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Creating the Future: Building Values-Based Leadership National Symposium - Their Lives, Our Work Niran Jiang May 17, 2007 www.ihexcellence.org
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Creating the Future:

Building Values-Based Leadership

National Symposium - Their Lives, Our Work

Niran Jiang

May 17, 2007

www.ihexcellence.org

Cultivating Human Excellence in People and OrganisationsCopy right contents, not to be used for commercial purposes without prior permission from IHE 2

Change at level of consciousness deeper than its manifestation

Whole system vision and interconnection must be addressed

The whole system for organisations embraces the planet and humanity

Whole System Change

Whole system principles of change apply at both macro and micro levels

Connecting head with heart in a whole system framework

It is about getting in touch with humanity – have the courage to walk the talk!

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Long term Future generations

Broad Society and geographical

Deep Reflective and spiritual

Inclusive Interdependence, Integral

Vision

Cultivating Human Excellence in People and OrganisationsCopy right contents, not to be used for commercial purposes without prior permission from IHE 4

the universe

spirituality

nature religion

nationality

environment

language

race

colourplanet earth

humanity

family

home

sport team

locality

work team

peers

pop stars

county

shared interest

animals

industry

company

Broad Inclusive Vision

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A Crisis: 6 out 10 Staff find Work Miserable !

SelfActual.

Self-Belief

Status & Recognition

Social & Belonging

Security & Shelter

Basic Survival

1800 2000

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Today’s Business Drivers

Time

Fear

The Bottom Line

We must abandon the FEAR paradigm of old for a new paradigm of TRUST in ourselves, in others, and in progress.

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Failing Leadership

Traditional leadership is in decline

In Business, in Politics and in Religion

Without a respected outer authority, standards and ethics are abandoned and liberalisation becomes licence.

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Future Leadership

Two forms of leadership arise

New leaders with new qualities

Inner leadership among a wider constituency

Inner leadership qualities are evoked by self-development. Values emerge that are sustainable and universal unlike those that were previously imposed.

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Time19001800 2000 2100

Agrarian Age - Manpower

Industrial Age – Quality of Product

Information Age – Intellectual Capital

Consciousness Age – Cultural Capital

Frontiers of Competitive Advantage

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The New Operating Reality• Change is accelerating (technological,social and economic)

• Risk and uncertainty are increasing (terrorism, global warming and globalisation)

• Complexity is increasing

• Interdependency is increasing (economic and technological)

• Ethics and public opinion are increasingly influencing Corporate decision-making

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Resilience

How do you build an organisation that can survive and thrive in an uncertain world?

• Given the new operating reality, the critical question is:

By building a strong, adaptive and resilient core culture that is

values-driven.

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Culture

Geert Hofstede defines organisational culture as: 

“The collective programming of the mind (values, beliefs and

behaviours) which distinguishes the members of one organisation from

another.”

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The Iceberg Balance Sheet

Intangible value drivers represent 60% - 85% of a Company’s Market Value.

Financial Capital

Tangible Drivers

Intangible Drivers Cultural Capital

Structural Capital

Intellectual Capital

Social Capital

Source: INNOVEST Investment Research

Community Capital

SocietalCapital

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From Leaders’ Values to Mission Performance

Organizational Culture

Leaders’ Values/Behaviors

Mission Assurance

Sustainable Performance

GOVERNMENT SECTOR

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Where does performance come from?

Behaviours & Performance

Competency & Capability

Attitudes & Motivations

Identity & Purpose

Environment

Beliefs & Values

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Values Values that emerge from

within during personal development

Ethical behaviour that reflects those values

Values are all inclusive

Values are not adopted from parents, social norms or religion

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PAST EXPERIENCE

Recall a grandparent or teacher who

had a very positive impact on you.

What did they do that you liked so

much? (attitude and behaviour)

How did they make you feel?

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They ….

Treated me as an equal, adult

Listened to my point of view

Believed that I could …

Challenged me

Fun, enthusiasm

Cared for me, safe, support

Trusted and respected me

Gave me time and full attention

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Special

Valued

Confident

Self belief

I felt ….

