The Values-Driven Leader - Richard Barrett

2. WHO AM I?

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

4. PHIL CLOTHIER
provides powerful metrics to
support leaders in building
values-driven organizations
and values-driven societies.
CEO of Barrett Values Centre

5. cultural
transformation tools®
• Personal Values Assessment
• Individual Values
Assessment
• Individual Development
Report Leadership
Development Report
• Leadership Values
Assessment
MEASUREMENT
TOOLS FOR
INDIVIDUALS
MEASUREMENT
TOOLS FOR HUMAN
GROUP STRUCTURES
• Cultural Values Assessment
• Cultural Evolution Report
• Espoused Values Analysis
• Merger/Compatibility Report
• Customer Values Assessment
• Community Values
Assessment
• National Values Assessment

6. Agriculture / forestry / fishing
Banking / Financial Services
Central / Local Government
Chemical and pharma
Construction
Education / University
Fast Moving Consumer Goods
Food and drink
Healthcare
Hospitality / Tourism
IT/ Telecoms/ Electronics
Manufacturing
Media/Film/TV/Publishing
Military
NGO / Not for profit
Oil/gas/mining
Police & Justice
Professional Services
Retail and wholesale
Scientific / Technical / Engineering
Scientific and technical
Social housing
Transportation
The Sectors We Work In

7. Who
creates an
organizational
culture?
the reflection of
the values, beliefs
and behaviours of
the leadership
group.
THE CULTURE OF AN
ORGANIZATION IS

8. If The Culture is Not Working
If Employees and Customers are
not Getting Their Needs Met…
The Leader Must Change
or You Must Change the Leader

9. A LOW PERFORMANCE
ORGANIZATION
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
Leader’s Values
LVA Feedback 27 Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Personal Entropy 64%
CVA Current Culture
Culture Values
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
Cultural Entropy 38%
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

10. A HIGH PERFORMANCE
ORGANIZATION
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
Culture Values
CVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
Cultural Entropy 7%
Internal
Cohesion
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
Leader’s Values
LVA Feedback 27 Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Internal
Cohesion
Personal Entropy 9%

11. ORGANIZATIONS DON’T
TRANSFORM. PEOPLE DO!

12. ORGANIZATIONAL TRANSFORMATION
BEGINS WITH THE PERSONAL
TRANSFORMATION OF THE LEADERS

13. In the face of turbulence and
change, culture and values
become the major source of
continuity and coherence, of
renewal and sustainability.
Leaders must find the
common purpose and
universal values that unite
highly diverse people while
still permitting individual
identities to be expressed
and enhanced.
Rosabeth Moss Kanter,
Chair of the Harvard University
Advanced Leadership Initiative
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

14. A CRISIS IN
LEADERSHIP
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.
John Kotter,
Harvard Business School

15. A CRISIS IN
LEADERSHIP
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.
Shoshana Zuboff,
Harvard Business School

16. 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).

17. MOVING FROM
TO
IT’S ALL ABOUT ME
COMMON GOOD

18. MOVING FROM
SEPARATION & ISOLATION
COMMUNITY
& COHESION
TO

19. “ ”
WHAT ARE
VALUES?
A shorthand way of
describing our individual and
collective motivations and
what is important to us.

20. Values are the
energetic
drivers
of our
aspirations
and intentions.

21. Positive or
Potentially Limiting?
Values can be positive or potentially limiting.
Trust, creativity,
passion, honesty,
integrity, clarity
Positive
Values:
Bureaucracy,
power, blame,
greed, hierarchy,
status-seeking
Potentially Limiting
Values:

22. Positive values, such as
friendship, trust and
creativity, help us to build
relationships, connect
with others and make a
contribution to the world.
Potentially limiting values do
just the opposite. They may
help us meet our short-term
needs, but in the long-term
they are divisive. They are
sourced from the fears the
ego has about getting its
survival, safety and security
needs met.
Positive or Potentially Limiting?

