Berlin: Leadership in values-driven organizations

Leadership in Values-Driven Organizations
RICHARD BARRETT

Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
2
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
MY TALK THIS EVENING
LEADERSHIP IN VALUES-DRIVEN
ORGANIZATIONS
BUT FIRST
WHO AM I?

3
Who am I?
Chairman and Founder of the
Barrett Values Centre
(www.richardbarrett.net)
OUR MISSION
To support leaders in building positive values-driven
organizations.
OUR VISION
To create a positive values-driven society.

My Books
1998 2006 2010 20111995
2012 2013 2014 2015 2016

Books about Personal Transformation
1995
2012

Books about Organizational Transformation
1998 2006
2013

Books about National Transformation
2011
2015

Books about Leadership
2010
2014

Books about Psychology
2012 2014 2016

10
Organizational Transformation
“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 Global Business, Babson
College, USA.

11
2013 2016

12
Today: A deeper dive into leadership …

13
A Crisis in Leadership
John Kotter, Harvard Business School
After conducting fourteen formal
studies and more than a thousand
interviews, directly observing dozens
of executives in action, and compiling
innumerable surveys, I am completely
convinced that most organisations
today lack the leadership they need.

14
A Crisis in Leadership
Shoshana Zuboff, Harvard Business School
We managed to produce a generation
of managers and business
professionals that is deeply mistrusted
and despised by a majority of people
in our society and around the world.
This is a terrible failure.

Global Sustainability Issues
Pandemics
Climate
Change
Global
Economy
Global
Terrorism
Poverty
Reduction
Food
Resilience
Natural
Disasters
Energy
Resilience
Species
Extinction
Water
Shortages
The significant problems
we face cannot be solved
at the same level of
thinking that created them.
Pollution
Waste
Disposal

16
The Sustainability Challenge
Richard Barrett
The problems of existence have
become global but the decision-
making structures we have for
dealing with them are national.
We cannot move forward without a
New Leadership Paradigm.

Sustainability and the
New Leadership Paradigm
Business is a wholly owned subsidiary of society, and
society is wholly owned subsidiary of the environment.
If we lose our environment and our life-support systems,
our society will perish.
If we lose our society, we will lose our economy and
our businesses will perish too.
Our Business Leaders need to recognise that:

What this means for Business
Building a sustainable future for everyone is not just
societal imperative. It is business imperative, too.
Business leaders need to work with their
competitors, political and civic leaders to define a
framework of policies that support the evolution of
our global society by developing industry charters
that regulate the rules of competition between
companies in a way that supports the global goals
for sustainable development.

19
The Global Goals for Sustainable Development

20
WHAT IS BEING called forth in business
and politics is a global paradigm shift. It’s a
shift from a world focused on self-interest
to a world focused on the common good.
It’s a shift from “what’s in it for me” to
“what’s best for everyone;” from being
the best in the world, to being the best for
the world.
Richard Barrett, The New Leadership Paradigm
A New Leadership Paradigm

21
EVERY SUCCESSFUL BUSINESS LEADER HAS
TO MAKE THE SHIFT FROM “I” TO “WE.”
Bill George, True North: Discover Your Authentic
Leadership (San Francisco: Jossey-Bass, 2007).

22
SEPARATION AND ISOLATION COMMUNITY AND COHESION
Moving from … To …

23
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
WHERE SHOULD WE BEGIN?
START BY BUILDING VALUES-DRIVEN
ORGANIZATIONS

WHY A VALUES-DRIVEN CULTURE?
Values Alignment
Performance
BECAUSE VALUES-DRIVEN
CULTURES ARE THE MOST
SUCCESSFUL ON THE
PLANET

25
WHY ARE VALUES-DRIVEN CULTURES
THE MOST SUCCESSFUL?
BECAUSE THEY CARE ABOUT THE
NEEDS OF THEIR EMPLOYEES, AND …

… THEY ALSO CARE ABOUT THE NEEDS
OF ALL THEIR STAKEHOLDERS
Suppliers Community

27
Chapman and Sisodia, “Everybody Matters” 2015.
Everyone wants to do better. Trust
them. Leaders are everywhere.
People achieve good things, big
and small, every day. Celebrate
them. Everybody matters. Show
them.
The Extraordinary Power of Caring for
your People like your Family

28
Bob Chapman, CEO of the $1.7
billion company Barry-Wehmiller.
The Extraordinary Power of Caring for
your People like your Family
Raj Sisodia, Professor of Global
Business, Babson College, USA.

