Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Ctt Measuring Culture And Managing Performance
Similar to Ctt Measuring Culture And Managing Performance (20)
Recently uploaded
Recently uploaded (20)
Ctt Measuring Culture And Managing Performance
- 1. Measuring Culture and Managing Performance
- 2. Why Culture? Why does culture have such an impact on the performance and success of organisations? What part do values play in building culture?
- 3. New principles of business Principle 1: Cultural capital is the new frontier of competitive advantage.
- 4. What is culture? 1. client satisfaction 2. making a difference 3. integrity 4. teamwork 5. humour/fun 6. quality 7. ethics 8. financial stability 1. blame L 2. short term focus L 3. internal competition L 4. buck passing L 5. risk averse L 6. customer satisfaction 7. information hoarding L 8. profit Talent Financial viability Excellence Ethics Resilience
- 5. Cultural entropy & negative impact on performance Cultural Entropy is a measure of dysfunction . It shows the degree of non-productive or destructive energy in an organisation . e.g. blame, manipulation, internal competition, corruption Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008
- 6. New principles of business Principle 2: Organisational transformation begins with the personal transformation of the leaders.
- 7. Cultural evolution begins with personal evolution The Culture of an organisation is a reflection of leadership values and behaviours LVA 27 Assessors PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 CVA Current Culture PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 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
- 8. Best employers focus on employee needs The distinguishing feature of the best employers was their focus on employee needs and the employees’ experience . The following table shows the values that were present in the top ten current culture values of the best companies, that were not present in the worst companies. Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008 Best Employers Values Employee recognition Teamwork Coaching/mentoring Balance (home/work)
- 9. Fortune’s Best Companies to Work For S&P 500 Top 20- best companies to work for in the USA A portfolio of the top twenty publicly listed best companies to work for in the USA in 2008 would have returned an average annualized return of 16.74% over the last ten years – compared to 2.83% for the S&P 500.
- 10. New principles of business Principle 3: Measurement matters. If you can measure it, you can manage it.
- 12. An example of cultural evolution 19% ENTROPY 1. profit 2. cost-consciousness 3. accountability 4. community involvement 5. client-driven 6. bureaucracy (L) 7. process-driven 8. client satisfaction 9. results orientation 10. silo mentality (L) 2005 1. accountability 2. cost-consciousness 3. client-driven 4. client satisfaction 5. results orientation 6. profit 7. performance driven 8. bureaucracy (L) 9. teamwork 10. community involvement 1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness 5. profit 6. performance driven 7. community involvement 8. being the best 9. achievement 10. results orientation 2006 2007 25% ENTROPY 17% ENTROPY 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 14% ENTROPY
- 13. Powerful metrics enable leaders to measure and manage cultures Share Price Revenue Share Price grew on average 38% per year from 2004 to 2007 Revenue grew on average 20% per year from 2004 to 2007
- 14. Values-Driven Results Staff turnover from 24% to 15% Hospital Headline earnings 300million to 2.2billion rand Engineering Company Employee satisfaction to 85%, from 49% over a five years Bank
- 15. Why Culture? Culture is a fundamental driver of operational and financial performance Mapping the values of your culture provides a detailed roadmap for building a sustainable, high performance organisation The culture of an organisation is a reflection of the leader’s values and behaviours.
- 16. Measuring Culture The Cultural Transformation Tools provide powerful metrics which enable leaders to actively measure and manage cultures. We make the intangible, tangible. We link culture to performance .
- 17. Cultural Transformation Models and Tools Overview
- 19. Maslow’s Needs to Barrett’s Consciousness Know and Understand Physiological Safety Love & Belonging Self-esteem Abraham Maslow Know and Understand Self-Actualization Richard Barrett Needs Consciousness
- 21. Seven Levels of Consciousness
- 29. Full-Spectrum Consciousness Service Making a Difference Internal Cohesion Transformation Self-Esteem Relationship Survival Long-term viability Collaboration Shared vision Continuous Improvement Best Practices Customer Satisfaction Financial Stability
- 30. Alignment of Employee & Organisational Consciousness Corporate Consciousness Difficult to hire and keep people who are here Individual Consciousness When organisations are here....
