1. Values-driven LeadershipRichard BarrettMay 2011

2. What is Culture?

3. 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.

4. What are Values?

5. 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

6. Values in Organisations Tom Boardman Former CEO of Nedbank, South Africa

7. 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

8. 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

9. The Importance of Values Alignment If you had the choice, would you work in an organisation where the company values do not match your own values? Based on Survey of Leaders for Change

10. Culture and Strategy

11. Culture and Strategy Strong Culture Good Strategy High Performance

12. Culture and Strategy Full Spectrum Leadership Compelling VisionInspiring Mission Strong Culture Personal Alignment Group Cohesion Structural Alignment Good StrategyClear Goals Measurable Objectives Key Performance 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 The Culture Vision Mission Values Behaviours Do you consciously create your culture, or do you have a default, unconscious culture? Employee Perspective Customer Perspective CULTURE BRAND Who you are on the inside, looks a lot like who you are on the outside

16. Building a High-Performance Organisation

17. 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.

18. 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).

20. Dedication to servant leadership

21. Emotionally intelligent leadership

22. Commitment to exemplary citizenship

23. 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

24. 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 2.83% for the S&P 500. S&P 500

25. Best Employers have Lowest Entropy 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

26. Low Entropy Leads to High Financial Returns 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

27. 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. The values that were present in the top ten current culture values of the best companies, that were not present in the worst companies. Coaching/mentoring TeamworkBalance (home/work) Employee recognition

28. The Three Mantras of Culture Change

29. 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.

30. From Leader’s Values to Shareholder Value Corporate Sector Leader’s Values/ Behaviours Performance & Shareholder Value Corporate Culture Competitive Advantage & Resilience

31. From Leadership to Customer Satisfaction Public Sector Leader’s values/ behaviours Organisational Culture Customer Satisfaction Mission Assurance

32. Measuring Culture by Mapping Values

33. The Model and Cultural Transformation Tools Pages: 55-101 Pages: 19-67

34. 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 commitment. Know and Understand Deficiency Needs An individual gains no sense of lasting satisfaction from being able to meet these needs, but feels a sense of anxiety if these needs are not met. Self-esteem Abraham Maslow Love & Belonging Safety Physiological

35. Maslow’s Needs to Barrett’s Consciousness Self-Actualization Know and Understand Know and Understand Abraham Maslow Richard Barrett Self-esteem Love & Belonging Safety Physiological Needs Consciousness

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

37. Stages in the Development of Personal Consciousness Positive Focus / Excessive Focus Service to Humanity and the Planet Devoting your life in self-less service to your purpose and vision Service Collaborating with Partners Working with others to make a positive difference by actively implementing your purpose and vision Making a difference Finding Personal Meaning Uncovering your sense of purpose and creating a vision for the future you want to create Internal Cohesion Personal Growth Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Transformation Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status Self-esteem Belonging Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Relationship Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed Survival

38. Stages in the Development of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Service Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Making a difference Building Corporate Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Internal Cohesion Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Transformation High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Self-esteem Belonging Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Relationship Financial Stability Shareholder value, organisational growth, employee health, safety. Control, corruption, greed Survival

39. Placement of Values by Level Current Culture 100 Employees Top Ten Values 1. tradition (L) (59) 2. diversity (54) 3. control (L) (53) 4. goals orientation (46) 5. knowledge (43) 6. creativity (42) 7. productivity (37) 8. image (L) (36) 9. profit (36) 10. open communication (31) Service Making a difference 6 Internal Cohesion Transformation 4 2 5 Self-esteem 7 8 10 1 10 Relationship 9 3 Survival

40. Distribution of Values by Level Current Culture 100 Employees 7 Service 6 Making a difference 5 Internal Cohesion 4 Transformation Cultural Entropy Self-esteem 3 11% 2 Relationship 1 Survival

