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How to make organizations more valuableRichard Barrett
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MY SPEECH TODAY
HOW TO CREATE A VALUES-DRIVEN CULTURE
MY TALK THIS MORINGHOW TO MAKE ORGANIZATIONS
MORE VALUABLE
BUT FIRST WHO AM I?
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Who am I?Chairman and Founder of the Barrett Values Centre(www.richardbarrett.net)
OUR MISSION
To support leaders in building positive values-driven organizations.
OUR VISION
To create a positive values-driven society.
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Organizational Transformation
“Richard Barrett has made extraordinary contributions to our understanding of organisational values and culture. His frame-works for measuring culture and enabling whole system change are elegant. His reservoir of know-ledge is vast and his connection to timeless wisdom is profound.”
Raj Sisodia, Co-founder and co-chairman of Conscious Capitalism Inc. and Professor of Global Business, Babson College, USA.
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2013 2016
My Books
1998 2006 2010 20111995
2012 2013 2014 2015 2016
Books about Personal Transformation
1995
2012
Books about Organizational Transformation
1998 2006
2013
Books about National Transformation
2011
2015
Books about Leadership
2010
2014
Books about Psychology
2012 2014 2016
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… powerful metrics to support leaders in building values-
driven organizations and values-driven
societies.
provides …
Phil Clothier, CEO of Barrett Values Centre.
Cultural Transformation Tools
MEASUREMENT TOOLS FOR INDIVIDUALS
Personal Values AssessmentIndividual Values AssessmentLeadership Development ReportLeadership Values Assessment
MEASUREMENT TOOLS FOR HUMAN GROUP STRUCTURES
Cultural Values AssessmentCultural Evolution ReportEspoused Values AnalysisSmall Group AssessmentMerger/Compatibility ReportCustomer Values AssessmentCommunity Values AssessmentNational Values Assessment
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Key Stats:Founder: Richard BarrettSince: 1997Scale: Over 6000 organisations use CTT assessments in 94 countiesValues Assessments for:Individuals, Leaders (360°), Teams Corporations, Governments, NGOs, Schools, Communities and NationsGlobal Network: Over 5,000 Certified Practitioners and Consultants
Supporting Leaders in Building Values-Driven Organisations
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THE SECTORS WE WORK IN:
• Agriculture / forestry / fishing• Banking / Financial Services• Central / Local Government• Chemical and pharma• Construction• Education / University• Fast Moving Consumer Goods• Food and drink• Healthcare• Hospitality / Entertainment /
Tourism• IT/ Telecoms/ Electronics • Manufacturing
• Media/Film/TV/Publishing• Military• NGO / Not for profit• Oil/gas/mining• Police & Justice• Professional Services• Retail and wholesale• Scientific / Technical /
Engineering• Scientific and technical• Social housing• Transportation
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MY SPEECH TODAY
HOW TO CREATE A VALUES-DRIVEN CULTURE
HOW TO MAKE ORGANIZATIONS MORE VALUABLE
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WHY ARE VALUES-DRIVEN CULTURES IMPORTANT?
Values Alignment
Perfo
rman
ce
BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET
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WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL?
BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES, AND …
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… THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS
Suppliers Community
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WHEN YOU CARE ABOUT PEOPLE …
PEOPLE CARE ABOUT YOU
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Chapman and Sisodia, “Everybody Matters” 2015.
Everyone wants to do better. Trust them. Leaders are everywhere. People achieve good things, big and small, every day. Celebrate them. Everybody matters. Show
them.
The Extraordinary Power of Caring for your People like your Family
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Bob Chapman, CEO of the $1.7 billion company Barry-Wehmiller.
The Extraordinary Power of Caring for your People like your Family
Raj Sisodia, Professor of Global Business, Babson College, USA.
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S&P 500
Average Annualized Return 16.39%
Average Annualized Return 4.12%
BCWF
The Best Companies to Work For engender high levels of employee engagement and commitment, because the leaders of these organisations focus on meeting their employee’s needs.
