ctt measuring culture and managing performance
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Values Alignment and Cultural Transformation ToolsTRANSCRIPT
www.valuescentre.com 1www.valuescentre.com
Measuring Culture and Managing Performance
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Why Culture?
Why does culture have such an impact on the performance and success of
organisations?
What part do values play in building culture?
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Cultural capital is the new frontier of competitive
advantage.
New principles of business
Principle 1: Principle 1:
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1. client satisfaction 2. making a difference3. integrity 4. teamwork 5. humour/fun 6. quality 7. ethics8. financial stability
1. blame L2. short term focus L3. internal competition L4. buck passing L5. risk averse L6. customer satisfaction 7. information hoarding L8. profit
What is culture?
Talent Financial viability
Excellence Ethics Resilience
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Cultural entropy & negative impact on performance
Cultural EntropyEntropy is a measure of dysfunctiondysfunction.
It shows the degree of non-productive or destructive energy in an organisation.
e.g. blame, manipulation, internal competition, corruption
Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008
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New principles of business
Organisational transformation begins with the personal transformation
of the leaders.
Principle 2: Principle 2:
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Cultural evolution begins with personal evolution
The Culture of an organisation is a reflection of leadership values and behaviours
LVA 27 Assessors
continuous learning 11 Level 4
generosity 11 Level 5
commitment 10 Level 5
positive attitude 10 Level 5
vision 10 Level 7
ambitious 9 Level 3
making a difference 8 Level 6
results orientation 8 Level 3
honesty 7 Level 5
integrity 7 Level 5
intuition 7 Level 6
leadership developer 7 Level 6
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
CVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
1. customer satisfaction 16 Level 2
2. commitment 11 Level 5
3. continuous learning 11 Level 4
4. making a difference 11 Level 6
5. global perspective 9 Level 3
6. mentoring 9 Level 6
7. enthusiasm 8 Level 5
8. leadership development 8 Level 6
9. integrity 7 Level 5
10. open communication 7 Level 2
11. optimism 7 Level 5
12. shared values 7 Level 5
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Best employers focus on employee needs
Best Employers Values
Employee recognition
Teamwork
Coaching/mentoring
Balance (home/work)
The distinguishing feature of the best employers was their focus on employee needs and the employees’ experience.
The following table shows the values that were present in the top ten current culture values of the best companies, that
were not present in the worst companies.
The distinguishing feature of the best employers was their focus on employee needs and the employees’ experience.
The following table shows the values that were present in the top ten current culture values of the best companies, that
were not present in the worst companies.
Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008
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Fortune’s Best Companies to Work For
A portfolio of the top twenty publicly listed best companies to work for in the USA in 2008 would have returned an average annualized return of 16.74% over the last ten years – compared to 2.83% for the S&P 500.
S&P 500
Top 20- best companies to work
for in the USA
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New principles of business
Measurement matters. If you can measure it,
you can manage it.
Principle 3: Principle 3:
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Measuring culture
Who are the people the people in your organisation? What is most important to them?
What kind of cultureculture and behaviours shape their work experience?
o What is working well?o What is undermining performance?
Employee fulfilment, customer satisfaction, organisational success
What valuesvalues and behaviours do they see as necessary for optimal organisational performanceoptimal organisational performance?
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19% ENTROPY
An example of cultural evolution
1. profit2. cost-consciousness3. accountability 4. community involvement 5. client-driven 6. bureaucracy (L)7. process-driven8. client satisfaction9. results orientation 10. silo mentality (L)
2005
1. accountability 2. cost-consciousness3. client-driven 4. client satisfaction 5. results orientation 6. profit7. performance driven 8. bureaucracy (L) 9. teamwork 10. community involvement
1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. profit6. performance driven 7. community involvement 8. being the best 9. achievement10. results orientation
2006 2007
25%25% ENTROPY 17% ENTROPY
2008
1. accountability2. client-driven 3. client satisfaction 4. community involvement5. achievement6. cost consciousness7. teamwork8. performance driven9. being the best10. delivery
14% 14% ENTROPYENTROPY
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Powerful metrics enable leaders to measure and manage cultures
Share Price grew on average 38%38%
per year from 2004 to 2007
Share Price
Revenue
Revenue grew on average 20% 20%
per year from 2004 to 2007
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Values-Driven Results
Staff turnover from 24% to 15%
HospitalHospital
Headline earnings 300million to 2.2billion rand
Engineering CompanyEngineering Company
Employee satisfaction to 85%, from 49% over a five years
BankBank
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Why Culture?
