Conscious capitalism may 2012
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Transcript of Conscious capitalism may 2012
www.valuescentre.com 1 www.valuescentre.com www.valuescentre.com
Conscious Capitalism Conference
Measuring Conscious Cultures
and Conscious Leadership
Richard Barrett
May 2012
2
The Tenets of Conscious Capitalism
3
Why Conscious Capitalism?
Business is a wholly owned subsidiary of society, and society
is wholly owned subsidiary of the environment.
If we lose our environment and our life-support systems,
our society will perish.
If we lose our society, we will lose our economy and our businesses will perish too.
We need to recognise that:
4
A New Leadership Paradigm
• A shift from “I” to “we”
• A shift from “what’s in it for me” to “what’s best
for the common good”
• A shift from being the “best in the world” to the
“best for the world”
Conscious Capitalism is based on a New Leadership Paradigm
5
The Four Tenets of Conscious Capitalism
Values
Stakeholder
Integration
Higher
Purpose
Conscious
Leadership
Conscious
Culture
Conscious Capitalism is
Values-Driven
6
Leadership and Values
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
The real role of the leader is to manage the values of the corporation.
7
1. Measure the Consciousness of the Leaders
How do you know if you are being successful
at living the tenets of Conscious Capitalism?
You need to:
2. Measure the Consciousness of the Organization as perceived by employees
3. Measure the Consciousness of the Organization as perceived by customers
and society
8
Measuring Consciousness by Mapping Values
Values
Stakeholder
Integration
Higher
Purpose
Conscious
Leadership
Conscious
Culture
Cultural Transformation Tools
We can measure this
with a Cultural
Values Assessment
(CVA)
We can measure this
with a Leadership
Values Assessment
(LVA)
9
Measuring the Cultures of Organisations and Mapping the Values of Leaders
1998 2006 2011
Values-Driven
Cultures
Values-Driven
Leadership
Cultural Transformation Tools (CTT)
10
Barrett Values Centre World-wide Activities
11
The Three Mantras of Organisational Performance
12
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 consciousness,
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 Self Leadership
Measure and Map the Values
13
Measuring Organizational Consciousness
14
Origins of the Cultural Transformation Tools
Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.
Deficiency Needs An 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
15
Maslow’s Needs to Barrett’s Consciousness
Know and
Understand
Physiological
Safety
Love & Belonging
Self-esteem Abraham Maslow
Know and Understand
N e e d s C o n s c i o u s n e s s
Self-Actualization
Richard Barrett
16
Maslow’s Needs to Barrett’s Consciousness
Know and
Understand
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
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.
17
Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed
Belonging Feeling 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 Growth Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears
Finding Personal Meaning Uncovering your sense of purpose and creating a vision for the future you want to create
Collaborating with Partners Working with others to make a positive difference by actively implementing your purpose and vision
Service to Humanity and the Planet Devoting your life in self-less service to your purpose and vision
18
Positive Focus / Excessive Focus
Financial Stability Shareholder value, organisational growth, employee health, 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 Organisational Consciousness
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
19
Placement of Values by Level
Current Culture 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
4 2 5
7
9
6
8
3
1 10
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
20
Cultural Entropy
Distribution of Values by Level
Current Culture 100 Employees
11%
1
2
3
4
5
6
7 Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
21
The Values Survey
21
Three Questions:
PERSONAL VALUES
Which of the following values and 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.
