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Facilitating Transformation
Richard Barrett
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
MY SPEECH TODAY
TWO TOPICS
WHAT IS TRANSFORMATION?
HOW CAN IT BE FACILITATED?
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
BUT FIRST LETโ€™S TALK ABOUT FACILITATION
WHAT IS IT?
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
4
What is Facilitation?
Supporting individuals or
groups in having new
conversations that lead to a
change in awareness or a
shift in consciousness.
It is about having new conversations that
you have never had before.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
5
Awareness vs Consciousness
A change in
awareness leads
to a change in
perception
A shift in
consciousness
leads to a new
way of being
Looking at things differently Being and behaving differently
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
6
Change vs Transformation
Change is doing
things
differently.
Transformation
is a new way of
being.
A shift in behaviour A shift in values
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
7
Change vs Transformation
You can change without
transforming, but you cannot
transform without changing.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
8
It must be obvious by now โ€ฆ
We cannot solve our
problems with the
same level of thinking
that created them.
A new level of thinking
=
A new level of consciousness
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
9
Therefore facilitating transformation is
about โ€ฆ
Supporting individuals or
groups in having new
conversations that lead to
new and more โ€œsuccessfulโ€
ways of being.
A shift in consciousness that allows you to explore
new ways of meeting your needs.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
10
The Purpose of Transformation
We do this by being and behaving
differentlyโ€”aligning with new values
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
11
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
12
Exercise (5 mins)
1. Think about a situation where you facilitated
change. What needs did you help people fulfil.
2. Think about a situation where you facilitated
transformation. What needs did you help people
fulfil?
3. Find a partner and discuss the differences between
change โ€œneedsโ€ and transformation โ€œneedsโ€.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
13
Change vs Transformation
Change is doing
things
differently.
Transformation
is a new way of
being.
A shift in behaviour A shift in values
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
14
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
TRANSFORMATION
INDIVIDUALS ๏ƒผ
ORGANISATIONS ๏ƒผ
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
15
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
TRANSFORMATION
PERSONAL TRANSFORMATION
OF INDIVIDUALS ๏ƒผ
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
16
Transformation begins with feedback
Without feedback
there can be no change
Without learning there can be
no transformation
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
17
Redefining โ€œFacilitating transformationโ€
Providing feedback that
leads to learning that
supports individuals and
groups in adopting more
โ€œsuccessfulโ€ ways of being.
Transformation is about a shift in values.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
18
What are Values?
A shorthand way of
describing our individual
and collective motivations
and what is important to us.
Values are the energetic drivers of our
aspirations and intentions.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
19
Positive of Potentially Limiting?
Values can be positive or
potentially limiting.
Positive Values: Trust, creativity,
passion, honesty, integrity, clarity
Potentially Limiting Values:
Bureaucracy, power, blame, greed,
hierarchy, status-seeking
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
20
Where do our Values come from?
Our values are a reflection of our needs.
(What ever we need we value.)
We have two sets of needs:
โ€ข The needs of the stage of psychological development
we are currently operating from.
โ€ข The needs of the stages of psychological development
we have passed through where we still have unmet
needs.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
21
A personal journey
Every person is on an
evolutionary journey of
psychological
development.
Surviving
Conforming
Differentiating
Individuating
Self-actualizing
Integrating
Serving
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
22
PRIMARY MOTIVATION
THE NEEDS OF THE STAGE
OF PSYCYHOLOGICAL
DEVELOPMENT YOU
ARE AT.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
23
SECONDARY MOTIVATION
THE UNMET NEEDS
OF THE STAGES OF
PSYCYHOLOGICAL
DEVELOPMENT YOU
HAVE PASSED THROUGH
The needs you have failed
to master.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
24
Facilitating human potential
This is not a book about
coaching per se, it is
about the framework of
human development that
coaches and facilitators
need to be familiar with
to facilitate the full
emergence of their
clientโ€™s potential.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
25
Stages, Levels and World Views
๏ฑ We grow in stages of psychological
development
๏ฑ We operate at levels of consciousness
๏ฑ We live inside (are embedded in)
cultural world views
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
26
Stages and Levels
Stages of
Development
Levels of
Consciousness
Serving SERVICE
Integrating MAKING A DIFFERENCE
Self-actualising INTERNAL COHESION
Individuating TRANSFORMATION
Differentiating SELF-ESTEEM
Conforming RELATIONSHIP
Surviving SURVIVAL
EvolutionofPersonalConsciousness
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
27
Deficiency needs and growth needs
The lower three stages of development
are about learning to fit into your cultural
framework of your existence. They are
focused on satisfying your deficiency
needs.
The upper three stages of development
are about learning to become who you
really are. They are focused on satisfying
your growth needs.
EvolutionofPersonalConsciousness
Individuating = Major Transformation
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
28
Stages of Psychological Development
Surviving
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29
Stages of Psychological Development
INFANCY
0-2 Years Old
Staying alive!
Satisfying physiological
and nutritional needs
Surviving
Stage Motivation
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
30
Stages of Psychological Development
Conforming
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31
Stages of Psychological Development
Conforming
Stage Motivation
CHILDHOOD
3-7 Years Old
Feeling safe!
