2. Powerful metrics that enable leaders to measure and manage cultures.
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Richard Barrett’s Books
1998
2006
2010
2011
2012
Learning Modules:
Leading Self
Leading a Team
Leading an Organisation
Leading in Society
Update and new research
2013
3. Powerful metrics that enable leaders to measure and manage cultures.
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4. Powerful metrics that enable leaders to measure and manage cultures.
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THE BIG QUESTION
WHY ARE VALUES-DRIVEN ORGANISATIONS THE MOST
SUCCESSFUL ORGANISATIONS ON THE PLANET?
WHAT DO THEY FOCUS ON?
WHAT MAKES THEM SUCCESSFUL?
THEY CARE ABOUT THE NEEDS OF
THEIR PEOPLE
5. Powerful metrics that enable leaders to measure and manage cultures.
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Q. WHERE CAN WE FIND SUCH ORGANISATIONS?
A. THE BEST COMPANIES TO WORK FOR.
6. Powerful metrics that enable leaders to measure and manage cultures.
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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 employee’s basic needs and satisfying their
growth needs: they focus on helping their employees feel happy and fulfilled.
The Top 40 Best Companies to Work For (USA)
7. Powerful metrics that enable leaders to measure and manage cultures.
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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 Resources
FactSet 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 Wearhouse
Microsoft Corp.
National Instruments Corp.
NetApp Inc.
Nordstrom Inc.
Novo Nordisk, A/S ADR
Novo Nordisk, A/S ADR
Nustar Energy, L.P.
Publix Super Mkts, Inc.
Qualcomm Inc.
Rackspace Hosting Inc.
Salesforce.com Inc.
Southern Michigan Bankcorp.
St Jude Medical, Inc.
Starbucks Corporation
Stryker Corporation
SVB Financial Group
Ultimate Software Group, Inc.
Umpqua Holdings Corporation
Whole Food Markets, Inc.
8. Powerful metrics that enable leaders to measure and manage cultures.
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Eighteen Firms of Endearment
FOE
Average
Annualized
Return
13.10%
S&P 500
Average
Annualized
Return
4.12%$140m
$280m
$420m
$560m
PortfolioValue
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Firms of Endearment focus on meeting all stakeholders needs. The four pillars of FoE are Conscious
Leadership, Conscious Culture, Stakeholder Integration and a Higher Purpose supported by Core Values.
9. Powerful metrics that enable leaders to measure and manage cultures.
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Eighteen Firms of Endearment
*Amazon.com Inc.
*Best Buy Co Inc.
BMW
*CarMax Inc.
*Caterpillar Inc.
*Commerce Bankshares Inc.
Container Store
*Costco Wholesale Corporation
*eBay Inc.
*Google Inc. Class A.
*Harley-Davidson Inc.
*Honda Motor Co.
IDEO
IKEA
*Jet Blue
*Johnson & Johnson
Jordan’s Furniture
L.L. Bean
New Balance
Patagonia
Progressive Insurance
REI
*Southwest Airlines Co.
*Starbucks Corporation
*Timberland Inc.
*Toyota Motor Corp.
Trader Joe's
*UPS Inc.
Wegmans
*Whole Foods Markets, Inc.
* Firms of Endearment for which financial data were readily available for their
North America operations.
10. Powerful metrics that enable leaders to measure and manage cultures.
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Conscious Capitalism Movement
20122007
11. Powerful metrics that enable leaders to measure and manage cultures.
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GtG
Average
Annualized
Return
5.32%
S&P 500
Average
Annualized
Return
4.12%
$60m
$100m
$140m
$180m
PortfolioValue
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20m
The 10 Good to Great Companies (Jim Collins)
The seven characteristics Collins identified in the so-called Good to Great companies, on their own, are
not sufficient for long-term success. Focusing on the needs of your employees
and the culture of the company are more important.
12. Powerful metrics that enable leaders to measure and manage cultures.
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Abbott Laboratories
Abbott Laboratories
*Circuit City
**Fannie Mae
Gillette Company
Kimberly-Clark
Kimberley-Clark
Kroger Co.
Nucor Corp.
Philip Morris International Inc.
Pitney Bowes Inc.
Pitney Bowes Inc.
Walgreen Company
***Wells Fargo & Co.
* No longer trading.
