nuremberg: values-driven organizations, communities and societies

Values-driven Organizations and SocietiesRichard Barrett

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com

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MY SPEECH TODAY

HOW TO CREATE A VALUES-DRIVEN CULTURE

BUILDING A VALUES-DRIVEN CULTURE

WHY ARE VALUES-DRIVEN CULTURES IMPORTANT?


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Values Alignment

Perfo

rman

ce

BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET


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WHY ARE VALUES-DRIVEN CULTURES THE MOST SUCCESSFUL?

BECAUSE THEY CARE ABOUT THE NEEDS OF THEIR PEOPLE, AND …


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… THEY ALSO CARE ABOUT THE NEEDS OF ALL THEIR STAKEHOLDERS

Suppliers Community


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S&P 500

Average Annualized Return 16.39%

Average Annualized Return 4.12%

BCWF

The Best Companies to Work For engender high levels of employee engagement and commitment, because the leaders of these organisations focus on meeting their employee’s needs.

The Top 40 Best Companies to Work For (USA)


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The Top 40 Best Companies to Work For (USA)

Adobe Systems Inc.Adobe Systems Inc.Aflac Inc.Amazon.com Inc.American Express Co.Autodesk Inc. Build-A-Bear Workshop Inc.Capital Trust Inc. Class A.Chesapeake Energy Corp.Devon Energy Corp.Dreamworks Animation SKG Inc.EOG ResourcesFactSet Research Systems Inc.General Mills Inc.

Goldman Sachs Group Inc.Goldman Sachs Group Inc.Google Inc. Class A.Hasbro, Inc.Intel Corp. Intuit Inc. Marriott International Inc. Mattel Inc.Medical Properties Trust Inc.Men’s WearhouseMicrosoft Corp.National Instruments Corp.NetApp Inc.Nordstrom Inc.

Novo Nordisk, A/S ADR Novo Nordisk, A/S ADRNustar Energy, L.P.Publix Super Mkts, Inc.Qualcomm Inc.Rackspace Hosting Inc.Salesforce.com Inc.Southern Michigan Bankcorp.St Jude Medical, Inc.Starbucks CorporationStryker CorporationSVB Financial GroupUltimate Software Group, Inc.Umpqua Holdings CorporationWhole Food Markets, Inc.


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Investments in Values and Culture pay back!

>500 Culture Ambassadors to facilitate and support values-driven culture

“Dedicated and persistent

work with our wanted

culture is one of

our most critical

success factors”

ResultsCustomer Satisfaction From 60 to 90%Employee Satisfaction 90% …5 yearsOwners Trust Low to High!Delivery Precision 55 to 90%Attractive Employer Best in Class!

Systematic Approach

>100 tools and methods for active dialogues and reinforcement

Consistently Shared

Mission, Vision Values


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Intangible Assets make up most of market value

1975 1985 1995 2005 20150%

20%

40%

60%

80%

100%

17%32%

68%80% 84%

83%68%

32%20% 16%

Intangible Assets Tangible Assets

Source: Ocean Tomo LLC, January 2015

Components of S&P 500


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“No matter how far reaching the vision or how brilliant the strategy, neither will be realized if it is not supported

by the organisational culture.” Luther Johnson

Peter Drucker

“CULTURE EATS STRATEGY FOR BREAKFAST”


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Peters and Waterman, “In Search of Excellence: Lessons from America’s best run companies”, 1983

Clarifying the value system and breathing life into it are the greatest contributions a

leader can make.

The Leader and the Values


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The Three Mantras of Organizational Performance

Cultural Capital is the new frontier of competitive advantage.

Mantras Implications

The Culture of an organizations is a reflection of leadership consciousness

Measurement matters. If you can measure it, you can manage it.

Who you are and what your organization stands for is vitally important.

Organizational transformation begins with the personal transformation of the leaders

You can make the evolution of consciousness, conscious

Focus on Vision, Mission and Values

Begins with Leading Self

Measure and Map the Values


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The Culture Change Process

1. Cultural Values

Assessment

2. Share results and start dialogue

3. Prioritize values

4. Identify behaviours

5. Create culture

development plan

6. Implement changes and programmes

ENTROPY

PERFORMANCE


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BUILDING A VALUES-DRIVEN ORGANIZATION

START WITH A VALUES SURVEY


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PERSONAL VALUESWhich of the following values/behaviours most reflect who you are? Pick ten.

CURRENT CULTUREWhich of the following values/behaviours most reflect how your organisation currently operates? Pick ten.

