Sustainability: Leadership, Values and Culture Richard BarrettMay  2011
The Global Sustainability    Challenge?
Global Sustainability IssuesPollutionGlobalTerrorismGlobal EconomyEnergy ResiliencePandemicsNatural DisastersThe significant problems we face cannot be solved at the same level of thinking that created them. Climate ChangeSpecies ExtinctionFood Resilience WaterShortagesWaste DisposalPoverty Reduction
The Sustainability ChallengeThe problems of existence have become global but the decision-making structures we have for dealing with them are national.We cannot move forward without a high degree of global cooperation.
A NewLeadership Paradigm The paradigm that divides the world into the social sector, the private sector, and the governmental sector is not working. It creates artificial barriers. We are each a constituent of the problem, so we have to combine our forces, our efforts, and our competencies.    Tex Gunning, Unilever, Best Foods AsiaPrivate SectorSocial SectorPublic Sector
A NewLeadership Paradigm Average leaders take care of themselves and their families. Good leaders take care of themselves, their families, and some of the community. Great leaders—and great companies—not only take care of all stakeholders but also want to change the world. They want to leave the world better than they found it.Tex Gunning, Unilever, Best Foods AsiaPrivate SectorSocial SectorPublic Sector
Sustainability and the New Leadership ParadigmOur Business Leaders need to recognise that:Business is a wholly owned subsidiary of society, and society is wholly owned subsidiary of the environment. If we lose our environment and our life-support systems, our society will perish. If we lose our society, we will lose our economy and our businesses will perish too.
What this means for Business and PoliticsBusiness leaders need to work with their competitors, political and societal leaders to define a framework of policies that support the evolution of our global society by developing industry charters that regulate the rules of competition between companies in a way that supports the societal common good.Political leaders must give up their parochial self-interest andexaggerated false belief in national sovereignty learn how to solve the problems of existence through international cooperation and collaboration.Building a sustainable future for everyone is not just societal imperative. It is business imperative, too.
A New Leadership ParadigmUltimately, the problems of existence we face are issues of consciousness.We will only get beyond this stage of our collective evolution if we can put aside our narrow self-interest, focus on the whole system, and build a values-driven framework of policies that support the common good.Richard Barrett, The New Leadership Paradigm, 2011
A NewLeadership Paradigm WE NEED A NEW LEADERSHIP PARADIGMA shift in focus from “I” to “we”A shift from self-interest to the common goodA shift from being the best in the world to the best for the world.
The Three Mantras of 	Culture Change
The Three Mantras of Culture ChangeCultural Capital is the new frontier of competitive advantage.Organisational transformation begins with the personal transformation of the leaders.Measurement matters. If you can measure it you can manage it.
From Leader’s Values to Shareholder ValueCorporate SectorLeader’s Values/ Behaviours Performance & Shareholder ValueCorporate CultureCompetitiveAdvantage &Resilience
From Leadership to Customer SatisfactionPublic SectorLeader’s values/ behaviours OrganisationalCultureCustomerSatisfactionMission Assurance
The Good News
The Good NewsFor the first time in human history we have the possibility of making the evolution of consciousness, conscious.  Why now? Because we can measure it, both at a personal, organisational and national level.And if you can measure it, you can manage it.Richard Barrett, The New Leadership Paradigm, 2011
Models and Tools for Measuring Personal, Organisational and National Consciousness 1998201119952006Personal Growth and TransformationOrganisational Growth and Transformation.Measuring Consciousness by Mapping ValuesImplementing Cultural Transformation.Eight Years Experience  of Measuring Personal and Organisational Consciousness and  Exploring Whole System ChangeA Text Book, Web Site, and Learning System for the 21stCentury Leader
Origins of the Cultural Transformation ToolsSelf ActualizationGrowth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.Know and UnderstandDeficiency 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. Abraham MaslowSelf-esteemLove & BelongingSafety Physiological
Maslow’s Needs to Barrett’s ConsciousnessSelf-Actualization Know and UnderstandKnow and UnderstandAbraham Maslow Richard BarrettSelf-esteemLove & BelongingSafety Physiological NeedsConsciousness
Maslow’s Needs to Barrett’s Consciousness 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.Know and UnderstandKnow and UnderstandSelf-esteemLove & BelongingSafety Physiological ConsciousnessNeeds
