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The Values-Driven Leader - Richard Barrett

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The Values-Driven Leader - Richard Barrett

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The Values-Driven Leader - Richard Barrett

  1. 1. WHO AM I?
  2. 2. 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
  3. 3. PHIL CLOTHIER provides powerful metrics to support leaders in building values-driven organizations and values-driven societies. CEO of Barrett Values Centre
  4. 4. 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
  5. 5. 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
  6. 6. Who creates an organizational culture? the reflection of the values, beliefs and behaviours of the leadership group. THE CULTURE OF AN ORGANIZATION IS
  7. 7. 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
  8. 8. 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
  9. 9. 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%
  10. 10. ORGANIZATIONS DON’T TRANSFORM. PEOPLE DO!
  11. 11. ORGANIZATIONAL TRANSFORMATION BEGINS WITH THE PERSONAL TRANSFORMATION OF THE LEADERS
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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).
  16. 16. MOVING FROM TO IT’S ALL ABOUT ME COMMON GOOD
  17. 17. MOVING FROM SEPARATION & ISOLATION COMMUNITY & COHESION TO
  18. 18. “ ” WHAT ARE VALUES? A shorthand way of describing our individual and collective motivations and what is important to us.
  19. 19. Values are the energetic drivers of our aspirations and intentions.
  20. 20. 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:
  21. 21. 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?
  22. 22. 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
  23. 23. 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.
  24. 24. 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
  25. 25. Values? ‘S What are Donald
  26. 26. In the Introduction to The New Leadership Paradigm I plotted the values of several leaders based on the books they had written about leadership.
  27. 27. 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
  28. 28. THE SEVEN STAGES OF PSYCHOLOGIC L DEVELOPMENT
  29. 29. A PERSONAL JOURNEY Every person is on an evolutionary journey of psychological development. SERVING INTEGRATING SELF-ACTUALIZING INDIVIDUATING DIFFERENTIATING CONFORMING SURVIVING
  30. 30. 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.
  31. 31. 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.
  32. 32. 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.
  33. 33. 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.
  34. 34. 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.
  35. 35. 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.
  36. 36. 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.
  37. 37. 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.
  38. 38. 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.
  39. 39. VALUES-DRIVEN CULTURES are the most successful
  40. 40. Because they care about the needs of their employees, and …
  41. 41. CUSTOMERS SUPPLIERS INVESTORS COMMUNITY … they also care about the needs of their stakeholders This is one of the four pillars of conscious capitalism.
  42. 42. 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.
  43. 43. PASSION PURPOSE THE ROOTS OF CONSCIOUS CAPITALISM How World-Class Companies Profit from Passion and Purpose
  44. 44. 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.
  45. 45. 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.
  46. 46. 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
  47. 47. https://www.valuescentre.com/resources/case-studies? 23 CASE STUDIES OF SUCCESSFUL TRANSFORMATION
  48. 48. 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
  49. 49. 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%
  50. 50. 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.
  51. 51. 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
  52. 52. 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
  53. 53. 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.
  54. 54. 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
  55. 55. 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
  56. 56. 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
  57. 57. Go to: www.valuescentre.com www.richardbarrett.net Contact Me: richard@valuescentre.com
  58. 58. 1995 1998 2006 2010 2011 2012 2013 2014 2015 2016 RICHARD BARRETT’S BOOKS

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