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The Importance of Organisational Values Webinar Slides

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"Everything I Have Learned About Values" is now available for purchase! The book summarizes Richard Barrett's 30-year journey to understand how values shape our decision-making. In celebration of its release, we created a three-part webinar series to explore the importance of values.

To watch a recording of this webinar, please use this link:
https://youtu.be/1GXsNm249S4

This webinar focuses on the role values play in organisational culture. Richard will share insights on:
-How do you build a high performing values-driven organization?
-Why is it important to measure your culture?
-What role do leaders play in managing culture?

For more information please visit our website:
https://valuescentre.com

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The Importance of Organisational Values Webinar Slides

  1. 1. Copyright 2018 by Barrett Values Centre®. Permission granted to reproduce for personal and educational use only. Commercial copying, hiring, lending is prohibited.
  2. 2. Topics for today 1. How do you build a high- performing, values-driven culture? 2. Why is it important to measure your culture? 3. What role do leaders play in managing culture?
  3. 3. The values, beliefs and behaviours that guide and define the way in which a group of people work together. What is Culture?
  4. 4. Who creates the culture? The Leaders
  5. 5. The Leaders Must Change Therefore if you want to change the culture: or You Must Change the Leaders
  6. 6. IMPORT THE NCE OF CULTURE
  7. 7. According to Deloitte, culture has become one of the most important business topics of 2016. CEOs and HR leaders now recognize that culture drives people’s behaviour, innovation, and customer service
  8. 8. of Deloitte’s survey respondents believe that “culture is a potential competitive advantage.” 82%
  9. 9. of leaders believe that culture is critical to their organisation’s success. 84% According to PwC,
  10. 10. 60% think culture is more important than their strategy or their operating model.
  11. 11. of the FTSE 350 companies have seen a 10% increase in operating profits driven by their investment in culture. 55% According to E&Y,
  12. 12. 92%of the Board Members of these companies said that a focus on culture has improved their financial performance. Overall,
  13. 13. INTANGIBLE ASSETS MAKE UP MOST OF MARKET VALUE Source: Ocean Tomo LLC, January 2015 Components of S&P 500 17% 32% 68% 80% 84% 83% 68% 32% 20% 16% 0% 25% 50% 75% 100% 1975 1985 1995 2005 2015 Tangible Assets Intangible Assets
  14. 14. CONCLUSION CULTURAL CAPITAL is the New Frontier of Competitive Advantage
  15. 15. Only 12 percent of leaders believe their organisations are excellent at effectively driving the desired culture. Deloitte Human Capital Trends 2015 Only 5 percent of leaders said their own corporate culture was exactly where it needed to be. Duke University and Columbia University 2015 research Only 28 percent report that they understand their organisation’s culture. Deloitte Human Capital Trends 2016
  16. 16. By becoming a deliberately developmental organisation. - Dr. Robert Kegan -
  17. 17. Deliberately Developmental Organisation
  18. 18. “A deliberately developmental organisation is built around the simple but radical conviction that an organisation will best prosper when it is more deeply aligned with people’s strongest motive, which is to grow.
  19. 19. “This means building an organisational culture where supporting people’s development is woven into the fabric of working life—the regular operations, daily routines and conversations.” - Kegan and Lahey -
  20. 20. WHEN YOU HELP EMPLOYEES TO GROW THEY BECOME ENGAGED
  21. 21. They bring passion and purpose to their work. They care passionately about the future of the company. Highly engaged employees identify with the company. They want the company to do the right thing. They are willing to invest their discretionary effort to make the company a success. HIGHLY ENGAGED EMPLOYEESThey want to feel pride in the way the company behaves. They are committed and loyal.
  22. 22. WHY ARE DELIBERATELY DEVELOPMENTAL ORGANISATIONS the most successfull?
  23. 23. Because they care about the needs of their employees …
  24. 24. “ ” WHAT ARE EMPLOYEES NEEDS ?
  25. 25. THE SEVEN STAGES OF PSYCHOLOGIC L DEVELOPMENT
  26. 26. A PERSONAL JOURNEY Every person is on an evolutionary journey of psychological development. SERVING INTEGRATING SELF-ACTUALIZING INDIVIDUATING DIFFERENTIATING CONFORMING SURVIVING
  27. 27. SURVIVING
  28. 28. 7 6 5 4 3 2 1 SURVIVING INFANCY: 0-2 Years Old NEED TO MANAGE YOUR ENVIRONMENT GETTING BASIC PHYSIOLOGICAL NEEDS MET STAYING ALIVE! MOTIVATION
  29. 29. CONFORMING
