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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
...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
3
Who am I?
Chairman and Founder...
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
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
10
Organizational Transformation...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
11
2013 2016
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
12
Today: A deeper dive into lea...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
13
A Crisis in Leadership
John K...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
14
A Crisis in Leadership
Shosha...
Global Sustainability Issues
Pandemics
Climate
Change
Global
Economy
Global
Terrorism
Poverty
Reduction
Food
Resilience
Na...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
16
The Sustainability Challenge
...
Sustainability and the
New Leadership Paradigm
Business is a wholly owned subsidiary of society, and
society is wholly own...
What this means for Business
Building a sustainable future for everyone is not just
societal imperative. It is business im...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
19
The Global Goals for Sustaina...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
20
WHAT IS BEING called forth in...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
21
EVERY SUCCESSFUL BUSINESS LEA...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
22
SEPARATION AND ISOLATION COMM...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
23
MY SPEECH TODAY
HOW TO CREATE...
WHY A VALUES-DRIVEN CULTURE?
Values Alignment
Performance
BECAUSE VALUES-DRIVEN
CULTURES ARE THE MOST
SUCCESSFUL ON THE
PL...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
25
WHY ARE VALUES-DRIVEN CULTURE...
… THEY ALSO CARE ABOUT THE NEEDS
OF ALL THEIR STAKEHOLDERS
Suppliers Community
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
27
Chapman and Sisodia, “Everybo...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
28
Bob Chapman, CEO of the $1.7
...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
29
S&P 500
Average
Annualized
Re...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
31
Highly Engaged Employees
 Hi...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
32
Intangible Assets make up mos...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
33
I am going to show you values...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
34
Customer satisfaction
Making ...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
35
Which of these teams do you t...
The Three Mantras of
Organizational Performance
Cultural Capital is the new frontier of
competitive advantage.
Mantras Imp...
The Leader and the Values
Peters and Waterman, “In Search of Excellence:
Lessons from America’s best run companies”, 1983
...
What are Values?
A shorthand way of describing our
individual and collective motivations
and what is important to us.
They...
Positive of Potentially Limiting?
Values can be positive or
potentially limiting.
Positive Values: Trust, creativity,
pass...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
40
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
41
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
42
1. What is your primary motiv...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
43
Levels of Consciousness
All t...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
44
Stages and Levels
Stages Leve...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
45
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
46
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
47
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
48
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
49
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
50
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
51
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
52
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
53
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
54
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
55
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
56
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
57
Stages of Psychological Devel...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
58
Stages of Psychological Devel...
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 engende...
Need s Con s ciou s n es s
Self-Actualization
Richard Barrett
Safety
Love & Belonging
Self-esteem
Physiological
Safety
Lov...
Maslow’s Needs to Barrett’s Consciousness
Need s Con s ciou s n es s
1. Expansion of self-actualization
into multiple leve...
Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
Financial Security & Safety
Creating ...
Positive Focus / Excessive Focus
Financial Stability
Shareholdervalue,organisationalgrowth,
employeehealth,safety.Control,...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
67
The Culture Change Process
1....
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
68
BUILDING A VALUES-DRIVEN ORGA...
The Values Survey
PERSONAL VALUES
Which of the following values/behaviours most reflect who you are? Pick
ten.
CURRENT CUL...
Placement of Values by Level (100 employees)
Top Ten Values
1. tradition (L) (59)
2. diversity (54)
3. control (L) (53)
4....
11%
1
2
3
4
5
6
7
Cultural
Entropy
Placement of Values by Level (100 employees)
Current Culture
Service
Makingadifference
...
Cultural Entropy and Engagement
Cultural entropy
significantly
impacts
employee
engagement.
25%
35%
45%
55%
65%
75%
85%
0%...
Entropy and Engagement
Cultural Entropy Most employees
are ….
10% or less Highly Engaged
11% to 20% Engaged
21% to 30% Bec...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
74
What is Cultural Entropy?
The...
Highly Engaged Team (19)
customer satisfaction 13 2(O)
making a difference 13 6(S)
commitment 10 5(I)
employee fulfilment ...
Highly Engaged Team (19)
Personal Values
Values DistributionCopyright 2015 Barrett Values Centre
Positive Values
Potential...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
77
Highly Engaged Employees
 Hi...
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)
in...
Highly Disengaged Team (24)
Personal Values
Values DistributionCopyright 2016 Barrett Values Centre
Positive Values
Potent...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
80
Cultural entropy is a functio...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
81
What is Personal Entropy?
Per...
continuous learning 11 Level 4
generosity 11 Level 5
commitment 10 Level 5
positive attitude 10 Level 5
vision 10 Level 7
...
The culture of
an organisation
is a reflection
of leadership
consciousness.