29
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)

31
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.

32
Intangible Assets make up most of market value
17%
32%
68%
80% 84%
83%
68%
32%
20% 16%
0%
20%
40%
60%
80%
100%
1975 1985 1995 2005 2015
Intangible Assets Tangible Assets
Source: Ocean Tomo LLC, January 2015
Components of S&P 500

33
I am going to show you values
assessments of two teams.
Based on the results, I want you
to decide which team you would
choose to work in.

34
Customer satisfaction
Making a difference
Commitment
Employee fulfilment
Continuous
improvement
Humour/fun
Shared vision
Customer collaboration
Balance (home/work)
Teamwork
CURRENT CULTURE of
TEAM “A”
Long hours(L)
Confusion (L)
Short-term focus (L)
Blame (L)
Information hoarding
(L)
Manipulation (L)
Hierarchy (L)
Results orientation
Bureaucracy (L)
Quality
CURRENT CULTURE of
TEAM “B”

35
Which of these teams do you think is the most successful?
Customer satisfaction
Making a difference
Commitment
Employee fulfilment
Continuous improvement
Humour/fun
Shared vision
Customer collaboration
Balance (home/work)
Teamwork
Long hours(L)
Confusion (L)
Short-term focus (L)
Blame (L)
Information hoarding (L)
Manipulation (L)
Hierarchy (L)
Results orientation
Bureaucracy (L)
Quality
CURRENT CULTURE
of TEAM “A”
CURRENT CULTURE
of TEAM “B”

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

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.

What are Values?
A shorthand way of describing our
individual and collective motivations
and what is important to us.
They are the energetic
drivers of our aspirations
and intentions.

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

40

41

42
1. What is your primary motivation at work?
2. What is your primary motivation outside work?
3. Are you able to get
your motivations met at
your current place of
work?
4. Discuss with a
partner.

43
Levels of Consciousness
All things being normal, the level of
consciousness we operate from will
correspond to the stage of psychological
development we have reached.

44
Stages and Levels
Stages Levels of Consciousness
Serving SERVICE
Integrating MAKING A DIFFERENCE
Self-actualising INTERNAL COHESION
Individuating TRANSFORMATION
Differentiating SELF-ESTEEM
Conforming RELATIONSHIP
Surviving SURVIVAL
EvolutionofPersonalConsciousness

45
Stages of Psychological Development
Surviving

46
INFANCY
0-2 Years Old
Staying alive!
COMPETENCY
Ability to meet basic
physiological needs.
Surviving
Stage Motivation

47
Conforming

48
Conforming
Stage Motivation
CHILDHOOD
3-7 Years Old
Keeping safe and secure!
BEING LOVED
Ability to feel accepted and
sense of belonging.

49
Differentiating

50
Differentiating
Stage Motivation
TEENAGER +
8-24Years Old
Distinguishing yourself!
CONFIDENCE
Ability to feel respected
and recognized by others.

51
INDIVIDUATING

52
INDIVIDUATING
Stage Motivation
YOUNG ADULT
25-39 Years Old
Releasing your fears!
ACCOUNTABILITY
Finding freedom and
autonomy to understand
who you really are.

53
SELF-ACTUALIZING

54
SELF-ACTUALIZING
Stage Motivation
ADULTHOOD
40-49 Years Old
Becoming who you are!
SELF-EXPRESSION
Ability to satisfy your
desire for meaning
and purpose.

55
INTEGRATING

56
INTEGRATING
Stage Motivation
MATURE ADULT
50-59 Years Old
Aligning with others!
CONNECTION
Ability to satisfy the desire
to make a difference
in your world.

57
SERVING

58
SERVING
Stage Motivation
SENIOR
60+ Years Old
Finding fulfilment!
CONTRIBUTION
Ability to satisfy your
desire to serve the
greater good.

BUILDING A VALUES-DRIVEN CULTURE

The Seven Levels of Consciousness Model

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

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

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

Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
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
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Making a difference

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
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Making a difference

67
The Culture Change Process
1. Cultural
Values
Assessment
2. Share results
and start
dialogue
3. Prioritize
values
4. Identify
behaviours
5. Create culture
development
plan
6. Implement
changes and
programmes
ENTROPY
PERFORMANCE

68
BUILDING A VALUES-DRIVEN ORGANSIATION
START WITH A VALUES SURVEY

The Values Survey
PERSONAL VALUES
Which of the following values/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.