** Involved in a home mortgage scandal.
*** Received $25 billion bailout from the Troubled Asset Relief Program (TARP) as part of the
United States government’s response to the subprime mortgage crisis of 2008.
The 10 Good to Great Companies
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THE DIFFERENCE BETWEEN THE BEST COMPANIES TO WORK
FOR AND OTHER COMPANIES IS THEY CARE ABOUT THE
NEEDS OF THEIR EMPLOYEES– THEY CARE ABOUT WHAT THEIR
EMPLOYEES VALUE.
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UNDERSTANDING EMPLOYEE’S NEEDS—what people value (what
makes them happy and brings meaning to their lives) —is the key to
creating a high performing organisation.
When you support employees in satisfying their needs, they respond
with high levels of employee engagement—they bring their
commitment and creativity to their work, and unleash their
discretionary energy. They willingly go the extra mile to support the
organisation in meeting its goals.
IF YOU WANT TO BUILD A HIGH PERFORMANCE CULTURE THEN
YOU NEED TO CARE ABOUT WHAT YOUR EMPLOYEES VALUE.
15. Powerful metrics that enable leaders to measure and manage cultures.
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AT ANY GIVEN MOMENT IN TIME, the
values that are most important to us
are a reflection of the stage of
psychological development we have
reached and our unmet basic needs,.
Our needs (what we value) have always
been, and always will be the principal
drivers of our behaviors and actions.
What motivates us is the satisfaction of our needs
16. Powerful metrics that enable leaders to measure and manage cultures.
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EvolutionofHumanConsciousness
Physical Evolution
The Evolution of Human Values
Survival
Relationship
Self-esteem
Transformation
Internal cohesion
Making a difference
Service
With the emergence of Homo
Sapiens, evolution shifted
from physical evolution to
consciousness evolution
BasicNeedsGrowthNeeds
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What Are Our Basic Needs and Growth Needs
EvolutionofPersonalConsciousness
Satisfying your physiological needs for security;
staying alive and keeping your body healthy.
Satisfying your emotional need for belonging,
protection and connection.
Satisfying your emotional need to be recognized for
your skills, talents or qualities.
Satisfying your need for autonomy, freedom,
independence and adventure.
Satisfying your need for authenticity and finding
meaning and purpose in your life.
Satisfying your need to actualize your purpose by
influencing or impacting the world around you.
Satisfying your need to leave a legacy—to have
led a life of significance that will be remembered.
Growth
Needs
Basic
Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the
growth needs associated with the stage of psychological development we have reached.
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Figure 1: The Stages of Psychological Development
EvolutionofPersonalConsciousness
Surviving: Satisfying your physiological needs by learning how to
stay alive, keep fit and healthy, and staying free from harm.
Conforming: Keeping safe and nurtured by those around you by
being loyal to your family, kin, colleagues and culture.
Differentiating: Finding ways to be admired and recognized by your
parents and peers by excelling at what you do best.
Individuating: Letting go of the aspects of your parental and cultural
conditioning that prevent you from becoming who you really are.
Self-actualizing: Becoming fully who you are by finding your
sense of purpose and leading a values-driven life.
Integrating: Aligning with others who share your values and
purpose to make a difference in the world.
Serving: Fulfilling your destiny by leaving a legacy
and using your gifts in service to the world.
19. Powerful metrics that enable leaders to measure and manage cultures.
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Three Stages of Mind Development
In Immunity to Change Robert Kegan and Lisa
Laskow Lahey identify three plateaus of adult
psychological development (ability to handle
complexity)—the socialized mind, the self-
authoring mind and self-transforming mind.
Robert Kegan and Lisa Laskow Lahey, Immunity to Change
(Boston: Harvard Business School Publishing), 2009, pp.16-21.
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Three Stages of Mind Development
THE SOCIALISED MIND is focused on meeting its
survival, relationship and self-esteem needs. People
operating with a socialised mind think of their work as a
job—a way of earning a living. They may enjoy their work
and colleagues, but are not passionate about what they do.
THE SELF-AUTHORING MIND is focused on achievement
and ambition. People operating with a self-authoring mind
seek opportunities for advancement. They think of their
work as career—a pathway to a better future.