Satisfying need for love,
and belonging.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
32
Stages of Psychological Development
Differentiating
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33
Stages of Psychological Development
Differentiating
Stage Motivation
TEENAGER +
8-24 Years Old
Feeling secure!
Satisfying need for respect
and recognition.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
34
Stages of Psychological Development
Individuating
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35
Stages of Psychological Development
Individuating
Stage Motivation
YOUNG ADULT
25-39 Years Old
Releasing your fears!
Satisfying need for freedom
and autonomy.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
36
Stages of Psychological Development
Self-actualising
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37
Stages of Psychological Development
Self-actualising
Stage Motivation
ADULTHOOD
40-49 Years Old
Becoming who you are!
Satisfying need to find
meaning and purpose.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
38
Stages of Psychological Development
Integrating
Powerful metrics that enable leaders to measure and manage cultures.
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39
Stages of Psychological Development
Integrating
Stage Motivation
MATURE ADULT
50-59 Years Old
Aligning with others!
Satisfying need to make a
difference in the world.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
40
Stages of Psychological Development
Serving
Powerful metrics that enable leaders to measure and manage cultures.
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41
Stages of Psychological Development
Serving
Stage Motivation
SENIOR
60+ Years Old
Finding fulfilment!
Satisfying your need to serve
the greater good.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
42
Levels of Consciousness
All things being normal, the level of
consciousness we operate from will
correspond to the stage of
psychological development
we have reached.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
43
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
44
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
45
1. What is your primary motivation at work?
2. What is your primary motivation outside work?
3. Are you able to get
your motivations met at
your current place of
work?
4. Discuss with a
partner.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
46
How to map personal values
๏ฑ PERSONAL VALUES ASSESSMENT (FREE) โ€“
Self reporting www.valuescentre.com/pva
๏ฑ LEADERSHIP VALUES ASSESSMENT โ€“
Feedback reporting
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
47
Feedback Reporting
LEADERโ€™S VALUES
Which of the following values/behaviours
most reflect how you operate? Pick ten.
ASSESSORโ€™S OBSERVED VALUES OF LEADER
Which of the following values/behaviours
most reflect how Leader โ€œXโ€ operates? Pick
ten.
http://www.valuescentre.com/our-products/products-
leaders/leadership-values-assessment-lva
LEADERSHIP VALUES ASSESSMENT
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)
strategic thinker 6 4(I)
High Entropy Leader (20 Assessors)
Matches 3
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)
Level Leader Observed Values
7
6
5
4
3
2
1
PL= 9-1 | IROS (P)=5-1-3-0 | IROS (L)=1-0-0-0 PL= 7-4 | IROS (P)=5-1-1-0 | IROS (L)=2-2-0-0
Orange=Values Match
P=Positive
L=Potentially Limiting (white circle)
I=Individual
R=Relationship
O=Organisational
S=Societal
Entropy = 27%
10%
50%
30%
10%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 40-50-10
Entropy = 10%
CTS = 20-20-60
Entropy = 27%
Leader
High Entropy Leader (20 Assessors)
Positive Values
Potentially Limiting Values
Observed Values
C
T
S
C=Common Good
T=Transformation
S=Self-Interest
9%
8%
10%
1%
7%
25%
20%
12%
5%
3%
0% 20% 40% 60%
1
2
3
4
5
6
7
1
2
3
4
5
6
7
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
50
What is Personal Entropy?
Personal entropy is the amount of fear-driven
energy that a person expresses in his or her day-
to-day interactions with other people.
It is a measure of the lack of personal mastery skills. Fear-
driven energy arises from the conscious and subconscious
fear-based beliefs of the ego about
meeting its deficiency needs.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
51
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
TRANSFORMATION
ORGANISATIONAL TRANSFORMATION ๏ƒผ
The Three Mantras of
Organizational Performance
Cultural Capital is the new frontier of
competitive advantage.
Mantras Implications
The Culture of an organizations is a
reflection of leadership consciousness
Measurement matters. If you can
measure it, you can manage it.
Who you are and what your organization
stands for is vitally important.
Organizational transformation begins with
the personal transformation of the leaders
You can make the evolution of
consciousness, conscious
Focus on Vision, Mission and Values
Begins with Leading Self
Measure and Map the Values
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
Cultural Evolution Begins with Personal Evolution
Cultural Entropy 7%Personal Entropy 9%
Culture ValuesLeaderโ€™s Values
The culture of
an organisation
is a reflection
of leadership
consciousness.
CVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
Internal
Cohesion
LVA Feedback 27 Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Internal
Cohesion
The culture of
an organisation
is a reflection
of leadership
consciousness.
LV A Feedback 14 Assessors
PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0
Cultural Evolution Begins with Personal Evolution
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
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
CVA Current Culture
PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0
Cultural Entropy 38%Personal Entropy 64%
Culture ValuesLeaderโ€™s Values
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
55
Richard Barrett has made
extraordinary contributions to our
understanding of organisational
values and culture. His frame-
works for measuring culture and
enabling whole system change are
elegant. His reservoir of know-
ledge is vast and his connection to
timeless wisdom is profound.
Raj Sisodia Co-founder and co-chairman of
Conscious Capitalism Inc. and Professor of
Marketing at Bentley University
Building a Values-driven Culture
WHY A VALUES-DRIVEN CULTURE?