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“ “A leader is someone A leader is someone

people want to follow”people want to follow”

Leadership Challenge

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THE IMPORTANCE OF EQ

All Kinds of Jobs Leadership Jobs

IQ

IQ

EQ

EQ

33%33%

66%66%

15%15%

85%85%

One of Daniel Goleman’s research findings

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EMOTIONAL INTELLIGENCE

The capacity to recognise our own feelings, and those of others…

…to motivate ourselves and managing our emotions well in ourselves and in our relationships.

Daniel Goleman 1995

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THE QUADRANTS OF EQ

Act

ions

Aw

aren

ess

Self Others

Self AwarenessAwareness of Others

Self SocialManagement Skills

All change All change starts herestarts here

Positive Positive impact on impact on

othersothers

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“ “Self-Realised High Self-Realised High

Quality Relevant Input”Quality Relevant Input”

AWARENESS

is

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“ “The Performer’s ChoiceThe Performer’s Choice

to Take Ownership”to Take Ownership”

RESPONSIBILITY

is

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EQ and ValuesFeedback that your emotional intelligence

gives is values laden.

It comes directly from the soul It tells us what we feel is right and what

we feel is wrong It is not based on the logic of the mind but

on the intuition of the heart

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Cultural Transformation Tools

Ericsson Ford Motor Co. Beyond Petroleum IKEA ING Bank Nestle Kraft L’Oreal Microsoft AGSM

Mars Ernst & Young McKinsey & Co. PricewaterhouseCoopers KPMG Siemens Volvo Unilever Telstra World Bank

Some of the 600+ CTT Users in 28 Countries:

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Seven Corporate Transformation Tools

Individual Assessments Team Culture Assessments Corporate Culture Assessments Mergers and Acquisitions Compatibility Cultural Compatibility Assessments – Selection of

New Employees Customer Assessment of Corporate Values Leadership Values Assessments

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Seven Levels of Organisational Excellence

Clarifies the values of individuals and organisations

by mapping values on the Seven Levels of Consciousness.

Measurement matters. If you can’t measure it,

you can’t manage it.

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Crisis Director

Manage adversity, deliver results

Value Drivers:

Financial GrowthShareholder ValueViability

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

Values-Based Leadership Model *

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Values-Based Leadership Model *

Relationship Manager

Promotes positive relationships internally and externally

Value Drivers:

Customer Satisfaction Open Communication Respect

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

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Manager/Organiser

Manage process and system, best practice builder

Value Drivers:

Efficiency Productivity Quality

Values-Based Leadership Model *

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

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Facilitator/Influencer

Empowers others, promotes learning & innovation

Value Drivers:

Continuous Improvement Diversity Teamwork

Values-Based Leadership Model *

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

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Integrator/Inspirer

Creates cohesion, shared values/vision, & community spirit

Value Drivers:

Integrity Cooperation Trust

Values-Based Leadership Model *

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

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Mentor/Partner

Systems perspective, promote alliances and partnerships

Value Drivers:

MentoringCollaboration Making a Difference

Values-Based Leadership Model *

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

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Wisdom/Legacy

Service to humanity, global vision for sustainability

Value Drivers: JusticeFuture GenerationsHumility

Values-Based Leadership Model *

* Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC

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1

2

3

4

5

6

7Wisdom/Legacy

Mentor/Partner

Integrator/Inspirer

Crisis Director

Relationship Manager

Manager/Organizer

Facilitator/Influencer

Doing(Skill/Competency)

Being(Meaning/Purpose)

The Seven Levels of Leadership Excellence

Success

Significance

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The Seven Levels of Leadership ExcellencePositive Focus / Excessive Focus

WISDOM/VISIONARY

MENTOR/PARTNER

INTEGRATOR/INSPIRER

FACILITATOR/INFLUENCER

MANAGER/ORGANIZER

RELATIONSHIP MANAGER

CRISIS DIRECTOR

SERVICE TO HUMANITYLong-term perspective. Future generations. Ethics.7

6

3

2

1

5

4

Strategic alliances. Employee fulfillment. Environmental stewardship.

