the values driven organisation v 10
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This is a slide deck that accompanies my new book...The Values-driven Organisation: Unleashing human potential for performance and profit.TRANSCRIPT
THE VALUES-DRIVEN ORGANISATIONUnleashing Human Potential for Performance and Profit
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Richard Barrett’s Books
1998
2006
2010
2011
2012
Learning Modules:Leading SelfLeading a TeamLeading an OrganisationLeading in Society
Update and new research
2013
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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THE BIG QUESTION
WHY ARE VALUES-DRIVEN ORGANISATIONS THE MOST SUCCESSFUL ORGANISATIONS ON THE PLANET?
WHAT DO THEY FOCUS ON?WHAT MAKES THEM SUCCESSFUL?
THEY CARE ABOUT THE NEEDS OF THEIR PEOPLE
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Q. WHERE CAN WE FIND SUCH ORGANISATIONS?
A. THE BEST COMPANIES TO WORK FOR.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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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 employee’s basic needs and satisfying their growth needs: they focus on helping their employees feel happy and fulfilled.
The Top 40 Best Companies to Work For (USA)
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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The Top 40 Best Companies to Work For (USA)
Adobe Systems Inc.Adobe Systems Inc.Aflac Inc.Amazon.com Inc.American Express Co.Autodesk Inc. Build-A-Bear Workshop Inc.Capital Trust Inc. Class A.Chesapeake Energy Corp.Devon Energy Corp.Dreamworks Animation SKG Inc.EOG ResourcesFactSet Research Systems Inc.General Mills Inc.
Goldman Sachs Group Inc.Goldman Sachs Group Inc.Google Inc. Class A.Hasbro, Inc.Intel Corp. Intuit Inc. Marriott International Inc. Mattel Inc.Medical Properties Trust Inc.Men’s WearhouseMicrosoft Corp.National Instruments Corp.NetApp Inc.Nordstrom Inc.
Novo Nordisk, A/S ADR Novo Nordisk, A/S ADRNustar Energy, L.P.Publix Super Mkts, Inc.Qualcomm Inc.Rackspace Hosting Inc.Salesforce.com Inc.Southern Michigan Bankcorp.St Jude Medical, Inc.Starbucks CorporationStryker CorporationSVB Financial GroupUltimate Software Group, Inc.Umpqua Holdings CorporationWhole Food Markets, Inc.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Eighteen Firms of Endearment
FOEAverage Annualized Return 13.10%
S&P 500Average Annualized Return 4.12%
$140m
$280m
$420m
$560m
Portf
olio
Val
ue
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Firms of Endearment focus on meeting all stakeholders needs. The four pillars of FoE are Conscious Leadership, Conscious Culture, Stakeholder Integration and a Higher Purpose supported by Core Values.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Eighteen Firms of Endearment
*Amazon.com Inc.*Best Buy Co Inc.BMW*CarMax Inc.*Caterpillar Inc.*Commerce Bankshares Inc.Container Store*Costco Wholesale Corporation*eBay Inc.*Google Inc. Class A.
*Harley-Davidson Inc.*Honda Motor Co.IDEOIKEA*Jet Blue*Johnson & JohnsonJordan’s FurnitureL.L. BeanNew BalancePatagonia
Progressive InsuranceREI*Southwest Airlines Co.*Starbucks Corporation*Timberland Inc.*Toyota Motor Corp.Trader Joe's*UPS Inc.Wegmans*Whole Foods Markets, Inc.
* Firms of Endearment for which financial data were readily available for their North America operations.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Conscious Capitalism Movement
20122007
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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GtGAverage Annualized Return 5.32%
S&P 500Average Annualized Return 4.12%
$60m
$100m
$140m
$180m
Portf
olio
Val
ue
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20m
The 10 Good to Great Companies (Jim Collins)
The seven characteristics Collins identified in the so-called Good to Great companies, on their own, are not sufficient for long-term success. Focusing on the needs of your employees
and the culture of the company are more important.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Abbott LaboratoriesAbbott Laboratories*Circuit City**Fannie MaeGillette Company
Kimberly-ClarkKimberley-ClarkKroger Co.Nucor Corp.Philip Morris International Inc.
