The values driven organisation v 10

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THE VALUES-DRIVEN ORGANISATION Unleashing Human Potential for Performance and Profit
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This is a slide deck that accompanies my new book...The Values-driven Organisation: Unleashing human potential for performance and profit.

Transcript of The values driven organisation v 10

Page 1: The values driven organisation v 10

THE VALUES-DRIVEN ORGANISATIONUnleashing Human Potential for Performance and Profit

Page 2: The values driven organisation v 10

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

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Richard Barrett’s Books

1998

2006

2010

2011

2012

Learning Modules:Leading SelfLeading a TeamLeading an OrganisationLeading in Society

Update and new research

2013

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

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

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THE BIG QUESTION

WHY ARE VALUES-DRIVEN ORGANISATIONS THE MOST SUCCESSFUL ORGANISATIONS ON THE PLANET?

WHAT DO THEY FOCUS ON?WHAT MAKES THEM SUCCESSFUL?

THEY CARE ABOUT THE NEEDS OF THEIR PEOPLE

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

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Q. WHERE CAN WE FIND SUCH ORGANISATIONS?

A. THE BEST COMPANIES TO WORK FOR.

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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 the stage of psychological development we have reached and our unmet basic needs,.

Our needs (what we value) have always been, and always will be the principal drivers of our behaviors and actions.

What motivates us is the satisfaction of our needs

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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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Figure 1: The Stages of Psychological Development

Evol

ution

of P

erso

nal C

onsc

ious

ness

Surviving: Satisfying your physiological needs by learning how to stay alive, keep fit and healthy, and staying free from harm.

Conforming: Keeping safe and nurtured by those around you by being loyal to your family, kin, colleagues and culture.

Differentiating: Finding ways to be admired and recognized by your parents and peers by excelling at what you do best.

Individuating: Letting go of the aspects of your parental and cultural conditioning that prevent you from becoming who you really are.

Self-actualizing: Becoming fully who you are by finding your sense of purpose and leading a values-driven life.

Integrating: Aligning with others who share your values and purpose to make a difference in the world.

Serving: Fulfilling your destiny by leaving a legacy and using your gifts in service to the world.

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Three Stages of Mind Development

In Immunity to Change Robert Kegan and Lisa Laskow Lahey identify three plateaus of adult psychological development (ability to handle complexity)—the socialized mind, the self-authoring mind and self-transforming mind.

Robert Kegan and Lisa Laskow Lahey, Immunity to Change (Boston: Harvard Business School Publishing), 2009, pp.16-21.

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Three Stages of Mind Development

THE SOCIALISED MIND is focused on meeting its survival, relationship and self-esteem needs. People operating with a socialised mind think of their work as a job—a way of earning a living. They may enjoy their work and colleagues, but are not passionate about what they do.

THE SELF-AUTHORING MIND is focused on achievement and ambition. People operating with a self-authoring mind seek opportunities for advancement. They think of their work as career—a pathway to a better future.

THE SELF-TRANSFORMING MIND is focused on leading a values and purpose-driven life. People operating with a self-transforming mind see their work as a mission. They want to leave a legacy and be of service to the world.

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Complexity of Thinking

THE SOCIALISED (Dependent) MINDCommunication is strongly influenced by what others need to hear so it can fit into its social context. Filters what it hears so that it can maintain alignment with others. Limited ability for independent thinking.

THE SELF-AUTHORING (Independent) MINDCommunication is strongly influenced by what others need to hear to further its agenda. It places a priority on receiving information that supports its mission. Prisoner to its filter.

THE SELF-TRANSFORMING (Interdependent) MINDThis mind is not a prisoner to its filter. It can stand back and look at it, not just through it. Open to considering different perspectives and modifying its thinking and direction.

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Motivating the Socialized Mind

SURVIVAL: A safe environment and income and benefits that are sufficient to take care of our needs and the needs of our families.