THE SELF-TRANSFORMING MIND is focused on leading
a values and purpose-driven life. People operating with a
self-transforming mind see their work as a mission. They
want to leave a legacy and be of service to the world.
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Complexity of Thinking
THE SOCIALISED (Dependent) MIND
Communication is strongly influenced by what others need
to hear so it can fit into its social context. Filters what it
hears so that it can maintain alignment with others. Limited
ability for independent thinking.
THE SELF-AUTHORING (Independent) MIND
Communication is strongly influenced by what others need
to hear to further its agenda. It places a priority on receiving
information that supports its mission. Prisoner to its filter.
THE SELF-TRANSFORMING (Interdependent) MIND
This mind is not a prisoner to its filter. It can stand back and
look at it, not just through it. Open to considering different
perspectives and modifying its thinking and direction.
22. Powerful metrics that enable leaders to measure and manage cultures.
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Motivating the Socialized Mind
SURVIVAL:
A safe environment and income and benefits that
are sufficient to take care of our needs and the
needs of our families.
RELATIONSHIP:
A caring environment, free from conflict and
discrimination, where people are loyal to the
group, and respect and care about each other.
SELF-ESTEEM:
Opportunities to learn, grow and develop skills and
talents with support, feedback and coaching from
people we know and trust.
23. Powerful metrics that enable leaders to measure and manage cultures.
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Motivating the Self-Authoring Mind
TRANSFORMATION:
Opportunities to use my gifts and talents by being
made accountable for challenging projects or
process changes which meet the goals or
objectives of the organisation.
INTERNAL COHESION:
Opportunities to lead a values- and purpose-driven
life that is meaningful to me and supports me and
the organisation in meeting its objectives.
24. Powerful metrics that enable leaders to measure and manage cultures.
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Figure 4: Motivating the Self-Transforming Mind
MAKING A DIFFERENCE:
Opportunities to leverage our impact in the world
by forming alliances with others who share the
same values, and a similar purpose.
SERVICE:
Opportunities to leave a legacy by serving the
needs of humanity and building a better world for
future generations.
25. Powerful metrics that enable leaders to measure and manage cultures.
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Happiness
YOU FEEL HAPPY when you are
able to meet your basic needs, but
you feel anxious or fearful when you
are prevented from meeting these
needs or when the satisfaction of
these needs is under threat—when
you lose a job, when you lose a
friend or a close companion or
when you feel people do not
respect you.
Happiness is the feeling you get when you achieve internal stability and
external equilibrium at the ego level of existence—when you are able to
satisfy your basic needs.
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Meaning
THE ABILITY TO MEET your growth needs
engenders a deeper feeling than happiness,
and consequently a deeper level of
motivation and commitment to the
satisfaction of these needs. You experience
joy and contentment when you are able to
satisfy your growth needs because you are
experiencing a deeper sense of alignment
with who you truly are.
You are discovering your authentic (soul)
self and finding meaning and purpose for
your life.
Joy and contentment are the feelings you get when you
are able to satisfy your growth needs.
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How We Find Happiness/Meaning at Each Stage of
Development
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy
7 Serving
(Service)
Leading a life of selfless service for the good of the community,
nation or the planet.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with others to
make a difference in the world.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is larger than
meeting our own needs.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and responsibility for
our lives and the environment in which we live.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we respect and
our peers.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family, friends and
colleagues.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our physiological
needs at home and in the workplace.
28. Powerful metrics that enable leaders to measure and manage cultures.
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Causes of Happiness/Meaning:
What We Value from our Work
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
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What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
SURVIVAL:
WHAT WE VALUE
A safe environment and income and
benefits that are sufficient to take
care of our needs and the needs of
our families.
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What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
RELATIONSHIP:
WHAT WE VALUE
A caring environment,
free from conflict and
discrimination, where people are
loyal to the group, and respect and
care about each other.
31. Powerful metrics that enable leaders to measure and manage cultures.
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What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities to learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
SELF-ESTEEM:
WHAT WE VALUE
Opportunities to learn, grow and
develop our skills and talents with
support, feedback and coaching
from people we trust.
32. Powerful metrics that enable leaders to measure and manage cultures.
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What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
TRANSFORMATION:
WHAT WE VALUE Opportunities to
use our gifts and talents by being
made accountable for challenging
projects or process changes of
significance to ourselves or others.
