The values driven organisation april 2013

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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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


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Q. WHERE CAN WE FIND SUCH ORGANISATIONS?

A. THE BEST COMPANIES TO WORK FOR.


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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)


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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.


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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.


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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.


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Conscious Capitalism Movement

20122007


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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.


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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


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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.


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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.


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AT ANY GIVEN MOMENT IN TIME, the values that are most important to us are a reflection of our unmet basic needs (deficiency needs), and the growth needs associated with the stage of psychological development

we have reached.

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.


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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


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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.


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Stages of Psychological Development

Evol

ution

of P

erso

nal C

onsc

ious

ness

Surviving: Meeting your physiological needs by staying alive and keeping healthy.

Conforming: Keeping safe and nurtured by staying loyal to your family, kin and culture.

Differentiating: Finding ways to separate yourself from your peers by excelling at what you do best.

Individuating: Letting go of the aspects of your conditioning that stop you from finding freedom.

Self-actualizing: Aligning fully with who you are so you can become all you can become.

Integrating: Aligning with others who share your purpose or vision to create a better world.

Serving: Fulfilling your destiny by using yourgifts to give back to the world.


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Happiness

YOU FEEL HAPPY when you are able to meet your basic needs (deficiency 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 (deficiency) needs.


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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.

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.


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Causes of Happiness/What We Value

Stage of Development Cause of Happiness/Joy What We Value

7 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 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 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 valuable for others.

4 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 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 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 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.


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What We Value at Different Stages of Development
















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.


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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.


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SELF-ESTEEM: WHAT WE VALUEOpportunities to learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.


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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.


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INTERNAL COHESION: WHAT WE VALUEOpportunities to lead a values- and purpose-driven life that creates value for ourselves and others and supports the common good.


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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.


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SERVICE:WHAT WE VALUE


The Four Conditions for Employee Engagement


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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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What Employees Must Experience

Individual

Collective

Interior Exterior


Culture Society

Mission

Alignment

Valu

es

Alig

nmen

t


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What Leaders Must Do

Individual

Collective

Interior Exterior


Culture Society

Personal Alignment

Structural Alignment


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Four Conditions for Employee Engagement

Individual

Collective

Interior Exterior


Culture Society

Personal Alignment

Structural Alignment

Mission

Alignment

Valu

es

Alig

nmen

t Employee

Engagement

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


44

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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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)


9. blame (L) 71 2(R)

10. corporate image 64 3(O)


2. customer satisfaction

147 2(O)

3. continuous improvement

143 4(O)

4. employee development 111 4(O)

5. employee recognition 96 2(R)


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



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

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


Health Index (PL)

PV: 10-0CC: 10-0DC: 10-0


2. honesty 6133 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)


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)


9. being the best 2218 3(O)

10. cost-consciousness 2187 3(O)


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)


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


Positive ValuesPotentially Limiting Values

CTS = 37-24-39Entropy = 2%

CTS = 33-20-47Entropy = 11%

CTS = 38-25-37Entropy = 1%

Personal Values




65

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.


66

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


67

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 increases with reduction in cultural entropy. At a certain point (around 10%) values alignment begins to increase significantly.

Mission Alignment

Values Alignment


68

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


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



71

Richard Barrett’s Books

Coming Soon (July 2013):The Values Driven Organisation: Unleashing Human Potential for Performance and Profit

1998

2006

2010

2011

2012

Learning Modules:Leading SelfLeading a TeamLeading an OrganisationLeading in Society

Update and new research

National Values Assessments

National Values Assessments

CTT National Assessments – Status April 2013

Denmark 2008

Latvia2007

Sweden2009, 2010, 2011, 2012

Iceland2008, 2010

Belgium2010

UK2012

Finland2010, 2011

Spain (Extremadura) 2010

Macedonia (Skopje) 2009

Switzerland2011

France2012

USA2009, 2010, 2011

Australia2009

Canada2010

South Africa2011

Bhutan2008

Brazil2010

Nigeria2012 (Open)

Argentina2001**

EgyptT.B.D.

Singapore2012

BahamasT.B.D.

Italy2013

IndiaT.B.D.

United Arab Emirates2012

QatarT.B.D.

South America

North America

Africa

Asia

Oceania

Europe

Venezuela2010 **

Trinidad Tobago2012

** Not statistically valid

Hungary2012

Slovakia2012

New ZeelandT.B.D.


