Everything I have learned about Organizational Values

Copyright 2018 by Barrett Values
Centre®. Permission granted to
reproduce for personal and
educational use only. Commercial
copying, hiring, lending is prohibited.

Topics for today
1. How do you build a high-
performing, values-driven
culture?
2. Why is it important to measure
your culture?
3. What role do leaders play in
managing culture?

The values, beliefs and
behaviours that guide
and define the way in
which a group of
people work
together.
What is Culture?

Who creates
the culture?
The Leaders

The Leaders Must Change
Therefore if you want to change the culture:
or You Must Change the Leaders

According to Deloitte,
culture has become one
of the most important
business topics of 2016.
CEOs and HR leaders
now recognize that
culture drives people’s
behaviour, innovation,
and customer service

of Deloitte’s survey
respondents believe
that “culture is a
potential competitive
advantage.”
82%

of leaders believe that
culture is critical to their
organisation’s success.
84%
According to PwC,

60%
think culture is more
important than their
strategy or their
operating model.

of the FTSE 350
companies have seen a
10% increase in operating
profits driven by their
investment in culture.
55%
According to E&Y,

92%of the Board Members of
these companies said
that a focus on culture
has improved their
financial performance.
Overall,

INTANGIBLE ASSETS
MAKE UP MOST OF MARKET VALUE
Source: Ocean Tomo LLC, January 2015
Components of S&P 500
17%
32%
68%
80% 84%
83%
68%
32%
20% 16%
0%
25%
50%
75%
100%
1975 1985 1995 2005 2015
Tangible Assets
Intangible Assets

CONCLUSION
CULTURAL CAPITAL
is the New Frontier of Competitive
Advantage

Only 12 percent of leaders believe
their organisations are excellent at
effectively driving the desired
culture.
Deloitte Human Capital Trends 2015
Only 5 percent of leaders said their
own corporate culture was exactly
where it needed to be.
Duke University and Columbia University 2015 research
Only 28 percent report that they
understand their organisation’s culture.
Deloitte Human Capital Trends 2016

By becoming a
deliberately
developmental
organisation.
- Dr. Robert Kegan -

Deliberately
Developmental
Organisation

“A deliberately developmental organisation is built
around the simple but radical conviction that an
organisation will best prosper when it is more
deeply aligned with people’s strongest motive,
which is to grow.

“This means building an organisational culture where
supporting people’s development is woven into the
fabric of working life—the regular operations, daily
routines and conversations.”
- Kegan and Lahey -

WHEN YOU HELP
EMPLOYEES TO
GROW THEY
BECOME
ENGAGED

They bring
passion and
purpose to
their work.
They care
passionately
about the future
of the company.
Highly engaged
employees
identify with the
company.
They want the
company to do
the right thing.
They are willing
to invest their
discretionary
effort to make
the company a
success.
HIGHLY
ENGAGED
EMPLOYEESThey want to
feel pride in the
way the
company
behaves.
They are
committed and
loyal.

WHY ARE DELIBERATELY
DEVELOPMENTAL ORGANISATIONS
the most successfull?

Because they care about the
needs of their employees …

“ ”
WHAT ARE
EMPLOYEES
NEEDS ?

THE SEVEN STAGES OF
PSYCHOLOGIC L
DEVELOPMENT

A PERSONAL JOURNEY
Every person is on an evolutionary journey
of psychological development.
SERVING
INTEGRATING
SELF-ACTUALIZING
INDIVIDUATING
DIFFERENTIATING
CONFORMING
SURVIVING

7
6
5
4
3
2
1 SURVIVING
INFANCY:
0-2 Years Old
NEED
TO MANAGE
YOUR
ENVIRONMENT
GETTING BASIC
PHYSIOLOGICAL
NEEDS MET
STAYING
ALIVE!
MOTIVATION

CHILDHOOD:
3-7 Years Old
NEED TO FEEL
ACCEPTANCE &
BELONGING
LEARNING TO
BE LOVED
KEEPING
SAFE!
MOTIVATION
CONFORMING
7
6
5
4
3
2
1

TEENAGER:
8-24 Years Old
NEED TO BE
PART OF
A GROUP
BEING
RECOGNIZED
FEELING
SECURE!
MOTIVATION
DIFFERENTIATING
7
6
5
4
3
2
1