RELATIONSHIP: A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

SELF-ESTEEM: Opportunities to learn, grow and develop skills and talents with support, feedback and coaching from people we know and trust.

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Motivating the Self-Authoring Mind

TRANSFORMATION: Opportunities to use my gifts and talents by being made accountable for challenging projects or process changes which meet the goals or objectives of the organisation.

INTERNAL COHESION: Opportunities to lead a values- and purpose-driven life that is meaningful to me and supports me and the organisation in meeting its objectives.

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Figure 4: Motivating the Self-Transforming Mind

MAKING A DIFFERENCE: Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

SERVICE:Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

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Happiness

YOU FEEL HAPPY when you are able to meet your basic needs, but you feel anxious or fearful when you are prevented from meeting these needs or when the satisfaction of these needs is under threat—when you lose a job, when you lose a friend or a close companion or when you feel people do not respect you.

Happiness is the feeling you get when you achieve internal stability and external equilibrium at the ego level of existence—when you are able to

satisfy your basic needs.

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Meaning

THE ABILITY TO MEET your growth needs engenders a deeper feeling than happiness, and consequently a deeper level of motivation and commitment to the satisfaction of these needs. You experience joy and contentment when you are able to satisfy your growth needs because you are experiencing a deeper sense of alignment with who you truly are.

You are discovering your authentic (soul) self and finding meaning and purpose for your life.

Joy and contentment are the feelings you get when you are able to satisfy your growth needs.

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How We Find Happiness/Meaning at Each Stage of Development

Stage of Development(Level of Consciousness) Cause of Happiness/Joy

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

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Causes of Happiness/Meaning: What We Value from our Work

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

SURVIVAL: WHAT WE VALUEA safe environment and income and benefits that are sufficient to take care of our needs and the needs of our families.

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

RELATIONSHIP: WHAT WE VALUEA caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities to learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

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

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

TRANSFORMATION: WHAT WE VALUE Opportunities to use our gifts and talents by being made accountable for challenging projects or process changes of significance to ourselves or others.

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

INTERNAL COHESION: WHAT WE VALUEOpportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting its objectives.

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

MAKING A DIFFERENCE: WHAT WE VALUEOpportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

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What We Value at Different Levels of Consciousness

Stage of Development(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work

7 Serving(Service)

Leading a life of selfless service for the good of the community, nation or the planet.

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

6 Integrating(Making a difference)

Actualizing our sense of purpose by collaborating with others to make a difference in the world.

Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.

5 Self-actualizing(Internal cohesion)

Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.

Opportunities to lead a values- and purpose-driven life that is meaningful to us and supports us and the organisation in meeting our objectives.

4 Individuating(Transformation)

Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.

Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.

3 Differentiation(Self-esteem)

Feeling acknowledged and recognized by those who we respect and our peers.

Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.

2 Conforming(Relationship)

Feeling accepted, cherished and nurtured by our family, friends and colleagues.

A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.

1 Survival(Survival)

Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.

A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.

SERVICE:WHAT WE VALUE

Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.

Page 36: The values driven organisation v 10

The Four Conditions for Employee Engagement

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37

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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Four Levels of Employee Engagement

Highly EngagedEmployees bring passion, purpose and discretionary energy to their work. They are emotionally attached and committed to the organisation and want to do the right thing. They serve the greater good.

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

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

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

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39

Types of Mind/Level of Engagement/Potential Risk

Socialised Mind(Staff)

Self-Authoring Mind

(Managers)

Self-Transforming Mind

(Leaders)Highly Engaged n.a. (A) Low Risk Low Risk

Engaged Low Risk Medium Risk Low Risk

Disengaged Medium Risk High Risk n.a. (B)

Highly Disengaged

High Risk n.a. (B) n.a. (B)

n.a. = Not applicable. Unlikely to find someone with this type of mind at this level of engagement in the organisation. (A) People with a socialized mind tend not to be highly engaged with their work. They are more focused on their lives outside of work. (B) As soon as people with self-authoring and self-transforming minds become disengaged they tend to seek out other employment where they can satisfy their ambitions