- 31. CBT Staff (154) Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values PL= 10-0 | IRS (P)= 7-3-0 | IRS (L)= 0-0-0 PL= 4-6 | IROS (P)= 0-0-4-0 | IROS (L)= 1-0-5-0 PL= 10-0 | IROS (P)= 1-2-7-0 | IROS (L)= 0-0-0-0 Matches PV - CC 0 CC - DC 1 PV - DC 1 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal Values Plot Copyright 2008 Barrett Values Centre August 2008 1. honesty 61 Level 5 2. commitment 60 Level 5 3. humor/fun 53 Level 5 4. reliability 51 Level 3 5. enthusiasm 44 Level 5 6. adaptability 43 Level 4 7. family 37 Level 2 8. integrity 34 Level 5 9. trust 34 Level 5 10. balance (home/work) 32 Level 4 1. cost reduction 76 Level 1 2. bureaucracy (L) 66 Level 3 3. confusion (L) 61 Level 3 4. profit 54 Level 1 5. information hoarding (L) 47 Level 3 6. short-term focus (L) 47 Level 1 7. hierarchical (L) 45 Level 3 8. results orientation 39 Level 3 9. client focus 38 Level 2 10. empire building (L) 36 Level 2 1. client satisfaction 66 Level 2 2. employee fulfillment 65 Level 6 3. continuous improvement 58 Level 4 4. effective communication 56 Level 2 5. teamwork 50 Level 4 6. financial stability 44 Level 1 7. adaptability 42 Level 4 8. client focus 38 Level 2 9. professionalism 35 Level 3 10. vision 35 Level 7
- 32. Cost of limiting values
- 34. Aligned Organization – Sterling Bank (979) Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values PL= 10-0 | IRS (P)= 5-5-0 | IRS (L)= 0-0-0 PL= 10-0 | IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 PL= 10-0 | IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 Matches PV - CC 3 CC - DC 8 PV - DC 2 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal Values Plot Copyright 2008 Barrett Values Centre August 2008 1. honesty 532 Level 5 2. commitment 498 Level 5 3. family/friendship 479 Level 2 4. reliability 387 Level 3 5. integrity 321 Level 5 6. friendliness 294 Level 2 7. responsibility 283 Level 4 8. humor/fun 276 Level 5 9. courtesy 263 Level 2 10. trust 255 Level 5 1. customer service 504 Level 6 2. teamwork 487 Level 4 3. customer satisfaction 476 Level 2 4. community involvement 399 Level 6 5. vision 373 Level 7 6. organizational growth 296 Level 1 7. being the best 285 Level 3 8. integrity 275 Level 5 9. commitment 261 Level 5 10. friendliness 252 Level 2 1. teamwork 513 Level 4 2. customer satisfaction 491 Level 2 3. customer service 489 Level 6 4. employee fulfillment 477 Level 6 5. community involvement 430 Level 6 6. integrity 337 Level 5 7. commitment 301 Level 5 8. vision 295 Level 7 9. being the best 288 Level 3 10. accessibility 274 Level 2
- 35. Whole Systems Change Cultural Evolution
- 36. Cultural Evolution – Whole System Change Personality Individual values and beliefs Character Individual behaviors Culture Group values and beliefs Social Structures Group behaviors Values Behaviors Group Cohesion – Capacity for Collective Action Personal Alignment Structural Alignment Values Alignment Mission Alignment Individual Collective Barrett Values Centre
- 37. Signature Workshop Implementing Whole-System Change 2006
- 38. 6. Survey of Key Drivers Whole System Change: Preparation Phase 3. Choose Values Select Behaviors 2. Create Vision and Mission 4. Evaluate Cultural Resilience 7. Develop Implementation Strategy 8. Develop Objectives and Key Performance Indicators 5. Develop Compelling Reasons for Change 1. Business Assessment 1. CTT Values Assessment
- 39. Why? Whole System Change: Implementation Phase 9. Structural Alignment New employee/executive selection New employee/executive orientation Employee/executive performance evaluation Employee/executive promotion criteria Talent selection and development programs Management development programs Leadership development programs 11. Personal Alignment Programs (Executive Population) 13. Business or Functional Unit Group Cohesion Programs 14. Values Awareness Program for Managers Specifically designed for executive, managerial and employee populations including values-based business simulations, ethical dilemmas, theater, etc. 15. Values Management of Organization, Business Units and Sub-Units and Behavior Alignment of Executive Population 10. LVA Coaching and Action Plans (Executive Group – CEO and Business Unit Leaders) 12. LVA Coaching and Action Plans (Executive Population)
- 40. Stages in the Development of Organisational Consciousness Positive Focus / Excessive Focus Control, Corruption, Greed Bureaucracy, Complacency Manipulation, Blame Service SERVICE TO HUMANITY AND THE PLANET Social responsibility, future generations, long-term perspective, ethics, compassion, humility External Cohesion STRATEGIC ALLIANCES AND PARTNERSHIPS Collaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring Internal Cohesion BUILDING CORPORATE COMMUNITY Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Transformation CONTINUOUS RENEWAL AND LEARNING Accountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth Self-Esteem HIGH PERFORMANCE Systems, processes, quality, best practices, pride in performance, Relationship EMPLOYEE RECOGNITION Loyalty, open communication, customer satisfaction, friendship, Survival FINANCIAL STABILITY Shareholder value, profit, organisational growth, employee health and safety
