Culture, Leadership and Change

Richard Barrett
May 2011

www.valuescentre.com
www.valuescentre.com 1
www.valuescentre.com
What is Culture?

2
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.

3
What are Values?

4
 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,
clarity

Potentially Limiting Values: power,

blame, greed, status, being liked

5
Exercise: Values, Beliefs and Behaviours

This exercise takes about 15 minutes

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

mul:ple  data  points  to  understand  the  big  picture

6
 Hierarchy of Decision Making

Inspiration Based on inner voice. Direct influence of

the soul on decision-making

Intuition Based on flow. Tap into the collective

unconscious and what wants to emerge.

Values Future orientation. Consciously

creating the future.

Conscious Beliefs Based on past: Considered response.

Pause between event and response.

Sub Conscious Beliefs Based on past: Learned ego reaction.

Action precedes thought.

Instincts Based on past: DNA encoded reaction.

Action precedes thought.

7
Values in Organisations

Tom Boardman Former CEO of Nedbank, South Africa

8
The Leader and the Values

Leadership values and excellence

The excellent companies developed cultures that

incorporated the values and practices of their
great leaders, and those shared values can be
seen to survive for decades.

Tom Peters, “In Search of Excellence:

Lessons from America’s best run companies”, 1983

9
The Leader and the Values

The real role of the leader

is to manage the values
of the corporation.

Tom Peters, “In Search of Excellence:

Lessons from America’s best run
companies”, 1983

10
Culture and Strategy

11
Culture and Strategy

Strong Culture Good Strategy

High Performance

12
Culture and Strategy

Full Spectrum Leadership

Compelling Vision
Inspiring Mission

Strong Culture Good Strategy

Clear Goals
Personal Alignment
Measurable Objectives
Group Cohesion
Key Performance
Structural Alignment
Indicators

High Performance

13
 Both Culture and Strategy are Important

In firms with strong corporate cultures, managers tend to march

energetically in the same direction. The alignment, motivation,
organisation, and control can help performance, but only if the
resulting actions fit an intelligent business strategy
for the specific environment in which the firm operates.

John P. Kotter and James L. Heskett,

“Corporate Culture and Performance”, 1992

14
Culture and Brand

15
Culture and Brand

Do you
The Culture consciously create
your culture, or do
you have a default,
Vision Mission unconscious
Values Behaviours culture?

Employee Perspective Customer Perspective

CULTURE BRAND

Who you are on the inside,

looks a lot like who you are on the outside

16
Culture and Values
in a Rapidly Changing World

17
 Organisations as Complex Adaptive Systems

Strong cultures
exhibit adaptive and learning qualities

The modern economy resembles a complex adaptive system rather than a close
equilibrium system. Thus, markets exhibit periods of relative calm and stability which
are interrupted by stormy periods.

Such disequilibriums make it difficult for participants to survive for long periods as their
strategies, skills or culture tend to get finely optimized for stable periods, and then
suddenly become obsolete when the restructuring occurs. Companies have a hard time
surviving upheavals, market shakeouts and technology shifts.

Therefore, strong cultures are only valuable if they exhibit the adaptive and learning
qualities. Otherwise, they become a liability during the periods of accelerated change.

Beinhocker, E. (1997) “Strategy at the Edge of Chaos”,

McKinsey Quarterly, Vol. 1, pp 25-39

18
 The Economic Meltdown

What we currently are experiencing

is not a market shakeout or a technology shift.

It is the breakdown of an unsustainable

economic paradigm that threatens the
global sustainability of human society.

19
 Global Sustainability Issues

Global
Pollution
Global Terrorism Energy
Economy Resilience

Natural
Pandemics
Disasters
The significant problems
we face cannot be solved
at the same level of
thinking that created them.
Climate Species
Change Extinction

Water Food
Shortages Poverty Waste Resilience
Reduction Disposal

20
What Sustainability Issues
is your company facing?

• Internal Issues
• External Issues

21
What this Means for Business

ü Increased focus on Sustainability

ü Risk and uncertainty are increasing
ü Change is accelerating – social, economic, technological
ü Competition is increasing – China, India, South America
ü Complexity is increasing
ü Interdependency is increasing
ü Ethics and public opinion increasingly influence
corporate decision-making as societal issues
increasingly become political issues

22
Other Business Issues …

ü How to attract and keep talented

people – War for Talent
ü How to increase profitability
and shareholder value
ü How to increase staff engagement
ü How to increase innovation, creativity,
agility, and customer satisfaction
ü How to ensure ethics permeate the
corporate culture and the company
is in alignment with public opinion

23
The Global Sustainability Challenge?

24
The Sustainability Challenge

The 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.

