Values, Culture & Leadership Master Class at EMCC Conference March 2011 London. Phil Clothier, Barrett Values Centre

1. Values, Culture & Leadership Consciously Creating the Futurephil@valuescentre.com – March 2011

2. Presentation Description This presentation was designed for a two hour Master Class on the topic of Values, Culture and leadership at the EMCC Annual Conference, London, 30th March 2011. Master Class Delivered by Phil Clothier. CEO Barrett Values Centre

4. The purpose of our lives is to be happy Happiness is the extent to which you live in love, as opposed to living in fear. Dalai Lama Phil Clothier

7. Values – The building blocks of culture

8. 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 What is culture? Talent Financial viability Excellence Ethics Resilience

9. Employee Value Proposition Core Values (I-Care) integrity compassion accountability respect excellence Core Values client collaboration teamwork delivery meritocracy integrity 1. long hours (L) 2. being the best 3. cost reduction (L) 4. poor communication (L) 5. client collaboration 6. bureaucracy (L) 7. confusion (L) 8. arrogance (L) 9. hierarchy (L) 10. silo mentality (L) 1. accountability 2. customer satisfaction 3. being the best 4. commitment 5. compassion 6. continuous improvement 7. integrity 8. teamwork 9. cost effectiveness 10. respect Cultural Entropy 37% Cultural Entropy 9%

11. Values under Pressure

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21. Iceland 2007 Entropy 54% August 2007

22. Latvia Latvia Government dissolved after failure to agree budget - 2007

24. Latvian and Russian Desired Culture Latvian desired culture Russian desired culture

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27. The Value of Values Latvia Sustainable Development Strategy until 2030 http://www.latvija2030.lv/page/320

28. Organisational transformation starts with the personal transformation of the leaders

29. It all starts with me

30. Values Beliefs & Behaviours 1) Choose three values that are important to you in your life 2) What are your beliefs that support these values 3) What behaviours do you exhibit that support these values Accountability Achievement Balance (home/work) Commitment Compassion Competence Continuous learning Cooperation Courage Creativity Enthusiasm Efficiency Ethics Excellence Fairness Family Financial gain Friendships Future generations Health Honesty Humor/fun Independence Integrity Initiative Intuition Making a difference Open communication Openness Personal fulfillment Personal growth Power Respect Responsibility Risk-taking Self-discipline Success Trust Wisdom

31. Five Modes of Decision Making Six

32. Six Modes of Decision Making Your soul is calling. You need to do this! Inspiration Based on what wants to emerge. Tap into the collective unconscious Intuition Future orientation. Consciously creating the future. Values Based on past: Considered response. Pause between event and response. Conscious Beliefs Based on past: Learned reaction. Action precedes thought. Sub Conscious Beliefs Instincts Based on past: DNA encoded reaction. Action precedes thought.

33. Values Values- A shorthand method of describing our individual and collective motivations and what is important to us. Values can be positive or potentially limiting. Positive Values: trust, creativity, passion, honesty, integrity, clarity Potentially Limiting Values: power, blame, greed, status, being liked

34. Culture The way things are done around here The culture of an organisation or any group of individuals is a reflection of the values, beliefs and behaviours of leaders of the group.

35. Maslow’s Needs to Barrett’s Consciousness Self-Actualization Know and Understand Know and Understand Abraham Maslow Richard Barrett Self-esteem Love & Belonging Safety Physiological Needs Consciousness

36. Level 1 Service Is your organisation financially stable? Does it set fair prices and pay? Are the working conditions safe and comfortable? Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

37. Level 2 Service When people walk into the office each day do they smile and greet each other warmly? Is there a healthy sense of respect and do customers feel well looked-after? Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

38. Level 3 Service Does the organisation invests in high performing systems? Are people trained to be excellent at doing their jobs? Are they proud to tell others who they work for? Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

39. Level 4 Is your company moving forward through innovation, adaptability and continuous improvement? Do your staff feel empowered and have the courage to ask the tough questions? Is it OK to make mistakes? Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

40. Level 5 Do your people feel a sense of purpose and are they inspired by the vision? Are the values demonstrated by the senior team in their decision making? Are the high levels of trust, team spirit and fun? Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

41. Level 6Consciousness To what extent is there investment in leadership development, coaching and mentoring? Does the organisation focus on making a difference, sustainability and environmental awareness? Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

42. Level 7 In your company is ethics about compliance or doing what people believe is right, deep down in their hearts? Is there a knowing that by doing their jobs, people are serving society & future generations? Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Survival

43. 7 Levels of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity and the Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Service Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfilment, coaching/mentoring Making a Difference Building Internal Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Internal Cohesion Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Transformation High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Self-esteem Employee Recognition Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Relationship Financial Stability Shareholder value, organisational growth, employee health, safety. Control, corruption, greed Survival

44. 7 Levels & Sustainability People - Society Service Planet - Environment Making a Difference Cultural Alignment Internal Cohesion Continuous renewal Transformation Organisational effectiveness Self-esteem Harmonious relationships Relationship Profit - Economic stability Survival

45. Where are you?

46. Survey Questions 1) Personal Values Please select ten of the following values/behaviours that most reflect who you are, not who you desire to become. 2) Current OrganisationalCulture Values Please select ten of the following values/behaviours that most reflect how your organisation currently operates. 3) Desired OrganisationalCulture Values Please select ten of the following values/behaviours that you would desire for your organisation to achieve it's highest performance.

