The new leadership paradigm 2015

94
The New Leadership Paradigm Richard Barrett

Transcript of The new leadership paradigm 2015

Page 1: The new leadership paradigm 2015

The New Leadership ParadigmRichard Barrett

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Connection is necessary for successful evolution. We cannot grow and evolve,

individually or collectively, without connecting.

The ability to connect is the key to the New Leadership Paradigm.

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A Crisis in Leadership

John Kotter, Harvard Business School

After conducting fourteen formal studies and more than a thousand interviews, directly observing dozens of executives in action, and compiling innumerable surveys, I am completely convinced that most organisations today lack the leadership they need.

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A Crisis in Leadership

Shoshana Zuboff, Harvard Business School

We managed to produce a generation of managers and business professionals that is deeply mistrusted and despised by a majority of people in our society and around the world. This is a terrible failure.

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Global Sustainability Issues

Pandemics

Climate Change

Global Economy

GlobalTerrorism

Poverty Reduction

Food Resilience

Natural Disasters

Energy Resilience

Species Extinction

WaterShortages

The significant problems we face cannot be solved at the same level of thinking that created them.

Pollution

Waste Disposal

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The Sustainability Challenge

Richard Barrett

The problems of existence have become global but the decision-making structures we have for dealing with them are national

We cannot move forward without a New Leadership Paradigm.

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Sustainability and the New Leadership Paradigm

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.

Our Business Leaders need to recognise that:

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What this means for Business

Building a sustainable future for everyone is not just societal imperative. It is business imperative, too.

Business leaders need to work with their competitors, political and civic leaders to define a

framework of policies that support the evolution of our global society by developing industry charters

that regulate the rules of competition between companies in a way that supports the societal

common good.

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WHAT IS BEING called forth in business and politics is a global paradigm shift. It’s a shift from a world focused on self-interest to a world focused on the common good. It’s a shift from “what’s in it for me” to “what’s best for everyone.”

Richard Barrett, The New Leadership Paradigm

A New Leadership Paradigm

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EVERY SUCCESSFUL BUSINESS LEADER HAS TO MAKE THE SHIFT

FROM “I” TO “WE.”

Bill George, True North: Discover Your Authentic Leadership (San Francisco: Jossey-Bass, 2007).

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SEPARATION AND ISOLATION COMMUNITY AND COHESION

Moving from … To …

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THE REASON WHY I am suggesting the shift from “I” to “we” should be at the core

of a New Leadership Paradigm is not because it feels like the right thing to do:

but because this concept is the core principle behind 14 billion years of

successful evolution.

14 Billion Years of Connecting …

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FIRST THERE WAS THE BIG BANG

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THEN CAME THE UNIVERSAL

ENERGY FIELD

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Then came the … Universal Stages of Evolution

From the Big Bang … to the Present Day

Stage 1:Entities learn how to become viable and independent in their frameworks of existence.

Energy Atoms Molecules Cells Organisms Creatures Homo sapiens

Stage 2: As life conditions become more complex, entities bond with each other to create viable independent group structures.

Stage 3: And as life conditions become even more complex, group structures then cooperate with each other to form a higher order entity.

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Only one entity at each plane of being was capable of bonding and cooperating to form a higher order entity

Energy ATOMS Molecules CELLS Organisms CREATURES

CARBON ATOM

EURKARYOTIC CELL

HOMO SAPIENS

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… AN AMAZING PROPENSITY FOR

BONDING AND COOPERATING

The building blocks of life have …

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Stage 1:

Entities learn how to become viable and independent in their frameworks of existence.

Stage 2:

As life conditions become more complex, viable independent entities bond with each other to create a group structure.

Stage 3:

Viable independent group structures then cooperate with each other to form a higher order entity.

Particles/waves of information existing in a quantum energy field.