25
A New Leadership 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 Asia

26
A New Leadership 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 Asia
27
A New Leadership Paradigm

A shift in focus from “I” to “we”

A shift from self-interest to the common good

A shift from being the best in the world

to the best for the world.

28
A Crisis of Leadership

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

29
 What Evolution can teach us about the
New Leadership Paradigm

• Three Universal Principles

• Five Characteristics/Strategies
• Building a High-Performance
Organisation to Withstand Turbulent Times
30
 The Universal Stages of Evolution

From the Big Bang … to the Present Day

Stage 1
Entities 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

31
Evolution and Complexity

Evolution: The continually unfolding ability

to respond to increasingly complex life conditions.

At each stage of evolution – from

atoms, to cells, to creatures – there
was not only an expansion in
awareness, but also an expansion
in the range of possible reactions or
responses that an entity could
make to changes in its internal or
external environment.

An increase in external complexity

demanded an increase in
internal complexity
32
The Universal Stages of Evolution

Homo sapiens Nations Humanity

Eukaryotic cell Organisms Creatures

Carbon atom Molecules Cells

Particles/waves of information existing in a quantum energy field.

Evolution

Stage 1: Stage 2: Stage 3:

Entities learn how to As life conditions Viable independent

become viable and become more group structures
independent in their complex, viable then cooperate with
frameworks of independent entities each other to form a
existence. bond with each other higher order entity.
to create a group
structures.

33
What this Means for Organisations

Three Stage Leadership Development Process

PERSONAL  MASTERY
Encourage  individuals  to  become  viable  independent  (be
accountable  and  responsible  for  their  work)

INTERNAL  COHESION
Encourage  those  individuals  to  bond  together  to  form  teams  and
business  units  with  common  values  and  a  sense  of
shared  mission  and  vision

EXTERNAL  COHESION
Encourage  those  teams  and  business  units  to  collaborate  together
to  form  a  higher  order  en:ty  known  as  the  organiza:on

34
 Priorities for Leadership Development

Leading an
Leading Self Leading Others Organisation
Stage 3: Stage 3: Stage 3:
External Cohesion External Cohesion External Cohesion

Cooperating with other Cooperating with other Cooperating with other

individuals who share the Teams who share the Organizations who share
same values and mission same values and vision the same values and
to leverage impact vision

Stage 2: Stage 2: Stage 2:

Internal Cohesion Internal Cohesion Internal Cohesion
Evolution

Aligning the motivations Aligning the motivations Aligning the motivations

of the Ego with the Soul of Team members with of Staff members with
(bonding) to become an the mission of the Team the vision and values of
authentic individual for team alignment the Organization

Stage 1: Stage 1: Stage 1:

Personal Mastery Team Mastery Personal Mastery

Overcoming the fears of Overcoming the fears of Overcoming the fears of

the Ego to become viable individual Team members individual Staff members
and independent in your To minimize cultural to minimize cultural
framework of existence entropy entropy

35
Selection Priorities for Talent Management

Characteristics of highly successful evolutionary entities

Ability to
Adaptability Continuous Ability to Ability to
Handle
Learning Bond Cooperate
Complexity
- Speed - Memory - Compatibility - Alignment
- Internal
- Resilience - Logic - Trust - Empathy
- External

AGE &
ABILITY TO LEAD SELF AND TO LEAD OTHERS EXPER-
IENCE

36
From Leader’s Values to Shareholder Value

Corporate Sector
Leader’s Values/
Behaviours

Performance &
Corporate
Shareholder
Culture
Value

Competitive
Advantage &
Resilience

37
 From Leader’s Values to Shareholder Value

Corporate Sector

Leadership
Development

Performance &
Employee
Shareholder
Fulfillment
Value

Customer
Satisfaction

38
From Leadership to Customer Satisfaction

Public Sector
Leader’s values/
behaviours

Customer Organisational
Satisfaction Culture

Mission
Assurance

39
From Leadership to Customer Satisfaction

Public Sector

Leadership
Development

Customer Employee
Satisfaction Fulfillment

Mission
Assurance

40
 Building a High-Performance
Organisation

• Focus on the Employee Experience

41
 How do you Build a High-Performance Organisation?

By creating an adaptable, vision-guided, values-driven culture that

focuses on all stake holder needs and in particular
the employee and customer experience.

42
Firms of Endearment*

Investor returns over 3, 5

and 10 years comparing
S&P 500, Good to Great
and Firms of Endearment.

