www.valuescentre.com 1www.valuescentre.comwww.valuescentre.com

Values, Culture & Leadership Consciously Creating the Future

phil@valuescentre.com – March 2011

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Presentation Description

• This presentation was designed for a two hour Master Class on the topic of Values, Culture and leadership at the EMCC Annual Conference, London, 30th March 2011.

• Master Class Delivered by Phil Clothier. CEO Barrett Values Centre

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The purpose of our lives is to be happy Dalai

Lama

Happiness is the extent to which you live in love, as opposed to living in fear. Phil

Clothier

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Values – The building blocks of culture

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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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Employee Value Proposition

1. long hours (L)2. being the best3. cost reduction (L)4. poor communication (L)5. client collaboration6. bureaucracy (L)7. confusion (L)8. arrogance (L)9. hierarchy (L)10. silo mentality (L)

Cultural Entropy 37%

1. accountability2. customer satisfaction 3. being the best 4. commitment 5. compassion 6. continuous improvement 7. integrity8. teamwork 9. cost effectiveness10. respect

Cultural Entropy 9%

Core Valuesclient collaborationteamworkdeliverymeritocracyintegrity

Core Values (I-Care)integritycompassionaccountabilityrespectexcellence

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Values under Pressure

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title

title

title

title

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Iceland

Entropy 54%

August 2007

2007

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Latvia

Latvia Government dissolved after failure to

agree budget - 2007

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Latvian and Russian Desired Culture

1. caring for elderly 293 Level 4

2. economic growth 279 Level 1

3. concern for future generations

252 Level 7

4. job security 214 Level 1

5. environmental awareness

186 Level 6

6. caring for the disadvantaged

172 Level 4

7. affordable housing 165 Level 1

8. education 148 Level 4

9. honesty 142 Level 5

10. prosperity 141 Level 1

1. economic growth 155 Level 1

2. caring for elderly 150 Level 4

3. affordable housing 99 Level 1

4. concern for future generations

90 Level 7

5. job security 89 Level 1

6. social justice 85 Level 4

7. caring for the disadvantaged

84 Level 4

8. environmental awareness 77 Level 6

9. human rights 74 Level 7

10. material wealth 73 Level 1

Latvian desired culture Russian desired culture

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title

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The Value of Values

Latvia Sustainable Development Strategy until 2030http://www.latvija2030.lv/page/320

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Organisational transformation starts

with the personal transformation of the

leaders

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It all starts with me

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Values Beliefs & Behaviours

AccountabilityAchievementBalance (home/work)CommitmentCompassionCompetenceContinuous learningCooperationCourageCreativityEnthusiasmEfficiencyEthics

ExcellenceFairnessFamilyFinancial gainFriendshipsFuture generationsHealthHonestyHumor/funIndependenceIntegrityInitiativeIntuition

Making a differenceOpen communicationOpennessPersonal fulfillmentPersonal growthPowerRespectResponsibilityRisk-takingSelf-disciplineSuccessTrustWisdom

1) Choose three values that are important to you in your life2) What are your beliefs that support these values3) What behaviours do you exhibit that support these values

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Five Modes of Decision MakingSix

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Six 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 unconscious

Intuition

Instincts

Sub Conscious Beliefs

Conscious Beliefs

Values

Your soul is calling. You need to do this!Inspiration

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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, clarity

Potentially Limiting Values: power, blame, greed, status, being liked

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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.

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Maslow’s Needs to Barrett’s Consciousness

Know and Understand

Physiological

Safety

Love & Belonging

Self-esteemAbraham Maslow

Know and Understand

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

Self-Actualization

Richard Barrett

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Level 1

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Is your organisation financially stable?

Does it set fair prices and pay?

Are the working conditions safe and comfortable?

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Level 2

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Survival

Relationship

When people walk into the office each day do they smile and greet each other warmly?

Is there a healthy sense of respect and do customers feel well looked-after?

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Level 3

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Survival

Relationship

Does the organisation invests in high performing systems?

Are people trained to be excellent at doing their jobs?

Are they proud to tell others who they work for?

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Level 4

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Survival

Relationship

Is your company moving forward through innovation, adaptability and continuous improvement?

Do your staff feel empowered and have the courage to ask the tough questions?

Is it OK to make mistakes?

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Level 5

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Survival

Relationship

Do your people feel a sense of purpose and are they inspired by the vision?

Are the values demonstrated by the senior team in their decision making?