Culture is a fundamental driver of operational and financial performance
Mapping the values of your culture provides a detailed roadmap for building a sustainable, high
performance organisation
The culture of an organisation is a reflection of the leader’s values and behaviours.
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Measuring Culture
The Cultural Transformation Tools providepowerful metrics which enable leaders
to actively measure and manage cultures.
We make the intangible, tangible.We link culture to performance.
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Cultural Transformation Models and Tools Overview
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Cultural Transformation Model
A framework for understanding how
individuals, teams and organisations
develop and grow
•Seven Levels of Personal
Consciousness
•Seven Levels of Organisational
Consciousness
•Seven Levels of Leadership
Consciousness
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Maslow’s Needs to Barrett’s Consciousness
Know and Understand
Physiological
Safety
Love & Belonging
Self-esteemAbraham Maslow
Know and Understand
Needs Consciousness
Self-Actualization
Richard Barrett
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Cultural Transformation Tools
Assessment instruments for measuring the consciousness and mapping the values of individuals, teams and organisations
• Individual Values Assessment Team Values Assessment Cultural Values Assessment Leadership Values Assessment Merger and Acquisition Compatibility Assessment Client Assessment of Corporate Values Coach’s Values Assessment School or Classroom Values Assessment Community or National Values Assessment
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Seven Levels of Consciousness
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Personal
Organisational
Survival Consciousness
• Health• Financial Stability
• Profit• Shareholder value• Employee health/safety
Control…Exploitation
PRIMARY FOCUS: Foundations for Survival
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Personal
Organisational
Relationship Consciousness
• Family• Friendship
• Customer satisfaction• Open communication• Respect
Blame…Manipulation
PRIMARY FOCUS: Relationships & connectivity
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Personal
Organisational
Self-esteem Consciousness
• Self-confidence• Success
• Efficiency• Productivity• Quality
Bureaucracy…Complacency
PRIMARY FOCUS: Self-esteem & excellence
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Personal
Organisational
Transformation
• Courage• Personal growth
• Innovation• Diversity• Teamwork
PRIMARY FOCUS: Learning & continuous improvement
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Personal
Organisational
Internal Cohesion Consciousness
• Trust• Enthusiasm
• Integrity• Cooperation• Shared vision
PRIMARY FOCUS: Alignment & authenticity
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Personal
Organisational
Making a Difference Consciousness
• Mentoring• Volunteer work
• Employee fulfillment• Environmental awareness• Strategic alliances
PRIMARY FOCUS: Collaboration
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Personal
Organisational
Service Consciousness
• Wisdom• Humility
• Ethics• Future Generations• Long-Term Perspective
PRIMARY FOCUS: Selfless Service
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
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Full-Spectrum Consciousness
Service
Making a Difference
Internal Cohesion
Transformation
Self-Esteem
Relationship
Survival
Long-term viability
Collaboration
Shared vision
Continuous Improvement
Best Practices
Customer Satisfaction
Financial Stability
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Alignment of Employee & Organisational Consciousness
CorporateConsciousness
Difficult to hire and keep people who are here
Individual Consciousness
When organisations are here....