Stages in the Development of Personal ConsciousnessPositive Focus / Excessive Focus Service to Humanity and the PlanetDevoting your life in self-less service to your purpose and visionServiceCollaborating with PartnersWorking with others to make a positive difference by actively implementing your purpose and visionMaking a differenceFinding Personal MeaningUncovering your sense of purpose and creating a vision for the future you want to createInternal CohesionPersonal GrowthUnderstanding your deepest motivations, experiencing responsible freedom by letting go of your fearsTransformationSelf-worth Feeling a positive sense of pride in self and ability to manage your  life. Power, statusSelf-esteemBelongingFeeling a personal sense of belonging, feeling loved by self and others. Being liked, blameRelationshipFinancial Security & SafetyCreating a safe secure environment for self and significant others. Control, greed Survival
Stages in the Development of Organisational ConsciousnessPositive Focus / Excessive Focus Service To Humanity And The PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humilityServiceStrategic Alliances and PartnershipsEnvironmental awareness, community involvement, employee fulfillment, coaching/mentoringMaking a differenceBuilding Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Internal CohesionContinuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growthTransformationHigh PerformanceSystems, processes, quality, best practices, pride in performance. Bureaucracy, complacencySelf-esteemBelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blameRelationshipFinancial StabilityShareholder value, organisational growth, employee health, safety. Control, corruption, greedSurvival
Stages in the Development of National ConsciousnessPositive Focus / Excessive Focus Global SustainabilityHuman Rights, Future Generations, Ecological Resilience.ServiceStrategic Alliances with Other NationsRegional Collaboration, Environmental Awareness,  Quality Of Life.Making a differenceStrong Cohesive National IdentityTrust, Openness, Transparency, Shared Vision and Values, Fairness.Internal CohesionDemocratic ProcessesEquality, Freedom of Speech, Consensus, Adaptability, Accountability.TransformationInstitutional EffectivenessRule of Law, National Pride, Governmental  Efficiency. Bureaucracy, Elitism, Power Self-esteemSocial StabilityConflict Resolution, Racial Harmony, Rituals. Discrimination, IntoleranceRelationshipEconomic Stability Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence Survival
Placement of Values by LevelCurrent Culture 100 EmployeesTop Ten Values1. 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)ServiceMaking a difference6Internal CohesionTransformation425Self-esteem7810110Relationship93Survival
Distribution of Values by LevelCurrent Culture 100 Employees7Service6Making a difference5Internal Cohesion4TransformationCultural EntropySelf-esteem311%2Relationship1Survival
Individual Values 	Assessments (IVA)
What are Values?Values- A shorthand method of describing our individual and collective motivations and what is important to us.Values can be positive or potentially limiting.Positive Values: trust, creativity, passion, honesty, integrity, clarityPotentially Limiting Values: power, blame, greed, status, being liked
Personal ValuesPick ten values/behaviours that most reflect who you are, not who you desired to become.
Current Culture ValuesPick ten values/behaviours that most reflect how your organisation currently operates.
Desired Culture ValuesPick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.
What Henry believes is necessary for the company to achieve its full potentialHenryPersonal ValuesCurrent Culture ValuesDesired Culture ValuesLevel 7Level 6Level 5Level 4Level 3Level 2Level 1The values that are important to Henry in his  personal life.IRS (P)= 5-5-0 | IRS (L)= 0-0-0IROS (P)= 0-0-5-0 | IROS (L)= 1-3-1-0IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0MatchesPV - CC	0CC - DC	1PV - DC	1Health Index (PL)PV: 10-0CC: 5-5DC: 10-0Black Underline= PV & CCOrange= CC & DCP = PositiveL = Potentially Limiting 	I = Individual	O = OrganizationalOrange= PV, CC & DCBlue= PV & DC(white circle)	R = Relationship	S = SocietalHow Henry experiences the company - What is working well?  What is undermining the sustainability of the company.Values PlotCopyright 2009 Barrett Values CentreMay 2009
HenryTop current culture valuesTop desired culture valuesCurrent Culture ValuesDesired Culture ValuesFinanceFinanceClient RelationsFitnessEvolutionCultureSocietal ContributionSocietal ContributionTop current culture values assigned to Business Needs ScorecardTop desired culture values assigned to Business Needs ScorecardBusiness NeedsCopyright 2009 Barrett Values CentreMay 2009
Organisational (Cultural) 	Values Assessments
What is Culture?“The way things are done around here”The culture of an organisation or any group of individuals is a reflection of the values, beliefs and behaviours of leaders of the group and the legacy of past leaders.