Carbon atom Molecules Cells

Eukaryotic cell Organisms Creatures

Homo sapiens Nations Humanity

The Universal Stages of EvolutionPl

anes

of B

eing

Evolution

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EXERCISE:1. FIND A PARTNER2. DESIGNATE “A” AND “B”3. PARTNER “A” MUST NOT SMILE. MUST TRY TO

KEEP A VERY SERIOUS FACE DURING THE EXERCISE.

4. PARTNER “B” TELLS PARTNER “A” HOW WONDERFUL THEY THINK THAT PERSON IS. WHAT THEY NOTICE THAT IS POSITIVE. WHAT THEY LOVE ABOUT “A”. DO THIS FOR ONE MINUTE.

5. NOW SWITCH ROLES.

We are born to connect …

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HOW DIFFICULT WAS IT TO KEEP A SERIOUS

FACE?

We are born to connect …

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Evol

ution

of H

uman

Con

scio

usne

ss

Physical Evolution

The Evolution of Human Consciousness

Survival

Relationship

Self-esteem

Transformation

Internal cohesion

Making a difference

ServiceWith the emergence of

Homo Sapiens, evolution shifted from physical evolution to

consciousness evolution

Basi

c N

eeds

Gro

wth

Nee

ds

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Consciousness and The Universal Stages of Evolution

Stage 2: Bonding to form a cohesive group structure

Pers

onal

Evo

lutio

n

Stage 1: Becoming a viable independent entity

Stage 3: Cooperating to form a higher order entity

The Barrett Seven Levels of Model

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Stages, Levels and World Views

We grow in stages of psychological development

We operate at levels of consciousness

We live inside (are embedded in) cultural world views

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Millions of people all over the world have met their basic needs and are now focusing on their growth needs. They are demanding their voices be heard, not just in how our nations are governed, but also in how our organisations are run. They want equality, fairness and transparency; they want to be responsible and accountable for their lives; and, they want to trust and be trusted.

They want to work in organizations that align with their values and support them in meeting their needs.

The Manifestation of We

AT THIS POINT IN OUR HUMAN HISTORY WE ARE WITNESSING AN UNPRECEDENTED SHIFT IN HUMAN VALUES.

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MY SPEECH TODAY

HOW TO CREATE A VALUES-DRIVEN CULTURE

HOW TO CREATE A VALUES-DRIVEN CULTURE

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Richard Barrett has made extraordinary contributions to our understanding of organisational values and culture. His frame-works for measuring culture and enabling whole system change are elegant. His reservoir of know-ledge is vast and his connection to timeless wisdom is profound.

Raj Sisodia Co-founder and co-chairman of Conscious Capitalism Inc. and Professor of Marketing at Bentley University

Building a Values-driven Culture

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WHY A VALUES-DRIVEN CULTURE?

Values Alignment

Perf

orm

ance

BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET

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WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL?

BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES, AND …

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… THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS

Suppliers Community

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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 their employee’s needs.

The Top 40 Best Companies to Work For (USA)

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“No matter how far reaching the vision or how brilliant the strategy, neither will be realized if it is not supported

by the organisational culture.” Luther Johnson

Peter Drucker

“CULTURE EATS STRATEGY FOR BREAKFAST”

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The Leader and the Values

Peters and Waterman, “In Search of Excellence: Lessons from America’s best run companies”, 1983

Clarifying the value system and breathing life into it are the greatest contributions a

leader can make.

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What are Values?

A shorthand way of describing our individual and collective motivations and what is important to us.

They are the energetic drivers of our aspirations and intentions.

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Positive of Potentially Limiting?

Values can be positive or potentially limiting.

Positive Values: Trust, creativity, passion, honesty, integrity, clarity

Potentially Limiting Values: Bureaucracy, power, blame, greed, hierarchy, status-seeking

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The Most Important Thing to Remember

What motivates employees is the

satisfaction of their needs.

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1. What is your primary motivation at work?