The Top 40 Best Companies to Work For (USA)
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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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Intangible Assets make up most of market value
1975 1985 1995 2005 20150%
20%
40%
60%
80%
100%
17%32%
68%80% 84%
83%68%
32%20% 16%
Intangible Assets Tangible Assets
Source: Ocean Tomo LLC, January 2015
Components of S&P 500
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I am going to show you values assessments of two teams.
Based on the results, I want you to decide which team you would
choose to work in.
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Customer satisfactionMaking a difference
CommitmentEmployee fulfilment
Continuous improvementHumour/funShared vision
Customer collaborationBalance (home/work)
Teamwork
CURRENT CULTURE of TEAM “A”
Long hours(L)Confusion (L)
Short-term focus (L)Blame (L)
Information hoarding (L)
Manipulation (L)Hierarchy (L)
Results orientationBureaucracy (L)
Quality
CURRENT CULTURE of TEAM “B”
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Which of these teams do you think is the most successful?
Customer satisfactionMaking a difference
CommitmentEmployee fulfilment
Continuous improvementHumour/funShared vision
Customer collaborationBalance (home/work)
Teamwork
Long hours(L)Confusion (L)
Short-term focus (L)Blame (L)
Information hoarding (L)Manipulation (L)
Hierarchy (L)Results orientation
Bureaucracy (L)Quality
CURRENT CULTURE of TEAM “A”
CURRENT CULTURE of TEAM “B”
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“No matter how far reaching the vision or how brilliant the strategy, neither will be realized if it is not supported
by the organisational culture.” Luther Johnson
Peter Drucker
“CULTURE EATS STRATEGY FOR BREAKFAST”
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Kegan and Lahey, “An Everyone Culture: Becoming a deliberately developmental organization”. 2016.
The culture you create is your strategy. The key to success is
developing everyone.
The Culture is your Strategy
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Investments in Values and Culture pay back!
>500 Culture Ambassadors to facilitate and support values-driven culture
“Dedicated and persistent
work with our wanted
culture is one of
our most critical
success factors”
ResultsCustomer Satisfaction From 60 to 90%Employee Satisfaction 90% …5 yearsOwners Trust Low to High!Delivery Precision 55 to 90%Attractive Employer Best in Class!
Systematic Approach
>100 tools and methods for active dialogues and reinforcement
Consistently Shared
Mission, Vision Values
MY SPEECH TODAY
HOW TO CREATE A VALUES-DRIVEN CULTURE
LET’S TALK ABOUT VALUES
WHAT ARE THEY?WHY ARE THEY IMPORTANT?
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Peters and Waterman, “In Search of Excellence: Lessons from America’s best run companies”, 1983
Clarifying the value system and breathing life into it are the greatest contributions a
leader can make.
The Leader and the Values
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What are Values?
A shorthand way of describing our individual and collective motivations and what is important to us.
They are the energetic drivers of our aspirations and intentions.
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Positive of Potentially Limiting?
Values can be positive or potentially limiting.
Positive Values: Trust, creativity, passion, honesty, integrity, clarity
Potentially Limiting Values: Bureaucracy, power, blame, greed, hierarchy, status-seeking
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Let’s explore our Values
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1. Write down two values that are important to you:
EXAMPLE: Friendship and Clarity
2. Write down your beliefs that support this value:
EXAMPLE: Clarity bring focus to decision making
3. Write down the behaviours that support this value:
EXAMPLE: Seek many opinions, synthesize multiple data points to understand the big picture
EXERCISE: VALUES BELIEFS AND BEHAVIOURS
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EXERCISE: VALUES BELIEFS AND BEHAVIOURS
AccountabilityAchievementBalance (home/work)Clarity CommitmentCompassionContinuous learningCooperationCourageCreativityEnthusiasmEfficiencyEthics
ExcellenceFairnessFamilyFinancial gainFriendshipsFuture generationsHealthHonestyHumor/funIndependenceIntegrityInitiativeIntuition
Making a differenceOpen communicationOpennessPersonal fulfillmentPersonal growthPowerRespectResponsibilityRisk-takingSelf-disciplineSuccessTrustWisdom
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PERSONAL VALUES ASSESSMENT
www.valuescentre.com/pva
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Where do our Values come from?