COLLABORATION WITH CUSTOMERS & THE LOCAL COMMUNITY

Positive, creative corporate culture. Shared vision and values. DEVELOPMENT OF CORPORATE COMMUNITY

Promotes learning and innovation. Team builder. Empowers others.

CONTINUOUS RENEWAL

Productivity, efficiency, quality, systems and processes.BEING THE BEST. BEST PRACTICE

Good communication between employees, customers and suppliers. RELATIONSHIPS THAT SUPPORT ORG NEEDS

Able to manage adversity. Directive. Willing to take charge. PURSUIT OF ORG VALUE & MISSION

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“If I had one hour to save the world, I would spend 50 minutes defining the problems and 10 minutes executing the solutions”

Albert Einstein

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The Leader and the Current Culture

Current Culture Values 2006 (CVA)

Current CultureNine limiting values in the Current Culture.Very high level of cultural entropy = 64%

BureaucracyEmpire building

Image Blame

CynicismManipulation

ControlCaution

Short-term focusCost reduction

22%

21%

22%6%

5%

6%

2%

4%

5%

6%

0% 20% 40%

1

2

3

4

5

6

7

Entropy = 64%

Luxury Products Distributor

Entropy = 52%

Demanding (8) (L)Arrogant (7) (L)

Blame (6) (L)Authoritarian (5) (L)

Experience (5) Information hoarder (5) (L)

Manipulative (5) (L)Ruthless (5) (L)

Positive attitude (4)

18%

18%

16%15%

12%

10%

4%

1%

5%

1%

0% 20% 40%

1

2

3

4

5

6

7

Leader’s Values 2006 (LVA)

LVA ResultsSeven limiting values.Very high level of personal entropy = 52%

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1. client satisfaction 2. client collaboration 3. integrity 4. teamwork 5. humour/fun 6. quality 7. balance (home/work) 8. financial stability

A Tale of Two Cultures

1. blame L2. short term focus L3. internal competition L4. buck passing L5. risk averse L6. customer satisfaction 7. information hoarding L8. profit

Smooth Sailing Sinking Ship

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Cultural Performance

3 year results Smooth Sailing Sinking Ship

Assets under Management

+26% -80%

Staff turnover 0% >50%

Performance Top quartile Bottom quartile

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ANZ Bank: People are the key driver of long-term competitive advantage

$4.81$7.32 $8.00

$4.85

$10.98

$18.50

$0

$5

$10

$15

$20

$25

$30

Mar-98 Oct-03 Mar-06

Talented people

Sustainable leadership

Growth opportunities

Return on equity

Cost of capital

Strong brand

Vibrant culture

Share price

$9.66

$26.50

The average compound growth rate18% per annum since 1998

Intangible net assets per share

Tangible net assets per share

Strategic Focus

$18.30

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ANZ Bank: Evolution of Profit

* including significant items under AGAAP

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ANZ Group overall employee satisfaction

49%58%

62%

72%78% 78%

82% 85%

0%

25%

50%

75%

100%

1999 J ul-00 J ul-01 Feb-02 J ul-02 Feb-03 J ul-03 Feb-04

Cultural TransformationProgram Begins

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ANZ Bank: Current Culture 2000 to 2005

2000 2001 2002 cost reductioncustomer focusshareholder valueaccountabilitycontinuous improvementprofitresults orientationachievementcommunity involvementcustomer satisfactionteamworkbeing the bestorganisational growthbureaucracybalance (home/work)long hoursproductivitybrand imagehierarchicalcan do approachcommitment

cost reductionprofitshareholder valueresults orientationaccountabilitycontinuous improvementcustomer focusbureaucracyachievementgoals orientationhierarchicalshort term focuslong hourscommitmentrisk aversion

1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.16.17.18.19.20.