Are the high levels of trust, team spirit and fun?

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Level 6Consciousness

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Survival

Relationship

To what extent is there investment in leadership development, coaching and mentoring?

Does the organisation focus on making a difference, sustainability and environmental awareness?

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Level 7

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Survival

Relationship

In your company is ethics about compliance or doing what people believe is right, deep down in their hearts?

Is there a knowing that by doing their jobs, people are serving society & future generations?

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7 Levels of Organisational Consciousness

Positive Focus / Excessive Focus

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship

SurvivalFinancial StabilityShareholder value, organisational growth, employee health, safety. Control, corruption, greed

Employee RecognitionLoyalty, 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 Internal CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency

Strategic Alliances and PartnershipsEnvironmental awareness, community involvement, employee fulfilment, coaching/mentoring

Service To Humanity and the PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humility

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7 Levels & Sustainability

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival Profit - Economic stability

Harmonious relationships

Organisational effectiveness

Continuous renewal

Cultural Alignment

Planet - Environment

People - Society

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Where are you?

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Survey Questions

1) Personal ValuesPlease select ten of the following values/behaviours that most reflect who you are, not who you desire to become.

2) Current Organisational Culture ValuesPlease select ten of the following values/behaviours that most reflect how your organisation currently operates.

3) Desired Organisational Culture ValuesPlease select ten of the following values/behaviours that you would desire for your organisation to achieve it's highest performance.

47www.valuescentre.com

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

• 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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Estimated Cost of Entropy – National GDP

GDP$US,000

Cultural Entropy

Estimated cost to the national

economy $US,000

USA 14,200,000,000 58% 19,609,000,000

UK 2,650,000,000 43% 1,999,000,000

Canada 1,400,000,000 32% 658,000,000

Belgium 498,000,000 53% 561,000,000

Sweden 454,000,000 31% 216,000,000

Venezuela 314,000,000 72% 807,000,000

Denmark 312,000,000 21% 83,000,000

Finland 238,000,000 48% 219,000,000

Latvia 27,000,000 54% 32,000,000

Iceland 20,000,000 54% 24,000,000

Bhutan 1,197,000 4% 50,000

NB. Initial estimates based on calculation methods used for organisations. More research being done in this area.

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Cultural Entropy & Employee Engagement

Staff Engagement

Cultural Entropy

Tier 1 (Best) 89% 5%

Tier 2 76% 8%

Tier 3 55% 15%

Tier 4 (Worst) 40% 21%

Cultural Entropy The degree of dysfunction in the culture – bureaucracy, internal competition, etc.

This research of 163 organisations in Australia was carried out by Hewitt Associates and the Barrett Values Centre in 2008

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Barrett Values Centre: Group (15)

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Personal Values Current Culture Values Desired Culture Values

IRS (P)= 4-1-1 | IRS (L)= 0-0-0 IROS (P)= 3-1-7-1 | IROS (L)= 0-0-1-0 IROS (P)= 1-3-5-0 | IROS (L)= 0-0-0-0

Matches

PV - CC 3CC - DC 6PV - DC 2

Health Index (PL)

PV: 6-0CC: 12-1DC: 9-0

1. family 10 2(R)

2. humour/fun 8 5(I)

3. integrity 7 5(I)

4. making a difference 7 6(S)

5. vision 7 7(I)

6. commitment 6 5(I)

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 satisfaction 12 2(O)

2. humour/fun 10 5(O)

3. commitment 8 5(I)

4. making a difference 7 6(S)

5. balance (home/work) 6 4(O)

6. financial stability 6 1(O)

7. continuous improvement

5 4(O)

8. employee fulfilment 5 6(O)

9. innovation 5 4(I)

10. creativity 4 5(I)

11. hierarchy (L) 4 3(O)

12. organisational growth 4 1(O)

13. teamwork 4 4(R)

1. teamwork 11 4(R)

2. accountability 7 4(R)

3. continuous improvement

7 4(O)

4. humour/fun 7 5(O)

5. customer collaboration 6 6(O)

6. financial stability 6 1(O)

7. trust 6 5(R)

8. commitment 5 5(I)

9. employee fulfilment 5 6(O)

Values Plot Copyright 2010 Barrett Values Centre December 2010

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Measurement Matters

1998

The Barrett Model

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Working with Whole the organisation

2006

Implementing Whole-System Change

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Cultural Evolution – Whole System Change

PersonalityIndividual values and beliefs

CharacterIndividual behaviors

CultureGroup values and beliefs

Social StructuresGroup behaviors

Values Behaviors

Personal Alignment

Structural Alignment

Values Alignment

Mission Alignment

Individual

Collective

Thank you Ken Wilber

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Organisational transformation starts

with the personal transformation of the

leaders

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Seven Levels of Leadership 

Wisdom/ Visionary

Mentor/ Partner

Integrator/ Inspirer

Facilitator/ Influencer

Manager/ Organiser

Relationship Manager

Crisis Director

SERVICE TO HUMANITYLong –term perspective. Future generations. Ethics.