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Human Group Structures

Individual

Collective

Interior Exterior

Character Personality

Culture Society

Based on the Four Quadrants of Ken Wilbur

Page 41: The values driven organisation v 10

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Four Conditions for Employee Engagement

Individual

Collective

Interior Exterior

Character Personality

Culture Society

Personal Alignment

Structural Alignment

Mission

Alignment

Valu

es

Alig

nmen

t Employee

Engagement

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42

What Engaged Employees Experience

Individual

Collective

Interior Exterior

Character Personality

Culture Society

Mission

Alignment

Valu

es

Alig

nmen

t

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43

What Leaders Must Do to Create Engagement

Individual

Collective

Interior Exterior

Character Personality

Culture Society

Personal Alignment

Structural Alignment

Page 44: The values driven organisation v 10

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

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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

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

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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

Page 50: The values driven organisation v 10

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

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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.

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

SurvivalPhysiological

Safety

Love & Belonging

Self-esteem

Know and Understand

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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

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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

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

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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

Page 55: The values driven organisation v 10

Distribution of Values by LevelCurrent Culture 100 Employees

11%

1

2

3

4

5

6

7

Cultural Entropy

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

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56

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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57

0% 5% 10% 15% 20% 25% 30%25%

35%

45%

55%

65%

75%

85%

Cultural Entropy

Empl

oyee

Eng

agem

ent

Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.

Employee Engagement vs. Cultural Entropy

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Cultural Entropy

Most employees are ….

Potentially limiting values showing up in current culture

Culture Risk

10% or less Highly Engaged Low Risk

11% to 20% Engaged Low Risk

21% to 30% Becoming Disengaged Bureaucracy, Hierarchy, Confusion

Medium Risk

31% to 40% Disengaged Bureaucracy, Hierarchy, Confusion, Control, Short-term focus, Silo-mentality, Long hours

High Risk

41% or more

Highly Disengaged Bureaucracy, Short-term focus, Hierarchy, Blame, Control, Confusion, Information Hoarding, Silo-mentality

Very High Risk

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Low Cultural Entropy Leads to High Financial Returns

Entropy Level 3 Year Revenue Growth %

<10% 32.87%

10% – 19% 24.90%

20% – 29% 11.39%

>29% 11.07%

Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.

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What is Cultural Entropy?

The amount of energy in an organisational culture that is consumed in doing unproductive work—work that does not add value.

It is a measure of the conflict, friction and frustration that exists in an organisation due to potentially limiting values such as: bureaucracy, blame, power, greed … (self-interest)

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

systems, policies and procedures.

Page 61: The values driven organisation v 10

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.

Page 62: The values driven organisation v 10

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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63

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.

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Measuring the Culture by Mapping Values

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World-Wide Use

Page 67: The values driven organisation v 10

Personal Values

Pick ten values/behaviours that most reflect who you are, not who you desired to become.

Page 68: The values driven organisation v 10

Current Culture Values

Pick ten values/behaviours that most reflect how your organisation currently operates.

Page 69: The values driven organisation v 10

Desired Culture Values

Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.

Page 70: The values driven organisation v 10

Engineering and Projects Company (339)

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Personal Values Current Culture Values Desired Culture Values

IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0

Matches

PV - CC 1CC - DC 4PV - DC 2

Health Index (PL)

PV: 10-0CC: 7-3

DC: 10-0

1. honesty 169 5(I)

2. accountability 165 4(R)

3. commitment 150 5(I)

4. continuous learning 92 4(I)

5. balance (home/work) 91 4(I)

6. family 91 2(R)

7. self-discipline 91 1(I)

8. responsibility 89 4(I)

9. respect 81 2(R)

10. open communication 76 2(R)

Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational

Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal

1. continuous improvement

111 4(O)

2. customer satisfaction

111 2(O)

3. safety conscious 102 1(O)