  30. 30. CHILDHOOD: 3-7 Years Old NEED TO FEEL ACCEPTANCE & BELONGING LEARNING TO BE LOVED KEEPING SAFE! MOTIVATION CONFORMING 7 6 5 4 3 2 1
  31. 31. DIFFERENTIATING
  32. 32. TEENAGER: 8-24 Years Old NEED TO BE PART OF A GROUP BEING RECOGNIZED FEELING SECURE! MOTIVATION DIFFERENTIATING 7 6 5 4 3 2 1
  33. 33. INDIVIDUATING
  34. 34. YOUNG ADULT: 25-39 Years Old NEED FOR FREEDOM AND AUTONOMY RESPONSIBILITY AND ACCOUNTABILITY FOR YOUR LIFE RELEASING YOUR FEARS! MOTIVATION INDIVIDUATING 7 6 5 4 3 2 1
  35. 35. SELF-ACTUALIZING
  36. 36. ADULTHOOD: 40-49 Years Old SELF-ACTUALIZING NEED FOR MEANING AND PURPOSE BECOMING FULLY WHO YOU ARE! SELF- EXPRESSION MOTIVATION 7 6 5 4 3 2 1
  37. 37. INTEGRATING
  38. 38. MATURE ADULT: 50-59 Years Old INTEGRATING DESIRE TO MAKE A DIFFERENCE UNCONDITIONAL LOVING RELATIONSHIPS EMPATHY CONNECTING MOTIVATION 7 6 5 4 3 2 1
  39. 39. SERVING
  40. 40. SENIOR: 60+ Years Old DESIRE TO SERVE THE GREATER GOOD SELF-LESS SERVICE COMPASSION CONTRIBUTING MOTIVATION 7 6 5 4 3 2 1 SERVING
  41. 41. WHAT MOTIVATES EMPLOYEES IS THE SATISFACTION OF THEIR NEEDS.
  42. 42. Discover what truly matters. www.valuescentre.com Whatever you need is what you value. OUR VALUES ARE AN EXPRESSION OF OUR NEEDS
  43. 43. (25-39 Years) Finding the freedom to explore who you are and seek opportunities and challenges to be accountable. INDIVIDUATING Your employee’s needs at different stages of development SELF-ACTUALIZING (40-49 Years) Fully expressing your unique gifts and talents so you feel a sense of commit- ment and explore your creativity. (50-59 Years) Connecting and collaborating with others so you can make a difference in the world. INTEGRATING
  44. 44. LEVELS OF CONSCIOUSNESS PRIMARY MOTIVATIONS SERVICE MAKING A DIFFERENCE INTERNAL COHESION TRANSFORMATION SELF-ESTEEM RELATIONSHIP SURVIVING 7 6 5 4 3 2 1 WHAT EMPLOYEES VALUE AT DIFFERENT LEVELS OF CONSCIOUSNESS A safe working environment and pay and benefits that are sufficient to take care of family Opportunities to work in a congenial atmosphere where people care and respect each other Opportunities to grow professionally with support, feedback and coaching Opportunities and challenges by being made accountable for projects and processes Opportunities for personal growth and develop- ment to support you in living your life purpose Opportunities to leverage your contribution by collaborating with other like-minded individuals Opportunities to serve others and care for the well-being of the Earth’s life support systems
  45. 45. CULTURAL TRANSFORMATION CREATING A CULTURE THAT ADDRESSES EMPLOYEE’S NEEDS
  46. 46. COMMITMENT TO TRANSFORMATION Cultural transformation begins with the COMMITMENT of the leader and the leadership team to cultural transformation— which necessarily includes a commitment to personal transformation by each person in the leadership group.
  47. 47. Without this commitment to cultural and personal transformation, there is no point in proceeding with a cultural transformation initiative. It is quite usual for there to be one or two people in the leadership team who are not willing to sign up to personal transformation. This is the point where they have to decide to get on or off the bus. There should be no room for anyone who is not committed to the process and a willing participant.
  48. 48. Discover what truly matters. www.valuescentre.com Change is doing things differently. A shift in behaviours Transformation is a new way of being. A shift in values THE DIFFERENCE BETWEEN TRANSFORMATION AND CHANGE
  49. 49. Discover what truly matters. www.valuescentre.com You can change without transforming, but you cannot transform without changing. TRANSFORMATION VS CHANGE
  50. 50. Discover what truly matters. www.valuescentre.com We cannot solve our problems with the same level of thinking that created them. A new level of thinking = A new level of consciousness = A new way of being
  51. 51. Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival 7 LEVELS OF PERSONAL CONSCIOUSNESS CHANGE No shift in consciousness New way of doing. 7 6 5 4 3 2 1
  52. 52. Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival 7 LEVELS OF PERSONAL CONSCIOUSNESS TRANSFORMATION Shift in consciousness New way of being. 7 6 5 4 3 2 1
  53. 53. ORGANISATIONS DON’T TRANSFORM. PEOPLE DO!
  54. 54. ORGANISATIONAL TRANSFORMATION BEGINS WITH THE PERSONAL TRANSFORMATION OF THE LEADERS
  55. 55. PERSONAL VALUES CURRENT CULTURE DESIRED CULTURE MEASURING THE CULTURE BY MAPPING THE VALUES Which of the following values/behaviours most reflect who you are? Pick ten. Which of the following values/behaviours most reflect how your organisation currently operates? Pick ten. Which of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.