Pitney Bowes Inc.Pitney Bowes Inc.Walgreen Company***Wells Fargo & Co.
* No longer trading. ** Involved in a home mortgage scandal.*** Received $25 billion bailout from the Troubled Asset Relief Program (TARP) as part of the United States government’s response to the subprime mortgage crisis of 2008.
The 10 Good to Great Companies
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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THE DIFFERENCE BETWEEN THE BEST COMPANIES TO WORK FOR AND OTHER COMPANIES IS THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES– THEY CARE ABOUT WHAT THEIR EMPLOYEES VALUE.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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UNDERSTANDING EMPLOYEE’S NEEDS—what people value (what makes them happy and brings meaning to their lives) —is the key to creating a high performing organisation.
When you support employees in satisfying their needs, they respond with high levels of employee engagement—they bring their commitment and creativity to their work, and unleash their discretionary energy. They willingly go the extra mile to support the organisation in meeting its goals.
IF YOU WANT TO BUILD A HIGH PERFORMANCE CULTURE THEN YOU NEED TO CARE ABOUT WHAT
YOUR EMPLOYEES VALUE.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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AT ANY GIVEN MOMENT IN TIME, the values that are most important to us are a reflection of the stage of psychological development we have reached and our unmet basic needs,.
Our needs (what we value) have always been, and always will be the principal drivers of our behaviors and actions.
What motivates us is the satisfaction of our needs
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Ev
oluti
on o
f Hum
an C
onsc
ious
ness
Physical Evolution
The Evolution of Human Values
Survival
Relationship
Self-esteem
Transformation
Internal cohesion
Making a difference
Service
With the emergence of Homo Sapiens, evolution shifted from physical evolution to consciousness evolution
Basi
c N
eeds
Gro
wth
Nee
ds
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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What Are Our Basic Needs and Growth Needs
Evol
ution
of P
erso
nal C
onsc
ious
ness
Satisfying your physiological needs for security;staying alive and keeping your body healthy.
Satisfying your emotional need for belonging, protection and connection.
Satisfying your emotional need to be recognized for your skills, talents or qualities.
Satisfying your need for autonomy, freedom, independence and adventure.
Satisfying your need for authenticity and finding meaning and purpose in your life.
Satisfying your need to actualize your purpose by influencing or impacting the world around you.
Satisfying your need to leave a legacy—to have led a life of significance that will be remembered.
Growth Needs
Basic Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Figure 1: The Stages of Psychological Development
Evol
ution
of P
erso
nal C
onsc
ious
ness
Surviving: Satisfying your physiological needs by learning how to stay alive, keep fit and healthy, and staying free from harm.
Conforming: Keeping safe and nurtured by those around you by being loyal to your family, kin, colleagues and culture.
Differentiating: Finding ways to be admired and recognized by your parents and peers by excelling at what you do best.
Individuating: Letting go of the aspects of your parental and cultural conditioning that prevent you from becoming who you really are.
Self-actualizing: Becoming fully who you are by finding your sense of purpose and leading a values-driven life.
Integrating: Aligning with others who share your values and purpose to make a difference in the world.
Serving: Fulfilling your destiny by leaving a legacy and using your gifts in service to the world.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Three Stages of Mind Development
In Immunity to Change Robert Kegan and Lisa Laskow Lahey identify three plateaus of adult psychological development (ability to handle complexity)—the socialized mind, the self-authoring mind and self-transforming mind.
Robert Kegan and Lisa Laskow Lahey, Immunity to Change (Boston: Harvard Business School Publishing), 2009, pp.16-21.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Three Stages of Mind Development
THE SOCIALISED MIND is focused on meeting its survival, relationship and self-esteem needs. People operating with a socialised mind think of their work as a job—a way of earning a living. They may enjoy their work and colleagues, but are not passionate about what they do.
THE SELF-AUTHORING MIND is focused on achievement and ambition. People operating with a self-authoring mind seek opportunities for advancement. They think of their work as career—a pathway to a better future.
