conscious capitalism roc
Post on 23-Jan-2015
183 Views
Preview:
DESCRIPTION
TRANSCRIPT
CONSCIOUS CAPITALISM
ROC
CONSCIOUS
CAPITALIS
M
CO
NS C
I OU
S CA
PI T
AL
I S M. O
RG
CO
NS C
I OU
S CA
PI T
AL
I S MR
OC
. WO
RD
PR
ES S . C
OM
@C
ON
S CI O
US C
AP
RO
C
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
ENGAGEMENT A WORLDWIDE CRISIS
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
The "master of business administration" degree
reflects that the educational emphasis is on managing
finances and administrating
processes.
But good management also requires a focus on people, something that
many companies currently lack. In far too many
businesses, employees with the longest tenure
or who have the greatest subject matter expertise
are moved into management, regardless of whether they have an aptitude for managing
people.
ENGAGEMENT A WORLDWIDE CRISIS
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
MARKET COMPARISONSDeveloped: US, UK, France, Germany and JapanEmerged: Brazil, Mexico, Russia, India and China
ONLINE SURVEY IN 26 COUNTRIES
• 31,000+ respondents
• 5 years in 20+ markets
• 8 years in 10+ markets
GENERAL POPULATION
• 1000 respondents per country surveyed
• Ages 18+
• 2 years of data
INFORMED PUBLICS
• 500 respondents in U.S. and China & 200 in other countries
• Ages 25-64
• College-educated
• In top 25% of household income per age group in each country
• Report significant media consumption and engagement in business news and public policy
• 13 years of data
EU SELECT COUNTRIES:UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, and Poland
EDELMAN STUDYAN EXPLORATION OF
TRUST
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
1. ENGAGEMENT
COMMUNICATES FREQUENTLY & HONESTLY ON THE STATE OF ITS BUSINESS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
PLACES CUSTOMERS AHEAD OF PROFITS
2. INTEGRITY
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
HAS ETHICAL BUSINESS PRACTICES
4. PURPOSE
5. OPERATIONS
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
RANKS ON A GLOBAL LIST OF TOP COMPANIES3. PRODUCTS & SERVICES
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS
CREATES PROGRAMS THAT POSITIVELY IMPACT THELOCAL COMMUNITY
PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIESTO ADDRESS SOCIETAL NEEDS
Edelman Trust Barometer reveals FIVE PERFORMANCE CLUSTERS:
(listed here in rank order of importance)
BUILDING TRUST THE FOUNDATION OF LOYALTY
CONSCIOUS CAPITALISM
ROC
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETAL ISSUES
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICH THE COMPANY OPERATES
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
HAS ETHICAL BUSINESS PRACTICES
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
PLACES CUSTOMERS AHEAD OF PROFITS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
13%
15%
10%
13%
22%
13%
13%
12%
15%
13%
29%
12%
13%
11%
19%
14%
27%
29%
30%
31%
37%
40%
41%
46%
47%
49%
52%
53%
55%
55%
56%
60%
EDELMAN STUDY TRUST BUILDING
ATTRIBUTES EXPECTATION VS. PERFORMANCE
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
26% 20% 19% 18%
BUSINESS LEADERS
LOW TRUST IN ETHICS AND MORALITY OF LEADERSGlobal public trusts business leaders to do the following:
EDELMAN STUDY A CRISIS IN
LEADERSHIP
CONSCIOUS CAPITALISM
ROC
WHAT DO YOU THINK IS THE BIGGEST CAUSE OF THESE SCANDALS? – GLOBAL (ASKED OF RESPONDENTS WHO ARE FAMILIAR WITH BANKING/FINANCIAL SERVICES SCANDALS OVER PAST YEAR – 56% GLOBALLY)
23%
25%
11%
6%
13%
20%
59% of causes of scandals are
internal and within business’ control
CORPORATE CULTURE DRIVEN BY COMPENSATION/BONUSES
CORPORATE CORRUPTION
CONFLICTS OF INTEREST
CHANGES IN THE ECONOMY
BANKS ARE TOO LARGE
LACK OF REGULATION
EDELMAN STUDYTRUST DEFICIT
IN BANKS LINKED TO CULTURE
CONSCIOUS CAPITALISM
ROC
http
://www.y
outu
be.co
m/w
atch
?v=
X5Fgfa
nKFZ
o
2:24-5:24
HOW D
ID W
E
GET
HERE?