41. Your Results (Based on Feedback from Leaders for Change)

42. The values you believe are necessary for your company to achieve its full potential Leaders 4 Change: Employed by an organization (95) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 The values that are important in your personal lives. IROS (P)= 1-1-5-0 | IROS (L)= 0-1-4-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0 IRS (P)= 8-2-0 | IRS (L)= 0-0-0 Matches PV - CC 1 CC - DC 2 PV - DC 2 Health Index (PL) PV: 10-0 CC: 7-5 DC: 10-0 Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal How you experience your company - What is working well? What is undermining the performance of your company. Values Plot Copyright 2011 Barrett Values Centre May 2011

43. Personal Values Current Culture Values Desired Culture Values Leaders 4 Change: Employed by an organization (95) C T S Total number of votes for all values at each level CTS = 49-24-27 Entropy = 2% CTS = 26-21-53 Entropy = 22% CTS = 42-30-28 Entropy = 1% C = Common Good T = Transformation S = Self-Interest Cultural Entropy % of Votes for Limiting Values Positive Values Potentially Limiting Values Values Distribution Copyright 2011 Barrett Values Centre May 2011

44. Cultural entropy represents the degree of dysfunction in a culture Cultural Entropy

45. Leaders 4 Change: Employed by an organization (95) Values Jumps A value jump occurs when there are more votes for a value in the Desired Culture than in the Current Culture. Listed below are the values with the largest increase in votes. The values in bold are represented in the Desired Culture. Values Jumps Table Copyright 2011 Barrett Values Centre May 2011

46. The New Leadership Paradigm Learning System More than a Book... A Leadership Development Learning System for the 21st Century Leader And also ... A Manual for Evolutionary Coaching

47. The New Leadership Paradigm

48. Components of the New Leadership Paradigm Learning System The Book The Multi-media Web site The Workbooks and Journals

49. The Book A Leadership Development Text Book for the 21st Century Leader (530 pages) Part 1: Fundamentals Part 2: Leading Self Part 3: Leading Others Part 4: Leading an Organisation Part 5: Leading in Society Part 6: Annexes Annex 1: The Learning System Annex 2: Cultural Transformation Tools Annex 3: The Seven Levels of Consciousness

50. The Web Site A State-of-the-Art, Multi-media, Web site that is constantly updated based on the feedback of users and as new articles, videos, books and other materials become available www.newleadershipparadigm.com

51. The Journals/Workbooks Leading Self (43 Exercises) Leading a Team (28 Exercises) Leading an Organisation (33 Exercises) Leading in Society (30 Exercises)

52. Leading Yourself If you can’t lead yourself, then you will not be able to lead others If you can’t lead others, then you will not be able to lead an organisation If you can’t lead an organisation, then you will not be able to lead a community or a nation

54. Change agents and OD practitioners who are looking for new, cost effective ways to make leadership training available to large numbers of people in their organisations

55. Universities and Business Schools searching for cutting-edge training materials to support their undergraduate and mature students

58. Vision and Values Tom Boardman Former CEO of Nedbank, South Africa

59. Nedbank: Current Culture Evolution 2005 2006 2007 2008 2009 1. accountability 2. client-driven 3. client satisfaction 4. cost-consciousness 5. community involvement 6. achievement 7. teamwork 8. employee recognition 9. being the best 10. performance driven 1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness 5. community involvement 6. performance driven 7. profit 8. achievement 9. being the best 10. results orientation 1. accountability 2. client-driven 3. client satisfaction 4. community involvement 5. achievement 6. cost-consciousness 7. teamwork 8. performance driven 9. being the best 10. delivery 1. cost-consciousness 2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven 7. bureaucracy (L) 8. results orientation 9. client satisfaction 10. silo mentality (L) 1. cost-consciousness 2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven 7. profit 8. bureaucracy (L) 9. teamwork 10. community involvement 4 matches 6 matches 4 matches 5 matches 3 matches Entropy 14% Entropy 25% Entropy 13% Entropy 19% Entropy 17%