THE SELF-TRANSFORMING MIND is focused on leading a values and purpose-driven life. People operating with a self-transforming mind see their work as a mission. They want to leave a legacy and be of service to the world.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Complexity of Thinking
THE SOCIALISED (Dependent) MINDCommunication is strongly influenced by what others need to hear so it can fit into its social context. Filters what it hears so that it can maintain alignment with others. Limited ability for independent thinking.
THE SELF-AUTHORING (Independent) MINDCommunication is strongly influenced by what others need to hear to further its agenda. It places a priority on receiving information that supports its mission. Prisoner to its filter.
THE SELF-TRANSFORMING (Interdependent) MINDThis mind is not a prisoner to its filter. It can stand back and look at it, not just through it. Open to considering different perspectives and modifying its thinking and direction.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Motivating the Socialized Mind
SURVIVAL: A safe environment and income and benefits that are sufficient to take care of our needs and the needs of our families.
RELATIONSHIP: A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
SELF-ESTEEM: Opportunities to learn, grow and develop skills and talents with support, feedback and coaching from people we know and trust.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Motivating the Self-Authoring Mind
TRANSFORMATION: Opportunities to use my gifts and talents by being made accountable for challenging projects or process changes which meet the goals or objectives of the organisation.
INTERNAL COHESION: Opportunities to lead a values- and purpose-driven life that is meaningful to me and supports me and the organisation in meeting its objectives.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Figure 4: Motivating the Self-Transforming Mind
MAKING A DIFFERENCE: Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
SERVICE:Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Happiness
YOU FEEL HAPPY when you are able to meet your basic needs, but you feel anxious or fearful when you are prevented from meeting these needs or when the satisfaction of these needs is under threat—when you lose a job, when you lose a friend or a close companion or when you feel people do not respect you.
Happiness is the feeling you get when you achieve internal stability and external equilibrium at the ego level of existence—when you are able to
satisfy your basic needs.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Meaning
THE ABILITY TO MEET your growth needs engenders a deeper feeling than happiness, and consequently a deeper level of motivation and commitment to the satisfaction of these needs. You experience joy and contentment when you are able to satisfy your growth needs because you are experiencing a deeper sense of alignment with who you truly are.
You are discovering your authentic (soul) self and finding meaning and purpose for your life.
Joy and contentment are the feelings you get when you are able to satisfy your growth needs.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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How We Find Happiness/Meaning at Each Stage of Development
Stage of Development(Level of Consciousness) Cause of Happiness/Joy
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Causes of Happiness/Meaning: What We Value from our Work
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
29
What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
SURVIVAL: WHAT WE VALUEA safe environment and income and benefits that are sufficient to take care of our needs and the needs of our families.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
30
What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
RELATIONSHIP: WHAT WE VALUEA caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities to learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
SELF-ESTEEM: WHAT WE VALUEOpportunities to learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
32
What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
TRANSFORMATION: WHAT WE VALUE Opportunities to use our gifts and talents by being made accountable for challenging projects or process changes of significance to ourselves or others.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
33
What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
INTERNAL COHESION: WHAT WE VALUEOpportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting its objectives.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
34
What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
MAKING A DIFFERENCE: WHAT WE VALUEOpportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
35
What We Value at Different Levels of Consciousness
Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving(Service)
Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Integrating(Making a difference)
Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Self-actualizing(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.
4 Individuating(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Differentiation(Self-esteem)
Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Conforming(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival(Survival)
Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
SERVICE:WHAT WE VALUE
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
The Four Conditions for Employee Engagement
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Highly Engaged Employees
Highly engaged employees identify with the company. They care passionately about the future of the company. They bring passion and purpose to their work. They are willing to invest their discretionary effort to make
the company a success. They want the company to do the right thing. They want to feel pride in the way the company behaves.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Four Levels of Employee Engagement
Highly EngagedEmployees 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. They serve the greater good.
EngagedEmployees 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.