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National Cultural Entropy Percentages (Europe)

Italy UK

FranceLa

tvia

Belgium

Finland

Sweden

Switzerla

nd

Denmark0%

10%

20%

30%

40%

50%

60%

70%

80%73%

59% 57%54% 53%

48%42%

26%21%

Data from surveys undertaken from 2007 to 2012


75

National Cultural Entropy Percentages (World)

Venezuela

ArgentinaUSA

Iceland

Brazil

Australia

South Africa

Singapore

CanadaUAE

Bhutan0%

10%

20%

30%

40%

50%

60%

70%

80%72%

60%56% 54%

51%

42% 42% 41%

32%

12%

4%

Data from surveys undertaken from 2007 to 2012

UK National View (4000)

bureaucracy (L) 2024 3(O)

crime/ violence (L) 1745 1(R)

uncertainty about the future (L)

1728 1(I)

corruption (L) 1574 1(O)

blame (L) 1506 2(R)

wasted resources (L) 1494 3(O)

media influence (L) 1272 3(O)

conflict/ aggression (L) 1256 2(R)

drugs/ alcohol (L) 1219 1(I)

apathy (L) 1209 3(I)

caring for the elderly 1711 4(S)

accountability 1537 4(R)

affordable housing 1489 1(O)

caring for the disadvantaged

1438 4(S)

employment opportunities 1195 1(O)

dependable public services 1192 3(O)

concern for future generations

1149 7(S)

effective healthcare 1056 1(O)

honesty 1043 5(I)

governmental effectiveness 1022 3(O)

Values Plot October 10, 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


Health Index(PL)

PV-10-0 CC-0-10 DC-10-0

caring 1967 2(R)

family 1837 2(R)

honesty 1594 5(I)

humour/ fun 1573 5(I)

friendship 1219 2(R)

fairness 1065 5(R)

compassion 1049 7(R)

independence 1014 4(I)

respect 969 2(R)

trust 942 5(R)

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

7

6

5

4

3

2

1

IRS (P)=3-7-0 IRS (L)=0-0-0 IROS (P)=0-0-0-0 IROS (L)=3-3-4-0 IROS (P)=1-1-5-3 IROS (L)=0-0-0-0

UK National View (4000)

CTS = 43-18-39Entropy = 6%

CTS = 18-13-69Entropy = 59%

Personal Values

CTS = 42-24-34Entropy = 4%

Values distribution October 10, 2012Copyright 2012 Barrett Values Centre

Positive Values

Potentially Limiting Values



C

T

S 2

1

3

4

5

6

7


1

2

3

4

5

6

7

0% 20% 40% 60%

3%

2%

1%

6%

18%

9%

18%

28%

7%

8%

1

2

3

4

5

6

7

0% 20% 40% 60%

24%

12%

23%

3%

3%

4%

13%

5%

7%

6%

1

2

3

4

5

6

7

0% 20% 40% 60%

1%

1%

2%

15%

6%

9%

24%

16%

14%

12%

UAE Emirati (2318)


727 7(S)

community pride 621 3(I)

respect 582 2(R)

loyalty 549 2(R)

creativity 534 5(I)

educational opportunities 506 3(O)

family 505 2(R)

global thinking 488 7(S)


financial stability 466 1(I)



664 7(S)



family 524 2(R)

creativity 511 5(I)


innovation 502 4(O)

respect 473 2(R)

honesty 460 5(I)

Values Plot November 19, 2012Copyright 2012 Barrett Values Centre






Matches


Health Index(PL)

PV - 9-1 CC-10-0 DC-10-0

respect 802 2(R)

family 728 2(R)

achievement 673 3(I)

ethics 624 7(I)

ambition 620 3(I)

being liked (L) 557 2(R)

honesty 542 5(I)

creativity 511 5(I)

being the best 506 3(I)

commitment 502 5(I)


7

6

5

4

3

2

1


UAE Emirati (2318)

CTS = 42-17-41Entropy = 6%

CTS = 45-15-40Entropy = 11%

Personal Values

CTS = 46-17-37Entropy = 7%

Values distribution November 19, 2012Copyright 2012 Barrett Values Centre

Positive Values




C

T

S 2

1

3

4

5

6

7


1

2

3

4

5

6

7

0% 20% 40% 60%

2%

2%

2%

7%

14%

14%

17%

22%

8%

12%

1

2

3

4

5

6

7

0% 20% 40% 60%

5%

4%

2%

7%

12%

10%

15%

14%

15%

16%

1

2

3

4

5

6

7

0% 20% 40% 60%

3%

3%

1%

11%

10%

9%

17%

17%

15%

14%

UAE Non-Emirati Residents (1778)

respect 459 2(R)

peace 448 7(S)