“... the distinguishing feature of “firms of

endearment” is that they treat all
stakeholders—employees, customers,
investors, partners, and society—equally.
In addition, they fully recognize that they
are a part of an economic ecosystem with
many interdependent participants. They
are committed to exemplary citizenship,
and they embrace the concept of servant
leadership.

* Rajendra S. Sisodia, David B. Wolfe,

and Jagdish N. Seth, Firms of
Endearment: The Pursuit of Purpose and
Profit (Upper Saddle River, N.J.: Wharton
School of Publishing, 2007).

43
Firms of Endearment

“FoEs share four primary elements in their corporate

visions.

• A broader purpose than wealth generation

• Dedication to servant leadership
• Emotionally intelligent leadership
• Commitment to exemplary citizenship
• Recognition that they are part of an economic ecosystem
with many interdependent participants”

Firms of Endearment: How World-Class Companies Profit

from Passion and Purpose, David Wolfe, 2006

44
 Fortune’s Best Companies to Work For

Better returns
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 past ten
years – compared to S&P 500
2.83% for the S&P 500.

45
Best Employers have Lowest Entropy

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

Staff Engagement Cultural Entropy

Tier 1 (Best) 89% 5%

Tier 2 76% 8%

Tier 3 55% 15%

Tier 4 (Worst) 40% 21%

This research of 163 organisations in Australia was carried out

by Hewitt Associates and the Barrett Values Centre in 2008
46
Low Entropy Leads to High Financial Returns

Cultural Entropy

The degree of dysfunction in the culture –

bureaucracy, internal competition, etc.

Entropy Level 3 Year Revenue Growth %

<10% 32.87%
10% – 19% 24.90%
20% – 29% 11.39%
>29% 11.07%

This research of 163 organisations in Australia was carried out

by Hewitt Associates and the Barrett Values Centre in 2008

47
 Best employers focus on …

Employee needs and employee experience

The distinguishing feature of

the best employers was their
focus on employee needs and
the employees’ experience.
Coaching/mentoring
The values that were present
in the top ten current culture
values of the best companies, Teamwork
Balance (home/work)
that were not present in the
worst companies.
Employee recognition

48
The Three Mantras of Culture Change

49
The Three Mantras of Culture Change

50
The Three Mantras of Culture Change

Cultural 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.

51
Cultural Evolution Begins with Personal Evolution
Culture Values Leader’s Values

Cultural Entropy 38% Personal Entropy 64%

1. short-term focus (L) 13 Level 1 power (L) 11 Level 3

2. blame (L) 11 Level 2 blame (L) 10 Level 2

demanding (L) 10 Level 2
3. manipulation (L) 10 Level 2
manipulative (L) 10 Level 2
4. caution (L) 7 Level 1
experience 9 Level 3
5. cynicism (L) 7 Level 3
controlling (L) 8 Level 1
6. bureaucracy (L) 6 Level 3
arrogant (L) 7 Level 3
7. control (L) 6 Level 1
authoritarian (L) 6 Level 1
8. cost reduction 5 Level 1 exploitative (L) 6 Level 1
9. empire building (L) 5 Level 2 ruthless (L) 6 Level 1
10. image (L) 5 Level 3
11. long hours (L) 5 Level 3
52
Cultural Evolution Begins with Personal Evolution
Culture Values Leader’s Values
CVA Current Culture

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

Cultural Entropy 7% Personal Entropy 9%

1. customer satisfaction 16 Level 2 continuous learning 11 Level 4
2. commitment 11 Level 5 generosity 11 Level 5
3. continuous learning 11 Level 4 commitment 10 Level 5
4. making a difference 11 Level 6 positive attitude 10 Level 5
5. global perspective 9 Level 3 vision 10 Level 7
6. mentoring 9 Level 6 ambitious 9 Level 3
7. enthusiasm 8 Level 5 making a difference 8 Level 6
8. leadership development 8 Level 6 results orientation 8 Level 3
9. integrity 7 Level 5 honesty 7 Level 5
10. open communication 7 Level 2 integrity 7 Level 5
11. optimism 7 Level 5 intuition 7 Level 6
12. shared values 7 Level 5 leadership developer 7 Level 6

53
Measuring Culture by Mapping Values

54
The Model and Cultural Transformation Tools

Pages: 55-101 Pages: 19-67

55
 Growth Needs and Deficiency Needs

Self Actualization

Growth Needs
When these needs are fulfilled they
do not go away, they engender
deeper levels of motivation and
Know and commitment.
Understand

Self-esteem Deficiency Needs

Abraham Maslow An individual gains no
Love & Belonging sense of lasting
satisfaction from being
able to meet these
Safety needs, but feels a sense
of anxiety if these needs
Physiological are not met.