Values Alignment
Performance
BECAUSE VALUES-DRIVEN
CULTURES ARE THE MOST
SUCCESSFUL ON THE
PLANET
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
57
WHY ARE VALUES-DRIVEN CULTURES
THE MOST SUCCESSFUL?
BECAUSE THEY CARE ABOUT THE
NEEDS OF THEIR EMPLOYEES, AND โ€ฆ
โ€ฆ THEY ALSO CARE ABOUT THE NEEDS
OF ALL THEIR STAKEHOLDERS
Suppliers Community
The Leader and the Values
Peters and Waterman, โ€œIn Search of Excellence:
Lessons from Americaโ€™s best run companiesโ€, 1983
Clarifying the value system
and breathing life into it are
the greatest contributions a
leader can make.
โ€œNo matter how far reaching the vision or how brilliant
the strategy, neither will be realized if it is not supported
by the organisational culture.โ€ Luther Johnson
Peter Drucker
โ€œCULTURE EATS STRATEGY FOR BREAKFASTโ€
S&P 500
Average
Annualized
Return
16.39%
Average
Annualized
Return
4.12%
BCWF
The Best Companies to Work For engender high levels of employee engagement and commitment,
because the leaders of these organisations focus on meeting their employeeโ€™s needs.
The Top 40 Best Companies to Work For (USA)
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
63
What Employees Value
at different levels of consciousness
A safe working environment and pay and ben-
efits that are sufficient to take care of family
Opportunities to work in a congenial atmos-
phere where people care and respect each other
Opportunities to grow professionally with
support, feedback and coaching
Opportunities and challenges by being made
accountable for projects and processes
Opportunities for personal growth and develop-
ment to support you in living your life purpose
Opportunities to leverage your contribution by
collaborating with other like-minded individuals
Opportunities to serve others and care for the
well-being of the Earthโ€™s life support systems
Surviving
Relationship
Self-esteem
Transformation
Internal cohesion
Making a difference
Service
Levels of Consciousness Primary Motivations
Positive Focus / Excessive Focus
Financial Stability
Shareholdervalue,organisationalgrowth,
employeehealth,safety.Control,corruption,greed
Belonging
Loyalty, open communication, customer satisfaction, friendship.
Manipulation, blame
High Performance
Systems, processes, quality, best practices,
pride in performance. Bureaucracy, complacency
Continuous Renewal and Learning
Accountability, adaptability, empowerment, teamwork, goals
orientation, personal growth
Building Corporate Community
Shared values, vision, commitment, integrity,
trust, passion, creativity, openness, transparency
Strategic Alliances and Partnerships
Environmental awareness, community involvement, employee
fulfillment, coaching/mentoring
Service To Humanity And The Planet
Social responsibility, future generations, long-term perspective,
ethics, compassion, humility
Stages in the Development of Organizational Consciousness
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Making a difference
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
65
The Shift from โ€œIโ€ to โ€œWeโ€
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
COMMON GOOD AND
CONTRIBUTION (WE)
SELF INTEREST AND
PERFORMANCE (I)
TRANSFORMATION
EvolutionofPersonalConsciousness
Making a difference
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
66
BUILDING A VALUES-DRIVEN CULTURE
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
67
BUILDING A VALUES-DRIVEN ORGANSIATION
START WITH A VALUES SURVEY
The Values Survey
PERSONAL VALUES
Which of the following values/behaviours most reflect who you are? Pick
ten.
CURRENT CULTURE
Which of the following values/behaviours most reflect how your
organisation currently operates? Pick ten.
DESIRED CULTURE
Which of the following values/behaviours most reflect how you would like
your organisation to operate? Pick ten.
Placement of Values by Level (100 employees)
Top Ten Values
1. tradition (L) (59)
2. diversity (54)
3. control (L) (53)
4. goals orientation (46)
5. knowledge (43)
6. creativity (42)
7. productivity (37)
8. image (L) (36)
9. profit (36)
10. open communication (31)
10
42 5
7
9
6
8
3
110
Current Culture
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
11%
1
2
3
4
5
6
7
Cultural
Entropy
Placement of Values by Level (100 employees)
Current Culture
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Cultural Entropy and Engagement
Cultural entropy
significantly
impacts
employee
engagement.
25%
35%
45%
55%
65%
75%
85%
0% 5% 10% 15% 20% 25% 30%
Cultural Entropy
EmployeeEngagement
Research carried out in 163 organisations in Australia by Hewitt Associates
and the Barrett Values Centre in 2008.
Low Entropy =
High Engagement
High Entropy =
Low Engagement
Entropy and Engagement
Cultural Entropy Most employees
are โ€ฆ.
10% or less Highly Engaged
11% to 20% Engaged
21% to 30% Becoming Disengaged
31% to 40% Disengaged
41% or more Highly Disengaged
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
73
What is Cultural Entropy?
The amount of energy that is consumed in an organisation
doing unnecessary or unproductive work that does not
add value.
It is a measure of the conflict, friction and frustration that
employees encounter in their day-to-day activities that
prevent the organisation from operating at peak
performance.