2003 customer focus cost reduction accountability continuous improvement achievement profit results orientation community involvement shareholder value customer satisfaction teamwork bureaucracy being the best hierarchical balance (home/work) commitment long hours organisational growth brand image productivity

cost reductionshareholder valueaccountabilitycustomer focusprofitresults orientationcontinuous improvementachievementbureaucracybeing the bestcustomer satisfactiongoals orientationbrand imageorganisational growthlong hoursteamworkcontrolhierarchicalcommitmentcommunity involvement

Key: Enhancing values Limiting values

customer focus community involvementcost reductionaccountabilityresults orientationbrand imageachievementprofitbureaucracycustomer satisfactioncontinuous improvementshareholder valueteamworkbeing the bestbalance (home/work)performbest practicelong hoursorganisational growthhierarchical

2005

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ANZ has materially outperformed peers in efficiency

Source: Published financial reports

The Australian banking sector

has enjoyed a decade of

efficiency gains

ANZ has outstripped its

competitors and has achieved

world class efficiency

ANZ was in the top 5 banks in

the world in terms of

efficiency, TSR and risk-

adjusted relative shareholder

return over the five years to

2003

Cost to Income

40%

45%

50%

55%

60%

65%

70%

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

ANZ NAB CBA WBC

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7%

9%

16%

19%

14%

6%

29%

0% 20% 40%

1

2

3

4

5

6

7

ANZ Next Steps: Total Organisational Coherence

6%

15%

13%

24%

28%

8%

6%

0% 20% 40%

1

2

3

4

5

6

7

18%

9%

27%

23%

9%

11%

3%

0% 20% 40%

1

2

3

4

5

6

7

Personal Values

Current ANZ Values 2003

Desired ANZ Values 2003

Key focus in next phase

Sustainable

Holistic

Best-practice

Professional

Viable

Coherent

Transformational

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Case Example - Background One of the fastest growing IT services company in the Asia Pacific

region with more than 500 people. IHE engaged in 2005, to design/deliver a change program to expand

their leadership capacity and to build a high performance culture. The business objectives behind are to sustain performance, retain

talents and improve shareholders’ value. On top of that, the MD of the company clearly stated that they

wanted to go beyond performance excellence to create “happiness” in their work environment.

Through one on one interviews with all senior managers, a range of issues were identified, including structural impediments, hidden/limiting values, resource misalignment, change weariness, inconsistent management language, rocky communication and minimal collaborations.

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Case Example - Objectives Three key areas of focus for change were identified

Develop values-based leadership capability as a foundation to activate culture change in the organisation

Shift senior managers’ focus from managing results to managing people, and broaden their performance management spectrum to include the intangibles

Balance individual excellence with teamwork excellence and create a shared culture identity and organisational cohesion

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Case Example – 2005 Program Stage I: 360 Leadership Assessment

To understand the performance drivers and barriers of each senior manager for their individual leadership development.

Used the values-based leadership assessment tool developed by Richard Barrett and Associates. It provided a diagnosis of the values profile of each individual and their team.

Fully confidential environment, high level of buy-in and ownership created. Stage II: Leadership Retreat

A 2 day offsite leadership retreat, to link the individual development process with the group work process.

Individual strengths were explored and built upon within the team context. A consistent leadership framework, language and measurement system was established to

activate the development of the top team. Group vision, goals and action plans were created and owned for the next 12 months, and almost

all stated that they experienced authentic connections and a real sense of team for the first time. Stage III: Tailored Leadership Coaching

Each manager had the option to elect an ongoing 12 months of individual coaching on a volunteer basis, and paid for these coaching sessions from their own P&L.

After 6 months of coaching, a two day inner game training session was conducted with the top two tiers of the company. Sport as a learning metaphor was used for communication, teamwork and management via coaching.

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Case Example – 2006 Results Key quantitative results

At the start of IHE’s program, a full scale Gallup workplace engagement survey was conducted. This same study was repeated 12 months later.

During this period of time, IHE’s programs was the only external organisational OD programs used. The Gallup study showed a statistically significant improvement in the overall workplace. There were significant increases in the measurements around people management capability,

especially improvements in “recognition”, “cares about me”, “opinion count” and “best friend”. Market analysts had identified the company as a significant contender. The company rapidly grew in

its financial numbers, customers and locations. Profits were above target and client retention was excellent. The balanced scorecard was introduced.