2. What is your primary motivation outside work?

3. Are you able to get your motivations met at your current place of work?

4. Discuss with a partner.

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What Employees Value

A safe working environment and pay and ben-efits that are sufficient to take care of family

Opportunities to work in a congenial atmos-phere where people care and respect each other

Opportunities to grow professionally with support, feedback and coaching

Opportunities and challenges by being made accountable for projects and processes

Opportunities for personal growth and develop-ment to support you in living your life purpose

Opportunities to leverage your contribution by collaborating with other like-minded individuals

Opportunities to serve others and care for the well-being of the Earth’s life support systems

Surviving

Relationship

Self-esteem

Transformation

Internal cohesion

Making a difference

Service

Levels of Consciousness Primary Motivations

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Levels of Consciousness

All things being normal, the level of consciousness we operate from will

correspond to the stage of psychological development we have reached.

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Stages and Levels

Stages Levels of ConsciousnessServing SERVICE

Integrating MAKING A DIFFERENCE

Self-actualising INTERNAL COHESION

Individuating TRANSFORMATION

Differentiating SELF-ESTEEM

Conforming RELATIONSHIP

Surviving SURVIVAL Evol

ution

of P

erso

nal C

onsc

ious

ness

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Stages of Psychological Development

Surviving

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Stages of Psychological Development

INFANCY 0-2 Years Old

Staying alive!

Satisfying physiological and nutritional needs

Surviving

Stage Motivation

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Stages of Psychological Development

Conforming

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Stages of Psychological Development

Conforming

Stage Motivation

CHILDHOOD 3-7 Years Old

Feeling safe!

Satisfying need for love, and belonging.

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Stages of Psychological Development

Differentiating

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Stages of Psychological Development

Differentiating

Stage Motivation

TEENAGER +8-24 Years Old

Feeling secure!

Satisfying need for respect and recognition.

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Stages of Psychological Development

Individuating

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Stages of Psychological Development

Individuating

Stage Motivation

YOUNG ADULT25-39 Years Old

Releasing your fears!

Satisfying need for freedom and autonomy.

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Stages of Psychological Development

Self-actualising

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Stages of Psychological Development

Self-actualising

Stage Motivation

ADULTHOOD40-49 Years Old

Becoming who you are!

Satisfying need to find meaning and purpose.

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Stages of Psychological Development

Integrating

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Stages of Psychological Development

Integrating

Stage Motivation

MATURE ADULT50-59 Years Old

Aligning with others!

Satisfying need to make a difference in the world.

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Stages of Psychological Development

Serving

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Stages of Psychological Development

ServingStage Motivation

SENIOR60+ Years Old

Finding fulfilment!

Satisfying your need to serve the greater good.

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BUILDING A VALUES-DRIVEN CULTURE

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The Three Mantras of Organizational Performance

Cultural Capital is the new frontier of competitive advantage.

Mantras Implications

The Culture of an organizations is a reflection of leadership consciousness

Measurement matters. If you can measure it, you can manage it.

Who you are and what your organization stands for is vitally important.

Organizational transformation begins with the personal transformation of the leaders

You can make the evolution of consciousness, conscious

Focus on Vision, Mission and Values

Begins with Leading Self

Measure and Map the Values

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The Seven Levels of Consciousness Model

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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

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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

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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.

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

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Stages in the Development of Personal Consciousness

Positive Focus / Excessive Focus

Financial 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

Service

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Making a difference

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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

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Making a difference

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The Culture Change Process

1. Cultural Values

Assessment2. Share

results and start dialogue

3. Prioritize values

4. Identify behaviours

5. Create culture development

plan

6. Implement changes and programmes

ENTROPY

PERFORMANCE

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BUILDING A VALUES-DRIVEN ORGANSIATION

START WITH A VALUES SURVEY

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The Values Survey

PERSONAL VALUESWhich of the following values/behaviours most reflect who you are? Pick ten.

CURRENT CULTUREWhich of the following values/behaviours most reflect how your organisation currently operates? Pick ten.

DESIRED CULTUREWhich of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.