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CBT Staff (154)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
PL= 10-0 | IRS (P)= 7-3-0 | IRS (L)= 0-0-0 PL= 4-6 | IROS (P)= 0-0-4-0 | IROS (L)= 1-0-5-0 PL= 10-0 | IROS (P)= 1-2-7-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 0CC - DC 1PV - DC 1
1. honesty 61 Level 5
2. commitment 60 Level 5
3. humor/fun 53 Level 5
4. reliability 51 Level 3
5. enthusiasm 44 Level 5
6. adaptability 43 Level 4
7. family 37 Level 2
8. integrity 34 Level 5
9. trust 34 Level 5
10. balance (home/work) 32 Level 4
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. cost reduction 76 Level 1
2. bureaucracy (L) 66 Level 3
3. confusion (L) 61 Level 3
4. profit 54 Level 1
5. information hoarding (L) 47 Level 3
6. short-term focus (L) 47 Level 1
7. hierarchical (L) 45 Level 3
8. results orientation 39 Level 3
9. client focus 38 Level 2
10. empire building (L) 36 Level 2
1. client satisfaction 66 Level 2
2. employee fulfillment 65 Level 6
3. continuous improvement 58 Level 4
4. effective communication 56 Level 2
5. teamwork 50 Level 4
6. financial stability 44 Level 1
7. adaptability 42 Level 4
8. client focus 38 Level 2
9. professionalism 35 Level 3
10. vision 35 Level 7
Values Plot Copyright 2008 Barrett Values Centre August 2008
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Cost of limiting values
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Cost of Limiting Values
• Short-term Focus £3,489,818• Confusion £3,178,636• Bureaucracy (unnecessary) £1,799,618• Empire Building £1,764,682• Information Hoarding £1,634,045• Sickness and Leavers £834,225• Hierarchical £624,327• Long Hours £187,909• Total Entropy (potential business value) £13,504,261
Based on staff’s perception of lost productivity and opportunity. Annual income £33,000,000 and loss of £500,000 in 2000.
Investment Leadership – Jim Ware’s book contains data showing the comparison between healthy and unhealthy cultures and bottom line performance.
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Aligned Organization – Sterling Bank (979)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
PL= 10-0 | IRS (P)= 5-5-0 | IRS (L)= 0-0-0 PL= 10-0 | IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 PL= 10-0 | IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0
Matches
PV - CC 3CC - DC 8PV - DC 2
1. honesty 532 Level 5
2. commitment 498 Level 5
3. family/friendship 479 Level 2
4. reliability 387 Level 3
5. integrity 321 Level 5
6. friendliness 294 Level 2
7. responsibility 283 Level 4
8. humor/fun 276 Level 5
9. courtesy 263 Level 2
10. trust 255 Level 5
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. customer service 504 Level 6
2. teamwork 487 Level 4
3. customer satisfaction 476 Level 2
4. community involvement
399 Level 6
5. vision 373 Level 7
6. organizational growth 296 Level 1
7. being the best 285 Level 3
8. integrity 275 Level 5
9. commitment 261 Level 5
10. friendliness 252 Level 2
1. teamwork 513 Level 4
2. customer satisfaction 491 Level 2
3. customer service 489 Level 6
4. employee fulfillment 477 Level 6
5. community involvement
430 Level 6
6. integrity 337 Level 5
7. commitment 301 Level 5
8. vision 295 Level 7
9. being the best 288 Level 3
10. accessibility 274 Level 2
Values Plot Copyright 2008 Barrett Values Centre August 2008
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Whole Systems ChangeCultural Evolution
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Cultural Evolution – Whole System Change
Personality
Individual values and beliefs
Character
Individual behaviors
Culture
Group values and beliefs
Social Structures
Group behaviors
ValuesValues BehaviorsBehaviors
Group Cohesion – Capacity for Collective ActionGroup Cohesion – Capacity for Collective Action
Personal Alignment
Structural Alignment
Values Alignment
Mission Alignment
IndividualIndividual
CollectiveCollective
BarrettValues Centre
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Signature Workshop
Implementing Implementing Whole-SystemWhole-System
ChangeChange
Implementing Implementing Whole-SystemWhole-System
ChangeChange
20062006
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6. Surveyof Key Drivers
6. Surveyof Key Drivers
Whole System Change: Preparation Phase
3. Choose ValuesSelect Behaviors3. Choose ValuesSelect Behaviors
2. Create Visionand Mission
2. Create Visionand Mission
4. Evaluate CulturalResilience
4. Evaluate CulturalResilience
7. DevelopImplementation
Strategy
7. DevelopImplementation
Strategy
8. Develop Objectives andKey Performance Indicators8. Develop Objectives andKey Performance Indicators
5. Develop Compelling Reasons for Change5. Develop Compelling Reasons for Change
1. Business Assessment1. Business Assessment
1. CTT Values Assessment
1. CTT Values Assessment
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Why?