Highly Engaged Team (19)
customer satisfaction 13 2(O)
making a difference 13 6(S)
commitment 10 5(I)
employee fulfilment 10 6(O)
continuous improvement 9 4(O)
humour/ fun 9 5(O)
shared vision 9 5(O)
customer collaboration 8 6(O)
balance (home/work) 6 4(O)
financial stability 6 1(O)
teamwork 6 4(R)
customer satisfaction 12 2(O)
continuous improvement 10 4(O)
employee fulfilment 10 6(O)
making a difference 9 6(S)
shared vision 9 5(O)
continuous learning 8 4(O)
accountability 6 4(R)
innovation 6 4(O)
teamwork 6 4(R)
trust 6 5(R)
Values Plot June 22, 2015Copyright 2015 Barrett Values Centre
I = Individual
R = Relationship
Black Underline = PV & CC
Orange = PV, CC & DC
Orange = CC & DC
Blue = PV & DC
P = Positive
L = Potentially Limiting (white circle)
O = Organisational
S = Societal
Matches
PV - CC 4
CC - DC 6
PV - DC 4
Cultural Entropy:
Current Culture
7%
family 15 2(R)
making a difference 13 6(S)
humour/ fun 11 5(I)
well-being (physical/ emotional/
mental/ spiritual)
11 6(I)
continuous learning 10 4(I)
commitment 8 5(I)
accountability 7 4(R)
financial stability 7 1(I)
trust 7 5(R)
compassion 6 7(R)
integrity 6 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
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 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0
Highly Engaged Team (19)
Personal Values
Values Distribution June 22, 2015Copyright 2015 Barrett Values Centre
Positive Values
Potentially Limiting Values
Current Culture
Values
Desired Culture
Values
C
T
S 2
1
3
4
5
6
7
C = Common Good
T = Transformation
S = Self-Interest
0%
0%
0%
5%
14%
9%
21%
25%
17%
9%
0% 20% 40% 60%
1
2
3
4
5
6
7
2%
0%
5%
6%
10%
4%
20%
28%
24%
1%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
0%
0%
5%
9%
10%
27%
23%
22%
4%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24
Cultural Entropy = 0%
Cultural Entropy = 7%
Cultural Entropy = 0%
Low level of
Cultural Entropy
= High level of
Employee
Engagement
High level of
Values
Alignment
26%
46%
28%
25%
48%
27%
26%
50%
24%
Five Levels of Employee Engagement
Highly Engaged Employees bring passion, purpose and discretionary energy
to their work. They are emotionally attached and committed
to the organisation and want to do the right thing.
Engaged Employees are willing to go the extra mile to support the
company in achieving its goals and objectives as long as they
can also satisfy their own goals and objectives.
Becoming
Disengaged
Employees are becoming frustrated, anxious and fearful
about not being able to satisfy their needs.
Disengaged Employees do what they have to do to get through the day,
but are unwilling to put in any extra effort to meet deadlines
or support their colleagues in difficult times.
Highly
Disengaged
Employees are unhappy at their work and act out their
unhappiness by actively undermining the company, and
denigrating those who want to succeed.
Highly Engaged Employees
๏‚ง Highly engaged employees identify with the company.
๏‚ง They care passionately about the future of the company.
๏‚ง They bring passion and purpose to their work.
๏‚ง They are willing to invest their discretionary effort to make
the company a success.
๏‚ง They want the company to do the right thing.
๏‚ง They want to feel pride in the way the company behaves.
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
78
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.
How Does Cultural Entropy Arise?
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
79
BUILDING A VALUES-DRIVEN CULTURE
THE JOURNEY
SA Bank: Evolution of Current Culture
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)
2005
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
2006
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
2007 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
3 Matches CC-
DC
Entropy 25%
4 Matches CC-
DC
Entropy 19%
4 Matches CC-
DC
Entropy 17%
5 Matches CC-
DC
Entropy 14%
SA Bank: Evolution of Current Culture
2009 2010 2011
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 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-driven
3. client satisfaction
4. brand reputation
5. achievement
6. teamwork
7. environmental awareness
8. commitment
9. being the best
10. cost-consciousness
6 Matches CC-
DC
Entropy 13%
6 Matches CC-
DC
Entropy 13%
6 Matches CC-
DC
Entropy 11%
2012
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
5 Matches CC-
DC
Entropy 10%
SA Bank: Evolution of Current Culture
2013 2014
5 Matches CC-
DC
Entropy 11%
6 Matches CC-
DC
Entropy 13%
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
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
Despite a slight rise
in cultural entropy,
profitability and
productivity
continue to increase
year on year.
Evolution of Number of Survey Participants
8%
25%
38%
51%
67%
73%
77%
75% 74% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005200620072008200920102011201220132014
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.
Cultural Entropy Evolution
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%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cutlural Entropy
Income Evolution
0%
5%
10%
15%
20%
25%
30%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Income Cultural Entropy
Annual
income
increases as
cultural
entropy falls.
Global Economic
Meltdown
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1000
1200
1400
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenue per Capita Cultural Entropy
Income per
capita
increases as
cultural
entropy falls.
Productivity Evolution
Global Economic
Meltdown
0%
5%
10%
15%
20%
25%
30%
0
2000
4000
6000
8000
10000
12000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Profit Cutlural Entropy
Profit increases
as cultural
entropy falls.
