values based leadership richard barrett

VALUES-BASED LEADERSHIPRichard Barrett and Tor Eneroth

October 2012

VALUES, BELIEFS AND BEHAVIOURS

Values-Based Leadership

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

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Let’s Begin by Talking About Values

1. What are values?

2. Why are values so important?

3. What is the impact of Values on performance?


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What are Values?

Academic Definition:

The ideals and customs of a society toward which the people have an effective regard.

My Definition:

Values are a shorthand method of describing what is important to us individually or collectively (as a human group structure—an organisation, community or nation) at any given moment in time.


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What are Values?

Values:

Values are concepts that transcend contexts. They are universal.

Beliefs:

Beliefs are contextual. They are defined by the cultural context.

VALUES UNITE, BELIEFS SEPARATE

Exercise: Values, Beliefs and Behaviours

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 multiple data points to understand the big picture


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Positive Values and Potentially Limiting Values

The concepts that values represent can be captured in one word or a short phrase.

Limiting Values:

Blame, power, status, manipulation, greed, internal competition, hierarchy, bureaucracy, etc.

Positive Values:

Honesty, integrity, openness, equality, creativity, long-term perspective, human rights, etc.


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Values and Leadership

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

The real role of the leader is to manage the values of the corporation.


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Values and Culture

The Culture of an organizations is a reflection of leadership consciousness

(values and beliefs)

Organizational transformation begins with the personal transformation

of the leaders

Therefore


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Values and Culture

Cultural Capital is the new frontier of competitive

advantage

Who you are and what your organization stands for

is vitally important to its success

Successful companies promote from within.

Unsuccessful companies bring in an external leader.


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Why Are Values So Important?

• Values-based organisations attract talented people. They nurture and develop the skills and leadership qualities of all employees.

• Values-based organisations build trust thereby increasing the internal cohesion of your workforce and the goodwill of the communities and societies in which you operate.

• Values-based decision-making is the best mode of decision-making we have for navigating complexity and dealing with uncertainty. It makes us focus on our human needs.


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The Evolution of Human Consciousness

At this point in our human history, we are witnessing an unprecedented shift in human values. Millions of people all over the world are demanding their voices be heard, not just in how our nations are governed, but also in how our organisations are run.

They want equality, fairness and transparency; they want to be responsible and accountable for their lives; and, they want to trust and be trusted.

Most importantly they want to work for organisations that are seen to be ethical and are doing the right thing in the eyes of society.

THE EDUCATED MASSESS ARE INDIVIDUATING


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The Impact of Employee Engagement on Performance

Top 40 Best Companies to work for in the USA

S&P 500

Financial Returns

Average Annualized Return 16.39%

Average Annualized Return 4..12%


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High Performing Organisations

Based on their research with more than 7,000 organisations, Aon Hewitt found that high performing companies:

….Keep focused on the long-term; maintain a consistent employee proposition and a clear set of values.

….They manage change in a way that is consistent with their values and aligned with their overall goals.

….They use employee based information to drive their actions ... and involve multiple stakeholders in their decision-making.


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Conscious Capitalism


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The Four Pillars of Conscious Capitalism

Values

Stakeholder Integration

HigherPurpose

Conscious Leadership

Conscious Culture

Cultural Transformation Tools

We can measure this with a Cultural Values Assessment

(CVA)

We can measure this with a Leadership Values Assessment (LVA)


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Conscious Capitalism

3 Year 5 Year 10 Year 15 year-200%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

S & P G to G F of E

Comparison of financial returns of: Firms of Endearment (FoE), Good to Great (GtoG) and S & P 500


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VALUES-BASED MODELS AND TOOLS FOR LEADERSHIP DEVELOPMENT AND

CULTURAL TRANSFORMATION



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Measuring the Cultures of Organisations and Mapping the Values of Leaders

1998 2006 2011

Values-DrivenCultures

Values-Driven Leadership

Cultural Transformation Tools


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Barrett Values Centre


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World-Wide Use of the CTT

3,400 accredited users located in

71 countries

1.25m people

participated in 5,000+

surveys since 2007

1,400 CVAs in 69

countries since 2007 880 LVAs in 37 countries since 2007


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World-Wide Use of the CTT


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Needs, Values and Motivations

Our values are always directed towards the satisfaction of our needs, and, our needs are

always the source of our motivations.


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Growth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.

Deficiency NeedsAn 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.