DisengagedEmployees 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 DisengagedEmployees are unhappy at their work and act out their unhappiness by actively undermining the company, and denigrating those who want to succeed.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Types of Mind/Level of Engagement/Potential Risk
Socialised Mind(Staff)
Self-Authoring Mind
(Managers)
Self-Transforming Mind
(Leaders)Highly Engaged n.a. (A) Low Risk Low Risk
Engaged Low Risk Medium Risk Low Risk
Disengaged Medium Risk High Risk n.a. (B)
Highly Disengaged
High Risk n.a. (B) n.a. (B)
n.a. = Not applicable. Unlikely to find someone with this type of mind at this level of engagement in the organisation. (A) People with a socialized mind tend not to be highly engaged with their work. They are more focused on their lives outside of work. (B) As soon as people with self-authoring and self-transforming minds become disengaged they tend to seek out other employment where they can satisfy their ambitions
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Human Group Structures
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Based on the Four Quadrants of Ken Wilbur
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Four Conditions for Employee Engagement
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Personal Alignment
Structural Alignment
Mission
Alignment
Valu
es
Alig
nmen
t Employee
Engagement
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42
What Engaged Employees Experience
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Mission
Alignment
Valu
es
Alig
nmen
t
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What Leaders Must Do to Create Engagement
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Personal Alignment
Structural Alignment
How Do You Create a Culture of Engagement
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THE CULTURE OF AN ORGANISATIONAL is a reflection of leadership consciousness—the stage of psychological development that the leaders have reached.
ORGANISATIONAL TRANSFORMATION begins with the personal transformation of the leaders. Organisations don’t transform; people do.
MEASUREMENT MATTERS: Whatever you measure (focus your attention on a regular basis ) tends to improve.
The Three Mantras of Culture Change
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
CVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
LVA Feedback 27 Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Cultural Evolution Begins with Personal Evolution
Cultural Entropy 7% Personal Entropy 9%
Culture Values Leader’s Values
The culture ofan organisationis a reflectionof leadership consciousness.
Internal Cohesion
Internal Cohesion
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What the Best Leaders Focus on …
Based on 3600 Leadership Values Feedback carried out on 100 leaders from 19 countries (2008-2010).
Commitment *Controlling (L)Ambitious Results orientationDemanding (L)ExperienceGoals orientationAuthoritarian (L)Humor/fun * Power (L)
Commitment *Positive attitude * Accessible Teamwork Trustworthy * Integrity *AccountabilityCustomer satisfactionEnthusiasm *Fairness *
Low Entropy Leaders (0-6%)
High Entropy Leaders (21%+)
Values that create internal cohesion …
Internal Cohesion*
Self- Esteem
The Seven Levels of Consciousness Model
Origins of the Cultural Transformation Tools
Growth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.
Deficiency NeedsAn individual gains no sense of lasting satisfaction from being able to meet these needs, but feels a sense of anxiety if these needs are not met.
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Abraham Maslow
Self Actualization
Maslow’s Needs to Barrett’s Consciousness
N e e d s C o n s c i o u s n e s s
Self-Actualization
Richard Barrett
Safety
Love & Belonging
Self-esteem
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Abraham Maslow
Maslow’s Needs to Barrett’s Consciousness
N e e d s C o n s c i o u s n e s s
1. Expansion of self-actualization into multiple levels.
2. Substitute ‘states of
consciousness’ for hierarchy of needs.
3. Each state of consciousness
is defined by specific
values and behaviours.
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
SurvivalPhysiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
SurvivalFinancial Security & SafetyCreating a safe secure environment for self and significant others. Control, greed , …
BelongingFeeling a personal sense of belonging, feeling loved by self and others. Being liked, blame, …
Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status, …
Personal GrowthUnderstanding your deepest motivations, experiencing responsible freedom by letting go of your fears
Finding Personal MeaningUncovering your sense of purpose and creating a vision for the future you want to create
Collaborating with PartnersWorking with others to make a positive difference by actively implementing your purpose and vision
Service to Humanity and the PlanetDevoting your life in self-less service to your purpose and vision
Positive Focus / Excessive Focus
Financial StabilityShareholder value, organisational growth, employee health, safety. Control, corruption, greed, …
BelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blame, …
High PerformanceSystems, processes, quality, best practices, pride in performance. Bureaucracy, complacency, …
Continuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growth
Building Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Strategic Alliances and PartnershipsEnvironmental awareness, community involvement, employee fulfillment, coaching/mentoring
Service To Humanity And The PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humility
Stages in the Development of Organizational Consciousness
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Placement of Values by Level
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 100 Employees
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Distribution of Values by LevelCurrent Culture 100 Employees
11%
1
2
3
4
5
6
7
Cultural Entropy
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
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0% 5% 10% 15% 20% 25% 30%25%
35%
45%
55%
65%
75%
85%
Cultural Entropy
Empl
oyee
Eng
agem
ent
Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.