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Placement of Values by Level (100 employees)

Top Ten Values

1. tradition (L) (59)

2. diversity (54)

3. control (L) (53)

4. goals orientation (46)

5. knowledge (43)

6. creativity (42)

7. productivity (37)

8. image (L) (36)

9. profit (36)

10. open communication (31)

10

42 5

7

9

6

8

3

110

Current Culture

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

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11%

1

2

3

4

5

6

7

Cultural Entropy

Placement of Values by Level (100 employees)

Current Culture

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

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Cultural Entropy and Engagement

Cultural entropy significantly

impacts employee

engagement.

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.

Low Entropy = High Engagement

High Entropy = Low Engagement

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Entropy and Engagement

Cultural Entropy Most employees are ….

10% or less Highly Engaged

11% to 20% Engaged

21% to 30% Becoming Disengaged

31% to 40% Disengaged

41% or more Highly Disengaged

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What is Cultural Entropy?

The amount of energy that is consumed in an organisation doing unnecessary or unproductive work that does not add value.

It is a measure of the conflict, friction and frustration that employees encounter in their day-to-day activities that prevent the organisation from operating at peak performance.

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Highly Engaged Team (19)

customer satisfaction 13 2(O)

making a difference 13 6(S)

commitment 10 5(I)

employee fulfilment 10 6(O)

continuous improvement 9 4(O)

humour/ fun 9 5(O)

shared vision 9 5(O)

customer collaboration 8 6(O)

balance (home/work) 6 4(O)

financial stability 6 1(O)

teamwork 6 4(R)

customer satisfaction 12 2(O)

continuous improvement 10 4(O)

employee fulfilment 10 6(O)

making a difference 9 6(S)

shared vision 9 5(O)

continuous learning 8 4(O)

accountability 6 4(R)

innovation 6 4(O)

teamwork 6 4(R)

trust 6 5(R)

Values Plot June 22, 2015Copyright 2015 Barrett Values Centre

I = 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 4CC - DC 6

PV - DC 4

Cultural Entropy:Current Culture

7%

family 15 2(R)

making a difference 13 6(S)

humour/ fun 11 5(I)

well-being (physical/ emotional/ mental/ spiritual)

11 6(I)

continuous learning 10 4(I)

commitment 8 5(I)

accountability 7 4(R)

financial stability 7 1(I)

trust 7 5(R)

compassion 6 7(R)

integrity 6 5(I)

Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)

7

6

5

4

3

2

1

IRS (P)=6-4-1 IRS (L)=0-0-0 IROS (P)=1-1-8-1 IROS (L)=0-0-0-0 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0

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Highly Engaged Team (19)

Personal Values

Values Distribution June 22, 2015Copyright 2015 Barrett Values Centre

Positive Values

Potentially Limiting Values

Current Culture Values

Desired Culture Values

C

T

S 2

1

3

4

5

6

7

C = Common GoodT = Transformation

S = Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

14%

9%

21%

25%

17%

9%

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

5%

6%

10%

4%

20%

28%

24%

1%

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

9%

10%

27%

23%

22%

4%

CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24Cultural Entropy = 0%

Cultural Entropy = 7%Cultural Entropy = 0%

Low level of Cultural Entropy = High level of

Employee Engagement

High level of Values

Alignment

26%

46%

28%

25%

48%

27%

26%

50%

24%

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Five Levels of Employee Engagement

Highly Engaged Employees bring passion, purpose and discretionary energy to their work. They are emotionally attached and committed to the organisation and want to do the right thing.

Engaged Employees are willing to go the extra mile to support the company in achieving its goals and objectives as long as they can also satisfy their own goals and objectives.

Becoming Disengaged

Employees are becoming frustrated, anxious and fearful about not being able to satisfy their needs.

Disengaged Employees do what they have to do to get through the day, but are unwilling to put in any extra effort to meet deadlines or support their colleagues in difficult times.

Highly Disengaged

Employees are unhappy at their work and act out their unhappiness by actively undermining the company, and denigrating those who want to succeed.