60. 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. Entropy risk bands <10% Healthy functioning 10-19% Some problems requiring careful monitoring 20-29% Significant problems requiring attention 30-39% Crisis situation requiring immediate change 40%> Impending risk of implosion, bankruptcy or failure

61. Cultural entropy represents the degree of dysfunction in a culture Cultural Entropy

62. Nedbank: Response Rate to Values Survey 63.0% Response rate 50.4% 35.5% number of participants 28.0% 20.2% 28,898 employees in 2009

63. Nedbank: Cultural Evolution Nedbank Staff Survey Scores

64. Nedbank: Financial Impact of Cultural Evolution Share Price grewon average 20.4% (CAGR) per year from 2004 to 2007 Revenue grew on average 16.9% (CAGR) per year from 2004 to 2007 CAGR : Compound Annual Growth Rate

65. Whole System Change

66. The Concept of Whole System Change Pages: 119-157 Pages: 370-379

67. Four Conditions for Whole System Change The Four Quadrants Exterior Interior Personality: Values and Beliefs of an Individual Character: Actions and Behaviours of an Individual Individual Social Structures: Actions and Behaviours of a Group Culture: Values and Beliefs of a Group Collective Based on the Four Quadrants of Ken Wilber

68. Four Conditions for Whole System Change The Four Conditions for Whole System Change Exterior Interior Personality: Values and Beliefs of an Individual Character: Actions and Behaviours of an Individual Personal Alignment Individual Mission Alignment Values Alignment Social Structures: Actions and Behaviours of a Group Culture: Values and Beliefs of a Group Structural Alignment Collective

69. Whole System Change: Nine Step Process Commitment from leadership team to personal transformation 2. Baseline measurement of the culture and key performance indicators. Create scorecard. 3. Revisit the Vision and Mission of the Organisation 5. Develop compelling reasons for change 4. Define core values & behaviours of the organisation How do we build a high-performance culture How do we become and remain agile and adaptable? How can we position ourselves for the future? How can we build our long-term resilience?

73. Cultural Evolution Begins with Personal Evolution Culture Values Leader’s Values The culture ofan organisationis a reflectionof the leadershipconsciousness. CVA Current Culture LV A Feedback 27 Assessors PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0 PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0 Cultural Entropy 7% Personal Entropy 9%

74. 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). 1 2 Organisational transformation begins with the personal transformation of the leaders. Organisations don’t transform. People do. 3 4 Wilber’s Four Quadrants

75. 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. Leadership Values Assessment

76. Jeff Vader Jeff's Values Assessors' Top 11 Values Matching Values How Others see Jeff 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 Matches 5 How Jeff sees himself Orange= Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational August 2008 Leadership Values Plot Copyright 2008 Barrett Values Centre

77. C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values Jeff Vader Jeff's Values Assessors' Values C T S Level of Personal Entropy CTS = 80-10-10 Entropy = 0% CTS = 72-9-19 Entropy = 0% Leadership Distribution Copyright 2008 Barrett Values Centre August 2008

78. Jim Vader Jim's Values Assessors' Top 11 Values Matching Values How Others see Jim 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 Matches 3 How Jim 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

79. C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values Jim Vader Jim's Values Assessors' Values C T S Level of Personal Entropy CTS = 20-40-40 Entropy = 0% CTS = 72-9-19 Entropy = 0% Leadership Distribution Copyright 2008 Barrett Values Centre August 2008

80. Darth Vader Darth's Values Assessors' Top 11 Values Matching Values 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 How Others see Darth Matches 2 How Darth 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

81. C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values Darth Vader Darth's Values Assessors' Values C T S Level of Personal Entropy CTS = 60-10-30 Entropy = 0% CTS = 0-27-73 Entropy = 36% Leadership Distribution Copyright 2008 Barrett Values Centre August 2008

82. Darth Vader Video

84. www.newleadershiparadigm.com

85. www.valuesjournal.com

86. www.valuescentre.com