Employee Engagement vs. Cultural Entropy
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0% 5% 10% 15% 20% 25% 30%25%
35%
45%
55%
65%
75%
85%
Cultural Entropy
Empl
oyee
Eng
agem
ent
Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.
Employee Engagement vs. Cultural Entropy
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Cultural Entropy
Most employees are ….
Potentially limiting values showing up in current culture
Culture Risk
10% or less Highly Engaged Low Risk
11% to 20% Engaged Low Risk
21% to 30% Becoming Disengaged Bureaucracy, Hierarchy, Confusion
Medium Risk
31% to 40% Disengaged Bureaucracy, Hierarchy, Confusion, Control, Short-term focus, Silo-mentality, Long hours
High Risk
41% or more
Highly Disengaged Bureaucracy, Short-term focus, Hierarchy, Blame, Control, Confusion, Information Hoarding, Silo-mentality
Very High Risk
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Low Cultural Entropy Leads to High Financial Returns
Entropy Level 3 Year Revenue Growth %
<10% 32.87%
10% – 19% 24.90%
20% – 29% 11.39%
>29% 11.07%
Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.
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What is Cultural Entropy?
The amount of energy in an organisational culture that is consumed in doing unproductive work—work that does not add value.
It is a measure of the conflict, friction and frustration that exists in an organisation due to potentially limiting values such as: bureaucracy, blame, power, greed … (self-interest)
Cultural entropy is a function of the personal entropy of the current leaders of an organisation and the institutional legacy of past leaders as embedded in the structures,
systems, policies and procedures.
Cultural Entropy In Organisations
Entropy Impact <10% Prime: Healthy Culture: This is a low and healthy level of cultural entropy.
11-20% Minor Issues: Minor issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment. It is important to reduce the level of cultural entropy to improve performance.
21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching. It is important to reduce the level of cultural entropy to improve performance.
31-40% Serious Issues: is level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching. It is important to reduce the level of entropy to improve performance.
41+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching. It is important to reduce the level of cultural entropy to improve performance.
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
LV A Feedback 14 Assessors
PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0
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 Values Leader’s Values
The culture ofan organisationis a reflectionof leadership consciousness.
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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 a lack of a person’s 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.
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Fear-Based Beliefs
Level 3: Self-esteem Consciousness: Limiting beliefs the individual holds about not being enough – a lack of self-esteem or confidence in themselves that causes them to over compensate through the excessive use of power, authority, or status seeking.
Level 2: Relationship Consciousness: Limiting beliefs the individual holds about not belonging – a lack of acceptance or respect for themselves that causes them to over compensate by competing for attention, blaming others, and standing in judgement.
Level 1: Survival Consciousness: Limiting beliefs the individual holds about not having enough – a lack of assurance that they will be safe and survive that causes them to over compensate through greediness, control, and excessive caution.
Measuring the Culture by Mapping Values
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World-Wide Use
Personal Values
Pick ten values/behaviours that most reflect who you are, not who you desired to become.
Current Culture Values
Pick ten values/behaviours that most reflect how your organisation currently operates.
Desired Culture Values
Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.