YOUNG ADULT:
25-39 Years Old
NEED FOR
FREEDOM AND
AUTONOMY
RESPONSIBILITY
AND
ACCOUNTABILITY
FOR YOUR LIFE
RELEASING
YOUR FEARS!
MOTIVATION
INDIVIDUATING
7
6
5
4
3
2
1

ADULTHOOD:
40-49 Years Old
SELF-ACTUALIZING
NEED FOR
MEANING AND
PURPOSE
BECOMING
FULLY
WHO YOU ARE!
SELF-
EXPRESSION
MOTIVATION
7
6
5
4
3
2
1

MATURE ADULT:
50-59 Years Old
INTEGRATING
DESIRE
TO MAKE A
DIFFERENCE
UNCONDITIONAL
LOVING
RELATIONSHIPS
EMPATHY
CONNECTING
MOTIVATION
7
6
5
4
3
2
1

SENIOR:
60+ Years Old
DESIRE TO
SERVE THE
GREATER
GOOD
SELF-LESS
SERVICE
COMPASION
CONTRIBUTING
MOTIVATION
7
6
5
4
3
2
1
SERVING

WHAT MOTIVATES
EMPLOYEES IS THE
SATISFACTION OF
THEIR NEEDS.

Discover what truly matters.
www.valuescentre.com
Whatever you need
is what you value.
OUR VALUES
ARE AN
EXPRESSION
OF OUR
NEEDS

(25-39 Years)
Finding the freedom to explore who
you are and seek opportunities and
challenges to be accountable.
INDIVIDUATING
Your employee’s needs at different
stages of development
SELF-ACTUALIZING
(40-49 Years)
Fully expressing your unique gifts and
talents so you feel a sense of commit-
ment and explore your creativity.
(50-59 Years)
Connecting and collaborating with
others so you can make a difference
in the world.
INTEGRATING

LEVELS OF
CONSCIOUSNESS
PRIMARY
MOTIVATIONS
SERVICE
MAKING A
DIFFERENCE
INTERNAL COHESION
TRANSFORMATION
SELF-ESTEEM
RELATIONSHIP
SURVIVING
7
6
5
4
3
2
1
WHAT EMPLOYEES VALUE
AT DIFFERENT LEVELS OF CONSCIOUSNESS
A safe working environment and
pay and benefits that are
sufficient to take care of family
Opportunities to work in a congenial
atmosphere where people care and
respect each other
Opportunities to grow professionally
with support, feedback and coaching
Opportunities and challenges by being made
accountable for projects and processes
Opportunities for personal growth and develop-
ment to support you in living your life purpose
Opportunities to leverage your
contribution by collaborating with other
like-minded individuals
Opportunities to serve others and
care for the well-being of the Earth’s
life support systems

CULTURAL
TRANSFORMATION
CREATING A CULTURE THAT ADDRESSES EMPLOYEE’S NEEDS

COMMITMENT TO
TRANSFORMATION
Cultural transformation begins with the COMMITMENT of the
leader and the leadership team to cultural transformation—
which necessarily includes a commitment to personal transformation
by each person in the leadership group.

Without this commitment to
cultural and personal
transformation, there is no point
in proceeding with a cultural
transformation initiative.
It is quite usual for there to be
one or two people in the
leadership team who are not
willing to sign up to personal
transformation. This is the point
where they have to decide to get
on or off the bus. There should be
no room for anyone who is not
committed to the process and a
willing participant.

Change is
doing things
differently.
A shift in behaviours
Transformation
is a new way of
being.
A shift in values
THE DIFFERENCE BETWEEN
TRANSFORMATION AND CHANGE

You can change
without transforming,
but you cannot
transform without
changing.
TRANSFORMATION VS CHANGE

We cannot solve our
problems with the
same level of thinking
that created them.
A new level of thinking
=
A new level of consciousness
=
A new way of being

Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
7 LEVELS OF PERSONAL CONSCIOUSNESS
CHANGE
No shift in
consciousness
New way of doing.
7
6
5
4
3
2
1

Service
Making a Difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
7 LEVELS OF PERSONAL CONSCIOUSNESS
TRANSFORMATION
Shift in
consciousness
New way of being.
7
6
5
4
3
2
1

ORGANISATIONS DON’T
TRANSFORM. PEOPLE DO!