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
MACROTRENDS
92% of millennials believe that business should be measured by more than just profit and should focus on a societal
purpose*Deloitte 2011 Millennials Survey
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
MACROTRENDS
“Darwin talked about ‘survival of the fittest,’ not ‘survival of the winner.’
Among human beings, the “fittest are not necessarily those who subdue,
conquer and control others. In the long run, the fittest tend to be those who
know how to cooperate.”
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
SHORT-TERMFOCUS
More than 80 percent of the executives responding said they would cut
expenditures on R&D and marketing to ensure that they met their quarterly
earnings targets—even if they believed that the cuts were destroying long-term
value.
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
1347 – The first corporation was created as a not-for profit entity1600 – Queen Elizabeth creates the East India Company
–Corporations are chartered by the state for public purposes (building hospitals, bridges, roads, universities)
–Charters could be revoked if corporations failed to fulfill
their public purpose1844 – The modern form of corporations traces its origins to an 1844 act in Britain that allowed them to define their own purpose rather than serve a societal purpose1870 – Large companies commonly operate company townsEVOLUTION OF
CORPORATIONS
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
Intellectual Capital
Cultural Capital
Quality of Product
Manpower
Agricultural Age
Industrial Age
Information / Knowledge Age
Consciousness Age
200019001800
Cultural capital is the new frontier of competitive advantage. Richard Barrett
MACROTRENDS
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
FOUR PILLARS CONSCIOUS CAPITALISM
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
FIRMS OF
ENDEARMENT
CONSCIOUS CAPITALISM
ROC
http://
www.you
tube.
com
/wat
ch?v
=
K86Kpe
QnAIQ
CAPITALIS
M A
S
VALUE
CREATOR
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
HIGHER PURPOSE
“We need red blood cells to live, but the purpose of life is more than to make red blood
cells.”
-Ed Freeman
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
Make and serve the freshest, most delicious coffee and donuts quickly and courteously in
modern, well merchandised stores.
To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.
vs.
HIGHER PURPOSE
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
“When you tug at a single thing in nature, you find it attached to the rest of the
world.” –John Muir
C.A.F.E. Practices(Coffee and Farmer
Equity)$.10/lb of sales
Four-step process for suppliers to
sustainably obtain wood.
Responsible for full lifetime of products.
STAKEHOLDER ORIENTATION FINDING THE WIN-
WIN-WIN
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
“Leaders have to grow for the business to grow”
-John Mackey, CEO, Whole Foods
-Servant leaders-Focus on “we” rather than “me”-Cultivate a values-driven culture-Embody the higher purpose
CONSCIOUS LEADERSHIP
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
“Cultural Capital is the new frontier of competitive advantage.”
–Richard Barrett
CONSCIOUS CULTURE
Pays employees 40% more than Sam’s Club, but maintains higher
profit per employee
“Culture eats strategy for lunch.”
-Peter Drucker
Culture Committee – “doing whatever it takes to create,
enhance, and enrich the special Southwest sprit and
culture that has made it such a wonderful family.”
10% Time
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
Retail Average Training Time?7 hours
Container Store Training Time?Year 1: 235 hoursEvery year after: 160 hours
Product Knowledge: Assembly, Operation, Recommendations
Payoff:-Turnover below 10%(Retail average 40-70%)-Increased sales/employee-Increased productivity
TRAINING AND DEVELOPMENT
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
CONSCIOUS CAPITALISM
CONSCIOUS CAPITALISM
ROC
HOW C
AN WE
GET
STARTED?