56
 Maslow’s Needs to Barrett’s Consciousness

Self-Actualization

Know
Know and
and
Understand
Understand

Abraham Maslow
Self-esteem Richard Barrett

Love & Belonging

Safety

Physiological

Needs Consciousness

57
Maslow’s Needs to Barrett’s Consciousness

1. Expansion of self-actualization
Know
Know and
and into multiple levels.
Understand
Understand
2. Substitute ‘states of
consciousness’ for hierarchy of needs.
Self-esteem
3. Each state of consciousness
Love & Belonging
is defined by specific values
and behaviours.
Safety

Physiological

Needs Consciousness

58
 Stages in the Development of Personal Consciousness

Positive Focus / Excessive Focus

Service to Humanity and the Planet
Devoting your life in self-less service
Service to your purpose and vision

Collaborating with Partners

Making a Working with others to make a positive difference
difference by actively implementing your purpose and vision

Finding Personal Meaning

Internal Cohesion Uncovering your sense of purpose and creating
a vision for the future you want to create

Personal Growth
Understanding your deepest motivations,
Transformation experiencing responsible freedom by letting go of
your fears
Self-worth
Self-esteem Feeling a positive sense of pride in self
and ability to manage your life. Power, status

Belonging
Relationship Feeling a personal sense of belonging, feeling loved
by self and others. Being liked, blame

Financial Security & Safety

Survival Creating a safe secure environment for self
and significant others. Control, greed

59
 Stages in the Development of Organisational Consciousness

Positive Focus / Excessive Focus

Service To Humanity And The Planet
Social responsibility, future generations, long-term
Service perspective, ethics, compassion, humility

Strategic Alliances and Partnerships

Making a Environmental awareness, community involvement,
difference employee fulfillment, coaching/mentoring

Building Corporate Community

Internal Cohesion Shared values, vision, commitment, integrity,
trust, passion, creativity, openness, transparency

Continuous Renewal and Learning

Transformation Accountability, adaptability, empowerment,
teamwork, goals orientation, personal growth

High Performance
Self-esteem Systems, processes, quality, best practices,
pride in performance. Bureaucracy, complacency

Belonging
Relationship Loyalty, open communication, customer satisfaction,
friendship. Manipulation, blame
Financial Stability
Survival Shareholder value, organisational growth,
employee health, safety. Control, corruption,
greed

60
 Placement of Values by Level

Current Culture 100 Employees

Service
Top Ten Values

Making a 1. tradition (L) (59)

difference
2. diversity (54)
Internal Cohesion 6 3. control (L) (53)
4. goals orientation (46)
Transformation 2 4 5
5. knowledge (43)
Self-esteem 7 8 6. creativity (42)
7. productivity (37)
Relationship 10 1 8. image (L) (36)

9 3 9. profit (36)
Survival
10. open communication (31)

61
 Distribution of Values by Level

Current Culture 100 Employees

Service 7

Making a 6
difference

Internal Cohesion 5

Transformation 4
Cultural
Self-esteem 3 Entropy

Relationship 2 11%

1
Survival

62
 Engineering and Projects Company (339) What
employees
believe is
Personal Values Current Culture Values Desired Culture Values
necessary
Level 7
for the
Level 6
The values that company
are Level
important
5 to to achieve
employees
Level 4 in its full
their personal potential
Level 3
lives.
Level 2

Level 1
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 1. honesty 169 5(I) 1. continuous 111 4(O) 1. accountability 180 4(R)

2. accountability 165 4(R) improvement 2. customer 147 2(O)

PV - CC 1
CC - DC 4 2. customer 111 2(O) satisfaction
PV - DC 2 3. commitment 150 5(I)
satisfaction 3. continuous 143 4(O)
4. continuous learning 92 4(I)

Health 3. safety conscious 102 1(O) improvement

5. balance (home/work) 91 4(I)
Index (PL)
4. cost reduction 88 1(O) 4. employee development 111 4(O)
6. family 91 2(R)
PV: 10-0 5. job insecurity (L) 77 1(O) 5. employee recognition 96 2(R)
CC: 7-3 7. self-discipline 91 1(I)
DC: 10-0 6. inconsistent (L) 75 3(I) 6. commitment 95 5(I)
8. responsibility 89 4(I)
7. teamwork 74 4(R) 7. inspirational leadership 95 6(O)
9. respect 81 2(R)
8. accountability 71 4(R) 8. employee fulfilment 94 6(O)
10. open communication 76 2(R)
9. blame (L) 71 2(R) 9. teamwork 90 4(R)