LV A Feedback 14 Assessors
PL = 1-9 | IRO (P) ...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
84
How to Measure Personal Entro...
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)
cau...
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...
Five Levels of Employee Engagement
Highly Engaged Employees bring passion, purpose and discretionary energy
to their work....
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
88
BUILDING A VALUES-DRIVEN CULT...
SA Bank: Evolution of Current Culture
1. cost-consciousness
2. profit
3. accountability
4. community involvement
5. client...
SA Bank: Evolution of Current Culture
2009 2010 2011
1. accountability
2. client-driven
3. client satisfaction
4. cost-con...
SA Bank: Evolution of Current Culture
2013 2014
5 Matches CC-
DC
Entropy 11%
6 Matches CC-
DC
Entropy 13%
1. accountabilit...
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%
2...
Cultural Entropy Evolution
Cultural entropy
reduction led to
improved performance
through increased
employee engagement,
i...
Income Evolution
0%
5%
10%
15%
20%
25%
30%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2005 2006 2007 2008 2009...
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 C...
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 Cutlu...
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
97
Free material on Change & Tra...
For more information
and get a copy of this presentation
go to:
www.richardbarrett.net
&
www.valuescentre.com
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Berlin: Leadership in values-driven organizations

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What leaders need to do to build values-driven cultures. The fifth in a series of lectures as part of a tour of Germany in April 2016.

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Berlin: Leadership in values-driven organizations

  1. 1. Leadership in Values-Driven Organizations RICHARD BARRETT
  2. 2. 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. 3. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  4. 4. My Books 1998 2006 2010 20111995 2012 2013 2014 2015 2016
  5. 5. Books about Personal Transformation 1995 2012
  6. 6. Books about Organizational Transformation 1998 2006 2013
  7. 7. Books about National Transformation 2011 2015
  8. 8. Books about Leadership 2010 2014
  9. 9. Books about Psychology 2012 2014 2016
  10. 10. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. 11. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 11 2013 2016
  12. 12. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 12 Today: A deeper dive into leadership …
  13. 13. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. 14. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  15. 15. 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. 16. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  17. 17. 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:
  18. 18. 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. 19. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 19 The Global Goals for Sustainable Development
  20. 20. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. 21. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. 22. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 22 SEPARATION AND ISOLATION COMMUNITY AND COHESION Moving from … To …
  23. 23. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 23 MY SPEECH TODAY HOW TO CREATE A VALUES-DRIVEN CULTURE WHERE SHOULD WE BEGIN? START BY BUILDING VALUES-DRIVEN ORGANIZATIONS
  24. 24. WHY A VALUES-DRIVEN CULTURE? Values Alignment Performance BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET
  25. 25. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 25 WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL? BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES, AND …
  26. 26. … THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS Suppliers Community
  27. 27. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. 28. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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. 29. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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)
  30. 30. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  31. 31. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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
  32. 32. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  33. 33. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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”
  34. 34. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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”
  35. 35. 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
  36. 36. 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.
  37. 37. 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.
  38. 38. 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
  39. 39. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 40
  40. 40. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 41
  41. 41. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  42. 42. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  43. 43. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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
  44. 44. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 45 Stages of Psychological Development Surviving
  45. 45. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 46 Stages of Psychological Development INFANCY 0-2 Years Old Staying alive! COMPETENCY Ability to meet basic physiological needs. Surviving Stage Motivation
  46. 46. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 47 Stages of Psychological Development Conforming
  47. 47. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 48 Stages of Psychological Development Conforming Stage Motivation CHILDHOOD 3-7 Years Old Keeping safe and secure! BEING LOVED Ability to feel accepted and sense of belonging.
  48. 48. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 49 Stages of Psychological Development Differentiating
  49. 49. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 50 Stages of Psychological Development Differentiating Stage Motivation TEENAGER + 8-24Years Old Distinguishing yourself! CONFIDENCE Ability to feel respected and recognized by others.
  50. 50. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 51 Stages of Psychological Development INDIVIDUATING
  51. 51. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 52 Stages of Psychological Development INDIVIDUATING Stage Motivation YOUNG ADULT 25-39 Years Old Releasing your fears! ACCOUNTABILITY Finding freedom and autonomy to understand who you really are.
  52. 52. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 53 Stages of Psychological Development SELF-ACTUALIZING
  53. 53. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 54 Stages of Psychological Development SELF-ACTUALIZING Stage Motivation ADULTHOOD 40-49 Years Old Becoming who you are! SELF-EXPRESSION Ability to satisfy your desire for meaning and purpose.
  54. 54. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 55 Stages of Psychological Development INTEGRATING
  55. 55. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 56 Stages of Psychological Development 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.