What employees believe is necessary for the company to achieve its full potentialEngineering and Projects Company (339)Personal ValuesCurrent Culture ValuesDesired Culture ValuesLevel 7Level 6Level 5Level 4Level 3Level 2Level 1The values that are important to employees in their personal lives.IRS (P)= 6-4-0 | IRS (L)= 0-0-0IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0MatchesPV - CC	1CC - DC	4PV - DC	2Health Index (PL)PV: 10-0CC: 7-3DC: 10-0Black Underline= PV & CCOrange= CC & DC	P = Positive	L = Potentially Limiting 	I = Individual	O = OrganizationalOrange= PV, CC & DCBlue= PV & DC		(white circle)	R = Relationship	S = SocietalHow employees experience the company - What is working well?  What is undermining the sustainability of the company.Values PlotCopyright 2011 Barrett Values CentreFebruary 2011
Personal ValuesCurrent Culture ValuesDesired Culture ValuesEngineering and Projects Company (339)CCommon Good TransformationTSelf Interest STotal number of votes for all values at each levelCTS = 38-21-41Entropy = 3%CTS = 25-20-55Entropy = 23%CTS = 37-27-36Entropy = 2%C = Common GoodT = TransformationS = Self-InterestCultural Entropy % of Votes for Limiting ValuesPositive ValuesPotentially Limiting ValuesValues DistributionCopyright 2011 Barrett Values CentreFebruary 2011
Definition of Cultural EntropyCultural EntropyCultural entropy is the amount of energy consumed in unproductive work. It is a measure of the conflict, friction, and frustration that exists within an organisation or social system.
Cultural Entropy in OrganisationsCultural Entropy
Value JumpsValue JumpsVotes for Values in Current CultureVotes for Values in Desired Culture39
Espoused Values AnalysisEspoused Values AnalysisVotes for Values in Current CultureVotes for Values in Desired Culture40
Nedbank, South Africa: 	An Example of Cultural Evolution
Nedbank: Current Culture Evolution200520062007200820091. accountability2. client-driven3. client satisfaction  4. cost-consciousness5. community involvement 6. achievement7. teamwork8. employee recognition 9. being the best10. performance driven  1. client-driven2. accountability3. client satisfaction  4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation  1. accountability2. client-driven3. client satisfaction  4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery1. cost-consciousness2. profit 3. accountability4. community involvement  5. client-driven6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)1. cost-consciousness2. accountability3. client-driven4. client satisfaction  5. results orientation  6. performance driven7. profit8. bureaucracy (L)9. teamwork10. community involvement 4 matches6 matches4 matches5 matches3 matchesEntropy 14%Entropy 25%Entropy 13%Entropy 19%Entropy 17%
Nedbank: Cultural EvolutionEntropy ScoresEntropy reduction leads to improved performance—increased revenues, profits and share price. Working toward entropy of <10% will result in healthy functioning of the organisation and improvement of staff morale.Entropy risk bands<10%       Healthy functioning10-19%    Some problems requiring careful monitoring20-29%    Significant problems requiring attention30-39%    Crisis situation requiring immediate change40%>       Impending risk of implosion, bankruptcy or              failure
Cultural entropy represents the degree of dysfunction in a cultureCultural Entropy
Nedbank: Response Rate to Values Survey63.0% Response rate 50.4% 35.5% number of participants28.0% 20.2% 28,898 employees in 2009
Nedbank: Cultural EvolutionNedbank Staff Survey Scores
Nedbank: Financial Impact of Cultural EvolutionShare Price grewon average 20.4% (CAGR) per year from 2004 to 2007Revenue grew on average 16.9% (CAGR) per year from 2004 to 2007CAGR : Compound Annual Growth Rate
Values in OrganisationsTom Boardman Former CEO of Nedbank, South Africa
National and Regional Values 	Assessments
National/Regional Values Assessments DenmarkLatviaSwedenCanadaIcelandBhutanUSABelgiumAustraliaUK North West)BrazilFinlandVenezuelaArgentina Macedonia (Skopje) Spain (Extremadura)