22
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 1 CC - DC 4 PV - DC 2
Health Index (PL)
PV: 10-0 CC: 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
23
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 1 CC - DC 4 PV - DC 2
Health Index (PL)
PV: 10-0 CC: 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
24
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 Good T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 38-21-41 Entropy = 3%
CTS = 25-20-55 Entropy = 23%
CTS = 37-27-36 Entropy = 2%
Personal Values
Current Culture Values
Desired Culture Values
Total number of votes for all
values at each level
Cultural Entropy % of Votes for Limiting Values
Common Good
Transformation
Self Interest
Barrett Values Centre: Group (18)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 9-2-1 | IRS (L)= 0-0-0 IROS (P)= 1-0-8-1 | IROS (L)= 0-0-0-0 IROS (P)= 2-3-5-1 | IROS (L)= 0-0-0-0
Matches
PV - CC 4 CC - DC 6 PV - DC 4
Health Index (PL)
PV: 12-0 CC: 10-0 DC: 11-0
1. making a difference 9 6(S)
2. accountability 8 4(R)
3. commitment 8 5(I)
4. humor/ fun 8 5(I)
5. integrity 8 5(I)
6. continuous learning 7 4(I)
7. well-being (physical/ emotional/ mental/ spiritual)
7 6(I)
8. balance (home/work) 6 4(I)
9. family 6 2(R)
10. efficiency 5 3(I)
11. excellence 5 3(I)
12. honesty 5 5(I)
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. commitment 13 5(I)
2. humor/ fun 13 5(O)
3. making a difference 12 6(S)
4. balance (home/work) 11 4(O)
5. customer satisfaction 11 2(O)
6. continuous improvement
10 4(O)
7. employee fulfillment 10 6(O)
8. financial stability 8 1(O)
9. information sharing 6 4(O)
10. shared vision 6 5(O)
1. commitment 10 5(I)
2. customer collaboration 10 6(O)
3. teamwork 10 4(R)
4. employee fulfillment 9 6(O)
5. continuous improvement
8 4(O)
6. accountability 7 4(R)
7. humor/ fun 7 5(O)
8. innovation 7 4(I)
9. making a difference 7 6(S)
10. shared vision 7 5(O)
11. trust 7 5(R)
Values Plot Copyright 2011 Barrett Values Centre December 2011
0%
0%
0%
3%
10%
11%
29%
14%
10%
23%
0% 20% 40%
1
2
3
4
5
6
7
1%
0%
2%
5%
8%
8%
27%
18%
5%
26%
0% 20% 40%
1
2
3
4
5
6
7
1%
0%
0%
5%
5%
8%
25%
24%
4%
28%
0% 20% 40%
1
2
3
4
5
6
7
Barrett Values Centre: Group (18)
C
T
S
Values Distribution Copyright 2011 Barrett Values Centre December 2011
C = Common Good T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 53-23-24 Entropy = 0%
CTS = 50-26-24
Entropy = 3% CTS = 53-28-19 Entropy = 1%
Personal Values
Current Culture Values
Desired Culture Values
Barrett Values Centre: Group (18)
Current Culture Values Desired Culture Values
Finance Finance
Fitness Client
Relations
Evolution Culture
Societal
Contribution
Societal
Contribution
Current Culture Desired Culture
Finance financial stability
Fitness accountability
Client Relations
customer
satisfaction
customer
collaboration
Evolution continuous
improvement
continuous
improvement
innovation
Culture
humor/ fun
balance
(home/work)
employee
fulfillment
shared vision
teamwork
employee
fulfillment
humor/ fun
shared vision
trust
Societal Contribution
making a
difference
making a
difference
Business Needs Copyright 2011 Barrett Values Centre December 2011
Barrett Values Centre: Group (18)
Values Jumps Table Copyright 2011 Barrett Values Centre December 2011
Value Current Culture Votes
Desired Culture Votes
Jump
teamwork 4 10 6
customer collaboration 5 10 5
accountability 2 7 5
innovation 2 7 5
strategic alliances 0 5 5
adaptability 1 5 4
trust 4 7 3
coaching/ mentoring 1 4 3
leadership development 0 3 3
professional growth 1 3 2
employee recognition 0 2 2
passion 0 2 2
Values Jumps
A value jump occurs when there are more votes for a value in the Desired Culture
than in the Current Culture. Listed below are the values with the largest increase in
votes. The values in bold are represented in the Desired Culture.
29
Impact of Cultural Entropy
Cultural entropy represents the degree of dysfunction in a culture
Entropy Impact
0 -10% Healthy: This is a low and healthy level of cultural entropy.
11-20% Minor Issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment.
21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching.
31-40% Serious Issues: This level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching.
41%+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching.