Profit Evolution
Global Economic
Meltdown
Books by Richard Barrett
1998 2006 2010 20111995
2012 2013 2014 2015 2016 Forthcoming
Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
89
Free material on Change & Transformation
To grow a shared culture
To lead people through change
Available on www.valuescentre.com
To plan and lead
cultural transformation
Checklist and overview
For more information
and get a copy of this presentation
go to:
www.richardbarrett.net

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Facilitating transformation v1

  • 2. MY SPEECH TODAY HOW TO CREATE A VALUES-DRIVEN CULTURE MY SPEECH TODAY TWO TOPICS WHAT IS TRANSFORMATION? HOW CAN IT BE FACILITATED?
  • 3. MY SPEECH TODAY HOW TO CREATE A VALUES-DRIVEN CULTURE BUT FIRST LETโ€™S TALK ABOUT FACILITATION WHAT IS IT?
  • 4. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 4 What is Facilitation? Supporting individuals or groups in having new conversations that lead to a change in awareness or a shift in consciousness. It is about having new conversations that you have never had before.
  • 5. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 5 Awareness vs Consciousness A change in awareness leads to a change in perception A shift in consciousness leads to a new way of being Looking at things differently Being and behaving differently
  • 6. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 6 Change vs Transformation Change is doing things differently. Transformation is a new way of being. A shift in behaviour A shift in values
  • 7. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 7 Change vs Transformation You can change without transforming, but you cannot transform without changing.
  • 8. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 8 It must be obvious by now โ€ฆ We cannot solve our problems with the same level of thinking that created them. A new level of thinking = A new level of consciousness
  • 9. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 9 Therefore facilitating transformation is about โ€ฆ Supporting individuals or groups in having new conversations that lead to new and more โ€œsuccessfulโ€ ways of being. A shift in consciousness that allows you to explore new ways of meeting your needs.
  • 10. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 10 The Purpose of Transformation We do this by being and behaving differentlyโ€”aligning with new values
  • 11. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 11
  • 12. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 12 Exercise (5 mins) 1. Think about a situation where you facilitated change. What needs did you help people fulfil. 2. Think about a situation where you facilitated transformation. What needs did you help people fulfil? 3. Find a partner and discuss the differences between change โ€œneedsโ€ and transformation โ€œneedsโ€.
  • 13. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 13 Change vs Transformation Change is doing things differently. Transformation is a new way of being. A shift in behaviour A shift in values
  • 14. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 14 MY SPEECH TODAY HOW TO CREATE A VALUES-DRIVEN CULTURE TRANSFORMATION INDIVIDUALS ๏ƒผ ORGANISATIONS ๏ƒผ
  • 15. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 15 MY SPEECH TODAY HOW TO CREATE A VALUES-DRIVEN CULTURE TRANSFORMATION PERSONAL TRANSFORMATION OF INDIVIDUALS ๏ƒผ
  • 16. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 16 Transformation begins with feedback Without feedback there can be no change Without learning there can be no transformation
  • 17. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 17 Redefining โ€œFacilitating transformationโ€ Providing feedback that leads to learning that supports individuals and groups in adopting more โ€œsuccessfulโ€ ways of being. Transformation is about a shift in values.
  • 18. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 18 What are Values? A shorthand way of describing our individual and collective motivations and what is important to us. Values are the energetic drivers of our aspirations and intentions.
  • 19. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 19 Positive of Potentially Limiting? Values can be positive or potentially limiting. Positive Values: Trust, creativity, passion, honesty, integrity, clarity Potentially Limiting Values: Bureaucracy, power, blame, greed, hierarchy, status-seeking
  • 20. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 20 Where do our Values come from? Our values are a reflection of our needs. (What ever we need we value.) We have two sets of needs: โ€ข The needs of the stage of psychological development we are currently operating from. โ€ข The needs of the stages of psychological development we have passed through where we still have unmet needs.
  • 21. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 21 A personal journey Every person is on an evolutionary journey of psychological development. Surviving Conforming Differentiating Individuating Self-actualizing Integrating Serving
  • 22. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 22 PRIMARY MOTIVATION THE NEEDS OF THE STAGE OF PSYCYHOLOGICAL DEVELOPMENT YOU ARE AT.
  • 23. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 23 SECONDARY MOTIVATION THE UNMET NEEDS OF THE STAGES OF PSYCYHOLOGICAL DEVELOPMENT YOU HAVE PASSED THROUGH The needs you have failed to master.
  • 24. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 24 Facilitating human potential This is not a book about coaching per se, it is about the framework of human development that coaches and facilitators need to be familiar with to facilitate the full emergence of their clientโ€™s potential.
  • 25. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 25 Stages, Levels and World Views ๏ฑ We grow in stages of psychological development ๏ฑ We operate at levels of consciousness ๏ฑ We live inside (are embedded in) cultural world views
  • 26. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 26 Stages and Levels Stages of Development Levels of Consciousness Serving SERVICE Integrating MAKING A DIFFERENCE Self-actualising INTERNAL COHESION Individuating TRANSFORMATION Differentiating SELF-ESTEEM Conforming RELATIONSHIP Surviving SURVIVAL EvolutionofPersonalConsciousness
  • 27. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 27 Deficiency needs and growth needs The lower three stages of development are about learning to fit into your cultural framework of your existence. They are focused on satisfying your deficiency needs. The upper three stages of development are about learning to become who you really are. They are focused on satisfying your growth needs. EvolutionofPersonalConsciousness Individuating = Major Transformation
  • 28. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 28 Stages of Psychological Development Surviving
  • 29. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 29 Stages of Psychological Development INFANCY 0-2 Years Old Staying alive! Satisfying physiological and nutritional needs Surviving Stage Motivation
  • 30. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 30 Stages of Psychological Development Conforming
  • 31. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 31 Stages of Psychological Development Conforming Stage Motivation CHILDHOOD 3-7 Years Old Feeling safe! Satisfying need for love, and belonging.