Entropy Percentages by Nation (2007 – 2010)Cultural entropy is a measure of  the dysfunction in a social system
National Assessment Sweden: Group (1030)The values that citizens want to see more of in the country. Personal ValuesCurrent Culture ValuesDesired Culture ValuesLevel 7Level 6Level 5Level 4Level 3Level 2Level 1The values that are important to people in their personal lives.IROS (P)= 1-0-1-2 | IROS (L)= 2-1-3-0IROS (P)= 1-1-2-6 | IROS (L)= 0-0-0-0IRS (P)= 5-5-0 | IRS (L)= 0-0-0MatchesPV - CC	0CC - DC	2PV - DC	0Health Index (PL)PV: 10-0CC: 4-6DC: 10-0Black Underline= PV & CCOrange= CC & DC	P = Positive	L = Potentially Limiting 	I = Individual	O = OrganizationalOrange= PV, CC & DCBlue= PV & DC		(white circle)	R = Relationship	S = SocietalHow citizens experience the values in Sweden.Values PlotCopyright 2011 Barrett Values CentreMarch 2011
Personal ValuesCurrent Culture ValuesDesired Culture ValuesNational Assessment Sweden: Group (1030)CTSCTS = 42-21-37Entropy = 5%CTS = 25-16-59Entropy = 42%CTS = 41-24-35Entropy = 2%C = Common GoodT = TransformationS = Self-InterestPositive ValuesPotentially Limiting ValuesValues DistributionCopyright 2011 Barrett Values CentreMarch 2011
Cultural Entropy Impacts in Nations Cultural Entropy in Nations
To get a copy of this presentation:	http://www.slideshare.net/BarrettValuesOther relevant  Web sites:www.richardbarrett.net

Sustainability leadership, values and culture

  • 1.
    Sustainability: Leadership, Valuesand Culture Richard BarrettMay 2011
  • 2.
  • 3.
    Global Sustainability IssuesPollutionGlobalTerrorismGlobalEconomyEnergy ResiliencePandemicsNatural DisastersThe significant problems we face cannot be solved at the same level of thinking that created them. Climate ChangeSpecies ExtinctionFood Resilience WaterShortagesWaste DisposalPoverty Reduction
  • 4.
    The Sustainability ChallengeTheproblems of existence have become global but the decision-making structures we have for dealing with them are national.We cannot move forward without a high degree of global cooperation.
  • 5.
    A NewLeadership ParadigmThe paradigm that divides the world into the social sector, the private sector, and the governmental sector is not working. It creates artificial barriers. We are each a constituent of the problem, so we have to combine our forces, our efforts, and our competencies. Tex Gunning, Unilever, Best Foods AsiaPrivate SectorSocial SectorPublic Sector
  • 6.
    A NewLeadership ParadigmAverage leaders take care of themselves and their families. Good leaders take care of themselves, their families, and some of the community. Great leaders—and great companies—not only take care of all stakeholders but also want to change the world. They want to leave the world better than they found it.Tex Gunning, Unilever, Best Foods AsiaPrivate SectorSocial SectorPublic Sector
  • 7.
    Sustainability and theNew Leadership ParadigmOur Business Leaders need to recognise that:Business is a wholly owned subsidiary of society, and society is wholly owned subsidiary of the environment. If we lose our environment and our life-support systems, our society will perish. If we lose our society, we will lose our economy and our businesses will perish too.
  • 8.
    What this meansfor Business and PoliticsBusiness leaders need to work with their competitors, political and societal leaders to define a framework of policies that support the evolution of our global society by developing industry charters that regulate the rules of competition between companies in a way that supports the societal common good.Political leaders must give up their parochial self-interest andexaggerated false belief in national sovereignty learn how to solve the problems of existence through international cooperation and collaboration.Building a sustainable future for everyone is not just societal imperative. It is business imperative, too.
  • 9.
