5 6 6 7 5 0 1 2 3 4 5 6 7 8 2005 2006 2007 2008 2009 2010 2011 2012 PV/CC Matches CC/DC Matches Mission Alignment Values Alignment
  • 83. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 83 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 Total revenue increases as cultural entropy falls. Global Economic Meltdown
  • 84. 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
  • 85. 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. Low entropy organisations are extremely resilient. Share Price Evolution Global Economic Meltdown
  • 86. Barrett Values Centre: Group (16) commitment 12 5(I) continuous improvement 10 4(O) employee fulfilment 10 6(O) balance (home/work) 9 4(O) customer satisfaction 9 2(O) making a difference 9 6(S) financial stability 8 1(O) humour/ fun 8 5(O) teamwork 8 4(R) accountability 4 4(R) adaptability 4 4(I) customer collaboration 4 6(O) shared values 4 5(O) shared vision 4 5(O) accountability 9 4(R) commitment 8 5(I) continuous improvement 8 4(O) employee fulfilment 8 6(O) humour/ fun 8 5(O) shared vision 8 5(O) customer collaboration 7 6(O) customer satisfaction 6 2(O) financial stability 6 1(O) teamwork 6 4(R) Values Plot August 6, 2012Copyright 2012 Barrett Values Centre I = Individual R = Relationship Black Underline = PV & CC Orange = PV, CC & DC Orange = CC & DC Blue = PV & DC P = Positive L = Potentially Limiting (white circle) O = Organisational S = Societal Matches PV - CC 5 CC - DC 10 PV - DC 3 Health Index (PL) PV - 9-0 CC - 14-0 DC-10-0 making a difference 10 6(S) family 9 2(R) commitment 8 5(I) humour/ fun 8 5(I) balance (home/work) 6 4(I) continuous learning 6 4(I) integrity 6 5(I) accountability 5 4(R) creativity 5 5(I) Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC) 7 6 5 4 3 2 1 IRS (P)=6-2-1 IRS (L)=0-0-0 IROS (P)=2-2-9-1 IROS (L)=0-0-0-0 IROS (P)=1-2-7-0 IROS (L)=0-0-0-0
  • 87. Barrett Values Centre: Group (16) CTS = 53-22-25 Entropy = 0% CTS = 50-26-24 Entropy = 2% Personal Values CTS = 51-29-20 Entropy = 0% Values distribution August 6, 2012Copyright 2012 Barrett Values Centre Positive Values Potentially Limiting Values Current Culture Values Desired Culture Values C T S 2 1 3 4 5 6 7 C = Common Good T = Transformation S = Self-Interest 0% 0% 0% 6% 12% 7% 22% 32% 13% 8% 0% 20% 40% 60% 1 2 3 4 5 6 7 0% 1% 1% 6% 8% 8% 26% 28% 19% 3% 0% 20% 40% 60% 1 2 3 4 5 6 7 0% 0% 0% 5% 5% 10% 29% 27% 22% 2% 0% 20% 40% 60% 1 2 3 4 5 6 7
  • 88. Barrett Values Centre: Group (16) Business Needs Copyright 2012 Barrett Values Centre August 6, 2012 Desired Culture Values Current Culture Values Finance Fitness Evolution Client Relations Culture Culture Societal Contribution Fitness Evolution Current Culture Desired Culture Finance financial stability financial stability Fitness accountability accountability Client Relations customer satisfaction customer collaboration customer collaboration customer satisfaction Evolution continuous improvement adaptability continuous improvement Culture employee fulfilment balance (home/work) humour/ fun teamwork shared values shared vision employee fulfilment humour/ fun shared vision teamwork Societal Contribution making a difference Client Relations
  • 89. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 89 Cultural Entropy Evolution 1% 1% 7% 10% 8% 8% 3% 2% 0% 2% 4% 6% 8% 10% 12% 2005 2006 2007 2008 2009 2010 2011 2012 Cultural Entropy Entropy risk bands 0 -10% Healthy functioning 11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation Entropy increased during the period 2006 to 2008, then reduced slightly, and then reduced significantly. Entropy reduction led to improved performance through increased employee engagement— increased revenues, and productivity, etc.
  • 90. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 90 Values Alignment and Mission Alignment Mission Alignment Values Alignment 0 1 2 3 4 5 6 7 8 9 10 2005 2006 2007 2008 2009 2010 2011 2012 PV/CC Matches CC/DC Matches Even though cultural entropy increased, values alignment increased… mission alignment decreased. Mission alignment increased with reduction in cultural entropy.
  • 91. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 91 Revenue Evolution 1% 1% 7% 10% 8% 8% 3% 2% 1.52 1.55 1.73 1.93 2.37 2.37 2.91 3.3 0 0.5 1 1.5 2 2.5 3 3.5 0% 2% 4% 6% 8% 10% 12% 2005 2006 2007 2008 2009 2010 2011 2012 Cutlural Entropy Revenue ($ millions) Revenue steadily increases. Rate of increase in revenue growth faster as entropy falls. Global Economic Meltdown
  • 92. Productivity decreases with rise in entropy and then increases as entropy falls. Productivity increases even during economic meltdown Productivity Evolution 1% 1% 7% 10% 8% 8% 3% 2% 2% 217 194 144 138 158 169 162 183 203 0 50 100 150 200 250 0% 2% 4% 6% 8% 10% 12% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Cultural Entrop[y Productivity ($ '000 per employee)

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