23. Positive values
Potentially
limiting values
Future generations, long-term
perspective, compassion, humility
Cooperation, actualizing meaning,
empathy, intuition, mentoring
Integrity, alignment, authenticity,
creativity, passion, honesty, trust
Adaptability, courage, continuous
improvement, accountability
The fear-based needs
of the ego
Pride in achievements, self-reliant,
security, confidence, excellence
Power, status, glamour, rigidity,
arrogance, impatience, image
Family, friendship, loyalty, safety,
belonging, harmony, caring
Blame, judgement, jealousy,
gossip, demanding, revenge
Health, nutrition, financial
stability, strength,
self-discipline, survival
Greed, territorial,
manipulative, controlling,
ruthless, corrupt
7
6
5
4
3
2
1

24. WHERE DO OUR
VALUES COME FROM?
Our values are a reflection of our needs.
(What ever we need, is what we value.)
We have two sets of needs:
• The needs of the stage of psychological
development we are currently operating from.
• The needs of the stages of psychological
development we have passed through which we
have not yet mastered—unmet needs.

27. UNMET NEEDS FROM THE EARLY STAGES
The presence of limiting
values at the survival
relationship and self-
esteem levels of
consciousness.
I am not
enough
I am not
loved
enough
I don’t
have
enough

28. Values?
‘S
What are Donald

29. In the Introduction to
The New Leadership
Paradigm I plotted the
values of several
leaders based on the
books they had written
about leadership.

30. Disciplined
Giving back
Image (L)
Loyalty
Passion
Profit
Reciprocity
Revenge (L)
Ruthless (L)
Winning
A toxic
mixture
of values
2010
Unmet
needs
Service
Making a difference
Internal cohesion
Transformation
Self-esteem
Relationships
Survival

31. THE SEVEN STAGES OF
PSYCHOLOGIC L
DEVELOPMENT

32. A PERSONAL JOURNEY
Every person is on an evolutionary journey
of psychological development.
SERVING
INTEGRATING
SELF-ACTUALIZING
INDIVIDUATING
DIFFERENTIATING
CONFORMING
SURVIVING

33. No one is born a leader. It is a role you grow into.
Some people naturally grow into leadership roles;
some go all out to seek a leadership role and others
have leadership thrust upon them.
BECOMING A
GREAT LEADER
Whatever the case, the journey to becoming a
successful leader is the same; there are four
stages of psychological development you
must master to become a great leader.
Some, like me, choose not to be a leader of people,
but a leader of thoughts.

34. B) become responsible and accountable
for every aspect of your life; and
THE FOUR STAGES OF
LEADERSHIP DEVELOPMENT
A) know yourself—identify your most
important values and the behaviours
that align with those values;
The Individuating Stage (25-39 years)
C) learn to manage your fears and
develop your emotional intelligence skills.

35. In addition, you will be looking for opportunities to explore
your gifts and talents—find out what you are good at and like
doing and what you are not so good and do not like doing.
We don't want to be micro-managed, but we do want
someone we can turn to for advice. Someone we know we
can rely on who has our best interests at heart.
Without freedom, autonomy and challenges at this stage of
development, you will not experience well-being.

36. B) find your purpose in life—the work that
you love to do; and
THE FOUR STAGES OF
LEADERSHIP DEVELOPMENT
A) release any fears you may have about
fully expressing who you really are;
The Self-Actualizing Stage (40-49 years)
C) express your creativity.

37. In addition, you will be looking for opportunities to align your
purpose with your work so you find meaning in your life.
You will want a job that allows you to fully express who you
are, sparks your creativity and unleashes your passion.
If you cannot fully express who you are,
you will not experience well-being.

38. B) develop your empathy and social
intelligence skills; and,
THE FOUR STAGES OF
LEADERSHIP DEVELOPMENT
A) release any fears you have about
forming unconditional loving relationships;
The Integrating Stage (50-59 years)
C) actualize your purpose by connecting
with other like-minded individuals to
make a difference in the world.

39. In addition, you will be looking for
opportunities to collaborate with
other like-minded individuals on
projects that allow you to actualize
your purpose in life.
If you cannot connect with others
to make a difference,
you will not experience well-being.

40. B) develop your compassion skills; and,
THE FOUR STAGES OF
LEADERSHIP DEVELOPMENT
A) release any fears you have
about your self-worth;
The Serving Stage (60 + years)
C) let yourself be guided by your soul’s
inspiration.

41. In addition, you will be looking for opportunities to
participate in acts of self-less service by alleviating suffering
and/or caring for the well-being of future generations,
humanity and the planet.
You want to leave the world a better place than you found it.
If you cannot make a contribution, you will
not experience well-being.

42. VALUES-DRIVEN CULTURES
are the most successful

43. Because they care about the
needs of their employees, and …

44. CUSTOMERS SUPPLIERS
INVESTORS COMMUNITY
… they also care
about the needs
of their
stakeholders
This is one of the four pillars of
conscious capitalism.