  • 32. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 32 Stages of Psychological Development Differentiating
  • 33. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 33 Stages of Psychological Development Differentiating Stage Motivation TEENAGER + 8-24 Years Old Feeling secure! Satisfying need for respect and recognition.
  • 34. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 34 Stages of Psychological Development Individuating
  • 35. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 35 Stages of Psychological Development Individuating Stage Motivation YOUNG ADULT 25-39 Years Old Releasing your fears! Satisfying need for freedom and autonomy.
  • 36. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 36 Stages of Psychological Development Self-actualising
  • 37. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 37 Stages of Psychological Development Self-actualising Stage Motivation ADULTHOOD 40-49 Years Old Becoming who you are! Satisfying need to find meaning and purpose.
  • 38. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 38 Stages of Psychological Development Integrating
  • 39. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 39 Stages of Psychological Development Integrating Stage Motivation MATURE ADULT 50-59 Years Old Aligning with others! Satisfying need to make a difference in the world.
  • 40. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 40 Stages of Psychological Development Serving
  • 41. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 41 Stages of Psychological Development Serving Stage Motivation SENIOR 60+ Years Old Finding fulfilment! Satisfying your need to serve the greater good.
  • 42. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 42 Levels of Consciousness All things being normal, the level of consciousness we operate from will correspond to the stage of psychological development we have reached.
  • 43. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 43
  • 44. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 44
  • 45. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 45 1. What is your primary motivation at work? 2. What is your primary motivation outside work? 3. Are you able to get your motivations met at your current place of work? 4. Discuss with a partner.
  • 46. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 46 How to map personal values ๏ฑ PERSONAL VALUES ASSESSMENT (FREE) โ€“ Self reporting www.valuescentre.com/pva ๏ฑ LEADERSHIP VALUES ASSESSMENT โ€“ Feedback reporting
  • 47. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 47 Feedback Reporting LEADERโ€™S VALUES Which of the following values/behaviours most reflect how you operate? Pick ten. ASSESSORโ€™S OBSERVED VALUES OF LEADER Which of the following values/behaviours most reflect how Leader โ€œXโ€ operates? Pick ten. http://www.valuescentre.com/our-products/products- leaders/leadership-values-assessment-lva LEADERSHIP VALUES ASSESSMENT
  • 48. 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) strategic thinker 6 4(I) High Entropy Leader (20 Assessors) Matches 3 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) Level Leader Observed Values 7 6 5 4 3 2 1 PL= 9-1 | IROS (P)=5-1-3-0 | IROS (L)=1-0-0-0 PL= 7-4 | IROS (P)=5-1-1-0 | IROS (L)=2-2-0-0 Orange=Values Match P=Positive L=Potentially Limiting (white circle) I=Individual R=Relationship O=Organisational S=Societal Entropy = 27%
  • 49. 10% 50% 30% 10% 0% 20% 40% 60% 1 2 3 4 5 6 7 CTS = 40-50-10 Entropy = 10% CTS = 20-20-60 Entropy = 27% Leader High Entropy Leader (20 Assessors) Positive Values Potentially Limiting Values Observed Values C T S C=Common Good T=Transformation S=Self-Interest 9% 8% 10% 1% 7% 25% 20% 12% 5% 3% 0% 20% 40% 60% 1 2 3 4 5 6 7 1 2 3 4 5 6 7
  • 50. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 50 What is Personal Entropy? Personal entropy is the amount of fear-driven energy that a person expresses in his or her day- to-day interactions with other people. It is a measure of the lack of personal mastery skills. Fear- driven energy arises from the conscious and subconscious fear-based beliefs of the ego about meeting its deficiency needs.
  • 51. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 51 MY SPEECH TODAY HOW TO CREATE A VALUES-DRIVEN CULTURE TRANSFORMATION ORGANISATIONAL TRANSFORMATION ๏ƒผ
  • 52. The Three Mantras of Organizational Performance Cultural Capital is the new frontier of competitive advantage. Mantras Implications The Culture of an organizations is a reflection of leadership consciousness Measurement matters. If you can measure it, you can manage it. Who you are and what your organization stands for is vitally important. Organizational transformation begins with the personal transformation of the leaders You can make the evolution of consciousness, conscious Focus on Vision, Mission and Values Begins with Leading Self Measure and Map the Values
  • 53. 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 Cultural Evolution Begins with Personal Evolution Cultural Entropy 7%Personal Entropy 9% Culture ValuesLeaderโ€™s Values The culture of an organisation is a reflection of leadership consciousness. CVA Current Culture PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 Internal Cohesion LVA Feedback 27 Assessors PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 Internal Cohesion
  • 54. The culture of an organisation is a reflection of leadership consciousness. LV A Feedback 14 Assessors PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0 Cultural Evolution Begins with Personal Evolution 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 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 CVA Current Culture PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 Cultural Entropy 38%Personal Entropy 64% Culture ValuesLeaderโ€™s Values
  • 55. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 55 Richard Barrett has made extraordinary contributions to our understanding of organisational values and culture. His frame- works for measuring culture and enabling whole system change are elegant. His reservoir of know- ledge is vast and his connection to timeless wisdom is profound. Raj Sisodia Co-founder and co-chairman of Conscious Capitalism Inc. and Professor of Marketing at Bentley University Building a Values-driven Culture
  • 56. WHY A VALUES-DRIVEN CULTURE? Values Alignment Performance BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET
  • 57. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 57 WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL? BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES, AND โ€ฆ
  • 58. โ€ฆ THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS Suppliers Community
  • 59. The Leader and the Values Peters and Waterman, โ€œIn Search of Excellence: Lessons from Americaโ€™s best run companiesโ€, 1983 Clarifying the value system and breathing life into it are the greatest contributions a leader can make.