360 leadership assessment result improvements for most individuals.

Key qualitative results Most gained confidence and self-belief in their capacity to lead and manage people by example with

their increased self-knowledge and authenticity. They developed a robust sense of meaning and purpose in their work. They built strengthened and consolidated relationships, trust, openness and integrity within their

team, thereby created high level of performance and enjoyment at work. A significant impact of the new leadership competencies gained was increased concern and caring

for staff, which directly led to better customer care and higher staff retention.

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Case Example – 2007 Development OD program to expand both horizontally and vertically to fast track progress, with top

team as sponsors and champions.

Six Streams of Organisational Development Program Personal Leadership

TTT Accreditation Program to roll out a coaching culture Team Leadership

High Performance Team Skills with workshops and learning embedment systems Organisational Leadership

Value Based Leadership and Decision-Making Skills with workshops and learning embedment systems Customer Leadership

Presentation and Engagement Skills with workshops and learning embedment systems Social Leadership

Sustainability Strategy, Humanity Forums and CSR Implementation Coaching Support

To deepen learning, facilitate change, and resolve challenges

Personal Development as Core Foundation for Growth

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PL = 12-0IRO (P) = 4-6-2IRO (L) = 0-0-0

humor/fun (8)

passion (8)

high standards (7)

caring (6)

honesty (6)

working together (6)

balance (home/work) (5)

respect (5)

commitment (4)

dependable (4)

development for all (4)

mentoring (4)

October 2004Cultural Transformation Tools/The XLR8 Team, Inc.Leadership Values Assessment

LEGENDOrange = Values match P = Positive I = Individual

L = Potentially Limiting R = Relationship (hollow dots) O = Organizational

11 Assessors' Top 12 Values (2003)

commitment (8)

customer service (6)

integrity (6)

caring (5)

high standards (5)

honesty (5)

humor/fun (5)

information sharer (5)

continuous improvement (4)

employee recognition (4)

fairness (4)

passion (4)

12 Assessors' Top 12 Values (2004)

PL = 12-0IRO (P) = 5-4-3IRO (L) = 0-0-0

Leadership Development Journey - Individual

6 Matches (walk the talk measurement)

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Leadership Development Journey - Group

0%

0%

0%

7%

16%

21%

26%

7%

5%

18%

0% 20% 40%

1

2

3

4

5

6

7

0%

0%

0%6%

26%

25%

23%

11%

5%

5%

0% 20% 40%

0

2

3

4

5

6

7

Current

CTS = 43 - 18 - 39 CTS = 59 - 26 - 15

October 2005Cultural Transformation Tools

C

T

S1

2

3

4

5

6

7

Figure 2: Leadership Entropy

Entropy = 9% Entropy < 6%

C = Common Good T = Transformation S = Self-interest All Value Votes

Desired

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The Creation Center – Dissolving Interferences

Attitudes Behaviours

Values Beliefs

Finance

Evolution

Client

Society

Culture

Fitness

Personal

“ I ”

Interference

Organisational

Interference

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Personal Transformation Precedes Organisational Transformation

” ” . . . personal change must precede or at least . . . personal change must precede or at least accompany management or organisational accompany management or organisational change ... attempting to change an organisation change ... attempting to change an organisation without first changing one's own habit patterns is without first changing one's own habit patterns is analogous to attempting to improve one's tennis analogous to attempting to improve one's tennis game before developing the muscles that make game before developing the muscles that make better strokes possible.“better strokes possible.“

Stephen Covey---Principle-Centered LeadershipStephen Covey---Principle-Centered Leadership

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Common Fears

Fear of failure

Fear of responsibility

Fear of being different

Fear of being outside our comfort zone

Fear of looking foolish or being conned

Fear of showing inadequacy

Fear of loss of job or reputation

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Courage – Mastery of Fear

“Courage is resistance to fear, mastery of fear – not absence of fear. Consider the flea! – incomparably the bravest of all the creatures of God, if ignorance of fear were courage.”