    A New LeadershipParadigmUltimately, the problems of existence we face are issues of consciousness.We will only get beyond this stage of our collective evolution if we can put aside our narrow self-interest, focus on the whole system, and build a values-driven framework of policies that support the common good.Richard Barrett, The New Leadership Paradigm, 2011
  • 10.
    A NewLeadership ParadigmWE NEED A NEW LEADERSHIP PARADIGMA shift in focus from “I” to “we”A shift from self-interest to the common goodA shift from being the best in the world to the best for the world.
  • 11.
    The Three Mantrasof Culture Change
  • 12.
    The Three Mantrasof Culture ChangeCultural Capital is the new frontier of competitive advantage.Organisational transformation begins with the personal transformation of the leaders.Measurement matters. If you can measure it you can manage it.
  • 13.
    From Leader’s Valuesto Shareholder ValueCorporate SectorLeader’s Values/ Behaviours Performance & Shareholder ValueCorporate CultureCompetitiveAdvantage &Resilience
  • 14.
    From Leadership toCustomer SatisfactionPublic SectorLeader’s values/ behaviours OrganisationalCultureCustomerSatisfactionMission Assurance
  • 15.
  • 16.
    The Good NewsForthe first time in human history we have the possibility of making the evolution of consciousness, conscious. Why now? Because we can measure it, both at a personal, organisational and national level.And if you can measure it, you can manage it.Richard Barrett, The New Leadership Paradigm, 2011
  • 17.
    Models and Toolsfor Measuring Personal, Organisational and National Consciousness 1998201119952006Personal Growth and TransformationOrganisational Growth and Transformation.Measuring Consciousness by Mapping ValuesImplementing Cultural Transformation.Eight Years Experience of Measuring Personal and Organisational Consciousness and Exploring Whole System ChangeA Text Book, Web Site, and Learning System for the 21stCentury Leader
  • 18.
    Origins of theCultural Transformation ToolsSelf ActualizationGrowth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.Know and UnderstandDeficiency 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. Abraham MaslowSelf-esteemLove & BelongingSafety Physiological
  • 19.
    Maslow’s Needs toBarrett’s ConsciousnessSelf-Actualization Know and UnderstandKnow and UnderstandAbraham Maslow Richard BarrettSelf-esteemLove & BelongingSafety Physiological NeedsConsciousness
  • 20.
    Maslow’s Needs toBarrett’s Consciousness 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.Know and UnderstandKnow and UnderstandSelf-esteemLove & BelongingSafety Physiological ConsciousnessNeeds
  • 21.
    Stages in theDevelopment of Personal ConsciousnessPositive Focus / Excessive Focus Service to Humanity and the PlanetDevoting your life in self-less service to your purpose and visionServiceCollaborating with PartnersWorking with others to make a positive difference by actively implementing your purpose and visionMaking a differenceFinding Personal MeaningUncovering your sense of purpose and creating a vision for the future you want to createInternal CohesionPersonal GrowthUnderstanding your deepest motivations, experiencing responsible freedom by letting go of your fearsTransformationSelf-worth Feeling a positive sense of pride in self and ability to manage your life. Power, statusSelf-esteemBelongingFeeling a personal sense of belonging, feeling loved by self and others. Being liked, blameRelationshipFinancial Security & SafetyCreating a safe secure environment for self and significant others. Control, greed Survival
  • 22.
    Stages in theDevelopment of Organisational ConsciousnessPositive Focus / Excessive Focus Service To Humanity And The PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humilityServiceStrategic Alliances and PartnershipsEnvironmental awareness, community involvement, employee fulfillment, coaching/mentoringMaking a differenceBuilding Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Internal CohesionContinuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growthTransformationHigh PerformanceSystems, processes, quality, best practices, pride in performance. Bureaucracy, complacencySelf-esteemBelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blameRelationshipFinancial StabilityShareholder value, organisational growth, employee health, safety. Control, corruption, greedSurvival
  • 23.