  56. 56. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 57 Stages of Psychological Development SERVING
  57. 57. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 58 Stages of Psychological Development SERVING Stage Motivation SENIOR 60+ Years Old Finding fulfilment! CONTRIBUTION Ability to satisfy your desire to serve the greater good.
  58. 58. BUILDING A VALUES-DRIVEN CULTURE
  59. 59. The Seven Levels of Consciousness Model
  60. 60. 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
  61. 61. 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
  62. 62. 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
  63. 63. 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
  64. 64. 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
  65. 65. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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
  66. 66. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 68 BUILDING A VALUES-DRIVEN ORGANSIATION START WITH A VALUES SURVEY
  67. 67. 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.
  68. 68. 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
  69. 69. 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
  70. 70. 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
  71. 71. 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
  72. 72. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  73. 73. 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) customer satisfaction 12 2(O) continuous improvement 10 4(O) employee fulfilment 10 6(O) making a difference 9 6(S) 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) making a difference 13 6(S) humour/ fun 11 5(I) well-being 11 6(I) continuous learning 10 4(I) commitment 8 5(I) accountability 7 4(R) 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
  74. 74. 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% Cultural Entropy = 7% Cultural Entropy = 0% Low level of Cultural Entropy = High level of Employee Engagement 26% 46% 28% 25% 48% 27% 26% 50% 24%
  75. 75. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  76. 76. 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) continuous improvement 11 4(O) information sharing 10 4(O) quality 9 3(O) customer satisfaction 8 2(O) teamwork 8 4(R) accountability 7 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
  77. 77. Highly Disengaged Team (24) Personal Values Values DistributionCopyright 2016 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 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% Cultural Entropy = 47% High level of Cultural Entropy = Low level of Employee Engagement
  78. 78. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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?
  79. 79. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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.
  80. 80. 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
  81. 81. 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
  82. 82. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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
  83. 83. 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%
  84. 84. 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 Potentially Limiting 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
  85. 85. 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.
  86. 86. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 88 BUILDING A VALUES-DRIVEN CULTURE THE JOURNEY
  87. 87. SA Bank: Evolution of Current Culture 1. cost-consciousness 2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven 7. bureaucracy (L) 8. results orientation 9. client satisfaction 10. silo mentality (L) 2005 1. cost-consciousness 2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven 7. profit 8. bureaucracy (L) 9. teamwork 10. community involvement 2006 1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness 5. community involvement 6. performance driven 7. profit 8. achievement 9. being the best 10. results orientation 2007 2008 1. accountability 2. client-driven 3. client satisfaction 4. community involvement 5. achievement 6. cost-consciousness 7. teamwork 8. performance driven 9. being the best 10. delivery 3 Matches CC- DC Entropy 25% 4 Matches CC- DC Entropy 19% 4 Matches CC- DC Entropy 17% 5 Matches CC- DC Entropy 14%
  88. 88. SA Bank: Evolution of Current Culture 2009 2010 2011 1. accountability 2. client-driven 3. client satisfaction 4. cost-consciousness 5. community involvement 6. achievement 7. teamwork 8. employee recognition 9. being the best 10. performance driven 1. accountability 2. client satisfaction 3. client-driven 4. teamwork 5. brand reputation 6. being the best 7. achievement 8. commitment 9. community involvement 10. cost-consciousness 1. accountability 2. client-driven 3. client satisfaction 4. brand reputation 5. achievement 6. teamwork 7. environmental awareness 8. commitment 9. being the best 10. cost-consciousness 6 Matches CC- DC Entropy 13% 6 Matches CC- DC Entropy 13% 6 Matches CC- DC Entropy 11% 2012 1. accountability 2. client satisfaction 3. client-driven 4. brand reputation 5. teamwork 6. employee recognition 7. environmental awareness 8. performance driven 9. community involvement 10. people-centred 5 Matches CC- DC Entropy 10%
  89. 89. SA Bank: Evolution of Current Culture 2013 2014 5 Matches CC- DC Entropy 11% 6 Matches CC- DC Entropy 13% 1. accountability 2. client satisfaction 3. client-driven 4. brand reputation 5. employee recognition 6. performance driven 7. teamwork 8. achievement 9. integrity 10. community involvement 1. accountability 2. client satisfaction 3. client-driven 4. brand reputation 5. employee recognition 6. teamwork 7. performance driven 8. environmental awareness 9. community involvement 10. commitment Despite a slight rise in cultural entropy, profitability and productivity continue to increase year on year.
  90. 90. 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.
  91. 91. 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
  92. 92. 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
  93. 93. 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
  94. 94. 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
  95. 95. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 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
  96. 96. For more information and get a copy of this presentation go to: www.richardbarrett.net & www.valuescentre.com

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