33. Powerful metrics that enable leaders to measure and manage cultures.
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What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
INTERNAL COHESION:
WHAT WE VALUE
Opportunities to lead a values- and
purpose-driven life that is
meaningful to us and supports us
and the organisation in meeting its
objectives.
34. Powerful metrics that enable leaders to measure and manage cultures.
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What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
MAKING A DIFFERENCE:
WHAT WE VALUE
Opportunities to leverage our
impact in the world by forming
alliances with others who share the
same values, and a similar purpose.
35. Powerful metrics that enable leaders to measure and manage cultures.
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35
What We Value at Different Levels of Consciousness
Stage of Development
(Level of Consciousness) Cause of Happiness/Joy What We Value from our Work
7 Serving
(Service)
Leading a life of selfless service for the good of the
community, nation or the planet.
Opportunities to leave a legacy by serving the needs of
humanity and building a better world for future generations.
6 Integrating
(Making a difference)
Actualizing our sense of purpose by collaborating with
others to make a difference in the world.
Opportunities to leverage our impact in the world by forming
alliances with others who share the same values, and a similar
purpose.
5 Self-actualizing
(Internal cohesion)
Finding a sense of meaning and a purpose in life that is
larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is
meaningful to us and supports us and the organisation in
meeting our objectives.
4 Individuating
(Transformation)
Experiencing a sense of freedom, autonomy and
responsibility for our lives and the environment in which
we live.
Opportunities to use our gifts and talents by being made
accountable for challenging projects or processes of
significance to ourselves or others.
3 Differentiation
(Self-esteem)
Feeling acknowledged and recognized by those who we
respect and our peers.
Opportunities learn, grow and develop our skills and talents
with support, feedback and coaching from people we trust.
2 Conforming
(Relationship)
Feeling accepted, cherished and nurtured by our family,
friends and colleagues.
A caring environment, free from conflict and discrimination,
where people are loyal to the group, and respect and care
about each other.
1 Survival
(Survival)
Feeling safe and secure, and being able to meet our
physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to
take care of our needs and the needs of our families.
SERVICE:
WHAT WE VALUE
Opportunities to leave a legacy by
serving the needs of humanity and
building a better world for future
generations.
37. Powerful metrics that enable leaders to measure and manage cultures.
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37
Highly Engaged Employees
Highly engaged employees identify with the company.
They care passionately about the future of the company.
They bring passion and purpose to their work.
They are willing to invest their discretionary effort to make
the company a success.
They want the company to do the right thing.
They want to feel pride in the way the company behaves.
38. Powerful metrics that enable leaders to measure and manage cultures.
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Four Levels of Employee Engagement
Highly Engaged
Employees bring passion, purpose and discretionary
energy to their work. They are emotionally attached
and committed to the organisation and want to do
the right thing. They serve the greater good.
Engaged
Employees are willing to go the extra mile to support
the company in achieving its goals and objectives as
long as they can also satisfy their own goals and
objectives.
Disengaged
Employees do what they have to do to get through
the day, but are unwilling to put in any extra effort to
meet deadlines or support their colleagues in
difficult times.
Highly Disengaged
Employees are unhappy at their work and act out
their unhappiness by actively undermining the
company, and denigrating those who want to
succeed.
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Types of Mind/Level of Engagement/Potential Risk
Socialised
Mind
(Staff)
Self-Authoring
Mind
(Managers)
Self-Transforming
Mind
(Leaders)
Highly Engaged n.a. (A) Low Risk Low Risk
Engaged Low Risk Medium Risk Low Risk
Disengaged Medium Risk High Risk n.a. (B)
Highly
Disengaged
High Risk n.a. (B) n.a. (B)
n.a. = Not applicable. Unlikely to find someone with this type of mind at this level of engagement in the
organisation. (A) People with a socialized mind tend not to be highly engaged with their work. They are more
focused on their lives outside of work. (B) As soon as people with self-authoring and self-transforming minds
become disengaged they tend to seek out other employment where they can satisfy their ambitions
40. Powerful metrics that enable leaders to measure and manage cultures.
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Human Group Structures
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Based on the Four Quadrants of Ken Wilbur