Whole System Change: Implementation Phase
9. StructuralAlignment
9. StructuralAlignment
New employee/executive selection
New employee/executive orientation
Employee/executiveperformance evaluation
Employee/executivepromotion criteria
Talent selection and development programs
Management development programs
Leadership development programs
11. Personal Alignment Programs
(Executive Population)
11. Personal Alignment Programs
(Executive Population)
13. Business or Functional UnitGroup Cohesion
Programs
13. Business or Functional UnitGroup Cohesion
Programs
14. ValuesAwareness Program
for Managers
14. ValuesAwareness Program
for Managers
Specifically designed for executive, managerial
and employee populationsincluding
values-based business simulations,
ethical dilemmas, theater,
etc.
15. Values Management of Organization, Business Units and Sub-Units and Behavior Alignment of Executive Population
15. Values Management of Organization, Business Units and Sub-Units and Behavior Alignment of Executive Population
10. LVA Coaching and Action Plans(Executive Group – CEO and Business Unit Leaders)
10. LVA Coaching and Action Plans(Executive Group – CEO and Business Unit Leaders)
12. LVA Coaching and Action Plans (Executive Population)
12. LVA Coaching and Action Plans (Executive Population)
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Stages in the Development of Organisational Consciousness
ServiceSERVICE TO HUMANITY AND THE PLANETSocial responsibility, future generations, long-term perspective, ethics, compassion, humility
External CohesionSTRATEGIC ALLIANCES AND PARTNERSHIPSCollaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring
Internal CohesionBUILDING CORPORATE COMMUNITYShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
TransformationCONTINUOUS RENEWAL AND LEARNINGAccountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth
Self-EsteemHIGH PERFORMANCESystems, processes, quality, best practices, pride in performance,
RelationshipEMPLOYEE RECOGNITIONLoyalty, open communication, customer satisfaction,friendship,
SurvivalFINANCIAL STABILITYShareholder value, profit, organisational growth, employee health and safety
Positive Focus / Excessive FocusExcessive Focus
Control, Corruption, Greed
Bureaucracy, Complacency
Manipulation, Blame
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Values Based Decision Making
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Five Modes of Decision Making
Based on past: DNA encoded reaction. Action precedes thought.
Based on past: Learned reaction. Action precedes thought.
Based on past: Considered response. Pause between event and response.
Future orientation. Consciously creating the future.
Based on what wants to emerge.Tap into the collective unconsciousINTUITIONINTUITIONINTUITIONINTUITION
INSTINCTSINSTINCTS
SUB CONSCIOUS BELIEFSSUB CONSCIOUS BELIEFSSUB CONSCIOUS BELIEFSSUB CONSCIOUS BELIEFS
CONSCIOUS BELIEFSCONSCIOUS BELIEFSCONSCIOUS BELIEFSCONSCIOUS BELIEFS
VALUESVALUESVALUESVALUES
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Cultural Entropy
Cultural entropy represents the degree of dysfunction in a culture
Entropy Impact
<10% Prime: Healthy Functioning
11-19% Minor Issues: Requiring cultural and/or structural adjustment
20-29% Significant Issues: Requiring cultural and structural transformation, and leadership coaching
30-39% Serious Issues: Requiring cultural and structural transformation, leadership mentoring/coaching, and leadership development
40-49% Critical Issues: Requiring cultural and structural transformation, selective changes in leadership, leadership mentoring/coaching and leadership development
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Barrett Values Centre Vision, Mission and Values
Internal External
Vision To be a global resource for
the evolution of human Consciousness
To create a values-driven society
MissionTo build a worldwide network of change agents committed
to cultural transformation
To support leaders in building values-driven organizations
Values: Employee fulfilment, commitment, customer satisfaction, shared vision