45. THE PILLARS OF
CONSCIOUS CAPITALISM
Higher purpose: A purpose that
goes beyond only generating profits
and creating shareholder value.
Stakeholder orientation: All
stakeholders are important. The
business must seek to optimize
value creation for them all.
Conscious leadership: Conscious
leaders are motivated primarily by
service to the firm’s higher purpose and
creating value for all stakeholders.
Conscious culture and management:
The culture of a conscious business is a
source of great strength and stability for
the firm, ensuring that its purpose and
core values endure over time and
through leadership transitions.

46. PASSION
PURPOSE
THE ROOTS OF CONSCIOUS CAPITALISM
How World-Class Companies Profit from Passion and Purpose

47. 18 FIRMS OF
ENDEARMENT
FOE
Average
Annualized
Return
13.10%
S&P 500
Average
Annualized
Return
4.12%
$140m
$280m
$420m
$560m
PortfolioValue
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Firms of Endearment focus on meeting all stakeholders needs.
The four pillars of FoE are Conscious Leadership, Conscious Culture,
Stakeholder Orientation and a Higher Purpose supported by Core Values.

48. 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.
Bob Chapman, CEO of the $1.7
billion company Barry-Wehmiller.

49. The Top 40 Best
Companies to Work For
(USA)
BCWF
Average
Annualized
Return
16.39%
S&P 500
Average
Annualized
Return
4.12%
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.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$0.8m
$1.7m
$2.6m
$3.5m
$4.4m
PortfolioValue

50. https://www.valuescentre.com/resources/case-studies?
23 CASE STUDIES OF
SUCCESSFUL TRANSFORMATION

51. 2005 2006 2007 2008
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)
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
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
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%
NEDBANK-EVOLUTION OF CURRENT CULTURE

52. NEDBANK-EVOLUTION OF CURRENT CULTURE
2009 2010 2011 2012
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-driven
3. client satisfaction
4. brand reputation
5. achievement
6. teamwork
7. environmental
awareness
8. commitment
9. being the best
10. cost-consciousness
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 satisfaction
3. client-driven
4. brand reputation
5. teamwork
6. employee recognition
7. environmental
awareness
8. performance driven
9. community involvement
10. people-centred
3 Matches CC-DC
Entropy 13%
6 Matches CC-DC
Entropy 13%
6 Matches CC-DC
Entropy 11%
5 Matches CC-DC
Entropy 10%

53. NEDBANK-EVOLUTION OF CURRENT CULTURE
2013 2014
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
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
5 Matches CC-DC
Entropy 11%
6 Matches CC-DC
Entropy 13%
Despite a slight rise
in cultural entropy,
profitability and
productivity
continue to increase
year on year.

54. NEDBANK-EVOLUTION OF SURVEY PARTICIPANTS
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.
8%
25%
38%
51%
67%
73%
77%
75%74%75%
0%
20%
40%
60%
80%
100%
2005 2007 2009 2011 2013

55. NEDBANK-EVOLUTION OF CULTURAL ENTROPY
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%
7%
13%
20%
26%
33%
2005 2007 2009 2011 2013
Cultural Entropy

56. INCOME
EVOLUTION
0%
7%
13%
20%
26%
33%
0.
10000.
20000.
30000.
40000.
50000.
2005 2007 2009 2011 2013
Income
Cultural Entropy
Global Economic
Meltdown
Annual income increases
as cultural entropy falls.

57. PRODUCTIVITY
EVOLUTION
Global Economic
Meltdown
Income per capita increases
as cultural entropy falls.
0%
7%
13%
20%
26%
33%
0.
325.
650.
975.
1300.
1625.
2005 2007 2009 2011 2013
Revenue per Capita
Cultural Entropy

58. PROFIT
EVOLUTION
Global Economic
Meltdown
Profit increases as
cultural entropy falls.
0%
7%
13%
20%
26%
33%
0.
2750.
5500.
8250.
11000.
2005 2007 2009 2011 2013
Profit
Cultural Entropy

59. 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

60. Go to:
www.valuescentre.com
www.richardbarrett.net
Contact Me:
richard@valuescentre.com

61. 1995 1998 2006 2010 2011
2012 2013 2014 2015 2016
RICHARD BARRETT’S BOOKS