41. Powerful metrics that enable leaders to measure and manage cultures.
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41
Four Conditions for Employee Engagement
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Personal
Alignment
Structural
Alignment
Mission
Alignment
Values
Alignment Employee
Engagement
42. Powerful metrics that enable leaders to measure and manage cultures.
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42
What Engaged Employees Experience
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Mission
Alignment
Values
Alignment
43. Powerful metrics that enable leaders to measure and manage cultures.
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43
What Leaders Must Do to Create Engagement
Individual
Collective
Interior Exterior
Character Personality
Culture Society
Personal
Alignment
Structural
Alignment
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45
THE CULTURE OF AN ORGANISATIONAL is a reflection of leadership
consciousness—the stage of psychological development that the leaders
have reached.
ORGANISATIONAL TRANSFORMATION begins with the personal
transformation of the leaders. Organisations don’t transform; people do.
MEASUREMENT MATTERS: Whatever you measure (focus your
attention on a regular basis ) tends to improve.
The Three Mantras of Culture Change
46. continuous learning 11 Level 4
generosity 11 Level 5
commitment 10 Level 5
positive attitude 10 Level 5
vision 10 Level 7
ambitious 9 Level 3
making a difference 8 Level 6
results orientation 8 Level 3
honesty 7 Level 5
integrity 7 Level 5
intuition 7 Level 6
leadership developer 7 Level 6
1. customer satisfaction 16 Level 2
2. commitment 11 Level 5
3. continuous learning 11 Level 4
4. making a difference 11 Level 6
5. global perspective 9 Level 3
6. mentoring 9 Level 6
7. enthusiasm 8 Level 5
8. leadership development 8 Level 6
9. integrity 7 Level 5
10. open communication 7 Level 2
11. optimism 7 Level 5
12. shared values 7 Level 5
CVA Current Culture
PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0
LVA Feedback 27 Assessors
PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0
Cultural Evolution Begins with Personal Evolution
Cultural Entropy 7% Personal Entropy 9%
Culture Values Leader’s Values
The culture of
an organisation
is a reflection
of leadership
consciousness.
Internal
Cohesion
Internal
Cohesion
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What the Best Leaders Focus on …
Based on 3600 Leadership Values Feedback
carried out on 100 leaders from 19 countries (2008-2010).
Commitment *
Controlling (L)
Ambitious
Results orientation
Demanding (L)
Experience
Goals orientation
Authoritarian (L)
Humor/fun *
Power (L)
Commitment *
Positive attitude *
Accessible
Teamwork
Trustworthy *
Integrity *
Accountability
Customer satisfaction
Enthusiasm *
Fairness *
Low Entropy
Leaders (0-6%)
High Entropy
Leaders (21%+)
Values that create internal cohesion …
Internal
Cohesion*
Self-
Esteem
49. Origins of the Cultural Transformation Tools
Growth Needs
When these needs are fulfilled they do not
go away, they engender deeper levels of
motivation and commitment.
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.
Physiological
Safety
Love & Belonging
Self-esteem
Know and
Understand
Abraham Maslow
Self Actualization
50. Maslow’s Needs to Barrett’s Consciousness
Need s Con s ciou s n es s
Self-Actualization
Richard Barrett
Safety
Love & Belonging
Self-esteem
Physiological
Safety
Love & Belonging
Self-esteem
Know and
Understand
Abraham Maslow
51. Maslow’s Needs to Barrett’s Consciousness
Need s Con s ciou s n es s
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.
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
SurvivalPhysiological
Safety
Love & Belonging
Self-esteem
Know and
Understand
52. Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Financial Security & Safety
Creating a safe secure environment for self
and significant others. Control, greed , …
Belonging
Feeling 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 Growth
Understandingyourdeepestmotivations,experiencingresponsible
freedombylettinggoofyourfears
Finding Personal Meaning
Uncovering your sense of purpose and creating
a vision for the future you want to create
Collaborating with Partners
Working with others to make a positive difference
by actively implementing your purpose and vision
Service to Humanity and the Planet
Devoting your life in self-less service
to your purpose and vision
53. Positive Focus / Excessive Focus
Financial Stability
Shareholdervalue,organisationalgrowth,
employeehealth,safety.Control,corruption,greed,…
Belonging
Loyalty, open communication, customer satisfaction, friendship.