- 41. Values Based Decision Making
- 42. Five Modes of Decision Making Based on past: DNA encoded reaction. Action precedes thought. Based on past: Learned reaction. Action precedes thought. Based on past: Considered response. Pause between event and response. Future orientation. Consciously creating the future. Based on what wants to emerge. Tap into the collective unconscious INTUITION INSTINCTS SUB CONSCIOUS BELIEFS CONSCIOUS BELIEFS VALUES
- 43. Cultural Entropy Cultural entropy represents the degree of dysfunction in a culture Entropy Impact <10% Prime : Healthy Functioning 11-19% Minor Issues : Requiring cultural and/or structural adjustment 20-29% Significant Issues: Requiring cultural and structural transformation, and leadership coaching 30-39% Serious Issues : Requiring cultural and structural transformation, leadership mentoring/coaching, and leadership development 40-49% Critical Issues : Requiring cultural and structural transformation, selective changes in leadership, leadership mentoring/coaching and leadership development
- 44. Barrett Values Centre Vision, Mission and Values Values: Employee fulfilment, commitment, customer satisfaction, shared vision Internal External Vision To be a global resource for the evolution of human Consciousness To create a values-driven society Mission To build a worldwide network of change agents committed to cultural transformation To support leaders in building values-driven organizations
Editor's Notes
- Barrett Values Centre has created the Cultural Transformation Tools that allow leaders to measure and manage culture. For many years people believed that culture was not measurable. This presentation shows that it is possible to measure culture and then use the results to transform an organisation and it’s performance.
- It is no longer an issue of does culture have an impact on the performance of an organization. The question then becomes is why culture is so intrinsically involved in the success of an organization.
- These two organisations had similar profiles (market, portfolio, staff). The staff from the first organisation chose the values and behaviours that reflect the current culture. The words suggest that this is a fun and high performing culture. This distribution of dots is what we call Full Spectrum – They are operating across all 7 Levels of Consciousness. In our experience this what makes a company sustainable. The second organisation are showing a current culture that is dominated by fear. White dots represent fear based values and 2 white dots in the current culture tell us that fear is showing up to a degree that will limit the organisations ability to fulfil it’s employees, satisfy it’s customers and make a profit. While I’m not going to explain the model at the moment there are 2 simple principles to understand: 1. The more white dots you have in the chart, the less healthy the organisation is. 2. The more levels that are covered with blue dots, the more resilient and attractive your organisation becomes (attractive to employees and customers). Regardless of whether you are the CEO of the janitor, you can share the same values and make your decisions based on those values Everyone can understand the words, people are united by the same language.
- Bank in North America with income of $11bn, the board calculated the cost of limiting values was somewhere between $3 and $4bn. They realized that values was not soft and fluffy concepts it was about running a profitable business If you have an entropy score of 40% this means that 40% of the energy in the company is working against positive outcomes.
- 42% Publicly Listed 58% Private 10 in top 25 (40%) 7 in next 25 (28%) 12 in next 25 (48%) 13 in next 25 (52%) of the 14 &quot;all star&quot; employers who have been on the list for 10 years, 7 public, 7 private. Only 34% of publicly traded in top 50 50% in bottom 50
- The two major metrics we have for the link between culture and performance – Entropy and misalignment between current and desired.
- Key points This slide sets a foundation for what we will be learning on the course. Who are the human beings in our organisations and what is most important to them? What is the current culture of the organisation and what do we desire it to be? How do we support leaders in becoming full spectrum in order of live the values and drive the transformation?
- Corrected quote for accuracy.
- Key Points 1) Briefly talk about each of the assessment types and where it would be used. 2) We will be talking mainly during this course about the first four tools in this list.
