This document discusses how leaders can build values-driven organizations by reducing cultural entropy. It defines cultural entropy as unnecessary or unproductive work that prevents peak performance and causes employee stress and frustration. High cultural entropy is linked to low employee engagement. The document recommends that leaders measure their current culture, desired culture, and personal entropy to identify misalignments. Transforming the culture involves addressing employee needs by reducing sources of conflict, friction and frustration through changes to structures, systems, policies and developing leaders who express less fear-driven energy. Developing a deliberately developmental organization can help engage employees by supporting their personal growth.

1. THE ROLE OF THE
LEADER IN
BUILDING A
VALUES-DRIVEN
ORGANIZATION
Richard Barrett
Barrett Academy for the
Advancement of Human Values
(www.barrettacademy.com)

2. To create a values-driven world
where all people , organizations
and societies thrive.
Founder of the Barrett
Values Centre

3. President of the Academy
for the Advancement of
Human Values
To discover, incubate and develop ideas
and concepts that support the evolution
of human consciousness.

4. “Values-driven organizations are
the most successful on the planet
because they care about their
stakeholders needs.”
Richard Barrett

5. The Barrett Model of
Organizational Consciousness'

6. In the middle of the 20th century,
Abraham Maslow developed a theory
that linked well-being to the
satisfaction of needs. He postulated
that well-being comprises five
components.
Each component acts as a
foundation for the subsequent
component.
Origins of the Barrett Model

7. From Maslow to Barrett
Our basic well-being
arises from our
ability to meet what
Abraham Maslow
called our deficiency
needs - our survival,
safety and security
needs. Furthermore,
we must learn to
master our
deficiency needs
before we can focus
on our growth
needs.
Growth Needs
Deficiency
Needs

8. The Barrett Model differs from Maslow's model in three important ways; it gives
more definition to the process of self-actualization; it focuses on consciousness
rather than needs and it relabels the different levels of the model.
From Maslow to Barrett

9. The Seven Stages of
Organizational Development
Drive for Stability
Drive for Profitable
Growth
A Necessary Condition for
Evolution

10. Full-Spectrum Consciousness
The most successful
organizations are those that
develop Full-Spectrum
Consciousness - the ability to
overcome the challenges
associated with every level of
organizational consciousness.
Viability
Collaboration
Contribution
Alignment
Evolution
Performance
Relationships

11. Your company is profitable and
financially stable. It focuses on
long-term sustainability and not
on short-term results.
It provides safe and
comfortable working conditions
for its people.
VIABILITY

12. Without profits or access to a
continuing stream of funds,
organizations quickly perish.
Every organization needs to make
financial viability and stability a
primary concern.

13. People walk into the office each
day they smile and greet each
other warmly.
There is a healthy sense of
respect and customers feel
their needs are cared for.
RELATIONSHIPS

14. The critical issue at this stage of
development is to create a
sense of loyalty and belonging
among employees, and a sense
of caring and connection
between the organization and its
customers and suppliers.

15. The organization invests in high
performing systems.
It trains it’s people to be
excellent at doing their jobs and
the staff are proud to tell others
who they work for.
PERFORMANCE

16. At this stage of
development, the
organization is focused on
staying relevant to its
customers, pursuing
excellence by adopting best
practices, and constantly
implementing productivity
and efficiency
enhancements.

17. The organization moves
forward through innovation and
continuous improvement. It is
adaptable and resilient.
Employees feel empowered,
have the courage to ask tough
questions and it is OK to make
mistakes.
EVOLUTION

18. To fully respond to the
challenges of this level of
consciousness the
organization must
actively garner
employees’ ideas and
opinions.
For many leaders and managers, this is a new role requiring new skills.
Employees want to be accountable—not micro-managed and supervised

19. People feel inspired by the
vision and values.
There are high levels of trust
and a deep sense of purpose,
fun and team spirit.
ALIGNMENT

20. The key to success at this level of consciousness
is the establishment of a strong, positive, unique
cultural identity that differentiates the
organization from its competitors.

