the values of values september 2015 v4

The Value of ValuesRichard Barrett

MY SPEECH TODAY

HOW TO CREATE A VALUES-DRIVEN CULTURE

MY SPEECH TODAY

BUT FIRST LET’S TALK ABOUT VALUES

WHAT ARE THEY?WHY ARE THEY IMPORTANT?

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

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.

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

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.

PRIMARY MOTIVATION

THE NEEDS OF THE STAGE OF PSYCYHOLOGICAL DEVELOPMENT YOU ARE AT

SECONDARY MOTIVATION

THE UNMET NEEDS OF THE STAGES OF PSYCYHOLOGICAL DEVELOPMENT YOU HAVE PASSED THROUGH

The needs you have failed to master.

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.

A personal journeyEvery client you coach is on an evolutionary journey of psychological development.

Surviving

Conforming

Differentiating

Individuating

Self-actualizing

Integrating

Serving

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

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.

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

Stages of Psychological Development

Surviving

INFANCY 0-2 Years Old

Staying alive!

Satisfying physiological and nutritional needs

Surviving

Stage Motivation

Conforming

Stage Motivation

CHILDHOOD 3-7 Years Old

Feeling safe!

Satisfying need for love, and belonging.

Differentiating

Stage Motivation

TEENAGER +8-24 Years Old

Feeling secure!

Satisfying need for respect and recognition.

Individuating

Stage Motivation

YOUNG ADULT25-39 Years Old

Releasing your fears!

Satisfying need for freedom and autonomy.

Self-actualising

Stage Motivation

ADULTHOOD40-49 Years Old

Becoming who you are!

Satisfying need to find meaning and purpose.

Integrating

Stage Motivation

MATURE ADULT50-59 Years Old

Aligning with others!

Satisfying need to make a difference in the world.

Serving

ServingStage Motivation

SENIOR60+ Years Old

Finding fulfilment!

Satisfying your need to serve the greater good.

What motivates employees is the

satisfaction of their needs.

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.

What Employees Value at different levels of consciousness

A safe working environment and pay and ben-efits that are sufficient to take care of family

Opportunities to work in a congenial atmos-phere 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

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 Marketing at Bentley University

Building a Values-driven Culture

WHY A VALUES-DRIVEN CULTURE?

Values Alignment

BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET

WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL?

BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR EMPLOYEES, AND …

… THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS

Suppliers Community

S&P 500

Average Annualized Return 16.39%

Average 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.

The Top 40 Best Companies to Work For (USA)

“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”

The Leader and the Values

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.

BUILDING A VALUES-DRIVEN CULTURE

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

The Seven Levels of Consciousness Model

Origins of the Cultural Transformation Tools

Growth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.

Deficiency NeedsAn individual gains no sense of lasting satisfaction from being able to meet these needs, but feels a sense of anxiety if these needs are not met.

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

Abraham Maslow

Self Actualization

N e e d s C o n s c i o u s n e s s

Self-Actualization

Richard Barrett

Safety

Love & Belonging

Self-esteem

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

Abraham Maslow

Maslow’s Needs to Barrett’s Consciousness

N e e d s C o n s c i o u s n e s s

1. Expansion of self-actualization into multiple levels.

2. Substitute states of consciousness for

hierarchy of needs.

3. Each state of consciousness is defined

by specific values and behaviours.

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Stages in the Development of Personal Consciousness

Positive Focus / Excessive Focus

Financial 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

Service

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Making a difference

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

Making a difference

SEPARATION AND ISOLATION COMMUNITY AND COHESION

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

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Making a difference

The Culture Change Process

1. Cultural Values

Assessment2. Share

results and start dialogue

3. Prioritize values

4. Identify behaviours

5. Create culture development

6. Implement changes and programmes

ENTROPY

PERFORMANCE

BUILDING A VALUES-DRIVEN ORGANSIATION

START WITH A VALUES SURVEY

The Values Survey

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.

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)

Current Culture

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Cultural Entropy

Placement of Values by Level (100 employees)

Current Culture

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Cultural Entropy and Engagement

Cultural entropy significantly

impacts employee

engagement.

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

Cultural Entropy

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

Entropy and 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

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.

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)

financial stability 6 1(O)

teamwork 6 4(R)

customer satisfaction 12 2(O)

continuous improvement 10 4(O)

employee fulfilment 10 6(O)

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)

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

family 15 2(R)

humour/ fun 11 5(I)

well-being (physical/ emotional/ mental/ spiritual)

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)

integrity 6 5(I)

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

Positive ValuesPotentially Limiting Values

Current Culture Values

Desired Culture Values

C = Common GoodT = TransformationS = Self-Interest

0% 20% 40% 60%

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

High level of Values

Alignment

Five Levels of Employee Engagement

Highly Engaged Employees 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.

Engaged Employees 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.

Becoming Disengaged

Employees are becoming frustrated, anxious and fearful about not being able to satisfy their needs.

Disengaged Employees 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 Disengaged

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

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.

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?

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.

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

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%

0% 20% 40% 60%

CTS = 40-50-10Entropy = 10%

CTS = 20-20-60

Entropy = 27%

Leader

High Entropy Leader (20 Assessors)

Positive ValuesPotentially Limiting Values

Observed Values

C=Common GoodT=TransformationS=Self-Interest

0% 20% 40% 60%

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)

1. cost-consciousness2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork 10. community involvement

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%

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

1. accountability2. client satisfaction 3. client-driven4. brand reputation5. teamwork6. employee recognition7. environmental awareness8. performance driven9. community involvement10. people-centred

2013 2014

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%

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

19%17%

14%13% 13%

11%10%

11%13%

Cutlural Entropy

Income Evolution

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50001000015000200002500030000350004000045000

Income Cultural Entropy

Annual income

increases as cultural

entropy falls.

Global Economic Meltdown

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

Revenue per Capita Cultural Entropy

Income per capita

increases as cultural

entropy falls.

Productivity Evolution

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

Profit Cutlural Entropy

Profit increases as cultural

entropy falls.

Profit Evolution

Books by Richard Barrett

1998 2006 2010 20111995

2012 2013 2014 2015 2016 Forthcoming

the values of values september 2015 v4

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