10. corporate image 64 3(O) 10. professionalism 80 3(O)

Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational
Orange = PV, CC & DC How employees experience the
Blue = PV & DC company
(white circle) - What isR = Relationship S = Societal
working well? What is undermining the sustainability
Values Plot Copyright 2011 Barrett Values Centre February 2011
63
of the company.
 Engineering and Projects Company (339)

Personal Current Culture Desired Culture

Values Values Values

6% 5% 5%
7 7 7

C
8% 9% 13%
Common Good 6 6 6

24% 11% 19%

5 5 5

T
21% 20% 27%
Transformation 4 4 4

17% 14% 16%

3 1% 3 12% 3 0%

Self Interest S 2 1%
12%
2
8%
5%
2 1%
12%

9% 10% 6%
1 1% 1 6%
1 1%

0% 20% 40% 0% 20% 40% 0% 20% 40%

Total number of CTS = 38-21-41 CTS = 25-20-55 CTS = 37-27-36

votes for all Entropy = 3% Entropy = 23% Entropy = 2%
values at each
level C = Common Good Positive Values
T = Transformation Cultural Entropy Potentially Limiting
S = Self-Interest
% of Votes for Values
Values Distribution Limiting Values
Copyright 2011 Barrett Values Centre February 2011
ValueJumps
Value Jumps
Votes for Values Votes for Values
in Current Culture in Desired Culture

Current Desired Value

Value Culture Votes Culture Votes Jump

accountability 71 180 109

inspirational leadership 15 95 80
employee fulfilment 23 94 71
employee recognition 28 96 68
employee development 57 111 54
professionalism 36 80 44
efficiency 30 74 44
commitment 55 95 40
honesty 33 70 37
balance (home/work) 29 66 37

65
65
Espoused ValuesAnalysis
Espoused Values Analysis

Votes for Values Votes for Values

in Current Culture in Desired Culture

ESPOUSED
CC VOTES DC VOTES Difference*
VALUE

Customer
111 147 +10%
satisfaction

Accountability 71 180 +32%

Honesty 33 70 +11%

Employee
23 94 +21%
fulfilment

66
66
Nedbank, South Africa:
An Example of Cultural Evolution

67
68
Vision and Values

Tom Boardman Former CEO of Nedbank, South Africa

69
 Nedbank: Current Culture Evolution

2005 2006 2007 2008 2009

1.  client-­‐driven 1.  accountability 1.  accountability

1.  cost-­‐consciousness 1.  cost-­‐consciousness
2.  accountability 2.  client-­‐driven 2.  client-­‐driven
2.  profit 2.  accountability
3.  client  sa2sfac2on 3.  client  sa2sfac2on 3.  client  sa2sfac2on
3.  accountability 3.  client-­‐driven
4.  cost-­‐consciousness 4.  community  involvement 4.  cost-­‐consciousness
4.  community  involvement 4.  client  sa2sfac2on
5.  community  involvement 5.  achievement 5.  community  involvement
5.  client-­‐driven 5.  results  orienta:on
6.  performance  driven 6.  cost-­‐consciousness 6.  achievement
6.  process-­‐driven 6.  performance  driven
7.  profit 7.  teamwork 7.  teamwork
7.  bureaucracy  (L) 7.  profit
8.  achievement 8.  performance  driven 8.  employee  recogni2on
8.  results  orienta:on 8.  bureaucracy  (L)
9.  being  the  best 9.  being  the  best 9.  being  the  best
9.  client  sa2sfac2on 9.  teamwork
10.  results  orienta:on 10.  delivery 10.  performance  driven
10.  silo  mentality  (L) 10.  community  involvement
3  matches 4  matches 4  matches 5  matches 6  matches

Entropy  25% Entropy  19% Entropy  17% Entropy  14% Entropy  13%
70
 Nedbank: Cultural Evolution

Entropy Scores
Entropy 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.