21. Strong focus on leadership
development means that
leaders are making a
sustainable difference inside
and outside the organization.
This is a collaborative working
environment for staff,
customers, suppliers and the
community, where people focus
on win-win for all concerned.
COLLABORATION

22. The organization should support employees
in becoming all they can become, both
professionally and personally.
Leadership development is given significant
emphasis at this stage of development.

23. For people in this organization,
ethics is not about compliance but
doing what they believe is right, in
their hearts.
By doing their jobs well, people
know they are serving society and
future generations.
CONTRIBUTION

24. To be successful at this level of
consciousness, organizations
must embrace the highest
ethical standards in all their
interactions with employees,
suppliers, customers, partners,
investors and the local
community.

25. The ENERGETIC DRIVERS of
our aspirations and
WHAT ARE
VALUES?
The ENERGETIC
DRIVERS of our
aspirations and
intentions.

26. WHY ARE VALUES
IMPORTANT?
The decisions we make are a
reflection of our values, and they
are always directed towards a
specific purpose—
the satisfaction of our
individual and
collective needs.

27. Whatever you need
is what you value.
YOUR VALUES
ARE AN
EXPRESSION
OF YOUR
NEEDS

28. In a rapidly
changing
world VALUES
are the anchor
we need to
guide our
decision-
making.

29. The values, beliefs and
behaviors that guide
and define the way in
which a group of
people work
together.
What is Culture?

30. Who creates
the culture?
The Leaders

31. The Leaders Must Change
Therefore if you want to change the culture:
or You Must Change the Leaders

32. 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
of Deloitte’s survey
respondents believe
that “culture is a
potential competitive
advantage.”
82%

33. of leaders believe that
culture is critical to their
organization’s success.
84%
According to PwC,
60%think culture is more
important than their
strategy or their
operating model.

34. of the FTSE 350
companies have seen a
10% increase in operating
profits driven by their
investment in culture.
55%
According to E&Y,
92%of the Board Members of
these companies said
that a focus on culture
has improved their
financial performance.
Overall,

35. CONCLUSION
CULTURAL CAPITAL
is the New Frontier of Competitive
Advantage

36. By becoming a
deliberately
developmental
organisation.
- Dr. Robert Kegan -

37. Deliberately
Developmental
Organisation
“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.
“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 -

38. WHEN YOU HELP
EMPLOYEES TO
GROW THEY
BECOME
ENGAGED

39. 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.

40. WHY ARE DELIBERATELY
DEVELOPMENTAL ORGANISATIONS
the most successfull?

41. Because they care about the
needs of their employees …

42. 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.

43. 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

44. 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

45. WHAT IS
CULTURAL
ENTROPY©?

46. UNNECESSARY OR
UNPRODUCTIVE WORK—
WORK THAT DOES NOT
ADD VALUE.
The amount of energy that is
consumed in an organisation doing

47. 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

48. Cultural entropy
significantly impacts
employee engagement
25%
39%
53%
66%
80%
94%
0% 8% 15% 23% 30%
Cultural Entropy
EmployeeEngagement
Research carried out in 163 organisations in Australia by Hewitt Associates

49. CULTURAL
ENTROPY
HIGHLY ENGAGED <10%
ENGAGED 11-20%
BECOMING DISENGAGED 21-30%
DISENGAGED 31-40%
HIGHLY DISENGAGED > 41%
EMPLOYEE
ENGAGEMENT

50. ORGANIZATIONAL
TRANSFORMATION
CREATING A CULTURE THAT
ADDRESSES EMPLOYEE’S NEEDS

51. HOW DO YOU TRANSFORM
A CULTURE?
BY REDUCING THE LEVEL OF
CULTURAL ENTROPY

52. HOW DOES
CULTURAL
ENTROPY©
ARISE?
Cultural entropy is a function of the
personal entropy of the current leaders
of an organisation and institutional legacy of
past leaders as embedded in the structures,
systems, policies and procedures.

53. WHAT IS
PERSONAL
ENTROPY?

54. FEAR-DRIVEN ENERGY
Personal entropy is the amount of
that a person expresses in his or
her day-to-day interactions with
other people.

55. Personal entropy is a measure of
your lack of internal alignment.
Personal entropy arises from
subconscious fear-based beliefs
learned when we were young about
meeting our survival, safety and
security needs.