30
Average Entropy in Organisations (2007-2011)
Total CVAs: 1,011
Industries: 40
Countries: 36
31
Values Alignment vs. Entropy Band
0
1
2
3
4
5
0-10% 11-20% 21-30% 31-40% >40% Entropy
Number of
matching
top ten
Current
and
Desired
Culture
Values
32
Low
entropy
High
entropy
33
Customer Values Assessments
Barrett Values Centre: Customer Feedback(100)
making a difference 54 6(S)
continuous improvement 50 4(O)
customer collaboration 44 6(O)
commitment 34 5(I)
information sharing 34 4(O)
future generations 30 7(S)
professionalism 27 3(O)
customer satisfaction 24 2(O)
shared values 24 5(O)
shared vision 24 5(O)
customer collaboration 54 6(O)
strategic alliances 43 6(O)
innovation 42 4(I)
making a difference 41 6(S)
continuous improvement 39 4(O)
partnerships 35 6(O)
information sharing 33 4(O)
shared vision 31 5(O)
coaching/ mentoring 27 6(R)
continuous learning 25 4(O)
transparency 25 5(R)
Values Plot May 1, 2012 Copyright 2012 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 1 CC - DC 5 PV - DC 3
Health Index (PL)
PV-10-0 CC-10-0 DC - 11-0
making a difference 63 6(S)
coaching/ mentoring 39 6(R)
continuous learning 37 4(I)
well-being (physical/ emotional/ mental/ spiritual)
37 6(I)
humour/ fun 36 5(I)
integrity 33 5(I)
family 32 2(R)
vision 28 7(I)
accountability 26 4(R)
creativity 26 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=6-3-1 IRS (L)=0-0-0 IROS (P)=1-0-7-2 IROS (L)=0-0-0-0 IROS (P)=1-2-7-1 IROS (L)=0-0-0-0
Barrett Values Centre: Customer Feedback (100)
VALUE Current Culture Votes Desired Culture Votes Jump
innovation 15 42 27
strategic alliances 17 43 26
excellence 4 22 18
partnerships 22 35 13
coaching/ mentoring 15 27 12
transparency 14 25 11
creativity 3 14 11
customer collaboration 44 54 10
entrepreneurial 9 19 10
wisdom 7 17 10
A value jump occurs when there are more votes for a value in the Desired Culture than in the Current
Culture. Listed below are the values with the largest increase in votes. The values in bold are
represented in the Desired Culture.
Values Jumps Table May 1, 2012 Copyright 2012 Barrett Values Centre
VALUES JUMPS
36
Leadership Values Assessments
37
The Leadership Values Assessment is a feedback instrument that compares a leader’s perception of the values he or she believes best describe his or her management/operational style with their colleagues’ perception of their management/operational style. The instrument also compares leader’s perception of their own strengths, and the behaviours that they believe they need to improve or stop, with the assessors’ perceptions and measures personal entropy.
Leadership Values Assessment
38
Cultural Evolution Begins with Personal Evolution
The culture of an organisation is a reflection of the leadership consciousness.
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
39
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
LV A 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 of an organisation is a reflection of the leadership consciousness.
40
Personal Alignment of the Leaders
1
3
2
4
Wilber’s Four Quadrants
Organisational transformation begins with the personal transformation of the leaders. Organisations don’t transform. People do.
When leaders change their beliefs and values (1), their behaviours change (2). This influences the culture of the group (3), which in turn changes the behaviours of the group (4).
41
Analysis of 100 Leaders from Australia, Belgium, Brazil, Canada, Czech Republic, France, Germany, India, The
Netherlands, Norway, Peru, Poland, South Africa, Sweden, Trinidad & Tobago, Turkey, UK, USA, and Venezuela.