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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.

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Cultural entropy is a function of the personal entropy of the current leaders of an organisation and institutional legacy of past leaders as embedded in the structures, systems, policies and procedures.

How Does Cultural Entropy Arise?

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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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continuous learning 11 Level 4

generosity 11 Level 5

commitment 10 Level 5

positive attitude 10 Level 5

vision 10 Level 7

ambitious 9 Level 3

making a difference 8 Level 6

results orientation 8 Level 3

honesty 7 Level 5

integrity 7 Level 5

intuition 7 Level 6

leadership developer 7 Level 6

1. customer satisfaction 16 Level 2

2. commitment 11 Level 5

3. continuous learning 11 Level 4

4. making a difference 11 Level 6

5. global perspective 9 Level 3

6. mentoring 9 Level 6

7. enthusiasm 8 Level 5

8. leadership development 8 Level 6

9. integrity 7 Level 5

10. open communication 7 Level 2

11. optimism 7 Level 5

12. shared values 7 Level 5

Cultural Evolution Begins with Personal Evolution

Cultural Entropy 7%Personal Entropy 9%

Culture ValuesLeader’s Values

The culture ofan organisationis a reflectionof leadership consciousness.

CVA Current Culture

PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0

Internal Cohesion

LVA Feedback 27 Assessors

PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0

Internal Cohesion

Page 80: The new leadership paradigm 2015

The culture ofan organisationis a reflectionof leadership consciousness.

LV A Feedback 14 Assessors

PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0

Cultural Evolution Begins with Personal Evolution

power (L) 11 Level 3

blame (L) 10 Level 2

demanding (L) 10 Level 2

manipulative (L) 10 Level 2

experience 9 Level 3

controlling (L) 8 Level 1

arrogant (L) 7 Level 3

authoritarian (L) 6 Level 1

exploitative (L) 6 Level 1

ruthless (L) 6 Level 1

1. short-term focus (L) 13 Level 1

2. blame (L) 11 Level 2

3. manipulation (L) 10 Level 2

4. caution (L) 7 Level 1

5. cynicism (L) 7 Level 3

6. bureaucracy (L) 6 Level 3

7. control (L) 6 Level 1

8. cost reduction 5 Level 1

9. empire building (L) 5 Level 2

10. image (L) 5 Level 3

11. long hours (L) 5 Level 3

CVA Current Culture

PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0

Cultural Entropy 38%Personal Entropy 64%

Culture ValuesLeader’s Values

Page 81: The new leadership paradigm 2015

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com

83

How to Measure Personal Entropy?

LEADER’S VALUESWhich of the following values/behaviours most reflect how you operate? Pick ten.

ASSESSOR’S OBSERVED VALUES OF LEADERWhich of the following values/behaviours most reflect how Leader “X” operates? Pick ten.

http://www.valuescentre.com/our-products/products-leaders/leadership-values-assessment-lva

LEADERSHIP VALUES ASSESSMENT

Page 82: The new leadership paradigm 2015

long hours (L) 16 3(I)

quality conscious 13 3(O)

drive and determination 12 4(I)

analytical 10 3(I)

commitment 10 5(I)

cautious (L) 8 1(I)

reliable 8 3(R)

achievement 7 3(I)

demanding (L) 7 2(R)

internally competitive (L) 6 2(R)

strategic thinker 6 4(I)

High Entropy Leader (20 Assessors)

Matches 3

adaptability 4(I)

connecting with stakeholders 6(R)

drive and determination 4(I)

goals orientation 4(O)

innovative 4(I)

long hours (L) 3(I)

making a difference 6(O)

strategic thinker 4(I)

vision 7(I)

win-win partnerships 6(O)

Level Leader Observed Values

7

6

5

4

3

2

1

PL= 9-1 | IROS (P)=5-1-3-0 | IROS (L)=1-0-0-0 PL= 7-4 | IROS (P)=5-1-1-0 | IROS (L)=2-2-0-0

Orange=Values MatchP=PositiveL=Potentially Limiting (white circle)