Our values are a reflection of our needs. (What ever we need we value.)
We have two sets of needs:
• The needs of the stage of psychological development we are currently operating from.
• The needs of the stages of psychological development we have passed through where we still have unmet needs.
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PRIMARY MOTIVATION
THE NEEDS OF THE STAGE OF PSYCYHOLOGICAL DEVELOPMENT YOU ARE AT
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SECONDARY MOTIVATION
THE UNMET NEEDS OF THE STAGES OF PSYCYHOLOGICAL DEVELOPMENT YOU HAVE PASSED THROUGH
The needs you have failed to master.
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Facilitating human potential
This is not a book about coaching per se, it is about the framework of human development that coaches need to be familiar with to facilitate the full emergence of their client’s potential.
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MY SPEECH TODAY
HOW TO CREATE A VALUES-DRIVEN CULTURE
STAGES OF PSYCHOLOGICAL DEVELOPMENT
WHAT ARE THEY?WHY ARE THEY IMPORTANT?
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A personal journeyEvery person is on an evolutionary journey of psychological development.
Surviving
Conforming
Differentiating
Individuating
Self-actualizing
Integrating
Serving
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Stages, Levels and World Views
We grow in stages of psychological development
We operate at levels of consciousness
We live inside (are embedded in) cultural world views
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Levels of Consciousness
All things being normal, the level of consciousness we operate from will
correspond to the stage of psychological development we have reached.
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Stages and Levels
Stages Levels of ConsciousnessServing SERVICE
Integrating MAKING A DIFFERENCE
Self-actualising INTERNAL COHESION
Individuating TRANSFORMATION
Differentiating SELF-ESTEEM
Conforming RELATIONSHIP
Surviving SURVIVAL Evol
ution
of P
erso
nal C
onsc
ious
ness
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Stages of Psychological Development
Surviving
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Stages of Psychological Development
INFANCY 0-2 Years Old
Staying alive! COMPETENCY
Ability to meet basic physiological needs.
Surviving
Stage Motivation
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Stages of Psychological Development
Conforming
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Stages of Psychological Development
Conforming
Stage Motivation
CHILDHOOD 3-7 Years Old
Keeping safe and secure!BEING LOVED
Ability to feel accepted and sense of belonging.
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Stages of Psychological Development
Differentiating
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Stages of Psychological Development
Differentiating
Stage Motivation
TEENAGER +8-24Years Old
Distinguishing yourself!CONFIDENCE
Ability to feel respected and recognized by others.
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Stages of Psychological Development
INDIVIDUATING
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Stages of Psychological Development
INDIVIDUATING
Stage Motivation
YOUNG ADULT25-39 Years Old
Releasing your fears!ACCOUNTABILITY
Finding freedom and autonomy to understand
who you really are.
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Stages of Psychological Development
SELF-ACTUALIZING
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Stages of Psychological Development
SELF-ACTUALIZING
Stage Motivation
ADULTHOOD40-49 Years Old
Becoming who you are!SELF-EXPRESSION
Ability to satisfy your desire for meaning
and purpose.
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Stages of Psychological Development
INTEGRATING
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Stages of Psychological Development
INTEGRATING
Stage Motivation
MATURE ADULT50-59 Years OldAligning with others!
CONNECTIONAbility to satisfy the desire
to make a difference in your world.
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Stages of Psychological Development
SERVING
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Stages of Psychological Development
SERVINGStage Motivation
SENIOR60+ Years Old
Finding fulfilment! CONTRIBUTION
Ability to satisfy your desire to serve the
greater good.
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What motivates employees is the
satisfaction of their needs.