Engineering and Projects Company (339)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 1CC - DC 4PV - DC 2
Health Index (PL)
PV: 10-0CC: 7-3
DC: 10-0
1. honesty 169 5(I)
2. accountability 165 4(R)
3. commitment 150 5(I)
4. continuous learning 92 4(I)
5. balance (home/work) 91 4(I)
6. family 91 2(R)
7. self-discipline 91 1(I)
8. responsibility 89 4(I)
9. respect 81 2(R)
10. open communication 76 2(R)
Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational
Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal
1. continuous improvement
111 4(O)
2. customer satisfaction
111 2(O)
3. safety conscious 102 1(O)
4. cost reduction 88 1(O)
5. job insecurity (L) 77 1(O)
6. inconsistent (L) 75 3(I)
7. teamwork 74 4(R)
8. accountability 71 4(R)
9. blame (L) 71 2(R)
10. corporate image 64 3(O)
1. accountability 180 4(R)
2. customer satisfaction
147 2(O)
3. continuous improvement
143 4(O)
4. employee development 111 4(O)
5. employee recognition 96 2(R)
6. commitment 95 5(I)
7. inspirational leadership 95 6(O)
8. employee fulfilment 94 6(O)
9. teamwork 90 4(R)
10. professionalism 80 3(O)
Values Plot Copyright 2011 Barrett Values Centre February 2011
The values that are important to
employees in their personal lives.
How employees experience the company - What is working well? What is undermining the sustainability of
the company.
What employees believe is necessary
for the company to achieve its
full potential
1%
1%
1%
9%
12%
17%
24%
8%
6%
21%
0% 20% 40%
1
2
3
4
5
6
7
6%
5%
12%
10%
8%
14%
11%
9%
5%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
1%
0%
6%
12%
16%
19%
13%
5%
27%
0% 20% 40%
1
2
3
4
5
6
7
Engineering and Projects Company (339)
C
T
S
Values Distribution Copyright 2011 Barrett Values Centre February 2011
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 38-21-41Entropy = 3%
CTS = 25-20-55Entropy = 23%
CTS = 37-27-36Entropy = 2%
Personal Values
Current Culture Values
Desired Culture Values
Total number of votes for all values
at each levelCultural Entropy
% of Votes for Limiting Values
Common Good
Transformation
Self Interest
ValueCurrent
Culture VotesDesired
Culture VotesValue Jump
accountability 71 180 109
inspirational leadership 15 95 80
employee fulfilment 23 94 71
employee recognition 28 96 68
employee development 57 111 54
professionalism 36 80 44
efficiency 30 74 44
commitment 55 95 40
honesty 33 70 37
balance (home/work) 29 66 37
Value JumpsValue Jumps
ESPOUSED VALUE CC VOTES DC VOTES Difference*
Customer satisfaction 111 147 +10%
Accountability 71 180 +32%
Honesty 33 70 +11%
Employee fulfilment 23 94 +21%
Espoused Values AnalysisEspoused Values Analysis
Examples of Cultural Evolution
An Example of Cultural Evolution
Entropy 14%Entropy 25% Entropy 19% Entropy 17%
Nedbank: Current Culture Evolution
1. cost-consciousness2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)
2005
1. cost-consciousness2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork 10. community involvement
2006
1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation
2007 2008
1. accountability2. client-driven 3. client satisfaction 4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery
4 matches4 matches3 matches 5 matches
Entropy 14% Entropy 13% Entropy 13% Entropy 11%
Nedbank: Current Culture Evolution
2009 2010 2011
6 matches6 matches6 matches
1. accountability2. client-driven 3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork 8. employee recognition 9. being the best10. performance driven
1. accountability2. client satisfaction 3. client-driven 4. teamwork5. brand reputation6. being the best7. achievement8. commitment9. community involvement10. cost-consciousness