- 1) Start by explaining that MODELS ARE BASED ON HUMAN NEEDS AND MOTIVATIONS. Everyone has four basic needs. These needs are the basis for human motivations. PHYSICAL Survival: Health, Safety, Security EMOTIONAL Relationship: Sense of Belonging, Open Communication. Self-Esteem: Sense of own self-worth based on feedback from others. MENTAL External – Mind invited into the community or work place. Internal – Mind used for personal growth. Change in beliefs and assumptions. SPIRITUAL Meaning: Sense of meaning derived through work or other activities. Making a Difference: Sense of being able to change things for the better. Service: Sense of making a contribution to the common good or assisting others without thought of reward. 2) Based on Maslow but there is a key difference Maslow created a hierarchy of needs. This is a hierarchy of consciousness. E.g. We see NGOs and charities who have high level 5, 6, 7 values but their poor ability to handle money at level 1 and their lack of high performing system at level 3 undermine their ability to deliver on the Level 5,6,7 values and aspirations.
- Key Points Discuss the personal aspects first and then the organisational aspects. Discuss the element of time in this context, if you don’t eat for weeks you die. If you don’t pay bills when due, you pay a fee.
- Key Points Discuss the personal aspects first and then the organisational aspects. Discuss the element of time in this context, if you don’t eat for weeks you die. If you don’t pay bills when due, you pay a fee.
- Key points Why are there no longer limiting values at Level 4 to 7? At level 4 we are facing the fears that emerge and grow through levels 1,2,3. The values that underpin this process are Challenge, Courage and Risk Taking. A test for level 4 consciousness (facing fears) that I use in an organisation…. Can the receptionist challenge the CEO to say for example “I think we could have done that better”? Where there is too much fear for that interaction to take place then the organisation will be stuck in levels 1,2,3. Where that interaction can take place, this is an organisation that is practicing level 4 and moving on.
- Key points 1) On the personal level 5 this is about a) Inner strength and fearlessness and b) sense of meaning and purpose
- Key points Full spectrum is another way to think about sustainability. Organisations that are conscious at all 7 levels will be and are far more sustainable Full spectrum definition. Positive values at every level in the current culture and no limiting values. Also an entropy score of 10% or below Many companies are not yet full spectrum but consider themselves to be on a journey to full spectrum
- Key points In addition to the idea of full spectrum, we are also looking for alignment. If the people are mostly 1,2,3 and the organisation is also 1,2,3 they will feel aligned More often we see and organisation at 1,2,3 and the people at 4,5,6. This will feel unaligned
- Look at the 6 dots on level 5 PV. This suggests that meaning and purpose is really important in the lives of these people. Also notice no dots at level 5 CC, along side the word confusion. This is the opposite of meaning and purpose. Then take a look at the word ‘vision’ in the DC. The people are saying “Please lead me”. The interesting point here is that on the distribution chart there was 25% of the votes at level 5 in the DC. There was not enough agreement about the values at that level for the words and dots to show up on the chart. This shows the value of the distribution chart at getting behind the dot plots. As a consultant it also tells you that there is real work to do in defining what people are looking for at level 5. Notice that apart from the 2 dots missing at level 5, there is a general agreement about the current culture between management and staff.
- This extra survey allows you to find out the costs of the PLVs or the cost of fear. This is not a scientific survey. It answers the question so we have a $30 problem or a $30,000,000 problem. This helps people who are strongly level 1 focus to understand the financial value of values.
- Real worked example and the materials for this are available on MY CTT and trained on CTT Part 2
- Sterling Bank was the first organization ever assessed as Full Spectrum in the current culture. No limiting values and 8 matches between CC & DC. These are happy people and the organization is very successful and profitable. Notice the IROS match too. The values in black on the DC (in this case Employee fulfilment & Accessibility) are the new requests. They do not come from the personal values and not in current culture. How can these be implemented and supported in the culture? As a response to employee fulfilment, Sterling bank created a program for all staff called Live your Dreams.
- Here is an example of values taken from a web site and plotted in the 7 Levels to see what Levels the Kraft foods values map to. Level 3 – systems and processes Level 4 – willing to be adaptable and evolve Level 5 – Sense of meaning and purpose for people DO NOT ask people the name the levels at this stage. They are going to play a game soon and this is your chance to tell them how it works.
- Corrected quote for accuracy.