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What Employees Value at different levels of consciousness
A safe working environment and pay and benefits that are sufficient to take care of family
Opportunities to work in a congenial atmosphere where people care and respect each other
Opportunities to grow professionally with support, feedback and coaching
Opportunities and challenges by being made accountable for projects and processes
Opportunities for personal growth and develop-ment to support you in living your life purpose
Opportunities to leverage your contribution by collaborating with other like-minded individuals
Opportunities to serve others and care for the well-being of the Earth’s life support systems
Surviving
Relationship
Self-esteem
Transformation
Internal cohesion
Making a difference
Service
Levels of Consciousness Primary Motivations
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1. What is your primary motivation at work?
2. What is your primary motivation outside work?
3. Are you able to get your motivations met at your current place of work?
4. Discuss with a partner.
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DONALD
TRUMP
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DONALD TRUMP
In the Introduction to The New Leadership
Paradigm I plotted the values of several
leaders based on the books they had written
about leadership.
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DONALD TRUMP
DisciplinedGiving backImage (L)LoyaltyPassionProfitReciprocityRevenge (L)Ruthless (L)Winning
A toxic mixture of
values
2010
Unmet needs
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Key findings of the Grant Study
“It is the quality of a child’s total experience, not any particular trauma or any particular relationship, that exerts the clearest
influence on adult psychopathology.”
George E. Vaillant: Director of the Grant
Study from 1972-2005HARVARD UNIVERSITY
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Other research
“The LSE research indicates that a child’s emotional
health is far more important to their satisfaction levels as an adult than other factors,
such as, whether they achieve academic success
when young, or wealth when older.”
Lord Richard Layard LONDON SCHOOL
OF ECONOMICS
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MY SPEECH TODAY
HOW TO CREATE A VALUES-DRIVEN CULTURE
SEVEN LEVELS OF CONSCIOUSNESS MODEL
ORIGINS AND APPLICATIONS?
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Origins of the Seven Levels Model
Growth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.
Deficiency NeedsAn individual gains no sense of lasting satisfaction from being able to meet these needs, but feels a sense of anxiety if these needs are not met.
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Abraham Maslow
Self Actualization
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N e e d s C o n s c i o u s n e s s
Self-Actualization
Richard Barrett
Safety
Love & Belonging
Self-esteem
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Abraham Maslow
Maslow’s Needs to Barrett’s Consciousness
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Maslow’s Needs to Barrett’s Consciousness
N e e d s C o n s c i o u s n e s s
1. Expansion of self-actualization into multiple levels.
2. Substitute states of consciousness for
hierarchy of needs.
3. Each state of consciousness is defined
by specific values and behaviours.
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
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The Shift from “I” to “We”
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
COMMON GOOD AND CONTRIBUTION (WE)
SELF INTEREST AND PERFORMANCE (I)
TRANSFORMATION
Evol
ution
of P
erso
nal C
onsc
ious
ness
Making a difference
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SEPARATION AND ISOLATION COMMUNITY AND COHESION
The Shift from “I” to “We”
Seven Levels of Personal ConsciousnessPositive Focus/ Excessive Focus
Service Service to Humanity and the PlanetCompassion, Humility, Future Generations.
Making a DifferenceMaking a Difference in the CommunityActualising Meaning, Collaboration, Intuition, Mentoring, Empathy.
Internal CohesionFinding Meaning in ExistenceIntegrity, Alignment, Authenticity, Creativity, Passion, Honesty, Trust.
TransformationContinuous Growth and DevelopmentAdaptability, Continuous Improvement, Courage, Team Player.
Self-esteemBuilding a Sense of Self WorthPride in Self, Self-Reliant, Self-discipline, Positive Self Image. Arrogance, Status, Power, Glamour, Rigidity.
RelationshipHarmonious RelationshipsFamily, Friendship, Belonging, Open Communication, Ritual. Blame, Jealously, Judgment, Conflict, Gossip.
SurvivalPhysical Survival and SafetyHealth, Nutrition, Financial Stability, Self-Defence.Violence, Greed, Corruption, Territorial.
Seven Levels of Organisational ConsciousnessPositive Focus/ Excessive Focus
ServiceService to Humanity and the PlanetSocial Responsibility, Future Generations, Long-Term Perspective, Ethics, Compassion, Humility.