Manipulation, blame, …
High Performance
Systems, processes, quality, best practices,
pride in performance. Bureaucracy, complacency, …
Continuous Renewal and Learning
Accountability, adaptability, empowerment, teamwork, goals
orientation, personal growth
Building Corporate Community
Shared values, vision, commitment, integrity,
trust, passion, creativity, openness, transparency
Strategic Alliances and Partnerships
Environmental awareness, community involvement, employee
fulfillment, coaching/mentoring
Service To Humanity And The Planet
Social responsibility, future generations, long-term perspective,
ethics, compassion, humility
Stages in the Development of Organizational Consciousness
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
54. Placement of Values by Level
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
Current Culture 100 Employees
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
55. Distribution of Values by Level
Current Culture 100 Employees
11%
1
2
3
4
5
6
7
Cultural
Entropy
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
56. Powerful metrics that enable leaders to measure and manage cultures.
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25%
35%
45%
55%
65%
75%
85%
0% 5% 10% 15% 20% 25% 30%
Cultural Entropy
EmployeeEngagement
Research carried out in 163 organisations in Australia by Hewitt Associates
and the Barrett Values Centre in 2008.
Employee Engagement vs. Cultural Entropy
57. Powerful metrics that enable leaders to measure and manage cultures.
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57
25%
35%
45%
55%
65%
75%
85%
0% 5% 10% 15% 20% 25% 30%
Cultural Entropy
EmployeeEngagement
Research carried out in 163 organisations in Australia by Hewitt Associates
and the Barrett Values Centre in 2008.
Employee Engagement vs. Cultural Entropy
58. Powerful metrics that enable leaders to measure and manage cultures.
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58
Cultural
Entropy
Most employees are
….
Potentially limiting
values showing up in
current culture
Culture Risk
10% or less Highly Engaged Low Risk
11% to 20% Engaged Low Risk
21% to 30% Becoming Disengaged Bureaucracy, Hierarchy,
Confusion
Medium Risk
31% to 40% Disengaged Bureaucracy, Hierarchy,
Confusion, Control,
Short-term focus, Silo-
mentality, Long hours
High Risk
41% or
more
Highly Disengaged Bureaucracy, Short-term
focus, Hierarchy, Blame,
Control, Confusion,
Information Hoarding,
Silo-mentality
Very High Risk
59. Powerful metrics that enable leaders to measure and manage cultures.
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Low Cultural Entropy Leads to High Financial Returns
Entropy Level 3 Year Revenue Growth %
<10% 32.87%
10% – 19% 24.90%
20% – 29% 11.39%
>29% 11.07%
Research carried out in 163 organisations in Australia by Hewitt Associates
and the Barrett Values Centre in 2008.
60. Powerful metrics that enable leaders to measure and manage cultures.
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60
What is Cultural Entropy?
The amount of energy in an organisational culture that is
consumed in doing unproductive work—work that does not
add value.
It is a measure of the conflict, friction and frustration that
exists in an organisation due to potentially limiting values
such as: bureaucracy, blame, power, greed … (self-interest)
Cultural entropy is a function of the personal entropy of the
current leaders of an organisation and the institutional
legacy of past leaders as embedded in the structures,
systems, policies and procedures.
61. Cultural Entropy In Organisations
Entropy Impact
<10% Prime: Healthy Culture: This is a low and healthy level of cultural entropy.
11-20% Minor Issues: Minor issues: This level of cultural entropy reflects issues requiring cultural or
structural adjustment. It is important to reduce the level of cultural entropy to improve
performance.
21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and
structural transformation and leadership coaching. It is important to reduce the level of
cultural entropy to improve performance.
31-40% Serious Issues: is level of entropy reflects serious problems requiring cultural and structural
transformation, leadership development and coaching. It is important to reduce the level of
entropy to improve performance.
41+ Critical Issues: This level of cultural entropy reflects critical problems requiring cultural and
structural transformation, selective changes in leadership, leadership development and
coaching. It is important to reduce the level of cultural entropy to improve performance.
63. Powerful metrics that enable leaders to measure and manage cultures.
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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.
64. Powerful metrics that enable leaders to measure and manage cultures.
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Fear-Based Beliefs
Level 3: Self-esteem Consciousness: Limiting beliefs the
individual holds about not being enough – a lack of self-
esteem or confidence in themselves that causes them to
over compensate through the excessive use of power,
authority, or status seeking.