1. accountability2. client-driven 3. client satisfaction4. brand reputation5. achievement6. teamwork7. environmental awareness8. commitment9. being the best10. cost-consciousness
Nedbank: Group (2011)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 2CC - DC 6PV - DC 4
Health Index (PL)
PV: 10-0CC: 10-0DC: 10-0
1. accountability 8576 4(R)
2. honesty 6133 5(I)
3. commitment 5221 5(I)
4. respect 4420 2(R)
5. family 4057 2(R)
6. integrity 4023 5(I)
7. caring 3568 2(R)
8. balance (home/work) 3526 4(I)
9. responsibility 3279 4(I)
10. efficiency 3085 3(I)
1. accountability 5464 4(R)
2. client-driven 4571 6(O)
3. client satisfaction 3486 2(O)
4. brand reputation 2740 3(O)
5. achievement 2491 3(I)
6. teamwork 2408 4(R)
7. environmental awareness
2372 6(S)
8. commitment 2263 5(I)
9. being the best 2218 3(O)
10. cost-consciousness 2187 3(O)
1. accountability 6987 4(R)
2. balance (home/work) 4183 4(O)
3. client-driven 3864 6(O)
4. client satisfaction 3742 2(O)
5. employee recognition 3297 2(R)
6. honesty 3053 5(I)
7. commitment 2953 5(I)
8. achievement 2809 3(I)
9. teamwork 2744 4(R)
10. employee satisfaction 2687 2(O)
Values Plot Copyright 2011 Barrett Values Centre April 2011
Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational
Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal
1%
0%
1%
5%
16%
16%
26%
4%
7%
24%
0% 20% 40%
1
2
3
4
5
6
7
3%
3%
5%
5%
11%
20%
13%
14%
6%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
0%
0%
5%
15%
16%
21%
12%
5%
25%
0% 20% 40%
1
2
3
4
5
6
7
Nedbank: Group (2011)
C
T
S
Values Distribution Copyright 2011 Barrett Values Centre April 2011
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 37-24-39Entropy = 2%
CTS = 33-20-47Entropy = 11%
CTS = 38-25-37Entropy = 1%
Personal Values
Current Culture Values
Desired Culture Values
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80
Evolution of Survey Participants
2005 2006 2007 2008 2009 2010 2011 20120%
10%
20%
30%
40%
50%
60%
70%
80%
90%
8%
25%
38%
51%
67%
73%77% 75%
Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were not just paying attention to the results of the assessment, but were taking actions to reduce cultural entropy and increase the values and mission alignment every year.
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Cultural Entropy Evolution
Entropy risk bands
0 -10% Healthy functioning11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation
Entropy reduced or stayed the same every year. Entropy reduction led to improved performance through increased employee engagement—increased revenues, productivity, share price, etc.
Working toward entropy of 10% will result in healthy functioning of the organisation and improved staff morale.
2005 2006 2007 2008 2009 2010 2011 20120%
5%
10%
15%
20%
25%
30%
25%
19%17%
14%13% 13%
11%10%
Cutlural Entropy
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Values Alignment and Mission Alignment
2005 2006 2007 2008 2009 2010 2011 20120
1
2
3
4
5
6
7
8
1 1 1 1
2 2 2
43
4 4
5
6 6
7
5
PV/CC Matches CC/DC Matches
Mission Alignment
Values Alignment
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Revenue Evolution
2005 2006 2007 2008 2009 2010 2011 20120
5000
10000
15000
20000
25000
30000
35000
0%
5%
10%
15%
20%
25%
30%
Revenue Cultural Entropy
Total revenue increases as cultural entropy falls.
Global Economic Meltdown
2005 2006 2007 2008 2009 2010 2011 20120
200
400
600
800
1000
1200
0%
5%
10%
15%
20%
25%
30%
Revenue per Capita Cultural Entropy
Revenue per capita increases as cultural entropy falls.
Productivity Evolution
Global Economic Meltdown
2005 2006 2007 2008 2009 2010 2011 20120
2000400060008000
100001200014000160001800020000
0%
5%
10%
15%
20%
25%
30%
Share Price Cutlural Entropy
Share price (cents) increases as cultural entropy falls.
Low entropy organisations are extremely resilient.