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

Abraham Maslow

Self Actualization

Hierarchy of Needs (Values)


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N e e d s

Needs to Consciousness

Abraham Maslow

Self-Actualization

Richard Barrett

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

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


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N e e d s

Needs to Values to Consciousness

Self-Actualization

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

1. Expansion of self-actualization into multiple levels.

2. Substitute levels of consciousness for hierarchy of needs.

3. Each level of consciousness is defined by specific values and behaviours.

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand


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Survival

Levels of Personal ConsciousnessPositive Focus / Excessive Focus

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Financial Security & SafetyCreating a safe secure environment for self and significant others. Control, greed

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

Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status

Personal GrowthUnderstanding your deepest motivations, experiencing responsible freedom by letting go of your fears

Finding Personal MeaningUncovering your sense of purpose and creating a vision for the future you want to create

Collaborating with PartnersWorking with others to make a positive difference by actively implementing your purpose and vision

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


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Levels of Organisational ConsciousnessPositive Focus / Excessive Focus

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

BelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blame

High PerformanceSystems, processes, quality, best practices, pride in performance. Bureaucracy, complacency

Continuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growth

Building Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency

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

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

Survival

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship


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The Culture Values Survey (CVA)

Three Questions:

PERSONAL VALUESWhich of the following values and 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.


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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)

10

42 5

7

9

6

8

3

110

Survival

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship


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Distribution of Values by LevelCurrent Culture 100 Employees

Cultural Entropy

11%

Survival

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship


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Engineering Company (339)

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Personal Values Current Culture Values Desired Culture Values

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

PV - CC 1CC - DC 4PV - DC 2

Health Index (PL)

PV: 10-0CC: 7-3

DC: 10-0

1. honesty 169 5(I)

2. accountability 165 4(R)

3. commitment 150 5(I)

4. continuous learning 92 4(I)

5. balance (home/work) 91 4(I)

6. family 91 2(R)

7. self-discipline 91 1(I)

8. responsibility 89 4(I)

9. respect 81 2(R)

10. open communication 76 2(R)

Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational

Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal

1. continuous improvement

111 4(O)

2. customer satisfaction

111 2(O)

3. safety conscious 102 1(O)

4. cost reduction 88 1(O)

5. job insecurity (L) 77 1(O)

6. inconsistent (L) 75 3(I)

7. teamwork 74 4(R)


9. blame (L) 71 2(R)

10. corporate image 64 3(O)


2. customer satisfaction

147 2(O)

3. continuous improvement

143 4(O)

4. employee development 111 4(O)

5. employee recognition 96 2(R)

6. commitment 95 5(I)

7. inspirational leadership 95 6(O)

8. employee fulfilment 94 6(O)

9. teamwork 90 4(R)

10. professionalism 80 3(O)


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1%

1%

1%

9%

12%

17%

24%

8%

6%

21%

0% 20% 40%

1

2

3

4

5

6

7

6%

5%

12%

10%

8%

14%

11%

9%

5%

20%

0% 20% 40%

1

2

3

4

5

6

7

1%

1%

0%

6%

12%

16%

19%

13%

5%

27%

0% 20% 40%

1

2

3

4

5

6

7

C

T

S

Values Distribution

C = Common GoodT = TransformationS = Self-Interest

Positive ValuesPotentially Limiting Values

CTS = 38-21-41Entropy = 3%

CTS = 25-20-55Entropy = 23%

CTS = 37-27-36Entropy = 2%

Personal Values

Current Culture Values

Desired Culture Values

Total number of votes for all values at each level

Cultural Entropy % of Votes for Limiting Values

Common Good

Transformation

Self Interest

Engineering Company (339)

C

T

S


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Cultural Entropy

Cultural Entropy Represents the degree of dysfunction (the amount of fear-driven energy

that is found in a human group structure)Entropy Impact

0 -10% Healthy: This is a low and healthy level of cultural entropy.

11-20% Minor Issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment.

21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching.

31-40% Serious Issues: This level of entropy reflects serious problems requiring cultural and structural transformation, leadership development and coaching.

41%+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and structural transformation, selective changes in leadership, leadership development and coaching.


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The Leadership Values Survey (LVA)

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.