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Jeff's Values
Assessors' Top 11 Values
Matches 5
Jeff Vader
balance (home/work) Level 4
balance (physical/emotional/mental/spiritual)
Level 6
empathy Level 6
fairness Level 5
internal community builder
Level 5
nurturing Level 6
personal relationships Level 2
positive attitude Level 5
trustworthy Level 5
wisdom Level 7
Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational
Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008
balance (physical/emotional/mental/spiritual)
Level 6
compassion Level 7
empathy Level 6
employee development Level 4
forgiveness Level 7
humor/fun Level 5
listener Level 2
mentoring Level 6
nurturing Level 6
personal relationships Level 2
positive attitude Level 5
PL = 10-0 | IRO (P) = 4-5-1 | IRO (L) = 0-0-0 PL = 11-0 | IRO (P) = 3-7-1 | IRO (L) = 0-0-0
How Jeff sees
himself
How Others see Jeff
Matching Values
0%
0%
0%
0%
10%
0%
40%
30%
10%
10%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
0%
0%
0%
18%
0%
18%
36%
18%
9%
0% 20% 40% 60%
1
2
3
4
5
6
7
Jeff Vader
C
T
S
C = Common Good T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 80-10-10 Entropy = 0%
CTS = 72-9-19 Entropy = 0%
Jeff's Values
Assessors' Values
Leadership Distribution Copyright 2008 Barrett Values Centre August 2008
Level of Personal Entropy
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Jim's Values
Assessors' Top 11 Values
Matches 3
Jim Vader
balance (physical/emotional/mental/spiritual)
Level 6
goals orientation Level 4
listener Level 2
mission focus Level 4
organisational growth Level 1
perseverance Level 4
respect Level 2
results orientation Level 3
team player Level 4
trustworthy Level 5
Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational
Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008
balance (physical/emotional/mental/spiritual)
Level 6
compassion Level 7
employee fulfillment Level 6
humor/fun Level 5
listener Level 2
mentoring Level 6
personal relationships Level 2
positive attitude Level 5
strategic alliances Level 6
team player Level 4
vision Level 7
PL = 10-0 | IRO (P) = 3-4-3 | IRO (L) = 0-0-0 PL = 11-0 | IRO (P) = 4-5-2 | IRO (L) = 0-0-0
How Jim sees
himself
How Others see Jim
Matching Values
0%
0%
0%
10%
20%
10%
10%
10%
0%
40%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
0%
0%
0%
18%
0%
18%
36%
18%
9%
0% 20% 40% 60%
1
2
3
4
5
6
7
Jim Vader
C
T
S
C = Common Good T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 20-40-40 Entropy = 0%
CTS = 72-9-19 Entropy = 0%
Jim's Values
Assessors' Values
Leadership Distribution Copyright 2008 Barrett Values Centre August 2008
Level of Personal Entropy
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Darth's Values
Assessors' Top 11 Values
Matches 2
Darth Vader
ambitious Level 3
courage Level 4
creativity Level 5
excellence Level 3
integrity Level 5
long-term perspective Level 7
passion Level 5
results orientation Level 3
strategic alliances Level 6
vision Level 7
Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational
Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008
achievement Level 3
authoritarian (L) Level 1
being the best Level 3
competitive (L) Level 2
demanding (L) Level 2
determination Level 4
excellence Level 3
knowledge Level 4
power (L) Level 3
results orientation Level 3
risk-taking Level 4
PL = 10-0 | IRO (P) = 7-0-3 | IRO (L) = 0-0-0 PL = 7-4 | IRO (P) = 6-0-1 | IRO (L) = 0-4-0
How Darth sees
himself
How Others
see Darth
Matching Values
0%
0%
0%
0%
0%
30%
30%
10%
20%
10%
0% 20% 40% 60%
1
2
3
4
5
6
7
9%
18%
9%
0%
0%
36%
0%
0%
0%
27%
0% 20% 40% 60%
1
2
3
4
5
6
7
Darth Vader
C
T
S
C = Common Good T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 60-10-30 Entropy = 0%
CTS = 0-27-73 Entropy = 36%
Darth's Values
Assessors' Values
Leadership Distribution Copyright 2008 Barrett Values Centre August 2008
Level of Personal Entropy
48
Impact of Personal Entropy
Personal entropy represents the degree of dysfunction of an individual
Entropy Impact
0 -6% Healthy: Authentic individual. Decision-making not driven by fears.
7-10% Minor Issues: Requiring leaders to examine how their behaviours and actions are affecting people around them, their decision-making processes or their degree of work/life balance.
11-15% Significant Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals.
16-20% Serious Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals.
21%+ Critical Issues: Requiring leaders to examine how their behaviours might be compromising their personal integrity and their ability to inspire and lead the people around them.