COLLABORATION WITH CUSTOMERS AND LOCAL COMMUNITY

Strategic alliances. Employee fulfilment. Environmental stewardship.

DEVELOPMENT OF CORPORATE COMMUNITYPositive, creative corporate culture. Shared vision and values.

CONTINUOUS RENEWALPromotes learning and innovation. Team builder. Empowers

others.

BEING THE BEST, BEST PRACTICEProductivity. Efficiency. Quality. Systems and processes.

Bureaucracy. Complacency.

RELATIONSHIPS SUPPORTING CORPORATE NEEDSGood communication between employees, customers and

suppliers.Manipulation. Blame.

PURSUIT OF PROFIT & SHAREHOLDER VALUEAble to manage adversity. Directive. Willing to take

charge.Exploitation. Over-control.

Positive Focus/ Excessive Focus

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The Leader and the Vision

The leader must be able to answer the questions

Who am I? Why am I here? What is my purpose? What is my vision?

If the leader cannot lead him/herself then how can they lead an organisation?

Who are we? Why are we here? What is our purpose? What is our vision?

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What is holding you back from expanding your vision and contribution?

What qualities would you need to embrace to step into a larger role in the world?

CourageThe ability to overcome your fears … and do it anyhow.

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Underlying Fears that Drive Deficiency Needs

Level 3 – I am not enoughI do not have enough power, authority or respect to satisfy my need for self-esteem

Level 1 – I don’t have enoughI do not have enough money, safety, protection, health, food, etc, to satisfy my need for survival

Level 2 – I am not loved enoughI do not have enough love, caring, attention, etc, to satisfy my need for belonging

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Facing my fears

Step 1 Work % Home %

I am enoughConfidence, competence &

successSelf worth, achievement

I am loved enoughAppreciation, belonging &

work relationshipsFamily & friends

I have enoughBudget, tools, health &

safetyFood, mortgage, bills &

security

Step 2I do not have enough............ to satisfy my need for ..............

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Cultural Evolution Begins with Personal Evolution

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 (L) 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%

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The culture ofan organisationis a reflectionof the leadership consciousness.

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

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

CVA Current Culture

PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0

LV A Feedback 27 Assessors

PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0

Cultural Evolution Begins with Personal Evolution

Cultural Entropy 7% Personal Entropy 9%

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2006

Democratising Leadership

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Book dedication

Dedicated to My Mother

Gwendoline Olive Barrett

1910 - 2010

... and 15 Days

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The New Leadership Paradigm

A Shift from “I” to “We”

Ultimately, the problems of existence that we collectively face are issues of personal consciousness, and the crisis we face is a crisis of leadership.

We will only get beyond this stage of our collective evolution if we can put aside our narrow self-interests, focus on the whole system, and build a values-driven framework of policies that support the common good.

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From the Big Bang … to the Present Day

Stage 1Entities learn how to become viable and independent in their frameworks of existence.

Stage 2 As life conditions become more complex, viable independent entities bond with each other to create a group structures.

Stage 3 Viable independent group structures then cooperate with each other to form a higher order entity.

Energy Atoms Molecules Cells Organisms Creatures Homo sapiens

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Stage 3 External Cohesion: Viable independent group structures then cooperate with each other to form a higher order entity.

Stage 1 Personal Mastery: An entity learns how to become viable and independent in its framework of existence.

Stage 2 Internal Cohesion: Viable independent entities then bond with each other to create a group structure.

Framework of Evolution & The Barrett Model

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Leadership Development Learning System

The Book

The Web Site

The Journals and Workbooks

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Full Spectrum Leadership (Self Assessment)

http://www.valuescentre.com/resources/?sec=exercises

The purpose of our lives is to be happy Dalai

Lama

Happiness is the extent to which you live in love, as opposed to living in fear. Phil

Clothier