4. cost reduction 88 1(O)

5. job insecurity (L) 77 1(O)

6. inconsistent (L) 75 3(I)

7. teamwork 74 4(R)

8. accountability 71 4(R)

9. blame (L) 71 2(R)

10. corporate image 64 3(O)

1. accountability 180 4(R)

2. customer satisfaction

147 2(O)

3. continuous improvement

143 4(O)

4. employee development 111 4(O)

5. employee recognition 96 2(R)

6. commitment 95 5(I)

7. inspirational leadership 95 6(O)

8. employee fulfilment 94 6(O)

9. teamwork 90 4(R)

10. professionalism 80 3(O)

Values Plot Copyright 2011 Barrett Values Centre February 2011

The values that are important to

employees in their personal lives.

How employees experience the company - What is working well? What is undermining the sustainability of

the company.

What employees believe is necessary

for the company to achieve its

full potential

Page 71: The values driven organisation v 10

1%

1%

1%

9%

12%

17%

24%

8%

6%

21%

0% 20% 40%

1

2

3

4

5

6

7

6%

5%

12%

10%

8%

14%

11%

9%

5%

20%

0% 20% 40%

1

2

3

4

5

6

7

1%

1%

0%

6%

12%

16%

19%

13%

5%

27%

0% 20% 40%

1

2

3

4

5

6

7

Engineering and Projects Company (339)

C

T

S

Values Distribution Copyright 2011 Barrett Values Centre February 2011

C = Common GoodT = TransformationS = Self-Interest

Positive ValuesPotentially Limiting Values

CTS = 38-21-41Entropy = 3%

CTS = 25-20-55Entropy = 23%

CTS = 37-27-36Entropy = 2%

Personal Values

Current Culture Values

Desired Culture Values

Total number of votes for all values

at each levelCultural Entropy

% of Votes for Limiting Values

Common Good

Transformation

Self Interest

Page 72: The values driven organisation v 10

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

Page 73: The values driven organisation v 10

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

Page 74: The values driven organisation v 10

Examples of Cultural Evolution

Page 75: The values driven organisation v 10

An Example of Cultural Evolution

Page 76: The values driven organisation v 10

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

Page 77: The values driven organisation v 10

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

Page 78: The values driven organisation v 10

Nedbank: Group (2011)

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Personal Values Current Culture Values Desired Culture Values

IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0

Matches

PV - CC 2CC - DC 6PV - DC 4

Health Index (PL)

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

1. accountability 8576 4(R)

2. honesty 6133 5(I)

3. commitment 5221 5(I)

4. respect 4420 2(R)

5. family 4057 2(R)

6. integrity 4023 5(I)

7. caring 3568 2(R)

8. balance (home/work) 3526 4(I)

9. responsibility 3279 4(I)

10. efficiency 3085 3(I)

1. accountability 5464 4(R)

2. client-driven 4571 6(O)

3. client satisfaction 3486 2(O)

4. brand reputation 2740 3(O)

5. achievement 2491 3(I)

6. teamwork 2408 4(R)

7. environmental awareness

2372 6(S)

8. commitment 2263 5(I)

9. being the best 2218 3(O)

10. cost-consciousness 2187 3(O)

1. accountability 6987 4(R)

2. balance (home/work) 4183 4(O)

3. client-driven 3864 6(O)

4. client satisfaction 3742 2(O)

5. employee recognition 3297 2(R)

6. honesty 3053 5(I)

7. commitment 2953 5(I)

8. achievement 2809 3(I)

9. teamwork 2744 4(R)

10. employee satisfaction 2687 2(O)

Values Plot Copyright 2011 Barrett Values Centre April 2011

Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational

Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal

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1%

0%

1%

5%

16%

16%

26%

4%

7%

24%

0% 20% 40%

1

2

3

4

5

6

7

3%

3%

5%

5%

11%

20%

13%

14%

6%

20%

0% 20% 40%

1

2

3

4

5

6

7

1%

0%

0%

5%

15%

16%

21%

12%

5%

25%

0% 20% 40%

1

2

3

4

5

6

7

Nedbank: Group (2011)