– Mark Twain

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Exercise the Courage Muscle Courage is a matter of heart and

guts, it isn’t a set of decision tree steps from the brain (Coeur)

It comes from the center I space, and goes hand in hand with authenticity

Being a coward is corrosive to self-esteem

All courage is a risk, there is no safe risk

It is a strong emotional commitment, grounded in values (what you stand for)

Stress stifles performance and courage in the long run

Courage can be inspired and needs to be supported by a gang of believers

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Values Behaviours

Collective

Individual

Culture

Group values and beliefs

Social Structures

Group actions and behaviours

Personality

Individual values and beliefs

ValuesAlignment

MissionAlignment

Structural Alignment

Personal Alignment

Character

Individual actions and behaviours

Personal Integrity – Walk the Talk

Group Cohesion – Enhanced Capacity for Collective Action

Human Systems - Four Quadrants

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Change Activation Pathway

Critical SupportCritical Support Critical Support

Disruptive catalyst

Disruptive catalyst

Disruptive catalyst

Explosive

ExplosiveChaotic

Static

Explosive

Explosive

Chaotic

Chaotic

Static

StaticGrowthOutput

LearningTime

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Multiplicity

‘There are times when I look over the various parts of my character with perplexity. I recognise that I am made up of several persons and that the person that at the moment has the upper hand will inevitably give place to another’

Somerset Maugham

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Sub-personalities Are identifications with: Roles (father, worker, boss) Functions or job titles (accountant, doctor) Objects (house, car, collections) Personality states (joy, anger, anxiety) Psychological formations (winner, victim) Cultural, racial, social, political groups

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“Who are you?”

Cultivating Human Excellence in People and OrganisationsCopy right contents, not to be used for commercial purposes without prior permission from IHE 66

Cast of Characters

fanatic Joe Cool hedonist nice guy perfectionist skeptic

crusader bitch bully charmer control freak victim

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4 Phases of Harmonisation

1. Recognition

2. Acceptance

3. Cooperation

4. Integration

© Performance Consultants 2002

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Sub-personalities

The ‘I’

Self-ManagementSelf-Management

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Characteristics of the “I”

Consciousness (Awareness)

Will, Choice (Responsibility)

Self-accepting, self-directing Free from distortion, restriction Individuality, identity Stillness, constancy, continuity

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“Who are you?”

Cultivating Human Excellence in People and OrganisationsCopy right contents, not to be used for commercial purposes without prior permission from IHE 71

Dis-indentification

A state of detachment emotionally

and intellectually the freedom to choose, self regulation no longer a victim to circumstances A place from where one can

observe and act dispassionately calmness centeredness

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Sub-personalities

The ‘I’

The The SSelfelf

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The Whole Person

PRESENT

PAST

FUTURE

Field of awareness

‘I’

lower unconsciou

s

super conscious

middle

unconscious

Universality

Individuality

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“Who are you?”

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Developmental JourneyTHE

HIGHER SELF

Psychological / Quantitative/Achievement

Spir

itual /

Qu

alit

ati

ve/V

alu

es

CRISIS OFMEANING

CRISIS OF DUALITY

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What is Human Excellence?

It is being the best we can be in every situation.

It is doing the best we can do in every endeavour.

It is also knowing that we can deliver more tomorrow ... That there will always be further to go ... And that we may never get “there”.

Human excellence is striving without stress, intent without tension, purpose without pretension, the passion to succeed with humility in

success. It is respect for all people and for the environment.

We believe that the on-going self-development of all people helps them to excel in their chosen field, to be highly creative and productive at work, to deliver peak performance in sport, and to deliver great leadership in organisations. It is our belief that competition is healthy for it serves to stretch us towards excellence, but that it should never be allowed to override collaboration for the good of the whole. Aspiration to human excellence offers the best hope for us to overcome the challenges of our time. It may be the very purpose of human existence.

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For more information, please contact:

Niran Jiang

Institute of Human Excellence

Level 31, ABN-AMRO Tower88 Phillip St, Sydney NSW 2000

Telephone: + 61 2 8211 0618Fax: + 61 2 8211 0555

Email: [email protected]

www.ihexcellence.org


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