Making a DifferenceStrategic Alliances and PartnershipsEnvironmental Awareness, Community Involvement, Employee Fulfilment, Coaching/Mentoring.
Internal CohesionBuilding Internal CommunityShared Values, Vision, Commitment, Integrity, Trust, Passion, Creativity, Openness, Transparency.
TransformationContinuous Renewal and LearningAccountability, Adaptability, Empowerment, Teamwork, Goals Orientation, Personal Growth.
Self-esteemHigh PerformanceSystems, Processes, Quality, Best Practices, Pride in Performance. Bureaucracy, Complacency.
RelationshipHarmonious RelationshipsLoyalty, Open Communication, Customer Satisfaction, Friendship. Manipulation, Blame.
SurvivalFinancial StabilityShareholder Value, Organisational Growth, Employee Health, Safety. Control, Corruption, Greed.
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BUILDING A VALUES-DRIVEN ORGANIZATION
START WITH A VALUES SURVEY
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The Culture Change Process
1. Cultural Values
Assessment
2. Share results and start dialogue
3. Prioritize values
4. Identify behaviours
5. Create culture
development plan
6. Implement changes and programmes
ENTROPY
PERFORMANCE
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PERSONAL VALUESWhich of the following values/behaviours most reflect who you are? Pick ten.
CURRENT CULTUREWhich of the following values/behaviours most reflect how your organisation currently operates? Pick ten.
DESIRED CULTUREWhich of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.
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Placement of Values by Level (100 employees)
Top Ten Values
1. tradition (L) (59)
2. diversity (54)
3. control (L) (53)
4. goals orientation (46)
5. knowledge (43)
6. creativity (42)
7. productivity (37)
8. image (L) (36)
9. profit (36)
10. open communication (31)
10
42 5
7
9
6
8
3
110
Current Culture
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
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11%
1
2
3
4
5
6
7
Cultural Entropy
Placement of Values by Level (100 employees)
Current Culture
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
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What is Cultural Entropy?
The amount of energy that is consumed in an organisation doing unnecessary or unproductive work that does not add value.
It is a measure of the conflict, friction and frustration that employees encounter in their day-to-day activities that prevent the organisation from operating at peak performance.
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Cultural Entropy and Employee Engagement
Cultural Entropy Most employees are ….
10% or less Highly Engaged
11% to 20% Engaged
21% to 30% Becoming Disengaged
31% to 40% Disengaged
41% or more Highly Disengaged
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Cultural entropy significantly
impacts employee
engagement.
0% 5% 10% 15% 20% 25% 30%25%
35%
45%
55%
65%
75%
85%
Cultural Entropy
Empl
oyee
Eng
agem
ent
Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008.
Low Entropy = High Engagement
High Entropy = Low Engagement
Cultural Entropy and Employee Engagement
Highly Engaged Team (19)
customer satisfaction 13 2(O)
making a difference 13 6(S)
commitment 10 5(I)
employee fulfilment 10 6(O)
continuous improvement 9 4(O)
humour/ fun 9 5(O)
shared vision 9 5(O)
customer collaboration 8 6(O)
balance (home/work) 6 4(O)
teamwork 6 4 (R)
customer satisfaction 12 2(O)
continuous improvement 10 4(O)
employee fulfilment 10 6(O)
making a difference 9 6(S)
shared vision 9 5(O)
continuous learning 8 4(O)
accountability 6 4(R)
innovation 6 4(O)
teamwork 6 4(R)
trust 6 5(R)
Values PlotCopyright 2015 Barrett Values Centre
I = IndividualR = Relationship
Black Underline = PV & CCOrange = PV, CC & DC
Orange = CC & DCBlue = PV & DC
P = PositiveL = Potentially Limiting (white circle)
O = OrganisationalS = Societal
Matches
PV - CC 4CC - DC 6
PV - DC 4
Cultural Entropy:Current Culture
7%
family 15 2(R)
making a difference 13 6(S)
humour/ fun 11 5(I)
well-being 11 6(I)
continuous learning 10 4(I)
commitment 8 5(I)
accountability 7 4(R)
financial stability 7 1(I)
trust 7 5(R)
compassion 6 7(R)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7654321
IRS (P)=6-4-1 IRS (L)=0-0-0 IROS (P)=1-1-8-1 IROS (L)=0-0-0-0 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0
Highly Engaged Team (19)
Personal Values
Values DistributionCopyright 2015 Barrett Values Centre
Positive ValuesPotentially 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%
5%
14%
9%
21%
25%
17%
9%
1
2
3
4
5
6
7
0% 20% 40% 60%
2%
0%
5%
6%
10%
4%
20%
28%
24%
1%
1
2
3
4
5
6
7
0% 20% 40% 60%
0%
0%
0%
5%
9%
10%
27%
23%
22%
4%
CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24Cultural Entropy = 0%
Cultural Entropy = 7%Cultural Entropy = 0%
Low level of Cultural Entropy = High level of
Employee Engagement
26%
46%
28%
25%
48%
27%
26%
50%
24%
Highly Disengaged Team (24)
confusion (L) 15 3(O)
long hours (L) 12 3(O)
short-term focus (L) 11 1(O)
blame (L) 10 2(R)
information hoarding (L) 9 3(R)
manipulation (L) 8 2(R)
hierarchy (L) 8 3(O)
results orientation 7 3(O)
bureaucracy (L) 6 3(O)
quality 6 3(O)
continuous improvement 11 4(O)
information sharing 10 4(O)
quality 9 3(O)
customer satisfaction 8 2(O)
teamwork 8 4(R)
accountability 7 4(R)
professionalism 7 3(O)
efficiency 6 3(O)
balance (home/work) 6 4(O)
continuous learning 6 4(O)
Values PlotCopyright 2016 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 0CC - DC 1
PV - DC 2
Cultural Entropy:Current Culture
47%
commitment 26 5(I)
honesty 12 5(I)
integrity 9 5(I)
adaptability 8 4(I)
continuous learning 8 4(I)
responsibility 8 4(I)
cooperation 8 5(R)
efficiency 7 3(I)
family 6 2(R)
humour/ fun 6 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7654321
IRS (P)=9-3-0 IRS (L)=0-0-0 IROS (P)=0-0-3-0 IROS (L)=0-3-5-0 IROS (P)=0-3-8-0 IROS (L)=0-0-0-0
Highly Disengaged Team (24)
Personal Values
Values DistributionCopyright 2016 Barrett Values Centre
Positive ValuesPotentially 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%
2%
0%
0%
6%
10%
13%
21%
36%
7%
5%
1
2
3
4
5
6
7
0% 20% 40% 60%
11%
11%
25%
6%
6%
11%
16%
7%
5%
2%
1
2
3
4
5
6
7
0% 20% 40% 60%
2%
0%
0%
3%
10%
18%
32%
23%
9%
3%
CTS = 48-21-31 CTS = 14-16-70 CTS = 35-32-33Cultural Entropy = 2% Cultural Entropy = 2%
Cultural Entropy = 47%
High level of Cultural Entropy
= Low level of Employee
Engagement
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Highly Engaged Employees
Highly engaged employees identify with the company. They care passionately about the future of the company. They bring passion and purpose to their work. They are willing to invest their discretionary effort to make the company a
success. They want the company to do the right thing. They want to feel pride in the way the company behaves.
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Cultural entropy is a function of the personal entropy of the current leaders of an organisation and institutional legacy of past leaders as embedded in the structures, systems, policies and procedures.
How Does Cultural Entropy Arise?
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What is Personal Entropy?
Personal entropy is the amount of fear-driven energy that a person expresses in his or her day-
to-day interactions with other people.
It is a measure of a lack of a person’s lack of personal mastery skills. Fear-driven energy arises from the
conscious and subconscious fear-based beliefs of the ego about meeting its deficiency needs.
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The Three Mantras of Organizational Performance
Cultural Capital is the new frontier of competitive advantage.
Mantras Implications
The Culture of an organizations is a reflection of leadership consciousness
Measurement matters. If you can measure it, you can manage it.
Who you are and what your organization stands for is vitally important.
Organizational transformation begins with the personal transformation of the leaders
You can make the evolution of consciousness, conscious
Focus on Vision, Mission and Values
Begins with Leading Self
Measure and Map the Values
continuous learning 11 Level 4generosity 11 Level 5commitment 10 Level 5positive attitude 10 Level 5vision 10 Level 7ambitious 9 Level 3making a difference 8 Level 6results orientation 8 Level 3honesty 7 Level 5integrity 7 Level 5intuition 7 Level 6leadership developer 7 Level 6
1. customer satisfaction 16 Level 22. commitment 11 Level 53. continuous learning 11 Level 44. making a difference 11 Level 65. global perspective 9 Level 36. mentoring 9 Level 67. enthusiasm 8 Level 58. leadership development 8 Level 69. integrity 7 Level 510. open communication 7 Level 211. optimism 7 Level 512. shared values 7 Level 5
Cultural Evolution Begins with Personal Evolution
Cultural Entropy 7%Personal Entropy 9%
Culture ValuesLeader’s Values
The culture ofan organisationis a reflectionof leadership consciousness.
CVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
Internal Cohesion
LVA Feedback 27 Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Internal Cohesion
The culture ofan organisationis a reflectionof leadership consciousness.
LV A Feedback 14 Assessors
PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0
Cultural Evolution Begins with Personal Evolution
power (L) 11 Level 3
blame (L) 10 Level 2
demanding (L) 10 Level 2
manipulative (L) 10 Level 2
experience 9 Level 3
controlling (L) 8 Level 1
arrogant (L) 7 Level 3
authoritarian (L) 6 Level 1
exploitative (L) 6 Level 1
ruthless (L) 6 Level 1
1. short-term focus (L) 13 Level 1
2. blame (L) 11 Level 2
3. manipulation (L) 10 Level 2
4. caution (L) 7 Level 1
5. cynicism (L) 7 Level 3
6. bureaucracy (L) 6 Level 3
7. control (L) 6 Level 1
8. cost reduction 5 Level 1
9. empire building (L) 5 Level 2
10. image (L) 5 Level 3
11. long hours (L) 5 Level 3
CVA Current Culture
PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0
Cultural Entropy 38%Personal Entropy 64%
Culture ValuesLeader’s Values
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How to Measure Personal Entropy?
LEADER’S VALUESWhich of the following values/behaviours most reflect how you operate? Pick ten.
ASSESSOR’S OBSERVED VALUES OF LEADERWhich of the following values/behaviours most reflect how Leader “X” operates? Pick ten.
http://www.valuescentre.com/our-products/products-leaders/leadership-values-assessment-lva
LEADERSHIP VALUES ASSESSMENT
long hours (L) 16 3(I)
quality conscious 13 3(O)
drive and determination 12 4(I)
analytical 10 3(I)
commitment 10 5(I)
cautious (L) 8 1(I)
reliable 8 3(R)
achievement 7 3(I)
demanding (L) 7 2(R)
internally competitive (L) 6 2(R)
strategic thinker 6 4(I)
High Entropy Leader (20 Assessors)
Matches 3
adaptability 4(I)
connecting with stakeholders 6(R)
drive and determination 4(I)
goals orientation 4(O)
innovative 4(I)
long hours (L) 3(I)
making a difference 6(O)
strategic thinker 4(I)
vision 7(I)
win-win partnerships 6(O)
Level Leader Observed Values7654321
PL= 9-1 | IROS (P)=5-1-3-0 | IROS (L)=1-0-0-0 PL= 7-4 | IROS (P)=5-1-1-0 | IROS (L)=2-2-0-0
Orange=Values Match P=PositiveL=Potentially Limiting (white circle)
I=IndividualR=RelationshipO=OrganisationalS=Societal
Entropy = 27%
1
2
3
4
5
6
7
0% 20% 40% 60%
10%
50%
30%
10%
CTS = 40-50-10Entropy = 10%
CTS = 20-20-60
Entropy = 27%
Leader
High Entropy Leader (20 Assessors)
Positive ValuesPotentially Limiting Values
Observed Values
C
T
S
C=Common GoodT=TransformationS=Self-Interest
1
2
3
4
5
6
7
0% 20% 40% 60%
9%
8%
10%
1%
7%
25%
20%
12%
5%
3%
1
2
3
4
5
6
7
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104
BUILDING A VALUES-DRIVEN CULTURETHE JOURNEY
SA Bank: Evolution of Current Culture
1. cost-consciousness2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)
2005
1. cost-consciousness2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork 10. community involvement
2006
1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation
2007 2008
1. accountability2. client-driven 3. client satisfaction 4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery
3 Matches CC-DCEntropy 25%
4 Matches CC-DCEntropy 19%
4 Matches CC-DCEntropy 17%
5 Matches CC-DCEntropy 14%
SA Bank: Evolution of Current Culture
2009 2010 2011
1. accountability2. client-driven 3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork 8. employee recognition 9. being the best10. performance driven
1. accountability2. client satisfaction 3. client-driven 4. teamwork5. brand reputation6. being the best7. achievement8. commitment9. community involvement10. cost-consciousness
1. accountability2. client-driven 3. client satisfaction4. brand reputation5. achievement6. teamwork7. environmental awareness8. commitment9. being the best10. cost-consciousness
6 Matches CC-DCEntropy 13%
6 Matches CC-DCEntropy 13%
6 Matches CC-DCEntropy 11%
2012
1. accountability2. client satisfaction 3. client-driven4. brand reputation5. teamwork6. employee recognition7. environmental awareness8. performance driven9. community involvement10. people-centred
5 Matches CC-DCEntropy 10%
SA Bank: Evolution of Current Culture
2013 2014
5 Matches CC-DCEntropy 11%
6 Matches CC-DCEntropy 13%
1. accountability2. client satisfaction3. client-driven4. brand reputation5. employee recognition6. performance driven7. teamwork8. achievement9. integrity10. community involvement
1. accountability2. client satisfaction 3. client-driven 4. brand reputation5. employee recognition6. teamwork7. performance driven8. environmental awareness9. community involvement10. commitment
Despite a slight rise in cultural entropy,
profitability and productivity
continue to increase year on year.
Evolution of Number of Survey Participants
20052006200720082009201020112012201320140%
10%
20%
30%
40%
50%
60%
70%
80%
90%
8%
25%
38%
51%
67%73%
77% 75% 74% 75%Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were paying attention to the results of the assessment.
Cultural Entropy Evolution
Cultural entropy reduction led to improved performance through increased employee engagement, increased revenues, improved productivity, and increase in share price. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
5%
10%
15%
20%
25%
30%
25%
19%17%
14%13% 13%
11%10%
11%13%
Cutlural Entropy
Income Evolution
2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
50001000015000200002500030000350004000045000
0%
5%
10%
15%
20%
25%
30%
Income Cultural Entropy
Annual income
increases as cultural
entropy falls.
Global Economic Meltdown
2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
200
400
600
800
1000
1200
1400
0%
5%
10%
15%
20%
25%
30%
Revenue per Capita Cultural Entropy
Income per capita
increases as cultural
entropy falls.
Productivity Evolution
Global Economic Meltdown
2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
2000
4000
6000
8000
10000
12000
0%
5%
10%
15%
20%
25%
30%
Profit Cutlural Entropy
Profit increases as cultural
entropy falls.
Profit Evolution
Global Economic Meltdown
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113
Free material on Change & Transformation
To grow a shared culture
To lead people through change
Available on www.valuescentre.com
To plan and lead cultural transformation
Checklist and overview
For more informationand get a copy of this presentation
go to:
www.richardbarrett.net&
www.valuescentre.com