CONSCIOUS CAPITALISM
ROC
In a physical system, entropy provides a measure of the amount of energy that cannot be used to do work.Richard Barrett, a thought leader in measuring and developing corporate values, has adopted the term entropy to name the relative amount of “energy” that is not being used to achieved company goals.
Thus entropy is an indicator of an organization‘s ability to perform.
“IF YOU CAN MEASURE IT, YOUCAN MANAGE IT!”
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
Cultural Entropy
Staff Engagement
Tier 1 (Best) 5 % 89 %
Tier 2 8 % 76 %
Tier 3 15 % 55 %
Tier 4 (Worst) 21 % 40 %
This research of 163 organisations in Australia was carried out by Hewitt Associates and Barrett Values Centre in 2008.
CULTURAL ENTROPYA “LEAD
MEASURE” FOR
ENGAGEMENT
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
Entropy Level 3 Year Revenue Growth %
<10 % 32.87%
10 % – 19 % 24.90%
20 % – 29 % 11.39%
>29 % 11.07%
CULTURAL ENTROPY A “LEAD MEASURE” FOR
REVENUE GROWTH
CONSCIOUS CAPITALISM
ROC
Makes it possible to translate qualitative data into quantitative data
Provides a baseline measurement instrument for monitoring changes in the organisational culture
Provides a method for measuring cultural capital
MEASURINGCULTURE
CONSCIOUS CAPITALISM
ROC
“CROWDSOURCE”YOUR VALUES
"Which values best describe who you actually are / not who you would like to be?“
"Which values best describe the current culture of your organization?“
"Which values would you like to represent your organization's future culture?"
Personal Values
Current Culture Values
Desired Culture Values
CONSCIOUS CAPITALISM
ROC
C o n s c i o u s n e s s
Richard Barrett
Know and Understand
Physiological, basic needs
Safety
Love, Belonging
EsteemAbraham Maslow
Knowing / Understanding
N e e d s
Self-actualization
BARRETT MODEL
CONSCIOUS CAPITALISM
ROC
Self-esteem
Service
Making a Difference
Internal Cohesion
Transformation
Relationship
Survival Physical
Emotional
Mental
Spiritual
BARRETT MODEL
CONSCIOUS CAPITALISM
ROC
QUESTIONS?
ANDREW B
RADY
atbra
dy@th
exlr8
team.co
m
585-269-4948
WWW.CONSCIOUSCAPITALISM.ORGWWW.CONSCIOUSCAPITALISMROC.WORDPRESS
.COM@CONSCIOUSCAPROC
JOIN THE MOVEMENT!
CONSCIOUS CAPITALISM
ROC
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Health
Financial Stability
Security
Profit
Shareholder value
Employee health/safety
Job security
Control…Exploitation
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
SURVIVAL CONSCIOUSNESS
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Family
Friendship
Listening
Customer satisfaction
Open communication
Respect
Conflict resolution
Employee recognition
Blame…Manipulation
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
RELATIONSHIP CONSCIOUSNESS
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Self-confidence
Success
Ambition
Efficiency
Productivity
Quality
Best practices
Results orientation
Bureaucracy…Complacency
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
ESTEEM AND EFFICIENCY
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Courage
Personal growth
Adventure
Innovation
Diversity
Teamwork
Accountability
Risk-taking
Employee participation
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
TRANSFORMATION
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Trust
Enthusiasm
Honesty
Optimism
Integrity
Co-operation
Shared vision
Commitment
Creativity
Transparency
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
INTERNAL COHESION
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Mentoring
Volunteer work
Empathy
Employee fulfilment
Leadership development
Customer collaboration
Strategic alliances
Community involvement
Environmental awareness
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
COLLABORATION
CONSCIOUS CAPITALISM
ROC
Personal
Organizational
Wisdom
Humility
Forgiveness
Ethics
Future Generations
Long-Term Perspective
Vision
Sustainability
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
SELFLESSSERVICE
CONSCIOUS CAPITALISM
ROCCONSCIOUS CAPITALISM
ROC
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
FULL-SPECTRUMCONSCIOUSNESS
top related