56. ORGANIZATIONS DON’T
TRANSFORM. PEOPLE DO!

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

58. 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
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

59. Weneed
toimproveour
leadershipand
weneedto
focuson
people.

60. The only way
leaders can change
is if they get
feedback on their
behaviours.

61. REDUCING THE
PERSONAL ENTROPY
OF THE LEADER:
Carry out a
LEADERSHIP
VALUES
ASSESSMENT of the
leaders to measure
their level of
PERSONAL
ENTROPY..
Use the results of
the Leadership
Values Assessment
to carry out a 2-3
hour coaching
session.

62. How to measure
Personal Entropy
ASSESSOR’S OBSERVED
VALUES OF INDIVIDUAL
Which of the following
values/behaviours most reflect how
individual “X” operates? Pick ten.
LEADERSHIP VALUES ASSESSMENT
LEADERSHIP DEVELOPMENT REPORT
INDIVIDUAL DEVELOPMENT REPORT
INDIVIDUAL’S VALUES
Which of the following
values/behaviours most reflect how
you operate? Pick ten.
http://www.valuescentre.com/our-products/products-
leaders/leadership-values-assessment-lva

63. Level Personal Values (PV) Current Culture Values (CC)
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
long hours (L) 16 3(I)
quality conscious 13 3(O)
drive and determination 12 4(I)
analytical 10 3(I)
commitment 10 5(I)
cautious (L) 8 1(I)
reliable 8 3(R)
achievement 7 3(I)
demanding (L) 7 2(R)
internally competitive (L) 6 2(R)
Matches
2
adaptability 4(I)
connecting with stakeholders 6(R)
drive and determination 4(I)
goals orientation 4(O)
innovative 4(I)
long hours (L) 3(I)
making a difference 6(O)
strategic thinker 4(I)
vision 7(I)
win-win partnerships 6(O)
High Personal Entropy Individual (20 Assessors)

64. Personal Entropy = 27%
Individual’s
perspective
Observed Values
by Assessors
Copyright 2015 Barrett Values Centre
High Personal Entropy Individual (20 Assessors)
10%
30%
0%
50%
0%
0%
0%
10%
0%
0%
0% 60%
7
6
5
4
3
2
1
3%
5%
12%
20%
25%
7%
1%
10%
8%
9%
0% 60%
7
6
5
4
3
2
1
7
6
5
4
3
2
1

65. What Low and High Personal
Entropy Individuals Focus on …
Low
Entropy
Individuals
(0-6%)
Commitment
Positive attitude
Accessible
Teamwork
Trustworthy
Integrity
Accountability
Customer satisfaction
Enthusiasm
Fairness
Internal
Cohesion
Focus
High
Entropy
Individuals
(21%+)
Commitment
Controlling (L)
Ambitious
Results orientation
Demanding (L)
Experience
Goals orientation
Authoritarian (L)
Humor/fun
Power (L)
Self-
Esteem
Focus
Stress
Inducing
Values
Based on 3600 Leadership Values Feedback
carried out on 100 leaders from 19 countries (2008-2010)

66. A HIGH CULTURAL ENTROPY
OPERATIONAL UNIT
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
Personal Entropy 64%
CVA Current Culture
Culture Values
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

67. A LOW CULTURAL ENTROPY
OPERATIONAL UNIT
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
Culture Values
CVA Current Culture
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
Leader’s Values
LVA Feedback 27 Assessors
Internal
Cohesion
Personal Entropy 9%

68. English Spanish Portuguese
THE VALUES-DRIVEN
ORGANIZATION

69. PERSONAL
EVOLUTION
ORGANIZATIONAL
EVOLUTION
SOCIETAL
EVOLUTION
LEADERSHIP
DEVELOPMENT
E-LEARNING COURSES

70. ORGANIZATIONAL EVOLUTION
E-LEARNING COURSES

71. NEXT SESSION
2ND Of NOVEMBER AT 6 PM CET
EVOLUTIONARY
COACHING FOR
LEADERS

72. www.valuescentre.com
www.barrettacademy.com
For more information: