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VALUES-BASED LEADERSHIPRichard Barrett and Tor Eneroth
October 2012
VALUES, BELIEFS AND BEHAVIOURS
Values-Based Leadership
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Let’s Begin by Talking About Values
1. What are values?
2. Why are values so important?
3. What is the impact of Values on performance?
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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What are Values?
Academic Definition:
The ideals and customs of a society toward which the people have an effective regard.
My Definition:
Values are a shorthand method of describing what is important to us individually or collectively (as a human group structure—an organisation, community or nation) at any given moment in time.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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What are Values?
Values:
Values are concepts that transcend contexts. They are universal.
Beliefs:
Beliefs are contextual. They are defined by the cultural context.
VALUES UNITE, BELIEFS SEPARATE
Exercise: Values, Beliefs and Behaviours
1. Choose 3 values that are important to you and enter them in the left hand column of the worksheet
EXAMPLE: Clarity
2. Write down your beliefs that support this value in middle column
EXAMPLE: Clarity bring focus to decision making
3. Write down the behaviours you exhibit that support this value
EXAMPLE: Seek many opinions, synthesize multiple data points to understand the big picture
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Positive Values and Potentially Limiting Values
The concepts that values represent can be captured in one word or a short phrase.
Limiting Values:
Blame, power, status, manipulation, greed, internal competition, hierarchy, bureaucracy, etc.
Positive Values:
Honesty, integrity, openness, equality, creativity, long-term perspective, human rights, etc.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Values and Leadership
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
The real role of the leader is to manage the values of the corporation.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Values and Culture
The Culture of an organizations is a reflection of leadership consciousness
(values and beliefs)
Organizational transformation begins with the personal transformation
of the leaders
Therefore
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Values and Culture
Cultural Capital is the new frontier of competitive
advantage
Who you are and what your organization stands for
is vitally important to its success
Successful companies promote from within.
Unsuccessful companies bring in an external leader.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Why Are Values So Important?
• Values-based organisations attract talented people. They nurture and develop the skills and leadership qualities of all employees.
• Values-based organisations build trust thereby increasing the internal cohesion of your workforce and the goodwill of the communities and societies in which you operate.
• Values-based decision-making is the best mode of decision-making we have for navigating complexity and dealing with uncertainty. It makes us focus on our human needs.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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The Evolution of Human Consciousness
At this point in our human history, we are witnessing an unprecedented shift in human values. Millions of people all over the world are demanding their voices be heard, not just in how our nations are governed, but also in how our organisations are run.
They want equality, fairness and transparency; they want to be responsible and accountable for their lives; and, they want to trust and be trusted.
Most importantly they want to work for organisations that are seen to be ethical and are doing the right thing in the eyes of society.
THE EDUCATED MASSESS ARE INDIVIDUATING
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The Impact of Employee Engagement on Performance
Top 40 Best Companies to work for in the USA
S&P 500
Financial Returns
Average Annualized Return 16.39%
Average Annualized Return 4..12%
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High Performing Organisations
Based on their research with more than 7,000 organisations, Aon Hewitt found that high performing companies:
….Keep focused on the long-term; maintain a consistent employee proposition and a clear set of values.
….They manage change in a way that is consistent with their values and aligned with their overall goals.
….They use employee based information to drive their actions ... and involve multiple stakeholders in their decision-making.
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Conscious Capitalism
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The Four Pillars of Conscious Capitalism
Values
Stakeholder Integration
HigherPurpose
Conscious Leadership
Conscious Culture
Cultural Transformation Tools
We can measure this with a Cultural Values Assessment
(CVA)
We can measure this with a Leadership Values Assessment (LVA)
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Conscious Capitalism
3 Year 5 Year 10 Year 15 year-200%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
1800%
S & P G to G F of E
Comparison of financial returns of: Firms of Endearment (FoE), Good to Great (GtoG) and S & P 500
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VALUES-BASED MODELS AND TOOLS FOR LEADERSHIP DEVELOPMENT AND
CULTURAL TRANSFORMATION
Values-Based Leadership
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Measuring the Cultures of Organisations and Mapping the Values of Leaders
1998 2006 2011
Values-DrivenCultures
Values-Driven Leadership
Cultural Transformation Tools
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Barrett Values Centre
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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World-Wide Use of the CTT
3,400 accredited users located in
71 countries
1.25m people
participated in 5,000+
surveys since 2007
1,400 CVAs in 69
countries since 2007 880 LVAs in 37 countries since 2007
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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World-Wide Use of the CTT
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Needs, Values and Motivations
Our values are always directed towards the satisfaction of our needs, and, our needs are
always the source of our motivations.
