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THE VALUES-DRIVEN LEADERRichard Barrett
WHO AM I?
RICHARD BARRETT
OUR VISIONTo create a positive
values-driven society.
Chairman and Founder of the Barrett Values Centre
(www.richardbarrett.net)
To support leaders in building positive
values-driven organizations.
OUR MISSION
PHIL CLOTHIER
provides powerful metrics to support leaders in building values-driven organizations and values-driven societies.
CEO of Barrett Values Centre
culturaltransformation tools®
• Personal Values Assessment• Individual Values
Assessment• Individual Development
Report Leadership Development Report
• Leadership Values Assessment
MEASUREMENT TOOLS FOR
INDIVIDUALS
MEASUREMENT TOOLS FOR HUMAN
GROUP STRUCTURES
• Cultural Values Assessment• Cultural Evolution Report• Espoused Values Analysis• Merger/Compatibility Report• Customer Values Assessment• Community Values
Assessment• National Values Assessment
Agriculture / forestry / fishingBanking / Financial ServicesCentral / Local GovernmentChemical and pharmaConstructionEducation / UniversityFast Moving Consumer GoodsFood and drinkHealthcareHospitality / TourismIT/ Telecoms/ Electronics Manufacturing
Media/Film/TV/PublishingMilitaryNGO / Not for profitOil/gas/miningPolice & JusticeProfessional ServicesRetail and wholesaleScientific / Technical / Engineering
Scientific and technicalSocial housingTransportation
The Sectors We Work In
Who creates an
organizational culture?
the reflection of the values, beliefs and
behaviours of the leadership
group.
THE CULTURE OF AN ORGANIZATION IS
If The Culture is Not WorkingIf Employees and Customers are not Getting Their Needs Met…
The Leader Must Change or You Must Change the Leader
A LOW PERFORMANCE ORGANIZATION
The culture of
an organisation
is a reflection
of leadership
consciousness.
power (L) 11 Level 3blame (L) 10 Level 2demanding (L) 10 Level 2manipulative (L) 10 Level 2experience 9 Level 3controlling (L) 8 Level 1arrogant (L) 7 Level 3authoritarian (L) 6 Level 1exploitative (L) 6 Level 1ruthless (L) 6 Level 1
Leader’s ValuesLVA Feedback 27
Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Personal Entropy 64%
CVA Current Culture
Culture Values
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
Cultural Entropy 38%1. short-term focus (L) 13 Level
12. blame (L) 11 Level
23. manipulation (L) 10 Level
24. caution (L) 7 Level
15. cynicism (L) 7 Level
36. bureaucracy (L) 6 Level
37. control (L) 6 Level
18. cost reduction 5 Level
19. empire building (L) 5 Level
210. image (L) 5 Level
311. long hours (L) 5 Level
3
A HIGH PERFORMANCE ORGANIZATION
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
Culture ValuesCVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
Cultural Entropy 7%
Internal Cohesion
The culture of
an organisation
is a reflection
of leadership
consciousness.
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
Leader’s ValuesLVA Feedback 27
Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Internal Cohesion
Personal Entropy 9%
ORGANIZATIONS DON’T TRANSFORM. PEOPLE DO!
ORGANIZATIONAL TRANSFORMATION BEGINS WITH THE PERSONAL TRANSFORMATION OF
THE LEADERS
In the face of turbulence and change, culture and values become the major source of continuity and coherence, of renewal
and sustainability.
Leaders must find the common purpose and universal values that unite highly diverse
people while still permitting individual
identities to be expressed and enhanced.
Rosabeth Moss Kanter, Chair of the Harvard University Advanced Leadership Initiative
Clarifying the value system and breathing life into it are the greatest
contributions a leader can
make.
Peters and Waterman, “In Search of Excellence: Lessons from America’s best run
companies”, 1983
The Leader and the Values
A CRISIS IN LEADERSHI
PAfter conducting fourteen formal studies and more than a thousand
interviews, directly observing dozens of executives in action, and
compiling innumerable surveys, I am completely convinced that most
organisations today lack the leadership they need.