49
Whole System Change
50
Based on the Four Quadrants of Ken Wilber
Whole System Transformation (Evolution)
Interior Exterior
Individual
Collective
Personality
Values and Beliefs of the
Leaders
Character
Actions and Behaviours
of the Leaders
Culture
Values and Beliefs of the Organization
Society
Actions and Behaviours of the
Organization
51
Whole System Transformation (Evolution)
Interior Exterior
Individual
Collective
1
3
2
4
When the leaders values
change
The leaders behaviours
change
Thevalues of the organization
change
Behaviours of organization
change
52
Four Conditions for Whole System Change
Interior Exterior
Individual
Collective
Personality:
Values and Beliefs of an Individual
Culture:
Values and Beliefs of a Group
Social Structures:
Actions and Behaviours of a Group
Character:
Actions and Behaviours
of an Individual
Mis
sio
n A
lign
men
t Valu
es A
lig
nm
en
t
Structural Alignment
Personal Alignment
The Four Conditions for Whole System Change
53
Four Conditions for Whole System Change Measuring Entropy, Alignment and Resonance
Valu
es A
lignm
ent
Mis
sio
n A
lignm
ent
Whole System Transformation
Personal Alignment
Structural Alignment
Cultural Entropy Lack of personal alignment
and structural alignment
creates personal entropy and
cultural entropy
1
Values Alignment creates internal
cohesion
2
Mission Alignment and shared purpose
creates resonance
3
Employee
Engagement
Entropy is the degree of dysfunction in a system (lack of cohesion, order, and
structure). The amount of energy that is unavailable for useful work.
High entropy leads to low employee engagement. Low entropy leads to high
employee engagement.
54
National and Regional Values Assessments
55
National/Regional Values Assessments
Australia
Belgium
Bhutan
Brazil
Canada
Denmark
Finland
Iceland
Macedonia (r)
France
Latvia
South Africa
Spain (r)
Sweden
Switzerland
United Kingdom (r)
USA
Argentina
Venezuela
Not statistically valid
(r) = Region
Requests from United Arab Emirates
Trinidad
Singapore
New Zealand
Israel
Hungary
Romania
Slovakia
Norway
Puerto Rico
Costa Rica
Columbia
As at Feb 2012
56
Love, Fear and the Destiny of Nations
Volume 1:
The Impact of the Evolution of
Consciousness on World Affairs
Volume 2:
Building Successful Nations
and Communities
May 2012 2013
57
Cultural Entropy in Nations
6%
21%
26%
32% 34%
43% 44% 47% 48%
51% 53% 54%
56%
63%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Cultural entropy is a measure of the dysfunction,
anxiety and fear in a social system
58
Nedbank, South Africa: An Example of Cultural Evolution
59
Nedbank and CTT
60
Entropy 14% Entropy 25% Entropy 19% Entropy 17%
Nedbank: Current Culture Evolution
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
4 matches 4 matches 3 matches 5 matches
61
Entropy 13% Entropy 13% Entropy 11%
Nedbank: Current Culture Evolution
2009 2010 2011
6 matches 6 matches 6 matches
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
62
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 2 CC - DC 6 PV - DC 4
Health Index (PL)
PV: 10-0 CC: 10-0 DC: 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
63
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 Good T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 37-24-39 Entropy = 2%
CTS = 33-20-47
Entropy = 11% CTS = 38-25-37 Entropy = 1%
Personal Values
Current Culture Values
Desired Culture Values
64
25%
19%17%
14% 13% 13%11%
0%
5%
10%
15%
20%
25%
2005 2006 2007 2008 2009 2010 2011
Nedbank: Cultural Evolution
Entropy reduction leads to improved performance—increased revenues, profits and share price. Working toward entropy of <10% will result in healthy functioning of the organisation and improvement of staff morale.
Entropy Scores
Entropy risk bands
0 -10% Healthy functioning
11-20% Some problems
21-30% Significant problems
31-40% Serious situation
41%+ Critical situation
65
Nedbank: Response Rate to Values Survey
1827
6083
10155
14091
1820620184
22102
0
4000
8000
12000
16000
20000
24000
2005 2006 2007 2008 2009 2010 2011
28,898 employees in 2009
Responses
nu
mb
er o
f p
arti
cip
an
ts
66
Nedbank: Staff Engagement
Nedbank Staff Survey Scores
59.6% 66.3%71.5% 75.1% 79%
67%71%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009 2010 2011
67
Nedbank: Financial Impact of Cultural Evolution
78
100
134 136
96
124 130
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008 2009 2010
Closing share price (Rand)
Nedbank: Impact on Financial Performance
68
Nedbank: Financial Impact of Cultural Evolution
1402715809
18948
22428 22077 2157023630
0
5000
10000
15000
20000
25000
2004 2005 2006 2007 2008 2009 2010
Revenue Rm (operating income)
Nedbank: Impact on Financial Performance