    Stages in theDevelopment of National ConsciousnessPositive Focus / Excessive Focus Global SustainabilityHuman Rights, Future Generations, Ecological Resilience.ServiceStrategic Alliances with Other NationsRegional Collaboration, Environmental Awareness, Quality Of Life.Making a differenceStrong Cohesive National IdentityTrust, Openness, Transparency, Shared Vision and Values, Fairness.Internal CohesionDemocratic ProcessesEquality, Freedom of Speech, Consensus, Adaptability, Accountability.TransformationInstitutional EffectivenessRule of Law, National Pride, Governmental Efficiency. Bureaucracy, Elitism, Power Self-esteemSocial StabilityConflict Resolution, Racial Harmony, Rituals. Discrimination, IntoleranceRelationshipEconomic Stability Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence Survival
  • 24.
    Placement of Valuesby LevelCurrent Culture 100 EmployeesTop Ten Values1. 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)ServiceMaking a difference6Internal CohesionTransformation425Self-esteem7810110Relationship93Survival
  • 25.
    Distribution of Valuesby LevelCurrent Culture 100 Employees7Service6Making a difference5Internal Cohesion4TransformationCultural EntropySelf-esteem311%2Relationship1Survival
  • 26.
  • 27.
    What are Values?Values-A shorthand method of describing our individual and collective motivations and what is important to us.Values can be positive or potentially limiting.Positive Values: trust, creativity, passion, honesty, integrity, clarityPotentially Limiting Values: power, blame, greed, status, being liked
  • 28.
    Personal ValuesPick tenvalues/behaviours that most reflect who you are, not who you desired to become.
  • 29.
    Current Culture ValuesPickten values/behaviours that most reflect how your organisation currently operates.
  • 30.
    Desired Culture ValuesPickten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.
  • 31.
    What Henry believesis necessary for the company to achieve its full potentialHenryPersonal ValuesCurrent Culture ValuesDesired Culture ValuesLevel 7Level 6Level 5Level 4Level 3Level 2Level 1The values that are important to Henry in his personal life.IRS (P)= 5-5-0 | IRS (L)= 0-0-0IROS (P)= 0-0-5-0 | IROS (L)= 1-3-1-0IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0MatchesPV - CC 0CC - DC 1PV - DC 1Health Index (PL)PV: 10-0CC: 5-5DC: 10-0Black Underline= PV & CCOrange= CC & DCP = PositiveL = Potentially Limiting I = Individual O = OrganizationalOrange= PV, CC & DCBlue= PV & DC(white circle) R = Relationship S = SocietalHow Henry experiences the company - What is working well? What is undermining the sustainability of the company.Values PlotCopyright 2009 Barrett Values CentreMay 2009
  • 32.
    HenryTop current culturevaluesTop desired culture valuesCurrent Culture ValuesDesired Culture ValuesFinanceFinanceClient RelationsFitnessEvolutionCultureSocietal ContributionSocietal ContributionTop current culture values assigned to Business Needs ScorecardTop desired culture values assigned to Business Needs ScorecardBusiness NeedsCopyright 2009 Barrett Values CentreMay 2009
  • 33.
  • 34.
    What is Culture?“Theway things are done around here”The culture of an organisation or any group of individuals is a reflection of the values, beliefs and behaviours of leaders of the group and the legacy of past leaders.
  • 35.
    What employees believeis necessary for the company to achieve its full potentialEngineering and Projects Company (339)Personal ValuesCurrent Culture ValuesDesired Culture ValuesLevel 7Level 6Level 5Level 4Level 3Level 2Level 1The values that are important to employees in their personal lives.IRS (P)= 6-4-0 | IRS (L)= 0-0-0IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0MatchesPV - CC 1CC - DC 4PV - DC 2Health Index (PL)PV: 10-0CC: 7-3DC: 10-0Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = OrganizationalOrange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = SocietalHow employees experience the company - What is working well? What is undermining the sustainability of the company.Values PlotCopyright 2011 Barrett Values CentreFebruary 2011
  • 36.
    Personal ValuesCurrent CultureValuesDesired Culture ValuesEngineering and Projects Company (339)CCommon Good TransformationTSelf Interest STotal number of votes for all values at each levelCTS = 38-21-41Entropy = 3%CTS = 25-20-55Entropy = 23%CTS = 37-27-36Entropy = 2%C = Common GoodT = TransformationS = Self-InterestCultural Entropy % of Votes for Limiting ValuesPositive ValuesPotentially Limiting ValuesValues DistributionCopyright 2011 Barrett Values CentreFebruary 2011
  • 37.
