1. Cultural Entropy
SUCCESS = INTEGRATION/COLLABORATION
ORGANIZATIONAL ENTROPY
Cultural entropy is the amount of energy in an organization that is consumed in unproductive
work. It is a measure of the conflict, friction and frustration that exists within an organization.
Cultural entropy is a function of the personal entropy of the current leaders of an organization
and the institutionalized legacy of the personal entropy of past leaders. Personal entropy can
become institutionalized in an organization through the introduction of bureaucratic systems and
processes requiring hierarchical decision-making or rigid silo-driven structures (Level 3
Consciousness). The cultural entropy caused by current leaders usually shows up as excessive
control and caution, blame and internal competition, confusion, and long hours (Level 1 and
Level 2 Consciousness).
Cultural entropy shows up at the first three levels of organizational consciousness:
Level 3: Self-esteem Consciousness: Factors that slow the organization down and prevent rapid
decision-making, such as hierarchy, bureaucracy, and confusion
Level 2: Relationship Consciousness: Factors that cause conflict and friction between
employees, such as internal competition, blame, and intimidation
Level 1: Survival Consciousness: Factors that prevent employees from doing their job and
expressing their talents, such as control, fire-fighting, and micro-management
Cultural entropy in an organization is carried out by completing a Cultural Values Assessment
(CVA). Cultural entropy is the proportion of votes for limiting values that participants in an
assessment pick to describe the current culture of the organization. The majority of cultural
entropy is directly related to the personal entropy of the managers and leaders of the
organization.
Research shows that the values that contribute to cultural entropy are very similar in most
organizations. The main difference is the degree to which these values are present. The following
table shows the most frequently occurring potentially limiting values at different levels of
consciousness.

2. Level 3:
Self-esteem
Bureaucracy, Long Hours, Silo-mentality, Hierarchy
Level 2:
Relationship
Blame, Internal competition, Empire building
Level 1:
Survival
Control, Caution, Short-term focus
The following table shows the corrective measures associated with different levels of cultural
entropy.
Cultural Entropy Corrective Measures
0 - 10% Healthy Culture: This is a low and healthy
level of cultural entropy.
11 - 20% Minor Issues: This level of cultural entropy
reflects issues requiring cultural or structural
adjustment. 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: This 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.
Adopted from Barrett Value Center
Note1: Cultural and structural adjustment refers to a selective focus on reducing pockets of high
entropy in divisions or departments,or specific entropic values that are found throughout the
organization

3. Note 2: Cultural and structural transformation refers to an organization-wide program of whole
system change
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