John Kotter, Harvard Business School
A CRISIS IN LEADERSHI
PWe managed to produce a generation
of managers and business professionals that is deeply mistrusted and despised by a majority of people in our society and around the world.
This is a terrible failure.
Shoshana Zuboff, Harvard Business School
EVERY SUCCESSFUL BUSINESS LEADER HAS TO MAKE THE SHIFT FROM“I” TO “WE.”
Bill George, True North: Discover Your Authentic Leadership (San Francisco: Jossey-Bass, 2007).
MOVING FROM
TO
IT’S ALL ABOUT MECOMMON GOOD
MOVING FROMSEPARATION &
ISOLATIONCOMMUNITY & COHESIONTO
“ ”WHAT ARE VALUES?A shorthand way of
describing our individual and collective motivations and what is important to
us.
Values are the energetic drivers of our aspirations and intentions.
Positive or Potentially Limiting?Values can be positive or potentially limiting.
Trust, creativity, passion, honesty,
integrity, clarity
Positive Values:
Bureaucracy, power, blame,
greed, hierarchy,
status-seeking
Potentially Limiting Values:
Positive values, such as friendship, trust
and creativity, help us to build relationships, connect with others
and make a contribution to the
world.
Potentially limiting values do just the opposite. They
may help us meet our short-term needs, but in the long-term they are
divisive. They are sourced from the fears the ego has about getting its survival, safety and security needs met.
Positive or Potentially Limiting?
Positive values Potentially limiting values
Future generations, long-term perspective, compassion, humilityCooperation, actualizing meaning, empathy, intuition, mentoring Integrity, alignment, authenticity, creativity, passion, honesty, trustAdaptability, courage, continuous improvement, accountability
The fear-based needs of the ego
Pride in achievements, self-reliant, security, confidence, excellence
Power, status, glamour, rigidity, arrogance, impatience, image
Family, friendship, loyalty, safety, belonging, harmony, caring
Blame, judgement, jealousy, gossip, demanding, revenge
Health, nutrition, financial stability, strength, self-discipline, survival
Greed, territorial, manipulative, controlling,
ruthless, corrupt
7
65432
1
WHERE DO OUR VALUES COME FROM?
Our values are a reflection of our needs. (What ever we need, is what
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 which we have not yet mastered—unmet needs.
YOUR PRIMARY MOTIVATIONTO MEET THE NEEDS OF THE STAGE OF PSYCHOLOGICAL DEVELOPMENT YOU ARE AT
YOUR SECONDARY MOTIVATIONTO SATISFY THE UNMET NEEDS
OF THE STAGES OF PSYCHOLOGICAL DEVELOPMENT YOU HAVE PASSED THROUGH
The needs you have failed to master.
UNMET NEEDS FROM THE EARLY STAGES
The presence of limiting values at the survival relationship
and self-esteem levels of consciousness.
I am not enough
I am not loved
enough
I don’t have
enough
Values?‘S
What are Donald
In the Introduction to The New Leadership Paradigm I plotted
the values of several leaders based on the
books they had written about leadership.
DisciplinedGiving backImage (L)LoyaltyPassionProfitReciprocityRevenge (L)Ruthless (L)Winning
A toxic mixture
of values
2010
Unmet needs
Service
Making a difference
Internal cohesion
Transformation
Self-esteem
Relationships
Survival
THE SEVEN STAGES OFPSYCHOLOGIC L
DEVELOPMENT
A PERSONAL JOURNEYEvery person is on an evolutionary
journey of psychological development.
SERVING
INTEGRATING
SELF-ACTUALIZING
INDIVIDUATING
DIFFERENTIATING
CONFORMING
SURVIVING
No one is born a leader. It is a role you grow into. Some people naturally grow into leadership roles;
some go all out to seek a leadership role and others
have leadership thrust upon them.