    Definition of CulturalEntropyCultural EntropyCultural entropy is the amount of energy consumed in unproductive work. It is a measure of the conflict, friction, and frustration that exists within an organisation or social system.
  • 38.
    Cultural Entropy inOrganisationsCultural Entropy
  • 39.
    Value JumpsValue JumpsVotesfor Values in Current CultureVotes for Values in Desired Culture39
  • 40.
    Espoused Values AnalysisEspousedValues AnalysisVotes for Values in Current CultureVotes for Values in Desired Culture40
  • 41.
    Nedbank, South Africa: An Example of Cultural Evolution
  • 43.
    Nedbank: Current CultureEvolution200520062007200820091. accountability2. client-driven3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork8. employee recognition 9. being the best10. performance driven 1. client-driven2. accountability3. client satisfaction 4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation 1. accountability2. client-driven3. client satisfaction 4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery1. cost-consciousness2. profit 3. accountability4. community involvement 5. client-driven6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)1. cost-consciousness2. accountability3. client-driven4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork10. community involvement 4 matches6 matches4 matches5 matches3 matchesEntropy 14%Entropy 25%Entropy 13%Entropy 19%Entropy 17%
  • 44.
    Nedbank: Cultural EvolutionEntropyScoresEntropy reduction leads to improved performance—increased revenues, profits and share price. Working toward entropy of <10% will result in healthy functioning of the organisation and improvement of staff morale.Entropy risk bands<10% Healthy functioning10-19% Some problems requiring careful monitoring20-29% Significant problems requiring attention30-39% Crisis situation requiring immediate change40%> Impending risk of implosion, bankruptcy or failure
  • 45.
    Cultural entropy representsthe degree of dysfunction in a cultureCultural Entropy
  • 46.
    Nedbank: Response Rateto Values Survey63.0% Response rate 50.4% 35.5% number of participants28.0% 20.2% 28,898 employees in 2009
  • 47.
  • 48.
    Nedbank: Financial Impactof Cultural EvolutionShare Price grewon average 20.4% (CAGR) per year from 2004 to 2007Revenue grew on average 16.9% (CAGR) per year from 2004 to 2007CAGR : Compound Annual Growth Rate
  • 49.
    Values in OrganisationsTomBoardman Former CEO of Nedbank, South Africa
  • 50.
    National and RegionalValues Assessments
  • 51.
    National/Regional Values AssessmentsDenmarkLatviaSwedenCanadaIcelandBhutanUSABelgiumAustraliaUK North West)BrazilFinlandVenezuelaArgentina Macedonia (Skopje) Spain (Extremadura)
  • 52.
    Entropy Percentages byNation (2007 – 2010)Cultural entropy is a measure of the dysfunction in a social system
  • 53.
    National Assessment Sweden:Group (1030)The values that citizens want to see more of in the country. Personal ValuesCurrent Culture ValuesDesired Culture ValuesLevel 7Level 6Level 5Level 4Level 3Level 2Level 1The values that are important to people in their personal lives.IROS (P)= 1-0-1-2 | IROS (L)= 2-1-3-0IROS (P)= 1-1-2-6 | IROS (L)= 0-0-0-0IRS (P)= 5-5-0 | IRS (L)= 0-0-0MatchesPV - CC 0CC - DC 2PV - DC 0Health Index (PL)PV: 10-0CC: 4-6DC: 10-0Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = OrganizationalOrange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = SocietalHow citizens experience the values in Sweden.Values PlotCopyright 2011 Barrett Values CentreMarch 2011
  • 54.
    Personal ValuesCurrent CultureValuesDesired Culture ValuesNational Assessment Sweden: Group (1030)CTSCTS = 42-21-37Entropy = 5%CTS = 25-16-59Entropy = 42%CTS = 41-24-35Entropy = 2%C = Common GoodT = TransformationS = Self-InterestPositive ValuesPotentially Limiting ValuesValues DistributionCopyright 2011 Barrett Values CentreMarch 2011
  • 55.
    Cultural Entropy Impactsin Nations Cultural Entropy in Nations
  • 56.
    To get acopy of this presentation: http://www.slideshare.net/BarrettValuesOther relevant Web sites:www.richardbarrett.net
  • 57.
  • 58.
  • 59.