  • 60. โ€œNo matter how far reaching the vision or how brilliant the strategy, neither will be realized if it is not supported by the organisational culture.โ€ Luther Johnson Peter Drucker โ€œCULTURE EATS STRATEGY FOR BREAKFASTโ€
  • 61. S&P 500 Average Annualized Return 16.39% Average Annualized Return 4.12% BCWF The Best Companies to Work For engender high levels of employee engagement and commitment, because the leaders of these organisations focus on meeting their employeeโ€™s needs. The Top 40 Best Companies to Work For (USA)
  • 62. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 63 What Employees Value at different levels of consciousness A safe working environment and pay and ben- efits that are sufficient to take care of family Opportunities to work in a congenial atmos- phere where people care and respect each other Opportunities to grow professionally with support, feedback and coaching Opportunities and challenges by being made accountable for projects and processes Opportunities for personal growth and develop- ment to support you in living your life purpose Opportunities to leverage your contribution by collaborating with other like-minded individuals Opportunities to serve others and care for the well-being of the Earthโ€™s life support systems Surviving Relationship Self-esteem Transformation Internal cohesion Making a difference Service Levels of Consciousness Primary Motivations
  • 63. Positive Focus / Excessive Focus Financial Stability Shareholdervalue,organisationalgrowth, employeehealth,safety.Control,corruption,greed Belonging Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Building Corporate Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Stages in the Development of Organizational Consciousness Service Internal Cohesion Transformation Self-esteem Relationship Survival Making a difference
  • 64. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 65 The Shift from โ€œIโ€ to โ€œWeโ€ Service Internal Cohesion Transformation Self-esteem Relationship Survival COMMON GOOD AND CONTRIBUTION (WE) SELF INTEREST AND PERFORMANCE (I) TRANSFORMATION EvolutionofPersonalConsciousness Making a difference
  • 65. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 66 BUILDING A VALUES-DRIVEN CULTURE
  • 66. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 67 BUILDING A VALUES-DRIVEN ORGANSIATION START WITH A VALUES SURVEY
  • 67. The Values Survey PERSONAL VALUES Which of the following values/behaviours most reflect who you are? Pick ten. CURRENT CULTURE Which of the following values/behaviours most reflect how your organisation currently operates? Pick ten. DESIRED CULTURE Which of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.
  • 68. Placement of Values by Level (100 employees) Top Ten Values 1. tradition (L) (59) 2. diversity (54) 3. control (L) (53) 4. goals orientation (46) 5. knowledge (43) 6. creativity (42) 7. productivity (37) 8. image (L) (36) 9. profit (36) 10. open communication (31) 10 42 5 7 9 6 8 3 110 Current Culture Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  • 69. 11% 1 2 3 4 5 6 7 Cultural Entropy Placement of Values by Level (100 employees) Current Culture Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  • 70. Cultural Entropy and Engagement Cultural entropy significantly impacts employee engagement. 25% 35% 45% 55% 65% 75% 85% 0% 5% 10% 15% 20% 25% 30% Cultural Entropy EmployeeEngagement Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008. Low Entropy = High Engagement High Entropy = Low Engagement
  • 71. Entropy and Engagement Cultural Entropy Most employees are โ€ฆ. 10% or less Highly Engaged 11% to 20% Engaged 21% to 30% Becoming Disengaged 31% to 40% Disengaged 41% or more Highly Disengaged
  • 72. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 73 What is Cultural Entropy? The amount of energy that is consumed in an organisation doing unnecessary or unproductive work that does not add value. It is a measure of the conflict, friction and frustration that employees encounter in their day-to-day activities that prevent the organisation from operating at peak performance.