I=IndividualR=RelationshipO=OrganisationalS=Societal

Entropy = 27%

Page 83: The new leadership paradigm 2015

1

2

3

4

5

6

7

0% 20% 40% 60%

10%

50%

30%

10%

CTS = 40-50-10Entropy = 10%

CTS = 20-20-60

Entropy = 27%

Leader

High Entropy Leader (20 Assessors)

Positive Values

Potentially Limiting Values

Observed Values

C

T

S

C=Common GoodT=TransformationS=Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

9%

8%

10%

1%

7%

25%

20%

12%

5%

3%

1

2

3

4

5

6

7

Page 84: The new leadership paradigm 2015

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com

86

BUILDING A VALUES-DRIVEN CULTURETHE JOURNEY

Page 85: The new leadership paradigm 2015

SA Bank: Evolution of Current Culture

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

3 Matches CC-DCEntropy 25%

4 Matches CC-DCEntropy 19%

4 Matches CC-DCEntropy 17%

5 Matches CC-DCEntropy 14%

Page 86: The new leadership paradigm 2015

SA Bank: Evolution of Current Culture

2009 2010 2011

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

6 Matches CC-DCEntropy 13%

6 Matches CC-DCEntropy 13%

6 Matches CC-DCEntropy 11%

2012

1. accountability2. client satisfaction 3. client-driven4. brand reputation5. teamwork6. employee recognition7. environmental awareness8. performance driven9. community involvement10. people-centred

5 Matches CC-DCEntropy 10%

Page 87: The new leadership paradigm 2015

SA Bank: Evolution of Current Culture

2013 2014

5 Matches CC-DCEntropy 11%

6 Matches CC-DCEntropy 13%

1. accountability2. client satisfaction3. client-driven4. brand reputation5. employee recognition6. performance driven7. teamwork8. achievement9. integrity10. community involvement

1. accountability2. client satisfaction 3. client-driven 4. brand reputation5. employee recognition6. teamwork7. performance driven8. environmental awareness9. community involvement10. commitment

Despite a slight rise in cultural entropy,

profitability and productivity

continue to increase year on year.

Page 88: The new leadership paradigm 2015

Evolution of Number of Survey Participants

20052006200720082009201020112012201320140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

8%

25%

38%

51%

67%

73%77% 75% 74% 75%

Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were paying attention to the results of the assessment.

Page 89: The new leadership paradigm 2015

Cultural Entropy Evolution

Cultural entropy reduction led to improved performance through increased employee engagement, increased revenues, improved productivity, and increase in share price. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

0%

5%

10%

15%

20%

25%

30%

25%

19%17%

14%13% 13%

11%10%

11%13%

Cutlural Entropy

Page 90: The new leadership paradigm 2015

Income Evolution

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

5000

10000

15000

20000

25000

30000

35000

40000

45000

0%

5%

10%

15%

20%

25%

30%

Income Cultural Entropy

Annual income

increases as cultural

entropy falls.

Global Economic Meltdown

Page 91: The new leadership paradigm 2015

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

0%

5%

10%

15%

20%

25%

30%

Revenue per Capita Cultural Entropy

Income per capita

increases as cultural

entropy falls.

Productivity Evolution

Global Economic Meltdown

Page 92: The new leadership paradigm 2015

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

2000

4000

6000

8000

10000

12000

0%

5%

10%

15%

20%

25%

30%

Profit Cutlural Entropy

Profit increases as cultural

entropy falls.

Profit Evolution

Global Economic Meltdown

Page 93: The new leadership paradigm 2015

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com

95

Books in Portuguese in Brazil

Page 94: The new leadership paradigm 2015

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com

96

For More Information

www.valuescentre.com

www.richardbarrett.net

To get a copy of this presentation go to:

http://www.slideshare.net/BarrettValues