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LVA for Darth Vader

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Darth's Values Assessors' Top 11 Values

Matches 2ambitious Level 3

courage Level 4

creativity Level 5

excellence Level 3

integrity Level 5

long-term perspective Level 7

passion Level 5

results orientation Level 3

strategic alliances Level 6

vision Level 7

Orange = Values match P = Positive I = IndividualL = Potentially Limiting R = Relationship

(white circle) O = organisational

achievement Level 3

authoritarian (L) Level 1

being the best Level 3

competitive (L) Level 2

demanding (L) Level 2

determination Level 4

excellence Level 3

knowledge Level 4

power (L) Level 3

results orientation Level 3

risk-taking Level 4

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 Darth sees

himself

How Others see

Darth

Matching Values


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0%

0%

0%

0%

0%

30%

30%

10%

20%

10%

0% 20% 40% 60%

1

2

3

4

5

6

7

9%

18%

9%

0%

0%

36%

0%

0%

0%

27%

0% 20% 40% 60%

1

2

3

4

5

6

7

CTS = 60-10-30Entropy = 0%

CTS = 0-27-73

Entropy = 36%

Darth's Values

Assessors' Values

Level of Personal Entropy

LVA for Darth Vader

C

T

S

C

T

S


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Personal Entropy

Personal Entropy Represents the amount of fear-driven energy that a person expresses in his or her day-to-day interactions with other people.

Entropy Impact

0 -6% Healthy: Authentic individual. Decision-making not driven by fears.

7-10% Minor Issues: Requiring leaders to examine how their behaviours and actions are affecting people around them, their decision-making processes or their degree of work/life balance.

11-15% Significant Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals.

16-20% Serious Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals.

21%+ Critical Issues: Requiring leaders to examine how their behaviours might be compromising their personal integrity and their ability to inspire and lead the people around them.


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Cultural Entropy and Personal Entropy

Where does cultural entropy come from:

• The personal entropy generated by the current leaders of the organisation (business unit, department, etc.); and

• The entropic legacy of past leaders, which has been institutionalized within the organization’s policies, processes, systems and structures.


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The culture ofan organisationis a reflectionof the leadership consciousness.

power (L) 11 Level 3

blame (L) 10 Level 2

demanding (L) 10 Level 2

manipulative (L) 10 Level 2

experience 9 Level 3

controlling (L) 8 Level 1

arrogant (L) 7 Level 3

authoritarian (L) 6 Level 1

exploitative (L) 6 Level 1

ruthless (L) 6 Level 1

1. short-term focus (L) 13 Level 1

2. blame (L) 11 Level 2

3. manipulation (L) 10 Level 2

4. caution (L) 7 Level 1

5. cynicism (L) 7 Level 3

6. bureaucracy (L) 6 Level 3

7. control (L) 6 Level 1

8. cost reduction 5 Level 1

9. empire building (L) 5 Level 2

10. image (L) 5 Level 3

11. long hours (L) 5 Level 3

LV A Feedback 14 Assessors

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

CVA Current Culture

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

Cultural Entropy 38% Personal Entropy 64%

Culture Values Leader’s Values

Cultural Entropy and Personal Entropy

FOUR CONDITIONS FOR CULTURE CHANGE



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Human Systems

Interior Exterior

Individual

Collective

Personality

Values and Beliefs of the

Leaders

Character

Actions and Behaviours

of the Leaders

Culture

Values and Beliefs of theOrganization

Society

Actions and Behaviours of the

Organization

Based on the Work of Ken Wilber


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Four Conditions for Culture Change

Interior Exterior

Individual

Collective

Personality: Values and Beliefs of an Individual

Culture: Values and Beliefs of an Organisation

Social Structures:

Actions and Behaviours of

an Organisation

Character: Actions and

Behavioursof an

Individual

Mission Alignm

entValu

es A

lignm

ent

Structural Alignment

Personal Alignment


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Stages in Cultural Change

Interior Exterior

Individual

Collective

1

3

2

4

When the leaders values change

The leaders behaviours change

The values of the organization change

Behaviours of organization change


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A New Leadership Paradigm

• A shift from “I” to “we”

• A shift from “what’s in it for me” to “what’s best for the common good”

• A shift from being the “best in the world” to the “best for the world”


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New Leadership Paradigm Learning System

The Book The

Multi-mediaWeb site The Workbooks

and Journals


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For More Information:

Go to:

www.valuescentre.com

www.newleadershipparadigm.com

www.valuesjournal.com

http://www.valuescentre.com/

http://www.newleadershipparadigm.com/

http://www.valuesjournal.com/

values based leadership richard barrett

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