  • 73. Highly Engaged Team (19) customer satisfaction 13 2(O) making a difference 13 6(S) commitment 10 5(I) employee fulfilment 10 6(O) continuous improvement 9 4(O) humour/ fun 9 5(O) shared vision 9 5(O) customer collaboration 8 6(O) balance (home/work) 6 4(O) financial stability 6 1(O) teamwork 6 4(R) customer satisfaction 12 2(O) continuous improvement 10 4(O) employee fulfilment 10 6(O) making a difference 9 6(S) shared vision 9 5(O) continuous learning 8 4(O) accountability 6 4(R) innovation 6 4(O) teamwork 6 4(R) trust 6 5(R) Values Plot June 22, 2015Copyright 2015 Barrett Values Centre I = Individual R = Relationship Black Underline = PV & CC Orange = PV, CC & DC Orange = CC & DC Blue = PV & DC P = Positive L = Potentially Limiting (white circle) O = Organisational S = Societal Matches PV - CC 4 CC - DC 6 PV - DC 4 Cultural Entropy: Current Culture 7% family 15 2(R) making a difference 13 6(S) humour/ fun 11 5(I) well-being (physical/ emotional/ mental/ spiritual) 11 6(I) continuous learning 10 4(I) commitment 8 5(I) accountability 7 4(R) financial stability 7 1(I) trust 7 5(R) compassion 6 7(R) integrity 6 5(I) Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC) 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 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0
  • 74. Highly Engaged Team (19) Personal Values Values Distribution June 22, 2015Copyright 2015 Barrett Values Centre Positive Values Potentially Limiting Values Current Culture Values Desired Culture Values C T S 2 1 3 4 5 6 7 C = Common Good T = Transformation S = Self-Interest 0% 0% 0% 5% 14% 9% 21% 25% 17% 9% 0% 20% 40% 60% 1 2 3 4 5 6 7 2% 0% 5% 6% 10% 4% 20% 28% 24% 1% 0% 20% 40% 60% 1 2 3 4 5 6 7 0% 0% 0% 5% 9% 10% 27% 23% 22% 4% 0% 20% 40% 60% 1 2 3 4 5 6 7 CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24 Cultural Entropy = 0% Cultural Entropy = 7% Cultural Entropy = 0% Low level of Cultural Entropy = High level of Employee Engagement High level of Values Alignment 26% 46% 28% 25% 48% 27% 26% 50% 24%
  • 75. Five Levels of Employee Engagement Highly Engaged Employees bring passion, purpose and discretionary energy to their work. They are emotionally attached and committed to the organisation and want to do the right thing. Engaged Employees are willing to go the extra mile to support the company in achieving its goals and objectives as long as they can also satisfy their own goals and objectives. Becoming Disengaged Employees are becoming frustrated, anxious and fearful about not being able to satisfy their needs. Disengaged Employees do what they have to do to get through the day, but are unwilling to put in any extra effort to meet deadlines or support their colleagues in difficult times. Highly Disengaged Employees are unhappy at their work and act out their unhappiness by actively undermining the company, and denigrating those who want to succeed.
  • 76. Highly Engaged Employees ๏‚ง Highly engaged employees identify with the company. ๏‚ง They care passionately about the future of the company. ๏‚ง They bring passion and purpose to their work. ๏‚ง They are willing to invest their discretionary effort to make the company a success. ๏‚ง They want the company to do the right thing. ๏‚ง They want to feel pride in the way the company behaves.
  • 77. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 78 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. How Does Cultural Entropy Arise?
  • 78. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 79 BUILDING A VALUES-DRIVEN CULTURE THE JOURNEY
  • 79. SA Bank: Evolution of Current Culture 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) 2005 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 2006 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 2007 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 3 Matches CC- DC Entropy 25% 4 Matches CC- DC Entropy 19% 4 Matches CC- DC Entropy 17% 5 Matches CC- DC Entropy 14%
  • 80. SA Bank: Evolution of Current Culture 2009 2010 2011 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 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-driven 3. client satisfaction 4. brand reputation 5. achievement 6. teamwork 7. environmental awareness 8. commitment 9. being the best 10. cost-consciousness 6 Matches CC- DC Entropy 13% 6 Matches CC- DC Entropy 13% 6 Matches CC- DC Entropy 11% 2012 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 5 Matches CC- DC Entropy 10%
  • 81. SA Bank: Evolution of Current Culture 2013 2014 5 Matches CC- DC Entropy 11% 6 Matches CC- DC Entropy 13% 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 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 Despite a slight rise in cultural entropy, profitability and productivity continue to increase year on year.
  • 82. Evolution of Number of Survey Participants 8% 25% 38% 51% 67% 73% 77% 75% 74% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2005200620072008200920102011201220132014 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.
  • 83. Cultural Entropy Evolution 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% 5% 10% 15% 20% 25% 30% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Cutlural Entropy
  • 84. Income Evolution 0% 5% 10% 15% 20% 25% 30% 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Income Cultural Entropy Annual income increases as cultural entropy falls. Global Economic Meltdown
  • 85. 0% 5% 10% 15% 20% 25% 30% 0 200 400 600 800 1000 1200 1400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenue per Capita Cultural Entropy Income per capita increases as cultural entropy falls. Productivity Evolution Global Economic Meltdown
  • 86. 0% 5% 10% 15% 20% 25% 30% 0 2000 4000 6000 8000 10000 12000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Profit Cutlural Entropy Profit increases as cultural entropy falls. Profit Evolution Global Economic Meltdown
  • 87. Books by Richard Barrett 1998 2006 2010 20111995 2012 2013 2014 2015 2016 Forthcoming
  • 88. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 89 Free material on Change & Transformation To grow a shared culture To lead people through change Available on www.valuescentre.com To plan and lead cultural transformation Checklist and overview
  • 89. For more information and get a copy of this presentation go to: www.richardbarrett.net