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

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

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

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

74
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.

Highly Engaged Team (19)
customer satisfaction 13 2(O)
making a difference 13 6(S)
commitment 10 5(I)
employee fulfilment 10 6(O)
continuous improvement 9 4(O)
humour/ fun 9 5(O)
shared vision 9 5(O)
customer collaboration 8 6(O)
balance (home/work) 6 4(O)
teamwork 6 4 (R)
employee fulfilment 10 6(O)
shared vision 9 5(O)
continuous learning 8 4(O)
accountability 6 4(R)
innovation 6 4(O)
teamwork 6 4(R)
trust 6 5(R)
Values PlotCopyright 2015 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 4
CC - DC 6
PV - DC 4
Cultural Entropy:
Current Culture
7%
family 15 2(R)
humour/ fun 11 5(I)
well-being 11 6(I)
continuous learning 10 4(I)
commitment 8 5(I)
financial stability 7 1(I)
trust 7 5(R)
compassion 6 7(R)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=6-4-1 IRS (L)=0-0-0 IROS (P)=1-1-8-1 IROS (L)=0-0-0-0 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0

Highly Engaged Team (19)
Personal Values
Values DistributionCopyright 2015 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%
5%
14%
9%
21%
25%
17%
9%
0% 20% 40% 60%
1
2
3
4
5
6
7
2%
0%
5%
6%
10%
4%
20%
28%
24%
1%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
0%
0%
5%
9%
10%
27%
23%
22%
4%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24
Cultural Entropy = 0%
Low level of
Cultural Entropy
= High level of
Employee
Engagement
26%
46%
28%
25%
48%
27%
26%
50%
24%

77
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.

Highly Disengaged Team (24)
confusion (L) 15 3(O)
long hours (L) 12 3(O)
short-term focus (L) 11 1(O)
blame (L) 10 2(R)
information hoarding (L) 9 3(R)
manipulation (L) 8 2(R)
hierarchy (L) 8 3(O)
results orientation 7 3(O)
bureaucracy (L) 6 3(O)
quality 6 3(O)
information sharing 10 4(O)
quality 9 3(O)
teamwork 8 4(R)
professionalism 7 3(O)
efficiency 6 3(O)
balance (home/work) 6 4(O)
continuous learning 6 4(O)
Values PlotCopyright 2016 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 0
CC - DC 1
PV - DC 2
Cultural Entropy:
Current Culture
47%
commitment 26 5(I)
honesty 12 5(I)
integrity 9 5(I)
adaptability 8 4(I)
continuous learning 8 4(I)
responsibility 8 4(I)
cooperation 8 5(R)
efficiency 7 3(I)
family 6 2(R)
humour/ fun 6 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=9-3-0 IRS (L)=0-0-0 IROS (P)=0-0-3-0 IROS (L)=0-3-5-0 IROS (P)=0-3-8-0 IROS (L)=0-0-0-0

Highly Disengaged Team (24)
Personal Values
Values DistributionCopyright 2016 Barrett Values Centre
Positive 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
2%
0%
0%
6%
10%
13%
21%
36%
7%
5%
0% 20% 40% 60%
1
2
3
4
5
6
7
11%
11%
25%
6%
6%
11%
16%
7%
5%
2%
0% 20% 40% 60%
1
2
3
4
5
6
7
2%
0%
0%
3%
10%
18%
32%
23%
9%
3%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 48-21-31 CTS = 14-16-70 CTS = 35-32-33
Cultural Entropy = 2% Cultural Entropy = 2%
High level of
Cultural Entropy
= Low level of
Employee
Engagement

80
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?

81
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.

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

The culture of
an organisation
is a reflection
of leadership
consciousness.
LV A Feedback 14 Assessors
PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0
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
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