BECOMING AGREAT LEADER
Whatever the case, the journey to becoming a
successful leader is the same; there are four stages of psychological
development you must master to become a great leader.
Some, like me, choose not to be a leader of people, but a leader of thoughts.
B) become responsible and accountable for every aspect of your life; and
THE FOUR STAGES OF LEADERSHIP DEVELOPMENT
A) know yourself—identify your most important values and the behaviours that align with those values;
The Individuating Stage (25-39 years)
C) learn to manage your fears and develop your emotional intelligence skills.
In addition, you will be looking for opportunities to explore your gifts and talents—find out what you are good at and like doing and what you are not so good
and do not like doing. We don't want to be micro-managed, but we do want someone we can turn to for advice. Someone we know
wecan rely on who has our best interests at heart.
Without freedom, autonomy and challenges at this stage of development, you will not experience well-
being.
B) find your purpose in life—the work that you love to do; and
THE FOUR STAGES OF LEADERSHIP DEVELOPMENT
A) release any fears you may have about fully expressing who you really are;
The Self-Actualizing Stage (40-49 years)
C) express your creativity.
In addition, you will be looking for opportunities to align your purpose with your work so you find meaning
in your life.
You will want a job that allows you to fully express who you are, sparks your creativity and unleashes your
passion.
If you cannot fully express who you are, you will not experience well-being.
B) develop your empathy and social intelligence skills; and,
THE FOUR STAGES OF LEADERSHIP DEVELOPMENT
A) release any fears you have about forming unconditional loving relationships;
The Integrating Stage (50-59 years)
C) actualize your purpose by connecting with other like-minded individuals to make a difference in the world.
In addition, you will be looking for opportunities to collaborate
with other like-minded individuals on projects that allow you to actualize your purpose in
life. If you cannot connect with others to make a difference, you will not experience well-
being.
B) develop your compassion skills; and,
THE FOUR STAGES OF LEADERSHIP DEVELOPMENT
A) release any fears you have about your self-worth;
The Serving Stage (60 + years)
C) let yourself be guided by your soul’s inspiration.
In addition, you will be looking for opportunities to participate in acts of self-less service by alleviating suffering and/or caring for the well-being of future
generations, humanity and the planet.
You want to leave the world a better place than you found it.
If you cannot make a contribution, you will not experience well-being.
VALUES-DRIVEN CULTURESare the most successful
Because they care about the needs of their employees, and
…
CUSTOMERS SUPPLIERS
INVESTORS COMMUNITY
… they also care about the
needs of their
stakeholders
This is one of the four pillars of conscious
capitalism.
THE PILLARS OF CONSCIOUS CAPITALISM
Higher purpose: A purpose that goes beyond only
generating profits and creating shareholder value.
Stakeholder orientation: All stakeholders are important. The business must seek to optimize
value creation for them all.
Conscious leadership: Conscious leaders are motivated primarily by service to the firm’s higher purpose
and creating value for all stakeholders.
Conscious culture and management: The culture of a conscious business is a source of
great strength and stability for the firm, ensuring that its purpose and core values endure over time and through leadership transitions.
PASSION
PURPOSE
THE ROOTS OF CONSCIOUS CAPITALISMHow World-Class Companies Profit from Passion and Purpose
18 FIRMS OF ENDEARMENT
FOEAverage
Annualized Return
13.10%
S&P 500Average
Annualized Return 4.12%
$140m
$280m
$420m
$560m
Port
folio
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 Orientation and a Higher Purpose supported by Core Values.
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.
Bob Chapman, CEO of the $1.7 billion company Barry-
Wehmiller.
The Top 40 Best Companies to Work
For (USA)
BCWFAverage
Annualized Return
16.39%
S&P 500Average
Annualized Return
4.12%
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.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$0.8m
$1.7m
$2.6m
$3.5m
$4.4m
Port
folio
Val
ue
https://www.valuescentre.com/resources/case-studies?