DESIRED CULTUREWhich of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.

Highly Engaged Team (19)

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)

Values PlotCopyright 2015 Barrett Values Centre

I = IndividualR = Relationship

Black Underline = PV & CCOrange = PV, CC & DC

Orange = CC & DCBlue = PV & DC

P = PositiveL = Potentially Limiting (white circle)

O = OrganisationalS = Societal

Matches

PV - CC 4CC - 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)

Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)

7654321

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

Highly Engaged Team (19)

Personal Values

Values DistributionCopyright 2015 Barrett Values Centre

Positive ValuesPotentially Limiting Values

Current Culture Values

Desired Culture Values

C

T

S 2

1

3

4

5

6

7

C = Common GoodT = TransformationS = Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

14%

9%

21%

25%

17%

9%

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

5%

6%

10%

4%

20%

28%

24%

1%

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

9%

10%

27%

23%

22%

4%

CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24Personal Entropy = 0%

Cultural Entropy = 7%Cultural Entropy = 0%

Low level of Cultural Entropy = High level of

Employee Engagement

26%

46%

28%

25%

48%

27%

26%

50%

24%

Highly Disengaged Team(24)

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)

Values PlotCopyright 2016 Barrett Values Centre

I = IndividualR = Relationship

Black Underline = PV & CCOrange = PV, CC & DC

Orange = CC & DCBlue = PV & DC

P = PositiveL = Potentially Limiting (white circle)

O = OrganisationalS = Societal

Matches

PV - CC 0CC - 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)

Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)

7654321

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

Highly Disengaged Team (47)

Personal Values

Values DistributionCopyright 2016 Barrett Values Centre


Current Culture Values

Desired Culture Values

C

T

S 2

1

3

4

5

6

7

C = Common GoodT = TransformationS = Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

0%

6%

10%

13%

21%

36%

7%

5%

1

2

3

4

5

6

7

0% 20% 40% 60%

11%

11%

25%

6%

6%

11%

16%

7%

5%

2%

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

0%

3%

10%

18%

32%

23%

9%

3%

CTS = 48-21-31 CTS = 14-16-70 CTS = 35-32-33Personal Entropy = 2% Cultural Entropy = 2%

High level of Cultural Entropy

= Low level of Employee

EngagementCultural Entropy = 47%


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What is Cultural Entropy?

The amount of energy that is consumed in an organisation doing unnecessary or unproductive work that does not add value.

It is a measure of the conflict, friction and frustration that employees encounter in their day-to-day activities that prevent the organisation from operating at peak performance.


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Cultural entropy is a function of the personal entropy of the current leaders of an organisation and institutional legacy of past leaders as embedded in the structures, systems, policies and procedures.

How Does Cultural Entropy Arise?


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What is Personal Entropy?

Personal entropy is the amount of fear-driven energy that a person expresses in his or her day-

to-day interactions with other people.

It is a measure of a lack of a person’s lack of personal mastery skills. Fear-driven energy arises from the

conscious and subconscious fear-based beliefs of the ego about meeting its deficiency needs.

continuous learning 11 Level 4generosity 11 Level 5commitment 10 Level 5positive attitude 10 Level 5vision 10 Level 7ambitious 9 Level 3making a difference 8 Level 6results orientation 8 Level 3honesty 7 Level 5integrity 7 Level 5intuition 7 Level 6leadership developer 7 Level 6

1. customer satisfaction 16 Level 22. commitment 11 Level 53. continuous learning 11 Level 44. making a difference 11 Level 65. global perspective 9 Level 36. mentoring 9 Level 67. enthusiasm 8 Level 58. leadership development 8 Level 69. integrity 7 Level 510. open communication 7 Level 211. optimism 7 Level 512. shared values 7 Level 5

Cultural Evolution Begins with Personal Evolution

Cultural Entropy 7%Personal Entropy 9%

Culture ValuesLeader’s Values

The culture ofan organisationis a reflectionof leadership consciousness.

CVA Current Culture

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

Internal Cohesion

LVA Feedback 27 Assessors

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

Internal Cohesion

The culture ofan organisationis a reflectionof leadership consciousness.

LV A Feedback 14 Assessors

PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0

Cultural Evolution Begins with Personal Evolution

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 5 Level 1

9. empire building (L) 5 Level 2

10. image (L) 5 Level 3

11. long hours (L) 5 Level 3

CVA Current Culture

PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0

Cultural Entropy 38%Personal Entropy 64%

Culture ValuesLeader’s Values


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How to Measure Personal Entropy?