Level 2: Relationship Consciousness: Limiting beliefs the
individual holds about not belonging – a lack of acceptance
or respect for themselves that causes them to over
compensate by competing for attention, blaming others, and
standing in judgement.
Level 1: Survival Consciousness: Limiting beliefs the
individual holds about not having enough – a lack of
assurance that they will be safe and survive that causes
them to over compensate through greediness, control, and
excessive caution.
77. Entropy 14% Entropy 13% Entropy 13% Entropy 11%
Nedbank: Current Culture Evolution
2009 2010 2011
6 matches6 matches6 matches
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. accountability
2. client satisfaction
3. client-driven
4. teamwork
5. brand reputation
6. being the best
7. achievement
8. commitment
9. community involvement
10. cost-consciousness
1. accountability
2. client-driven
3. client satisfaction
4. brand reputation
5. achievement
6. teamwork
7. environmental awareness
8. commitment
9. being the best
10. cost-consciousness
78. Nedbank: Group (2011)
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)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 2
CC - DC 6
PV - DC 4
Health
Index (PL)
PV: 10-0
CC: 10-0
DC: 10-0
1. accountability 8576 4(R)
2. honesty 6133 5(I)
3. commitment 5221 5(I)
4. respect 4420 2(R)
5. family 4057 2(R)
6. integrity 4023 5(I)
7. caring 3568 2(R)
8. balance (home/work) 3526 4(I)
9. responsibility 3279 4(I)
10. efficiency 3085 3(I)
1. accountability 5464 4(R)
2. client-driven 4571 6(O)
3. client satisfaction 3486 2(O)
4. brand reputation 2740 3(O)
5. achievement 2491 3(I)
6. teamwork 2408 4(R)
7. environmental
awareness
2372 6(S)
8. commitment 2263 5(I)
9. being the best 2218 3(O)
10. cost-consciousness 2187 3(O)
1. accountability 6987 4(R)
2. balance (home/work) 4183 4(O)
3. client-driven 3864 6(O)
4. client satisfaction 3742 2(O)
5. employee recognition 3297 2(R)
6. honesty 3053 5(I)
7. commitment 2953 5(I)
8. achievement 2809 3(I)
9. teamwork 2744 4(R)
10. employee satisfaction 2687 2(O)
Values Plot Copyright 2011 Barrett Values Centre April 2011
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
79. 1%
0%
1%
5%
16%
16%
26%
4%
7%
24%
0% 20% 40%
1
2
3
4
5
6
7
3%
3%
5%
5%
11%
20%
13%
14%
6%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
0%
0%
5%
15%
16%
21%
12%
5%
25%
0% 20% 40%
1
2
3
4
5
6
7
Nedbank: Group (2011)
C
T
S
Values Distribution Copyright 2011 Barrett Values Centre April 2011
C = Common Good
T = Transformation
S = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 37-24-39
Entropy = 2%
CTS = 33-20-47
Entropy = 11%
CTS = 38-25-37
Entropy = 1%
Personal
Values
Current Culture
Values
Desired Culture
Values
80. Powerful metrics that enable leaders to measure and manage cultures.
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80
Evolution of Survey Participants
8%
25%
38%
51%
67%
73%
77%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005 2006 2007 2008 2009 2010 2011 2012
Percentage of employees voluntarily
participating in the values
assessment grew significantly each
year as people realized that the
leaders of the organisation were not
just paying attention to the results
of the assessment, but were taking
actions to reduce cultural entropy
and increase the values and mission
alignment every year.
81. Powerful metrics that enable leaders to measure and manage cultures.
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Cultural Entropy Evolution
Entropy risk bands
0 -10% Healthy functioning
11-20% Some problems
21-30% Significant problems
31-40% Serious situation
41%+ Critical situation
Entropy reduced or stayed the
same every year. Entropy reduction
led to improved performance
through increased employee
engagement—increased
revenues, productivity, share
price, etc.
Working toward entropy of 10%
will result in healthy functioning
of the organisation and improved
staff morale.