23 CASE STUDIES OF SUCCESSFUL TRANSFORMATION
2005 2006 2007 2008
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)
1. cost-consciousness2. accountability 3. client-driven
4. client satisfaction 5. results orientation 6. performance driven
7. profit8. bureaucracy (L)
9. teamwork 10. community
involvement
1. client-driven 2. accountability
3. client satisfaction 4. cost-consciousness
5. community involvement
6. performance driven 7. profit
8. achievement9. being the best
10. results orientation
1. accountability2. client-driven
3. client satisfaction 4. community
involvement 5. achievement
6. cost-consciousness7. teamwork
8. performance driven9. being the best
10. delivery3 Matches CC-
DCEntropy 25%
4 Matches CC-DC
Entropy 19%
4 Matches CC-DC
Entropy 17%
5 Matches CC-DC
Entropy 14%
NEDBANK-EVOLUTION OF CURRENT CULTURE
NEDBANK-EVOLUTION OF CURRENT CULTURE
2009 2010 2011 2012
1. accountability2. client-driven
3. client satisfaction 4. cost-consciousness
5. community involvement 6. achievement7. teamwork
8. employee recognition 9. being the best
10. performance driven
1. accountability2. client-driven
3. client satisfaction4. brand reputation5. achievement
6. teamwork7. environmental
awareness8. commitment
9. being the best10. cost-consciousness
1. accountability2. client satisfaction
3. client-driven 4. teamwork
5. brand reputation6. being the best7. achievement8. commitment9. community
involvement10. cost-consciousness
1. accountability2. client satisfaction
3. client-driven4. brand reputation
5. teamwork6. employee recognition
7. environmental awareness
8. performance driven9. community
involvement10. people-centred
3 Matches CC-DC
Entropy 13%
6 Matches CC-DC
Entropy 13%
6 Matches CC-DC
Entropy 11%
5 Matches CC-DC
Entropy 10%
NEDBANK-EVOLUTION OF CURRENT CULTURE
2013 2014
1. accountability2. client satisfaction
3. client-driven 4. brand reputation
5. employee recognition6. teamwork
7. performance driven8. environmental
awareness9. community
involvement10. commitment
1. accountability2. client satisfaction
3. client-driven4. brand reputation
5. employee recognition6. performance driven
7. teamwork8. achievement
9. integrity10. community
involvement5 Matches CC-
DCEntropy 11%
6 Matches CC-DC
Entropy 13%
Despite a slight rise in cultural entropy,
profitability and productivity
continue to increase year on year.
NEDBANK-EVOLUTION OF SURVEY PARTICIPANTS
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.
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0%
20%
40%
60%
80%
100%
8%
25%
38%
51%
67%73%
77%75%74%75%
NEDBANK-EVOLUTION OF CULTURAL ENTROPY
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%
7%
13%
20%
26%
33%
25%
19%17%
14%13%13%11%10%11%
13%
Cultural Entropy
INCOME EVOLUTION
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
10000
20000
30000
40000
50000
0%
7%
13%
20%
26%
33%
IncomeCultural Entropy
Global Economic Meltdown
Annual income increases as cultural
entropy falls.
PRODUCTIVITY EVOLUTION
Global Economic Meltdown
Income per capita increases as cultural
entropy falls.
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
325
650
975
1300
1625
0%
7%
13%
20%
26%
33%
Revenue per CapitaCultural Entropy
PROFIT EVOLUTION
Global Economic Meltdown
Profit increases as cultural entropy falls.
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
2750
5500
8250
11000
0%
7%
13%
20%
26%
33%
ProfitCultural Entropy
FREE MATERIALS
To lead people through
change
To grow a shared
cultureTo plan and lead
cultural transformation
Checklist and
overview
Available on www.valuescentre.com
FOR MORE INFORMATIONGo to:
www.valuescentre.com www.richardbarrett.net
Contact Me: [email protected]
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2012 2013 2014 2015 2016
RICHARD BARRETT’S BOOKS