25%
25%
20%
19%
15% 17%
14%
13% Entropy risk bands
10%
<10% Healthy functioning
5% 10-19% Some problems requiring careful monitoring
20-29% Significant problems requiring attention
30-39% Crisis situation requiring immediate change
0% 40%> Impending risk of implosion, bankruptcy or
failure

2005 2006 2007 2008 2009

71
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

72
 Nedbank: Response Rate to Values Survey

20000 63.0%
Response rate
16000 18206
50.4%
number of participants

12000 35.5% 14091

8000 10155
28.0%

4000 6083
20.2%
1827
0

2005 2006 2007 2008 2009

28,898 employees in 2009

73
 Nedbank: Cultural Evolution

Nedbank Staff Survey Scores

100.0%
75.1% 78.8%
80.0% 66.3%
71.5%
59.6%
60.0%
40.0%
20.0%
0.0%
2005 2006 2007 2008 2009

74
 Nedbank: Financial Impact of Cultural Evolution

Closing share price (Rand)

160
140
120 134 136
100
80 100 96
60 78
40
20
0

2004 2005 2006 2007 2008

Revenue Rm (operating income)

25000

Revenue grew
20000 22428 22077
18948
15000
15809
on average 16.9% (CAGR) 10000
14027

per year from 2004 to 2007 5000

2004 2005 2006 2007 2008

CAGR : Compound Annual Growth Rate

75
Your Results

• Individual Values Assessment

• Group Assessment
• Hand Out Interpretation Guidlines

76
 Merger of Equals – Health Insurance (USA)

Current Culture Values

Company A Company B
Finance Finance

Client
Fitness
Relations

Evolution Culture

Societal Societal
Contribution Contribution

77
 Merger of Un-Equals – IT (Europe)
Company A Company B
Personal Values Personal Values

5
Matching
Personal
Values

IRS (P)= 8-2-0 | IRS (L)= 0-0-0 IRS (P)= 8-2-1 | IRS (L)= 0-0-0

1. enthusiasm 58 5(I) 1. humour/fun 15 5(I)

2. humour/fun 49 5(I) 2. enthusiasm 14 5(I)

3. creativity 37 5(I) 3. integrity 13 5(I)

4. accountability 33 4(R) 4. balance (home/work) 12 4(I)

5. honesty 32 5(I) 5. making a difference 12 6(S)

6. responsibility 32 4(I) 6. reliability 12 3(R)

7. balance (home/work) 30 4(I) 7. being the best 11 3(I)

8. integrity 30 5(I) 8. independence 11 4(I)

9. reliability 28 3(R) 9. open communication 11 2(R)

10. optimism 27 5(I) 10. achievement 10 3(I)

11. performance 10 3(I)

78
 Merger of Un-Equals – IT (Europe)
Company A – Entropy Company B – Entropy 7%
39% Current Culture Values
Current Culture Values

1
Matching
Current
Culture
Values
IROS (P)= 1-1-4-0 | IROS (L)= 0-1-4-0 IROS (P)= 3-1-6-0 | IROS (L)= 0-0-0-0

1. short-term focus (L) 67 1(O) 1. humour/fun 19 5(O)

2. achievement 62 3(I) 2. being the best 18 3(O)

3. bureaucracy (L) 55 3(O) 3. customer satisfaction 15 2(O)

4. control (L) 52 1(R) 4. success 15 3(O)

5. results orientation 51 3(O) 5. teamwork 13 4(R)

47 1(O) 6. achievement 12 3(I)

6. cost reduction
38 3(O) 7. passion 11 5(I)
7. workload (L)
8. politics (L) 34 3(O) 8. professionalism 11 3(O)

9. profit 33 1(O) 9. enthusiasm 10 5(I)

10. accountability 29 4(R) 10. entrepreneurship 10 4(O)

11. success 29 3(O)

79
 Merger of Un-Equals – IT (Europe)
Company A Company B
Desired Culture Values Desired Culture Values

7
Matching
Desired
Culture
Values
IROS (P)= 3-3-5-0 | IROS (L)= 0-0-0-0 IROS (P)= 4-1-7-0 | IROS (L)= 0-0-0-0

1. employee recognition 41 2(R) 1. customer satisfaction 16 2(O)

2. customer satisfaction 39 2(O) 2. being the best 14 3(O)

3. entrepreneurship 39 4(O) 3. employee recognition 14 2(R)

4. teamwork 37 4(R) 4. humour/fun 13 5(O)

5. long-term perspective 34 7(O) 5. entrepreneurship 12 4(O)

6. creativity 31 5(I) 6. continuous improvement 11 4(O)

7. accountability 29 4(R) 7. innovation 11 4(I)

8. continuous improvement 28 4(O) 8. success 10 3(O)

9. innovation 28 4(I) 9. creativity 9 5(I)

10. continuous learning 26 4(O) 10. enthusiasm 9 5(I)

11. enthusiasm 26 5(I) 11. excellence 9 3(I)

12. professionalism 9 3(O)