C

T

S

Values Distribution Copyright 2011 Barrett Values Centre April 2011

C = Common GoodT = TransformationS = Self-Interest

Positive ValuesPotentially Limiting Values

CTS = 37-24-39Entropy = 2%

CTS = 33-20-47Entropy = 11%

CTS = 38-25-37Entropy = 1%

Personal Values

Current Culture Values

Desired Culture Values

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Evolution of Survey Participants

2005 2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

8%

25%

38%

51%

67%

73%77% 75%

Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were not just paying attention to the results of the assessment, but were taking actions to reduce cultural entropy and increase the values and mission alignment every year.

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Cultural Entropy Evolution

Entropy risk bands

0 -10% Healthy functioning11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation

Entropy reduced or stayed the same every year. Entropy reduction led to improved performance through increased employee engagement—increased revenues, productivity, share price, etc.

Working toward entropy of 10% will result in healthy functioning of the organisation and improved staff morale.

2005 2006 2007 2008 2009 2010 2011 20120%

5%

10%

15%

20%

25%

30%

25%

19%17%

14%13% 13%

11%10%

Cutlural Entropy

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Values Alignment and Mission Alignment

2005 2006 2007 2008 2009 2010 2011 20120

1

2

3

4

5

6

7

8

1 1 1 1

2 2 2

43

4 4

5

6 6

7

5

PV/CC Matches CC/DC Matches

Mission Alignment

Values Alignment

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Revenue Evolution

2005 2006 2007 2008 2009 2010 2011 20120

5000

10000

15000

20000

25000

30000

35000

0%

5%

10%

15%

20%

25%

30%

Revenue Cultural Entropy

Total revenue increases as cultural entropy falls.

Global Economic Meltdown

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2005 2006 2007 2008 2009 2010 2011 20120

200

400

600

800

1000

1200

0%

5%

10%

15%

20%

25%

30%

Revenue per Capita Cultural Entropy

Revenue per capita increases as cultural entropy falls.

Productivity Evolution

Global Economic Meltdown

Page 85: The values driven organisation v 10

2005 2006 2007 2008 2009 2010 2011 20120

2000400060008000

100001200014000160001800020000

0%

5%

10%

15%

20%

25%

30%

Share Price Cutlural Entropy

Share price (cents) increases as cultural entropy falls.

Low entropy organisations are extremely resilient.

Share Price Evolution

Global Economic Meltdown

Page 86: The values driven organisation v 10

Barrett Values Centre: Group (16)

commitment 12 5(I)

continuous improvement 10 4(O)

employee fulfilment 10 6(O)

balance (home/work) 9 4(O)

customer satisfaction 9 2(O)

making a difference 9 6(S)

financial stability 8 1(O)

humour/ fun 8 5(O)

teamwork 8 4(R)

accountability 4 4(R)

adaptability 4 4(I)

customer collaboration 4 6(O)

shared values 4 5(O)

shared vision 4 5(O)

accountability 9 4(R)

commitment 8 5(I)

continuous improvement 8 4(O)

employee fulfilment 8 6(O)

humour/ fun 8 5(O)

shared vision 8 5(O)

customer collaboration 7 6(O)

customer satisfaction 6 2(O)

financial stability 6 1(O)

teamwork 6 4(R)

Values Plot August 6, 2012Copyright 2012 Barrett Values Centre

I = IndividualR = Relationship

Black Underline = PV & CCOrange = PV, CC & DC

Orange = CC & DCBlue = PV & DC

P = PositiveL = Potentially Limiting (white circle)

O = OrganisationalS = Societal

Matches

PV - CC 5CC - DC 10PV - DC 3

Health Index(PL)