  56. 56. PLACEMENT OF VALUES BY LEVEL (100 EMPLOYEES) Current Culture 10 42 5 7 9 6 8 3 110 1 Tradition (L) (59) 2 Diversity (54) 3Control (L) (53) 5Knowledge (43) 7Productivity (37) 9Profit (36) 4 Goals orientation (46) 6 Creativity (42) 8 Image (L) (36) 10 Open Communication (31) Top Ten Values Service Making a difference Internal Cohesion Transformation Self-esteem Relationship Survival
  57. 57. PLACEMENT OF VALUES BY LEVEL (100 EMPLOYEES) Current Culture Service Making a difference Internal Cohesion Transformation Self-esteem Relationship Survival 1 2 3 4 5 6 7 4% 10% 20% 19% 16% 9% 10% 0% 0% 0% 0% 7% 2% 2% 0% 10% 20% 30% 40% 7 6 5 4 3 2 1 11% Cultural Entropy
  58. 58. WHAT IS CULTURAL ENTROPY©?
  59. 59. UNNECESSARY OR UNPRODUCTIVE WORK— WORK THAT DOES NOT ADD VALUE. The amount of energy that is consumed in an organisation doing
  60. 60. that employees encounter in their day-to-day activities that prevent the organisation from operating at peak performance and cause employees to experience stress and prevent them from getting their needs met. It is a measure of the CONFLICT, FRICTION AND FRUSTRATION
  61. 61. I am going to show you values assessments for two teams. Based on these results, I want you to decide which team you would prefer to work in.
  62. 62. Discover what truly matters. www.valuescentre.com 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 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) I = Individual R = Relationship Black Underline = PV & CC Red = PV, CC & DC Red = 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) Team “A” (19 People)
  63. 63. Discover what truly matters. www.valuescentre.com C T S 2 1 3 4 5 6 7 Values Distribution Positive Values Potentially Limiting Values C = Common Good T = Transformation S = Self-Interest 9% 17% 25% 21% 9% 14% 5% 0% 0% 0% 0% 60% 7 6 5 4 3 2 1 1% 24% 28% 20% 4% 10% 6% 5% 0% 2% 0% 60% 7 6 5 4 3 2 1 4% 22% 23% 27% 10% 9% 5% 0% 0% 0% 0% 60% 7 6 5 4 3 2 1 Personal Values Current Culture Values Desired Culture Values Copyright 2015 Barrett Values Centre Team “A” (19 People) Cultural Entropy = 7% Cultural Health = 93%
  64. 64. Discover what truly matters. www.valuescentre.com 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 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) I = Individual R = Relationship Black Underline = PV & CC Orange = PV, CC & DC Red = 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) Team “B” (35 People)
  65. 65. Discover what truly matters. www.valuescentre.com C T S 2 1 3 4 5 6 7 Values Distribution Positive Values Potentially Limiting Values C = Common Good T = Transformation S = Self-Interest Personal Values Current Culture Values Desired Culture Values Copyright 2015 Barrett Values Centre 5% 7% 36% 21% 13% 10% 6% 0% 0% 2% 0% 60% 7 6 5 4 3 2 1 2% 5% 7% 16% 11% 6% 6% 25% 11% 11% 0% 60% 7 6 5 4 3 2 1 3% 9% 23% 32% 18% 10% 3% 0% 0% 2% 0% 60% 7 6 5 4 3 2 1 Team “B” (35 People) Cultural Entropy = 47% Cultural Health = 53%
  66. 66. Discover what truly matters. www.valuescentre.com ORGANISATION “B” Low Well- Being 53% High Cultural Entropy 47% WHICH ORGANISATION WOULD BE THE LEAST STRESSFUL TO WORK IN Long hours(L) Confusion (L) Short-term focus (L) Blame (L) Information hoarding (L) Manipulation (L) Hierarchy (L) Results orientation Bureaucracy (L) Quality Stress Inducing Values Customer satisfaction Making a difference Commitment Employee fulfilment Continuous improvement Humour/fun Shared vision Customer collaboration Balance (home/work) Teamwork No Stress Inducing Values ORGANISATION “A” High Well- Being 93% Low Cultural Entropy 7%
  67. 67. Clarifying the value system and breathing life into it are the greatest contributions a leader can make. Peters and Waterman, “In Search of Excellence: Lessons from America’s best run companies”, 1983 and the Values
  68. 68. In the face of turbulence and change, culture and values become the major source of continuity and coherence, of renewal and sustainability. Rosabeth Moss Kanter, Chair of the Harvard University Advanced Leadership Initiative and the Values
  69. 69. BUILDING A VALUES-DRIVEN ORGANISATION START WITH A VALUES SURVEY Should give you KPIs for every unit and the whole organisation Should measure the personal entropy of the leaders Should measure cultural entropy and cultural health Should be done every year
  70. 70. Also available in Portuguese, Spanish, French, German and Turkish I am immensely grateful to Richard Barrett and his organisation for my continued success, for changing my own philosophy of business and the way I approach change. John McFarlane, Chairman Barclays Bank
  71. 71. https://www.valuescentre.com/resources/case-studies 23 SUCCESSFUL CASE STUDIES
  72. 72. FREE MATERIALS To lead people through change To grow a shared culture To plan and lead cultural transformation Checklist and overview Available on www.valuescentre.com

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