80
 Merger of Un-Equals – IT (Europe)

Current Culture Values

Company A Company B
Finance Finance

Client
Fitness
Relations

Evolution Culture

Societal Societal
Contribution Contribution

81
Questions

In each of the two case studies discuss and decide:

1.How aligned the people are

2.How aligned the companies are
3.What can Company A teach Company B
4.What can Company B teach Company A
5.What are the chances of a successful outcome with reasons

82
Whole System Change

83
The Concept of Whole System Change

Pages: 119-157 Pages: 370-379

84
 Four
The Conditions for Whole System Change
Four Quadrants

Interior Exterior

Character:
Personality:
Actions and
Values and
Behaviours
Beliefs
of an
Individual of an
Individual
Individual

Social
Culture:
Values and
Structures:
Actions and
Beliefs
Behaviours
Collective of a Group
of a Group

Based on the Four Quadrants of Ken Wilber

85
 Four
The Conditions for Whole
Four Conditions System
for Whole Change
System Change

Interior Exterior

Character:
Personality:
Actions and
Values and Personal Alignment Behaviours
Beliefs
of an
Individual of an
Individual
Individual

Mission Alignment
Values Alignment
Social
Culture:
Values and
Structures:
Actions and
Beliefs
Behaviours
Collective of a Group
of a Group
Structural Alignment

86
 Whole System Change: Nine Step Process

1. Commitment from leadership 2. Baseline measurement of the 3. Revisit the

team to personal transformation culture and key performance Vision and
indicators. Create scorecard.
Mission of
the
Organisation

4. Define core
How do we build a high-
values &
performance culture
behaviours of
the
How do we become and remain
organisation
agile and adaptable?

How can we position ourselves

for the future?

How can we build our long-term

resilience?

87
 Whole System
Whole System Change:
Change: Nine
Implementation Phase
Step Process

6. Personal Alignment 7. Structural Alignment 8. Values Alignment

Begin with the Inculcate espoused

Set up incentives to make
leadership team and the espoused values and values and behaviours
then expand to the behaviours pervasive into the executive and
larger leadership group employee population.
including managers • New employee/ Explore personal
and supervisors Executive selection values.
(Leading Self and
Leading a Team) • New employee/

Why?
Executive orientation

• Employee/executive 9. Mission Alignment

performance evaluation

• Employee/executive
promotion criteria
Integrate the vision
• Talent selection and
development programme
and mission of the
organisation into the
• Management executive and
development programme employee population.
Explore personal
• Leadership development motivations.
programme
88
Begin with the Leadership Team

• Personal Alignment of Leaders

• Internal Cohesion in the Leadership Team

89
 Personal Alignment of the Leaders

When leaders change their beliefs and

values (1), their behaviours change (2).

This influences the culture of the group

(3), which in turn changes the
behaviours of the group (4).

Organisational transformation
begins with the personal
transformation of the leaders.
Organisations don’t
transform. People do.

90
 Leadership Values Assessment

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.

91
 Jeff Vader

Jeff's Values Assessors' Top 11 Values

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2
Matching
Values Level 1
PL = 10-0 | IRO (P) = 4-5-1 | IRO (L) = 0-0-0 PL = 11-0 | IRO (P) = 3-7-1 | IRO (L) = 0-0-0
How
balance Level 6 Others
Matches 5 balance (home/work) Level 4 (physical/emotional/m see Jeff
balance Level 6 ental/spiritual)
(physical/emotional/ compassion Level 7
mental/spiritual)
empathy Level 6
empathy Level 6
employee development Level 4
fairness Level 5
forgiveness Level 7
internal community Level 5
builder humor/fun Level 5

nurturing Level 6 listener Level 2

personal relationships Level 2 mentoring Level 6

How Jeff positive attitude Level 5 nurturing Level 6
sees trustworthy Level 5 personal relationships Level 2
himself wisdom Level 7 positive attitude Level 5

Orange = Values match P = Positive I = Individual

L = Potentially Limiting R = Relationship
(white circle) O = organisational

Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008
 Jeff Vader

Jeff's Assessors'
Values Values

10% 18%
7 7

C
30% 36%
6 6

40% 18%
5 5

T
10% 9%
4 4

0% 0%
3 0% 3 0%

S 2 0%
10%
2 0%
18%

0% 0% Level of
1 1
0% 0% Personal
0% 20% 40% 60%
Entropy
0% 20% 40% 60%

CTS = 80-10-10 CTS = 72-9-19

Entropy = 0% Entropy = 0%

C = Common Good Positive Values

T = Transformation Potentially Limiting
S = Self-Interest
Values
Leadership Distribution Copyright 2008 Barrett Values Centre August 2008
 Jim Vader