LEADER’S VALUESWhich of the following values/behaviours most reflect how you operate? Pick ten.

ASSESSOR’S OBSERVED VALUES OF LEADERWhich of the following values/behaviours most reflect how Leader “X” operates? Pick ten.

http://www.valuescentre.com/our-products/products-leaders/leadership-values-assessment-lva

LEADERSHIP VALUES ASSESSMENT

long hours (L) 16 3(I)

quality conscious 13 3(O)

drive and determination 12 4(I)

analytical 10 3(I)

commitment 10 5(I)

cautious (L) 8 1(I)

reliable 8 3(R)

achievement 7 3(I)

demanding (L) 7 2(R)

internally competitive (L) 6 2(R)

strategic thinker 6 4(I)

High Entropy Leader (20 Assessors)

Matches 3

adaptability 4(I)

connecting with stakeholders 6(R)

drive and determination 4(I)

goals orientation 4(O)

innovative 4(I)

long hours (L) 3(I)

making a difference 6(O)

strategic thinker 4(I)

vision 7(I)

win-win partnerships 6(O)

Level Leader Observed Values7654321

PL= 9-1 | IROS (P)=5-1-3-0 | IROS (L)=1-0-0-0 PL= 7-4 | IROS (P)=5-1-1-0 | IROS (L)=2-2-0-0

Orange=Values Match P=PositiveL=Potentially Limiting (white circle)

I=IndividualR=RelationshipO=OrganisationalS=Societal

Entropy = 27%

1

2

3

4

5

6

7

0% 20% 40% 60%

10%

50%

30%

10%

CTS = 40-50-10Entropy = 10%

CTS = 20-20-60

Entropy = 27%

Leader

High Entropy Leader (20 Assessors)


Observed Values

C

T

S

C=Common GoodT=TransformationS=Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

9%

8%

10%

1%

7%

25%

20%

12%

5%

3%

1

2

3

4

5

6

7


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BUILDING A VALUES-DRIVEN CULTURETHE JOURNEY

SA Bank: Evolution of Current Culture

1. cost-consciousness2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)

2005

1. cost-consciousness2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork 10. community involvement

2006

1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation

2007 2008

1. accountability2. client-driven 3. client satisfaction 4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery

3 Matches CC-DCEntropy 25%





2009 2010 2011

1. accountability2. client-driven 3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork 8. employee recognition 9. being the best10. performance driven

1. accountability2. client satisfaction 3. client-driven 4. teamwork5. brand reputation6. being the best7. achievement8. commitment9. community involvement10. cost-consciousness

1. accountability2. client-driven 3. client satisfaction4. brand reputation5. achievement6. teamwork7. environmental awareness8. commitment9. being the best10. cost-consciousness




2012

1. accountability2. client satisfaction 3. client-driven4. brand reputation5. teamwork6. employee recognition7. environmental awareness8. performance driven9. community involvement10. people-centred



2013 2014



1. accountability2. client satisfaction3. client-driven4. brand reputation5. employee recognition6. performance driven7. teamwork8. achievement9. integrity10. community involvement

1. accountability2. client satisfaction 3. client-driven 4. brand reputation5. employee recognition6. teamwork7. performance driven8. environmental awareness9. community involvement10. commitment

Despite a slight rise in cultural entropy,

profitability and productivity

continue to increase year on year.

Evolution of Number of Survey Participants

20052006200720082009201020112012201320140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

8%

25%

38%

51%

67%73%

77% 75% 74% 75%Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were paying attention to the results of the assessment.

Cultural Entropy Evolution

Cultural entropy reduction led to improved performance through increased employee engagement, increased revenues, improved productivity, and increase in share price. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

0%

5%

10%

15%

20%

25%

30%

25%

19%17%

14%13% 13%

11%10%

11%13%

Cutlural Entropy

Income Evolution

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50001000015000200002500030000350004000045000

0%

5%

10%

15%

20%

25%

30%

Income Cultural Entropy

Annual income

increases as cultural

entropy falls.

Global Economic Meltdown

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

0%

5%

10%

15%

20%

25%

30%

Revenue per Capita Cultural Entropy

Income per capita

increases as cultural

entropy falls.

Productivity Evolution


2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

2000

4000

6000

8000

10000

12000

0%

5%

10%

15%

20%

25%

30%

Profit Cutlural Entropy

Profit increases as cultural

entropy falls.