84
How to Measure Personal Entropy?
LEADER’S VALUES
Which of the following values/behaviours
most reflect how you operate? Pick ten.
ASSESSOR’S OBSERVED VALUES OF LEADER
Which of the following values/behaviours
most reflect how Leader “X” operates? Pick
ten.
http://www.valuescentre.com/our-products/products-
leaders/leadership-values-assessment-lva
LEADERSHIP VALUES ASSESSMENT

long hours (L) 16 3(I)
quality conscious 13 3(O)
drive and determination 12 4(I)
analytical 10 3(I)
commitment 10 5(I)
cautious (L) 8 1(I)
reliable 8 3(R)
achievement 7 3(I)
demanding (L) 7 2(R)
internally competitive (L) 6 2(R)
strategic thinker 6 4(I)
High Entropy Leader (20 Assessors)
Matches 3
adaptability 4(I)
connecting with stakeholders 6(R)
drive and determination 4(I)
goals orientation 4(O)
innovative 4(I)
long hours (L) 3(I)
making a difference 6(O)
strategic thinker 4(I)
vision 7(I)
win-win partnerships 6(O)
Level Leader Observed Values
7
6
5
4
3
2
1
PL= 9-1 | IROS (P)=5-1-3-0 | IROS (L)=1-0-0-0 PL= 7-4 | IROS (P)=5-1-1-0 | IROS (L)=2-2-0-0
Orange=Values Match
P=Positive
L=Potentially Limiting (white circle)
I=Individual
R=Relationship
O=Organisational
S=Societal
Entropy = 27%

10%
50%
30%
10%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 40-50-10
Entropy = 10%
CTS = 20-20-60
Entropy = 27%
Leader
High Entropy Leader (20 Assessors)
Positive Values
Observed Values
C
T
S
C=Common Good
T=Transformation
S=Self-Interest
9%
8%
10%
1%
7%
25%
20%
12%
5%
3%
0% 20% 40% 60%
1
2
3
4
5
6
7
1
2
3
4
5
6
7

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.

88
BUILDING A VALUES-DRIVEN CULTURE
THE JOURNEY

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
2. accountability
3. client-driven
6. performance driven
7. profit
8. bureaucracy (L)
9. teamwork
2006
1. client-driven
2. accountability
7. profit
8. achievement
9. being the best
2007 2008
1. accountability
2. client-driven
5. achievement
7. teamwork
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%

2009 2010 2011
1. accountability
2. client-driven
6. achievement
7. teamwork
8. employee recognition
9. being the best
1. accountability
3. client-driven
4. teamwork
5. brand reputation
6. being the best
7. achievement
8. commitment
1. accountability
2. client-driven
4. brand reputation
5. achievement
6. teamwork
7. environmental awareness
8. commitment
9. being the best
6 Matches CC-
DC
Entropy 13%
6 Matches CC-
DC
Entropy 13%
6 Matches CC-
DC
Entropy 11%
2012
1. accountability
3. client-driven
4. brand reputation
5. teamwork
10. people-centred
5 Matches CC-
DC
Entropy 10%

2013 2014
5 Matches CC-
DC
Entropy 11%
6 Matches CC-
DC
Entropy 13%
1. accountability
3. client-driven
4. brand reputation
7. teamwork
8. achievement
9. integrity
1. accountability
3. client-driven
4. brand reputation
6. teamwork
10. commitment
Despite a slight rise
in cultural entropy,
profitability and
productivity
continue to increase
year on year.

Evolution of Number of Survey Participants
8%
25%
38%
51%
67%
73%
77%
75% 74% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005200620072008200920102011201220132014
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.

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%
11%
13%
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cutlural Entropy

Income Evolution
0%
5%
10%
15%
20%
25%
30%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Income Cultural Entropy
Annual
income
increases as
cultural
entropy falls.
Global Economic
Meltdown

0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1000
1200
1400
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenue per Capita Cultural Entropy
Income per
capita
increases as
cultural
entropy falls.
Productivity Evolution
Global Economic
Meltdown

0%
5%
10%
15%
20%
25%
30%
0
2000
4000
6000
8000
10000
12000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Profit Cutlural Entropy
Profit increases
as cultural
entropy falls.
Profit Evolution
Global Economic
Meltdown

97
Free material on Change & Transformation
To grow a shared culture
To lead people through change
Available on www.valuescentre.com
To plan and lead
cultural transformation
Checklist and overview

For more information
and get a copy of this presentation
go to:
www.richardbarrett.net
&

Berlin: Leadership in values-driven organizations

Berlin: Leadership in values-driven organizations

Recommended

More Related Content

What's hot

What's hot(19)

Similar to Berlin: Leadership in values-driven organizations

Similar to Berlin: Leadership in values-driven organizations(20)

More from Barrett Academy

More from Barrett Academy(13)

Recently uploaded

Recently uploaded(20)

Berlin: Leadership in values-driven organizations