ORGANISATIONAL TRANSFORMATION
BEGINS WITH THE PERSONAL
TRANSFORMATION OF THE LEADERS

PERSONAL
VALUES
CURRENT
CULTURE
DESIRED
CULTURE
MEASURING THE CULTURE
BY MAPPING THE VALUES
Which of the
following
values/behaviours
most reflect who
you are?
Pick ten.
Which of the
following
values/behaviours
most reflect how
your organisation
currently
operates?
Pick ten.
Which of the
following
values/behaviours
most reflect how
you would like
your organisation
to operate? Pick
ten.

PLACEMENT OF VALUES BY LEVEL
(100 EMPLOYEES)
Current Culture
10
42 5
7
9
6
8
3
110
1
Tradition (L)
(59)
2 Diversity (54)
3Control (L) (53)
5Knowledge (43)
7Productivity (37)
9Profit (36)
4
Goals
orientation (46)
6 Creativity (42)
8 Image (L) (36)
10
Open
Communication
(31)
Top Ten Values
Service
Making a
difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival

PLACEMENT OF VALUES BY LEVEL
(100 EMPLOYEES)
Current Culture
Service
Making a
difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival 1
2
3
4
5
6
7
4%
10%
20%
19%
16%
9%
10%
0%
0%
0%
0%
7%
2%
2%
0% 10% 20% 30% 40%
7
6
5
4
3
2
1
11%
Cultural
Entropy

UNNECESSARY OR
UNPRODUCTIVE WORK—
WORK THAT DOES NOT
ADD VALUE.
The amount of energy that is
consumed in an organisation doing

that employees encounter in
their day-to-day activities
that prevent the organisation
from operating at peak
performance and cause
employees to experience
stress and prevent them from
getting their needs met.
It is a measure of the
CONFLICT, FRICTION
AND FRUSTRATION

I am going to show you
values assessments for
two teams.
Based on these results,
I want you to decide
which team you would
prefer to work in.

Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=6-4-1 IRS (L)=0-0-0 IROS (P)=1-1-8-1 IROS (L)=0-0-0-0 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0
customer satisfaction 13 2(O)
making a difference 13 6(S)
commitment 10 5(I)
employee fulfilment 10 6(O)
continuous improvement 9 4(O)
humour/ fun 9 5(O)
shared vision 9 5(O)
customer collaboration 8 6(O)
balance (home/work) 6 4(O)
teamwork 6 4 (R)
employee fulfilment 10 6(O)
shared vision 9 5(O)
continuous learning 8 4(O)
accountability 6 4(R)
innovation 6 4(O)
teamwork 6 4(R)
trust 6 5(R)
I = Individual
R = Relationship
Black Underline = PV & CC
Red = PV, CC & DC
Red = CC & DC
Blue = PV & DC
P = Positive
L = Potentially Limiting (white circle)
O = Organisational
S = Societal
Matches
PV - CC 4
CC - DC 6
PV - DC 4
Cultural
Entropy:
Current
Culture
7%
family 15 2(R)
humour/ fun 11 5(I)
well-being 11 6(I)
continuous learning 10 4(I)
commitment 8 5(I)
financial stability 7 1(I)
trust 7 5(R)
compassion 6 7(R)
Team “A” (19 People)

C
T
S 2
1
3
4
5
6
7
Values Distribution
Positive Values
Potentially Limiting Values
C = Common Good
T = Transformation
S = Self-Interest
9%
17%
25%
21%
9%
14%
5%
0%
0%
0%
0% 60%
7
6
5
4
3
2
1
1%
24%
28%
20%
4%
10%
6%
5%
0%
2%
0% 60%
7
6
5
4
3
2
1
4%
22%
23%
27%
10%
9%
5%
0%
0%
0%
0% 60%
7
6
5
4
3
2
1
Personal
Values
Current
Culture Values
Desired
Culture Values
Copyright 2015 Barrett Values Centre
Team “A” (19 People)
Cultural Entropy = 7% Cultural Health = 93%

Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=9-3-0 IRS (L)=0-0-0 IROS (P)=0-0-3-0 IROS (L)=0-3-5-0 IROS (P)=0-3-8-0 IROS (L)=0-0-0-0
confusion (L) 15 3(O)
long hours (L) 12 3(O)
short-term focus (L) 11 1(O)
blame (L) 10 2(R)
information hoarding (L) 9 3(R)
manipulation (L) 8 2(R)
hierarchy (L) 8 3(O)
results orientation 7 3(O)
bureaucracy (L) 6 3(O)
quality 6 3(O)
information sharing 10 4(O)
quality 9 3(O)
teamwork 8 4(R)
professionalism 7 3(O)
efficiency 6 3(O)
balance (home/work) 6 4(O)
continuous learning 6 4(O)
I = Individual
R = Relationship
Black Underline = PV & CC
Orange = PV, CC & DC
Red = CC & DC
Blue = PV & DC
P = Positive
L = Potentially Limiting (white circle)
O = Organisational
S = Societal
Matches
PV - CC 0
CC - DC 1
PV - DC 2
Cultural
Entropy:
Current
Culture
47%
commitment 26 5(I)
honesty 12 5(I)
integrity 9 5(I)
adaptability 8 4(I)
continuous learning 8 4(I)
responsibility 8 4(I)
cooperation 8 5(R)
efficiency 7 3(I)
family 6 2(R)
humour/ fun 6 5(I)
Team “B” (35 People)

C
T
S 2
1
3
4
5
6
7
Values Distribution
Positive Values
Potentially Limiting Values
C = Common Good
T = Transformation
S = Self-Interest
Personal
Values
Current
Culture Values
Desired
Culture Values
Copyright 2015 Barrett Values Centre
5%
7%
36%
21%
13%
10%
6%
0%
0%
2%
0% 60%
7
6
5
4
3
2
1
2%
5%
7%
16%
11%
6%
6%
25%
11%
11%
0% 60%
7
6
5
4
3
2
1
3%
9%
23%
32%
18%
10%
3%
0%
0%
2%
0% 60%
7
6
5
4
3
2
1
Team “B” (35 People)
Cultural Entropy = 47% Cultural Health = 53%

ORGANISATION “B”
Low Well-
Being 53%
High Cultural
Entropy 47%
WHICH ORGANISATION WOULD BE
THE LEAST STRESSFUL TO WORK IN
Long hours(L)
Confusion (L)
Short-term focus (L)
Blame (L)
Information hoarding (L)
Manipulation (L)
Hierarchy (L)
Results orientation
Bureaucracy (L)
Quality
Stress
Inducing
Values
Customer satisfaction
Making a difference
Commitment
Employee fulfilment
Continuous improvement
Humour/fun
Shared vision
Customer collaboration
Balance (home/work)
Teamwork
No Stress
Inducing
Values
ORGANISATION “A”
High Well-
Being 93%
Low Cultural
Entropy 7%

Clarifying the
value system and
breathing life into
it are the greatest
contributions
a leader can
make.
Peters and Waterman, “In Search of Excellence:
Lessons from America’s best run companies”, 1983
and the Values

In the face of
turbulence and
change, culture and
values become the
major source of
continuity and
coherence, of renewal
and sustainability.
Rosabeth Moss Kanter,
Chair of the Harvard University
Advanced Leadership Initiative
and the Values

BUILDING A
VALUES-DRIVEN
ORGANISATION
START WITH A
VALUES SURVEY
Should give
you KPIs for
every unit and
the whole
organisation
Should
measure the
personal
entropy of
the leaders
Should
measure
cultural
entropy and
cultural
health
Should be
done every
year

Also available in Portuguese, Spanish, French,
German and Turkish
I am immensely grateful
to Richard Barrett and
his organisation for my
continued success, for
changing my own
philosophy of business
and the way
I approach change.
John McFarlane, Chairman
Barclays Bank

https://www.valuescentre.com/resources/case-studies
23 SUCCESSFUL CASE STUDIES

FREE
MATERIALS
To lead people
through change
To grow a
shared culture
To plan and lead
cultural transformation
Checklist
and overview
Available on www.valuescentre.com

Everything I have learned about Organizational Values

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