47. CBT Staff (154) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 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 & CCOrange= CC & DCP = PositiveL = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC(white circle) R = Relationship S = Societal Values Plot Copyright 2008 Barrett Values Centre August 2008

49. Cost of Limiting Values Short-term Focus £3,489,818 Confusion £3,178,636 Bureaucracy (unnecessary) £1,799,618 Empire Building £1,764,682 Information Hoarding £1,634,045 Sickness and Leavers £834,225 Hierarchical £624,327 Long Hours £187,909 Total Entropy (potential business value) £13,504,261 Based on staff’s perception of lost productivity and opportunity. Annual income £33,000,000 and loss of £500,000 in 2000. Investment Leadership – Jim Ware’s book contains data showing the comparison between healthy and unhealthy cultures and bottom line performance.

50. Estimated Cost of Entropy – National GDP NB. Initial estimates based on calculation methods used for organisations. More research being done in this area.

51. Cultural Entropy & Employee Engagement Cultural Entropy The degree of dysfunction in the culture – bureaucracy, internal competition, etc. This research of 163 organisations in Australia was carried out by Hewitt Associates and the Barrett Values Centre in 2008

52. Barrett Values Centre: Group (15) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 IROS (P)= 3-1-7-1 | IROS (L)= 0-0-1-0 IROS (P)= 1-3-5-0 | IROS (L)= 0-0-0-0 IRS (P)= 4-1-1 | IRS (L)= 0-0-0 Matches PV - CC 3 CC - DC 6 PV - DC 2 Health Index (PL) PV: 6-0 CC: 12-1 DC: 9-0 Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal Values Plot Copyright 2010 Barrett Values Centre December 2010

53. Measurement Matters The Barrett Model 1998

54. Working with Whole the organisation Implementing Whole-System Change 2006

55. Cultural Evolution – Whole System Change Values Behaviors Personality Individual values and beliefs Character Individual behaviors Individual Personal Alignment Values Alignment Mission Alignment Collective Structural Alignment Culture Group values and beliefs Social Structures Group behaviors Thank you Ken Wilber

56. Organisational transformation starts with the personal transformation of the leaders

57. Seven Levels of Leadership Positive Focus/Excessive Focus Wisdom/ Visionary SERVICE TO HUMANITY Long –term perspective. Future generations. Ethics. COLLABORATION WITH CUSTOMERS AND LOCAL COMMUNITY Strategic alliances. Employee fulfilment. Environmental stewardship. Mentor/ Partner DEVELOPMENT OF CORPORATE COMMUNITY Positive, creative corporate culture. Shared vision and values. Integrator/ Inspirer Facilitator/ Influencer CONTINUOUS RENEWAL Promotes learning and innovation. Team builder. Empowers others. Manager/ Organiser BEING THE BEST, BEST PRACTICE Productivity. Efficiency. Quality. Systems and processes. Bureaucracy. Complacency. Relationship Manager RELATIONSHIPS SUPPORTING CORPORATE NEEDS Good communication between employees, customers and suppliers. Manipulation. Blame. Crisis Director PURSUIT OF PROFIT & SHAREHOLDER VALUE Able to manage adversity. Directive. Willing to take charge. Exploitation. Over-control.

59. Why am I here?

60. What is my purpose?

62. Why are we here?

63. What is our purpose?

65. Underlying Fears that Drive Deficiency Needs Level 3 – I am not enough I do not have enough power, authority or respect to satisfy my need for self-esteem Level 2 – I am not loved enough I do not have enough love, caring, attention, etc, to satisfy my need for belonging Level 1 – I don’t have enough I do not have enough money, safety, protection, health, food, etc, to satisfy my need for survival

66. Facing my fears Step 2 I do not have enough............ to satisfy my need for ..............

67. Cultural Evolution Begins with Personal Evolution The culture ofan organisationis a reflectionof the leadership consciousness. CVA Current Culture LV A Feedback 14 Assessors Cultural Entropy 38% Personal Entropy 64% PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0

68. Cultural Evolution Begins with Personal Evolution The culture ofan organisationis a reflectionof the leadershipconsciousness. CVA Current Culture LV A Feedback 27 Assessors PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 Cultural Entropy 7% Personal Entropy 9% PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0

69. Democratising Leadership 2006

70. Book dedication Dedicated to My Mother Gwendoline Olive Barrett 1910 - 2010 ... and 15 Days

71. The New Leadership Paradigm A Shift from “I” to “We” Ultimately, the problems of existence that we collectively face are issues of personal consciousness, and the crisis we face is a crisis of leadership. We will only get beyond this stage of our collective evolution if we can put aside our narrow self-interests, focus on the whole system, and build a values-driven framework of policies that support the common good.

72. From the Big Bang… to the Present Day Stage 1 Entities learn how to become viable and independent in their frameworks of existence. Stage 2 As life conditions become more complex, viable independent entities bond with each other to create a group structures. Stage 3 Viable independent group structures then cooperate with each other to form a higher order entity. Energy Atoms MoleculesCells Organisms CreaturesHomo sapiens

73. Stage 3 External Cohesion: Viable independent group structures then cooperate with each other to form a higher order entity. Stage 2 Internal Cohesion: Viable independent entities then bondwith each other to create a group structure. Stage 1 Personal Mastery: An entity learns how to become viable and independent in its framework of existence. Framework of Evolution & The Barrett Model

74. Leadership Development Learning System The Journals and Workbooks The Web Site The Book

75. Full Spectrum Leadership (Self Assessment) http://www.valuescentre.com/resources/?sec=exercises

76. The purpose of our lives is to be happy Happiness is the extent to which you live in love, as opposed to living in fear. Dalai Lama Phil Clothier