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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
Hierarchy of Needs (Values)
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N e e d s
Needs to Consciousness
Abraham Maslow
Self-Actualization
Richard Barrett
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
C o n s c i o u s n e s s
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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N e e d s
Needs to Values to Consciousness
Self-Actualization
C o n s c i o u s n e s s
1. Expansion of self-actualization into multiple levels.
2. Substitute levels of consciousness for hierarchy of needs.
3. Each level of consciousness is defined by specific values and behaviours.
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Survival
Levels of Personal ConsciousnessPositive Focus / Excessive Focus
Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
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
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Levels of Organisational ConsciousnessPositive 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
Survival
Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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The Culture Values Survey (CVA)
Three Questions:
PERSONAL VALUESWhich of the following values and 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.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Placement of Values by Level
Current Culture 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
Survival
Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Distribution of Values by LevelCurrent Culture 100 Employees
Cultural Entropy
11%
Survival
Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Engineering Company (339)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 1CC - DC 4PV - DC 2
Health Index (PL)
PV: 10-0CC: 7-3
DC: 10-0
1. honesty 169 5(I)
2. accountability 165 4(R)
3. commitment 150 5(I)
4. continuous learning 92 4(I)
5. balance (home/work) 91 4(I)
6. family 91 2(R)
7. self-discipline 91 1(I)
8. responsibility 89 4(I)
9. respect 81 2(R)
10. open communication 76 2(R)
Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational
Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal
1. continuous improvement
111 4(O)
2. customer satisfaction
111 2(O)
3. safety conscious 102 1(O)
4. cost reduction 88 1(O)
5. job insecurity (L) 77 1(O)
6. inconsistent (L) 75 3(I)
7. teamwork 74 4(R)
8. accountability 71 4(R)
9. blame (L) 71 2(R)
10. corporate image 64 3(O)
1. accountability 180 4(R)
2. customer satisfaction
147 2(O)
3. continuous improvement
143 4(O)
4. employee development 111 4(O)
5. employee recognition 96 2(R)
6. commitment 95 5(I)
7. inspirational leadership 95 6(O)
8. employee fulfilment 94 6(O)
9. teamwork 90 4(R)
10. professionalism 80 3(O)
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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1%
1%
1%
9%
12%
17%
24%
8%
6%
21%
0% 20% 40%
1
2
3
4
5
6
7
6%
5%
12%
10%
8%
14%
11%
9%
5%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
1%
0%
6%
12%
16%
19%
13%
5%
27%
0% 20% 40%
1
2
3
4
5
6
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C
T
S
Values Distribution
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 38-21-41Entropy = 3%
CTS = 25-20-55Entropy = 23%
CTS = 37-27-36Entropy = 2%
Personal Values
Current Culture Values
Desired Culture Values
Total number of votes for all values at each level
Cultural Entropy % of Votes for Limiting Values
Common Good
Transformation
Self Interest
Engineering Company (339)
C
T
S
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Cultural Entropy
Cultural Entropy Represents the degree of dysfunction (the amount of fear-driven energy
that is found in a human group structure)Entropy Impact
0 -10% Healthy: This is a low and healthy level of cultural entropy.
11-20% Minor Issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment.
21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching.
31-40% Serious Issues: This level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching.
41%+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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The Leadership Values Survey (LVA)
The Leadership Values Assessment is a feedback instrument that compares a leader’s perception of the values he or she believes best describe his or her management/operational style with their colleagues’ perception of their management/operational style.