PV - 9-0CC - 14-0 DC-10-0

making a difference 10 6(S)

family 9 2(R)

commitment 8 5(I)

humour/ fun 8 5(I)

balance (home/work) 6 4(I)

continuous learning 6 4(I)

integrity 6 5(I)

accountability 5 4(R)

creativity 5 5(I)

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

7

6

5

4

3

2

1

IRS (P)=6-2-1 IRS (L)=0-0-0 IROS (P)=2-2-9-1 IROS (L)=0-0-0-0 IROS (P)=1-2-7-0 IROS (L)=0-0-0-0

Page 87: The values driven organisation v 10

Barrett Values Centre: Group (16)

CTS = 53-22-25Entropy = 0%

CTS = 50-26-24Entropy = 2%

Personal Values

CTS = 51-29-20Entropy = 0%

Values distribution August 6, 2012Copyright 2012 Barrett Values Centre

Positive Values

Potentially Limiting Values

Current Culture Values

Desired Culture Values

C

T

S 2

1

3

4

5

6

7

C = Common GoodT = TransformationS = Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

6%

12%

7%

22%

32%

13%

8%

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

1%

1%

6%

8%

8%

26%

28%

19%

3%

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

5%

10%

29%

27%

22%

2%

Page 88: The values driven organisation v 10

Barrett Values Centre: Group (16)

Business Needs Copyright 2012 Barrett Values Centre August 6, 2012

Desired Culture Values

Current Culture ValuesFinance

Fitness

Evolution

Client Relations

Culture

Culture

Societal Contribution

Fitness

Evolution

Current Culture Desired Culture

Finance financial stability financial stability

Fitness accountability accountability

Client Relationscustomer satisfaction

customer collaboration

customer collaboration

customer satisfaction

Evolutioncontinuous improvement

adaptabilitycontinuous improvement

Culture

employee fulfilment

balance (home/work)

humour/ fun

teamwork

shared values

shared vision

employee fulfilment

humour/ fun

shared vision

teamwork

Societal Contribution making a difference

Client Relations

Page 89: The values driven organisation v 10

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

89

Cultural Entropy Evolution

2005 2006 2007 2008 2009 2010 2011 20120%

2%

4%

6%

8%

10%

12%

1% 1%

7%

10%

8% 8%

3%

2%

Cultural Entropy

Entropy risk bands

0 -10% Healthy functioning11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation

Entropy increased during the period 2006 to 2008, then reduced slightly, and then reduced significantly. Entropy reduction led to improved performance through increased employee engagement—increased revenues, and productivity, etc.

Page 90: The values driven organisation v 10

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90

Values Alignment and Mission Alignment

Mission Alignment

Values Alignment

2005 2006 2007 2008 2009 2010 2011 20120

1

2

3

4

5

6

7

8

9

10

PV/CC Matches CC/DC Matches

Even though cultural entropy increased, values alignment increased… mission alignment decreased. Mission alignment increased with reduction in cultural entropy.

Page 91: The values driven organisation v 10

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91

Revenue Evolution

2005 2006 2007 2008 2009 2010 2011 20120%

2%

4%

6%

8%

10%

12%

0

0.5

1

1.5

2

2.5

3

3.5

1% 1%

7%

10%

8% 8%

3%

2%

1.52 1.551.73

1.93

2.37 2.37

2.91

3.3

Cutlural Entropy Revenue ($ millions)

Revenue steadily increases. Rate of increase in revenue growth faster as entropy falls.

Global Economic Meltdown

Page 92: The values driven organisation v 10

Productivity decreases with rise in entropy and then increases as entropy falls. Productivity increases even during economic meltdown

Productivity Evolution

2005 2006 2007 2008 2009 2010 2011 2012 20130%

2%

4%

6%

8%

10%

12%

0

50

100

150

200

250

1% 1%

7%

10%

8% 8%

3%

2% 2%

217

194

144 138158

169 162

183203

Cultural Entrop[yProductivity ($ '000 per employee)