Jim's Values Assessors' Top 11 Values

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2
Matching
Values Level 1
PL = 10-0 | IRO (P) = 3-4-3 | IRO (L) = 0-0-0 PL = 11-0 | IRO (P) = 4-5-2 | IRO (L) = 0-0-0
How
balance Level 6 balance Level 6
Others
Matches 3 (physical/emotional/ (physical/emotional/m see Jim
mental/spiritual) ental/spiritual)
goals orientation Level 4 compassion Level 7
listener Level 2 employee fulfillment Level 6
mission focus Level 4 humor/fun Level 5
organisational growth Level 1 listener Level 2
perseverance Level 4 mentoring Level 6
respect Level 2 personal relationships Level 2
results orientation Level 3 positive attitude Level 5
How Jim team player Level 4 strategic alliances Level 6
sees trustworthy Level 5 team player Level 4
himself vision Level 7

Orange = Values match P = Positive I = Individual

L = Potentially Limiting R = Relationship
(white circle) O = organisational

Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008
 Jim Vader

Jim's Assessors'
Values Values

0% 18%
7 7

C
10% 36%
6 6

10% 18%
5 5

T
40% 9%
4 4

10% 0%
3 0% 3 0%

S 2 0%
20%
2 0%
18%

10% 0% Level of
1 1
0% 0% Personal
0% 20% 40% 60%
Entropy
0% 20% 40% 60%

CTS = 20-40-40 CTS = 72-9-19

Entropy = 0% Entropy = 0%

C = Common Good Positive Values

T = Transformation Potentially Limiting
S = Self-Interest
Values
Leadership Distribution Copyright 2008 Barrett Values Centre August 2008
 Darth Vader

Darth's Values Assessors' Top 11 Values

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2
Matching
Values
Level 1
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

ambitious Level 3 achievement Level 3

Matches 2
courage Level 4 authoritarian (L) Level 1
creativity Level 5 being the best Level 3 How
excellence Level 3 competitive (L) Level 2 Others
integrity Level 5 demanding (L) Level 2 see
long-term perspective Level 7 determination Level 4 Darth
passion Level 5 excellence Level 3
results orientation Level 3 knowledge Level 4
strategic alliances Level 6 power (L) Level 3
How
vision Level 7 results orientation Level 3
Darth
risk-taking Level 4
sees
himself

Orange = Values match P = Positive I = Individual

L = Potentially Limiting R = Relationship
(white circle) O = organisational

Leadership Values Plot Copyright 2008 Barrett Values Centre August 2008
 Darth Vader

Darth's Assessors'
Values Values

20% 0%
7 7

C
10% 0%
6 6

30% 0%
5 5

T
10% 27%
4 4

30% 36%
3 0% 3 9%

S 2
0%
0% 2
0%
18%

0% 0% Level of
1 1
0% 9% Personal
0% 20% 40% 60%
Entropy
0% 20% 40% 60%

CTS = 60-10-30 CTS = 0-27-73

Entropy = 0% Entropy = 36%

C = Common Good Positive Values

T = Transformation Potentially Limiting
S = Self-Interest
Values
Leadership Distribution Copyright 2008 Barrett Values Centre August 2008
Darth Vader Video

98
 Building Internal Cohesion in the
Leadership Team

• Mutual Trust
• Shared Accountability

99
The Secret to Building a High-Performance Organisation

100
Mutual Trust: The Trust Matrix Exercise

Inspired by Stephen Covey: The Speed of Trust101

 Shared Accountability: State of Grace Document

Stage 1 Stage 2 Stage 3

Leadership Team Workshop Team Workshop

Values Story of Me Story of Us
Assessment Document Document
with 2-3 hours
coaching 2 days 2 days

Focus on Self- Focus on Group

Knowledge and Knowledge and
Personal Mastery Cohesion

The expectations and agreements contained in the document enable the

team to design how they want to be and act in their business
relationships together, develop protocols for facing conflict head-on in an
open and mature manner, and make sure there are no elephants in the
room that are not being addressed. It is a blueprint for how the team
works together.
The New Leadership Paradigm: Pages 344 - 349
102
Great Leadership

• The Secret to Great Leadership

103
The Secret to Great Leadership

104
To get a copy of this presentation:

http://www.slideshare.net/BarrettValues

Other relevant Web sites:

• www.richardbarrett.net
• www.newleadershiparadigm.com
• www.valuesjournal.com
• www.valuescentre.com

105