25%
19%
17%
14%
13% 13%
11%
10%
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010 2011 2012
Cutlural Entropy
86. Barrett Values Centre: Group (16)
commitment 12 5(I)
continuous improvement 10 4(O)
employee fulfilment 10 6(O)
balance (home/work) 9 4(O)
customer satisfaction 9 2(O)
making a difference 9 6(S)
financial stability 8 1(O)
humour/ fun 8 5(O)
teamwork 8 4(R)
accountability 4 4(R)
adaptability 4 4(I)
customer collaboration 4 6(O)
shared values 4 5(O)
shared vision 4 5(O)
accountability 9 4(R)
commitment 8 5(I)
continuous improvement 8 4(O)
employee fulfilment 8 6(O)
humour/ fun 8 5(O)
shared vision 8 5(O)
customer collaboration 7 6(O)
customer satisfaction 6 2(O)
financial stability 6 1(O)
teamwork 6 4(R)
Values Plot August 6, 2012Copyright 2012 Barrett Values Centre
I = Individual
R = Relationship
Black Underline = PV & CC
Orange = PV, CC & DC
Orange = CC & DC
Blue = PV & DC
P = Positive
L = Potentially Limiting (white circle)
O = Organisational
S = Societal
Matches
PV - CC 5
CC - DC 10
PV - DC 3
Health Index
(PL)
PV - 9-0
CC - 14-0
DC-10-0
making a difference 10 6(S)
family 9 2(R)
commitment 8 5(I)
humour/ fun 8 5(I)
balance (home/work) 6 4(I)
continuous learning 6 4(I)
integrity 6 5(I)
accountability 5 4(R)
creativity 5 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=6-2-1 IRS (L)=0-0-0 IROS (P)=2-2-9-1 IROS (L)=0-0-0-0 IROS (P)=1-2-7-0 IROS (L)=0-0-0-0
87. Barrett Values Centre: Group (16)
CTS = 53-22-25
Entropy = 0%
CTS = 50-26-24
Entropy = 2%
Personal Values
CTS = 51-29-20
Entropy = 0%
Values distribution August 6, 2012Copyright 2012 Barrett Values Centre
Positive Values
Potentially Limiting Values
Current Culture
Values
Desired Culture
Values
C
T
S 2
1
3
4
5
6
7
C = Common Good
T = Transformation
S = Self-Interest
0%
0%
0%
6%
12%
7%
22%
32%
13%
8%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
1%
1%
6%
8%
8%
26%
28%
19%
3%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
0%
0%
5%
5%
10%
29%
27%
22%
2%
0% 20% 40% 60%
1
2
3
4
5
6
7
88. Barrett Values Centre: Group (16)
Business Needs Copyright 2012 Barrett Values Centre August 6, 2012
Desired Culture Values
Current Culture Values
Finance
Fitness
Evolution
Client Relations
Culture
Culture
Societal
Contribution
Fitness
Evolution
Current Culture Desired Culture
Finance financial stability financial stability
Fitness accountability accountability
Client Relations
customer satisfaction
customer collaboration
customer collaboration
customer satisfaction
Evolution
continuous improvement
adaptability
continuous improvement
Culture
employee fulfilment
balance (home/work)
humour/ fun
teamwork
shared values
shared vision
employee fulfilment
humour/ fun
shared vision
teamwork
Societal Contribution making a difference
Client Relations
89. Powerful metrics that enable leaders to measure and manage cultures.
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89
Cultural Entropy Evolution
1% 1%
7%
10%
8% 8%
3%
2%
0%
2%
4%
6%
8%
10%
12%
2005 2006 2007 2008 2009 2010 2011 2012
Cultural Entropy
Entropy risk bands
0 -10% Healthy functioning
11-20% Some problems
21-30% Significant problems
31-40% Serious situation
41%+ Critical situation
Entropy increased during the
period 2006 to 2008, then reduced
slightly, and then reduced
significantly. Entropy reduction led
to improved performance through
increased employee engagement—
increased revenues, and
productivity, etc.
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Values Alignment and Mission Alignment
Mission Alignment
Values Alignment
0
1
2
3
4
5
6
7
8
9
10
2005 2006 2007 2008 2009 2010 2011 2012
PV/CC Matches CC/DC Matches
Even though cultural
entropy increased, values
alignment increased…
mission alignment
decreased. Mission
alignment increased with
reduction in cultural
entropy.