Profit Evolution



37

MY SPEECH TODAY

HOW TO CREATE A VALUES-DRIVEN CULTURE

VALUES-DRIVEN SOCIETIES

CTT National Assessments – Status November 2015

Denmark 2008

Latvia2007

Sweden2009, 2010, 2011, 2012, 2013, 2014

Iceland2008, 20102014

Belgium2010,2014

UK2012

Finland2010, 2011

Switzerland2011

France2012, 2013 2014

USA2009, 2010, 2011

Australia2009

Canada2009

South Africa2011

Bhutan2007

Brazil2010

Nigeria2012

Argentina2001**

Singapore2012, 2015

UAE2012

South America

North America

Africa

Asia

Oceania

Europe

Venezuela2010 **

Trinidad & Tobago2012

** Not statistically valid

Italy2012


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Cultural Values Assessment of Iceland

Iceland Economic Collapse 2008


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materialisticshort-term focuseducational opportunitiesuncertainty about the futurecorruptionelitismmaterial needsWaste\d resourcesgender discriminationblame

accountabilityfamilyemployment opportunitiesfinancial stabilityoptimismdependable public serviceshonestysocial responsibilityhuman rightspoverty reduction

familyhonestyresponsibilityaccountabilityfinancial stabilitytrustfriendshippositive attitudehumour/funadaptabilityrespect

Personal Values Desired CultureCurrent Culture

Cultural Entropy 53%


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Iceland National Assembly 2009/2010

1200 Citizens + 300 Government, NGOs & Institution Leaders + 500 VolunteersThemes: Education, Economy, Equal rights, Family, Environment, Public administration, Welfare,

Sustainability

The Value of Values


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Cultural Values Assessment of Latvia

Beliefs DivideValues Unite


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Cultural Values Assessment of Latvia


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Cultural Values Assessment of USA

familycaringhonestyresponsibilityhumor/ funaccountabilityrespectpositive attitudeintegrityfriendship

caringfamilyhumor/ funhonestyfriendshipresponsibilitycompassionrespectaccountabilitypositive attitude

Democrat Personal Values

RepublicanPersonal Values

Community Building in AustraliaValues based development for poor and socially excluded citizens to reintegrate into work and society

Grass roots community development

Community Transformation in Australia


The journey of community transformation and the path to self determination

starts with....Extensive community engagement and the

identification of community values and vision.

‘Self belief leads to self determination and community ownership’


RESULTS

60% Increase in employment 100% Reduction in children

attending “safe house” 50% Decrease in adult court

appearances Community owned policy

and programs


community engagement 6(S)

community ownership 4(S)

leadership development 6(O)

opportunity 4(O)

working together 4(R)

teamwork 4(R)

belonging 2(R)

positive attitude 5(I)

confidence 3(I)

hope 4(I)

respect 2(R)

blame (L) 2(R)

confusion (L) 3(O)

caution (L) 1(I)

control (L) 1(R)

information hoarding (L) 3(R)

human rights 7(S)

leadership development 6(O)

working together 4(R)

exploitation (L) 1(O)

respect 2(R)

Level 2011 CURRENT CULTURE 2014 CURRENT CULTURE7654321

IROS (P)= 0-2-1-1 | IROS (L)=1-3-2-0 IROS (P)= 3-4-2-2 | IROS (L)=0-0-0-0

CULTURAL ENTROPY

13%

33%2011

2014

Community Building in Sweden

Transforming public administration in municipal communities


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StorumanHärnösandLeksandÖsthammarMellerudGöteborgVärnamoHalmstadSölvesborg

Community Transformation in Sweden


54

Politicians Civil Servants

Citizens

"Bridging the government citizen

gap"


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UK Values AllianceFormed in 2012 after UK National Values Assessment

Putting values at the heart of UK Society

http://valuesalliance.co.uk/

UK Values AllianceThe UK Values Alliance is a collaborative group that is seeking to promote values in society. We formed as a result of the recent UK National Values Survey, which demonstrated a large gap between the personal values of UK residents and the values they see at a national level.

We are a hub for individuals and organisations active or interested in the field of values. Our belief is that by acting together, we can make a bigger difference than we can by acting alone. Our stated purpose is to build a better UK society by helping individuals and organisations be more aware of, understand and live their values.

For more informationand get a copy of this presentation

go to:

www.richardbarrett.net&

www.valuescentre.com

http://www.richardbarrett.net/

http://www.valuescentre.com/

nuremberg: values-driven organizations, communities and societies

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