The instrument also compares leader’s perception of their own strengths, and the behaviours that they believe they need to improve or stop, with the assessors’ perceptions and measures personal entropy.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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LVA for Darth Vader
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Darth's Values Assessors' Top 11 Values
Matches 2ambitious Level 3
courage Level 4
creativity Level 5
excellence Level 3
integrity Level 5
long-term perspective Level 7
passion Level 5
results orientation Level 3
strategic alliances Level 6
vision Level 7
Orange = Values match P = Positive I = IndividualL = Potentially Limiting R = Relationship
(white circle) O = organisational
achievement Level 3
authoritarian (L) Level 1
being the best Level 3
competitive (L) Level 2
demanding (L) Level 2
determination Level 4
excellence Level 3
knowledge Level 4
power (L) Level 3
results orientation Level 3
risk-taking Level 4
PL = 10-0 | IRO (P) = 7-0-3 | IRO (L) = 0-0-0 PL = 7-4 | IRO (P) = 6-0-1 | IRO (L) = 0-4-0
How Darth sees
himself
How Others see
Darth
Matching Values
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0%
0%
0%
0%
0%
30%
30%
10%
20%
10%
0% 20% 40% 60%
1
2
3
4
5
6
7
9%
18%
9%
0%
0%
36%
0%
0%
0%
27%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 60-10-30Entropy = 0%
CTS = 0-27-73
Entropy = 36%
Darth's Values
Assessors' Values
Level of Personal Entropy
LVA for Darth Vader
C
T
S
C
T
S
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Personal Entropy
Personal Entropy Represents the amount of fear-driven energy that a person expresses in his or her day-to-day interactions with other people.
Entropy Impact
0 -6% Healthy: Authentic individual. Decision-making not driven by fears.
7-10% Minor Issues: Requiring leaders to examine how their behaviours and actions are affecting people around them, their decision-making processes or their degree of work/life balance.
11-15% Significant Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals.
16-20% Serious Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals.
21%+ Critical Issues: Requiring leaders to examine how their behaviours might be compromising their personal integrity and their ability to inspire and lead the people around them.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Cultural Entropy and Personal Entropy
Where does cultural entropy come from:
• The personal entropy generated by the current leaders of the organisation (business unit, department, etc.); and
• The entropic legacy of past leaders, which has been institutionalized within the organization’s policies, processes, systems and structures.
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
41
The culture ofan organisationis a reflectionof the leadership consciousness.
power (L) 11 Level 3
blame (L) 10 Level 2
demanding (L) 10 Level 2
manipulative (L) 10 Level 2
experience 9 Level 3
controlling (L) 8 Level 1
arrogant (L) 7 Level 3
authoritarian (L) 6 Level 1
exploitative (L) 6 Level 1
ruthless (L) 6 Level 1
1. short-term focus (L) 13 Level 1
2. blame (L) 11 Level 2
3. manipulation (L) 10 Level 2
4. caution (L) 7 Level 1
5. cynicism (L) 7 Level 3
6. bureaucracy (L) 6 Level 3
7. control (L) 6 Level 1
8. cost reduction 5 Level 1
9. empire building (L) 5 Level 2
10. image (L) 5 Level 3
11. long hours (L) 5 Level 3
LV A Feedback 14 Assessors
PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0
CVA Current Culture
PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0
Cultural Entropy 38% Personal Entropy 64%
Culture Values Leader’s Values
Cultural Entropy and Personal Entropy
FOUR CONDITIONS FOR CULTURE CHANGE
Values-Based Leadership
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Human Systems
Interior Exterior
Individual
Collective
Personality
Values and Beliefs of the
Leaders
Character
Actions and Behaviours
of the Leaders
Culture
Values and Beliefs of theOrganization
Society
Actions and Behaviours of the
Organization
Based on the Work of Ken Wilber
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Four Conditions for Culture Change
Interior Exterior
Individual
Collective
Personality: Values and Beliefs of an Individual
Culture: Values and Beliefs of an Organisation
Social Structures:
Actions and Behaviours of
an Organisation
Character: Actions and
Behavioursof an
Individual
Mission Alignm
entValu
es A
lignm
ent
Structural Alignment
Personal Alignment
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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Stages in Cultural Change
Interior Exterior
Individual
Collective
1
3
2
4
When the leaders values change
The leaders behaviours change
The values of the organization change
Behaviours of organization change
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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A New Leadership Paradigm
• A shift from “I” to “we”
• A shift from “what’s in it for me” to “what’s best for the common good”
• A shift from being the “best in the world” to the “best for the world”
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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New Leadership Paradigm Learning System
The Book The
Multi-mediaWeb site The Workbooks
and Journals
Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com
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For More Information:
Go to:
www.valuescentre.com
www.newleadershipparadigm.com
www.valuesjournal.com