Share Price Evolution
Global Economic Meltdown
Barrett Values Centre: Group (16)
commitment 12 5(I)
continuous improvement 10 4(O)
employee fulfilment 10 6(O)
balance (home/work) 9 4(O)
customer satisfaction 9 2(O)
making a difference 9 6(S)
financial stability 8 1(O)
humour/ fun 8 5(O)
teamwork 8 4(R)
accountability 4 4(R)
adaptability 4 4(I)
customer collaboration 4 6(O)
shared values 4 5(O)
shared vision 4 5(O)
accountability 9 4(R)
commitment 8 5(I)
continuous improvement 8 4(O)
employee fulfilment 8 6(O)
humour/ fun 8 5(O)
shared vision 8 5(O)
customer collaboration 7 6(O)
customer satisfaction 6 2(O)
financial stability 6 1(O)
teamwork 6 4(R)
Values Plot August 6, 2012Copyright 2012 Barrett Values Centre
I = IndividualR = Relationship
Black Underline = PV & CCOrange = PV, CC & DC
Orange = CC & DCBlue = PV & DC
P = PositiveL = Potentially Limiting (white circle)
O = OrganisationalS = Societal
Matches
PV - CC 5CC - DC 10PV - DC 3
Health Index(PL)
PV - 9-0CC - 14-0 DC-10-0
making a difference 10 6(S)
family 9 2(R)
commitment 8 5(I)
humour/ fun 8 5(I)
balance (home/work) 6 4(I)
continuous learning 6 4(I)
integrity 6 5(I)
accountability 5 4(R)
creativity 5 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=6-2-1 IRS (L)=0-0-0 IROS (P)=2-2-9-1 IROS (L)=0-0-0-0 IROS (P)=1-2-7-0 IROS (L)=0-0-0-0
Barrett Values Centre: Group (16)
CTS = 53-22-25Entropy = 0%
CTS = 50-26-24Entropy = 2%
Personal Values
CTS = 51-29-20Entropy = 0%
Values distribution August 6, 2012Copyright 2012 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 GoodT = TransformationS = Self-Interest
1
2
3
4
5
6
7
0% 20% 40% 60%
0%
0%
0%
6%
12%
7%
22%
32%
13%
8%
1
2
3
4
5
6
7
0% 20% 40% 60%
0%
1%
1%
6%
8%
8%
26%
28%
19%
3%
1
2
3
4
5
6
7
0% 20% 40% 60%
0%
0%
0%
5%
5%
10%
29%
27%
22%
2%
Barrett Values Centre: Group (16)
Business Needs Copyright 2012 Barrett Values Centre August 6, 2012
Desired Culture Values
Current Culture ValuesFinance
Fitness
Evolution
Client Relations
Culture
Culture
Societal Contribution
Fitness
Evolution
Current Culture Desired Culture
Finance financial stability financial stability
Fitness accountability accountability
Client Relationscustomer satisfaction
customer collaboration
customer collaboration
customer satisfaction
Evolutioncontinuous improvement
adaptabilitycontinuous improvement
Culture
employee fulfilment
balance (home/work)
humour/ fun
teamwork
shared values
shared vision
employee fulfilment
humour/ fun
shared vision
teamwork
Societal Contribution making a difference
Client Relations
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Cultural Entropy Evolution
2005 2006 2007 2008 2009 2010 2011 20120%
2%
4%
6%
8%
10%
12%
1% 1%
7%
10%
8% 8%
3%
2%
Cultural Entropy
Entropy risk bands
0 -10% Healthy functioning11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation
Entropy increased during the period 2006 to 2008, then reduced slightly, and then reduced significantly. Entropy reduction led to improved performance through increased employee engagement—increased revenues, and productivity, etc.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
90
Values Alignment and Mission Alignment
Mission Alignment
Values Alignment
2005 2006 2007 2008 2009 2010 2011 20120
1
2
3
4
5
6
7
8
9
10
PV/CC Matches CC/DC Matches
Even though cultural entropy increased, values alignment increased… mission alignment decreased. Mission alignment increased with reduction in cultural entropy.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
91
Revenue Evolution
2005 2006 2007 2008 2009 2010 2011 20120%
2%
4%
6%
8%
10%
12%
0
0.5
1
1.5
2
2.5
3
3.5
1% 1%
7%
10%
8% 8%
3%
2%
1.52 1.551.73
1.93
2.37 2.37
2.91
3.3
Cutlural Entropy Revenue ($ millions)
Revenue steadily increases. Rate of increase in revenue growth faster as entropy falls.
Global Economic Meltdown
Productivity decreases with rise in entropy and then increases as entropy falls. Productivity increases even during economic meltdown
Productivity Evolution
2005 2006 2007 2008 2009 2010 2011 2012 20130%
2%
4%
6%
8%
10%
12%
0
50
100
150
200
250
1% 1%
7%
10%
8% 8%
3%
2% 2%
217
194
144 138158
169 162
183203
Cultural Entrop[yProductivity ($ '000 per employee)