433 7(S)


family 394 2(R)

creativity 378 5(I)

aesthetics 365 6(I)

educational opportunities 355 3(O)

community services 343 6(S)

caring for the elderly 339 4(S)



387 7(S)


creativity 384 5(I)

respect 384 2(R)


accountability 354 4(R)

family 345 2(R)

effective healthcare 344 1(O)

equality 340 4(R)

Values Plot November 19, 2012Copyright 2012 Barrett Values Centre






Matches


Health Index(PL)

PV-10-0 CC-10-0 DC-10-0

family 587 2(R)

achievement 537 3(I)

honesty 536 5(I)

respect 499 2(R)

ambition 475 3(I)

commitment 471 5(I)

caring 465 2(R)

ethics 446 7(I)

cooperation 400 5(R)

balance (home/work) 389 4(I)


7

6

5

4

3

2

1


UAE Non-Emirati Residents (1778)

CTS = 40-18-42Entropy = 6%

CTS = 43-17-40Entropy = 13%

Personal Values

CTS = 44-20-36Entropy = 8%

Values distribution November 19, 2012Copyright 2012 Barrett Values Centre

Positive Values




C

T

S 2

1

3

4

5

6

7


1

2

3

4

5

6

7

0% 20% 40% 60%

2%

2%

2%

7%

14%

15%

18%

23%

6%

11%

1

2

3

4

5

6

7

0% 20% 40% 60%

5%

5%

3%

7%

10%

10%

17%

13%

15%

15%

1

2

3

4

5

6

7

0% 20% 40% 60%

3%

3%

2%

11%

9%

8%

20%

16%

14%

14%


82

Cultural Entropy (BVC) and Democracy Index (EIU 2011)

Icelan

d

Denmark

Swed

en

Australi

a

Switz

erlan

d

Canad

a

Finlan

d UK US

France Ita

lyBraz

ilLat

via

Sinag

pore

Bhutan UAE0

1

2

3

4

5

6

7

8

9

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

54%

21%

42% 42%

21%

32%

48%

59%56% 57%

73%

51%54%

41%

4%

12%

Democracy Index Cultural Entropy

One might expect nations with a high democracy index to have low cultural entropy, but they do not. Some of the lowest levels of cultural entropy have been measured in nations classified by the EIU as authoritarian regimes.

Conclusion: There is no relationship between level of democracy and cultural entropy.


83

Cultural Entropy and HDI (UN 2011)

Australi

a US

Canad

a

Swed

en

Switz

erlan

d

Icelan

d

Denmark

Belgium

France

Finlan

dIta

ly

Singa

pore UKUAE

Latvia

0.74

0.76

0.78

0.8

0.82

0.84

0.86

0.88

0.9

0.92

0.94

0%

10%

20%

30%

40%

50%

60%

70%

42%

56%

32%

42%

26%

54%

21%

53%57%

48%

59%

41%

59%

12%

4%

Human Development Index Cultural Entropy

One might expect nations with a high HDI to have low cultural entropy, but they do not. Some of the highest levels of cultural entropy have been measured in nations classified by the UN with high levels of HDI.

Conclusion: There is no relationship between Human Development Index (HDI) and cultural entropy.


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WHAT CULTURAL ENTROPY ISN’T CONNECTED TO:

CULTURAL ENTROPY is not related to the level of democracy (EIU Democracy Index).

CULTURAL ENTROPY is not related to the level of development (UN Human Development Index).

CULTURAL ENTROPY is not related to size of country. You can live in a full liberal democracy with an advanced level of development in a small or large country and still experience high levels of cultural entropy.


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WHAT CULTURAL ENTROPY REPRESENTS:

CULTURAL ENTROPY is a direct reflection of the character and quality of leadership of an organisation, community or nation, and the amount of care and attention leaders give to meeting the needs of the people in their organisation, community or nation.

Low entropy signifies that people’s needs are being met. High entropy signifies that people’s needs are not being met.


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People’s Trust in Government Leaders

Italy UK France Australia US Canada Brasil Sweden UAE0%

10%

20%

30%

40%

50%

60%

70%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

73%

66% 66%

60%

53%

46%43%

40%

17%

Cultural Entropy No Trust %

There appears to be a relationship between the trust that people have in their Government and the level of cultural entropy. Based on data from the

Edelman Global Trust Barometer

UK National Values Report

To download the report:

http://www.valuescentre.com/ukvalues/

The values driven organisation april 2013

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