How to Create a Values-Driven Culture

The Value of Values
Richard Barrett

MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
MY SPEECH TODAY
HOW TO CREATE

MY SPEECH TODAY
HOW TO CREATE
BUT FIRST LET’S TALK ABOUT VALUES
WHAT ARE THEY?
WHY ARE THEY IMPORTANT?

Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
4
What are Values?
A shorthand way of describing our
individual and collective motivations
and what is important to us.
They are the energetic
drivers of our aspirations
and intentions.

5
Positive of Potentially Limiting?
Values can be positive or
potentially limiting.
Positive Values: Trust, creativity,
passion, honesty, integrity, clarity
Potentially Limiting Values:
Bureaucracy, power, blame, greed,
hierarchy, status-seeking

6
Where do our Values come from?
Our values are a reflection of our needs.
(What ever we need we value.)
We have two sets of needs:
• The needs of the stage of psychological development
we are currently operating from.
• The needs of the stages of psychological development
we have passed through where we still have unmet
needs.

7
PRIMARY
MOTIVATION
THE NEEDS OF THE STAGE
OF PSYCYHOLOGICAL
DEVELOPMENT YOU
ARE AT

8
SECONDARY
MOTIVATION
THE UNMET NEEDS
OF THE STAGES OF
PSYCYHOLOGICAL
DEVELOPMENT YOU
HAVE PASSED THROUGH
The needs you have failed
to master.

9
Facilitating human potential
This is not a book about
coaching per se, it is
about the framework of
human development that
coaches need to be
familiar with to facilitate
the full emergence of
their client’s potential.

10
A personal journey
Every client you coach is on
an evolutionary journey of
psychological development.
Surviving
Conforming
Differentiating
Individuating
Self-actualizing
Integrating
Serving

11
Stages, Levels and World Views
 We grow in stages of psychological
development
 We operate at levels of consciousness
 We live inside (are embedded in) cultural
world views

12
Levels of Consciousness
All things being normal, the level of
consciousness we operate from will
correspond to the stage of psychological
development we have reached.

13
Stages and Levels
Stages Levels of Consciousness
Serving SERVICE
Integrating MAKING A DIFFERENCE
Self-actualising INTERNAL COHESION
Individuating TRANSFORMATION
Differentiating SELF-ESTEEM
Conforming RELATIONSHIP
Surviving SURVIVAL
EvolutionofPersonalConsciousness

14
Stages of Psychological Development
Surviving

15
INFANCY
0-2 Years Old
Staying alive!
Satisfying physiological
and nutritional needs
Surviving
Stage Motivation

16
Conforming

17
Conforming
Stage Motivation
CHILDHOOD
3-7 Years Old
Feeling safe!
Satisfying need for love,
and belonging.

18
Differentiating

19
Differentiating
Stage Motivation
TEENAGER +
8-24 Years Old
Feeling secure!
Satisfying need for respect
and recognition.

20
Individuating

21
Individuating
Stage Motivation
YOUNG ADULT
25-39 Years Old
Releasing your fears!
Satisfying need for freedom
and autonomy.

22
Self-actualising

23
Self-actualising
Stage Motivation
ADULTHOOD
40-49 Years Old
Becoming who you are!
Satisfying need to find
meaning and purpose.

24
Integrating

25
Integrating
Stage Motivation
MATURE ADULT
50-59 Years Old
Aligning with others!
Satisfying need to make a
difference in the world.

26
Serving

27
Serving
Stage Motivation
SENIOR
60+ Years Old
Finding fulfilment!
Satisfying your need to serve
the greater good.

28
What motivates employees
is the
satisfaction of their needs.

29

30

31
1. What is your primary motivation at work?
2. What is your primary motivation outside work?
3. Are you able to get
your motivations met at
your current place of
work?
4. Discuss with a
partner.

32
What Employees Value
at different levels of consciousness
A safe working environment and pay and ben-
efits that are sufficient to take care of family
Opportunities to work in a congenial atmos-
phere where people care and respect each other
Opportunities to grow professionally with
support, feedback and coaching
Opportunities and challenges by being made
accountable for projects and processes
Opportunities for personal growth and develop-
ment to support you in living your life purpose
Opportunities to leverage your contribution by
collaborating with other like-minded individuals
Opportunities to serve others and care for the
well-being of the Earth’s life support systems
Surviving
Relationship
Self-esteem
Transformation
Internal cohesion
Making a difference
Service
Levels of Consciousness Primary Motivations

33
Richard Barrett has made
extraordinary contributions to our
understanding of organisational
values and culture. His frame-
works for measuring culture and
enabling whole system change are
elegant. His reservoir of know-
ledge is vast and his connection to
timeless wisdom is profound.
Raj Sisodia Co-founder and co-chairman of
Conscious Capitalism Inc. and Professor of
Marketing at Bentley University
Building a Values-driven Culture

WHY A VALUES-DRIVEN CULTURE?
Values Alignment
Performance
BECAUSE VALUES-DRIVEN
CULTURES ARE THE MOST
SUCCESSFUL ON THE
PLANET

35
WHY ARE VALUES-DRIVEN CULTURES
THE MOST SUCCESSFUL?
BECAUSE THEY CARE ABOUT THE
NEEDS OF THEIR EMPLOYEES, AND …

… THEY ALSO CARE ABOUT THE NEEDS
OF ALL THEIR STAKEHOLDERS
Suppliers Community

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)

“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”

The Leader and the Values
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.

BUILDING A VALUES-DRIVEN CULTURE

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

The Seven Levels of Consciousness Model

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

Needs 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
Maslow’s Needs to Barrett’s Consciousness

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

Stages in the Development of Personal Consciousness
Positive Focus / Excessive Focus
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
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Making a difference

48
The Shift from “I” to “We”
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
COMMON GOOD AND
CONTRIBUTION (WE)
SELF INTEREST AND
PERFORMANCE (I)
TRANSFORMATION
EvolutionofPersonalConsciousness
Making a difference

49
SEPARATION AND ISOLATION COMMUNITY AND COHESION

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
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
Making a difference

51
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

52
BUILDING A VALUES-DRIVEN ORGANSIATION
START WITH A VALUES SURVEY

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

Placement of Values by Level (100 employees)
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
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival

11%
1
2
3
4
5
6
7
Cultural
Entropy
Placement of Values by Level (100 employees)
Current Culture
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival

Cultural Entropy and Engagement
Cultural entropy
significantly
impacts
employee
engagement.
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.
Low Entropy =
High Engagement
High Entropy =
Low Engagement

Entropy and Engagement
Cultural Entropy Most employees
are ….
10% or less Highly Engaged
11% to 20% Engaged
21% to 30% Becoming Disengaged
31% to 40% Disengaged
41% or more Highly Disengaged

58
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.

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)
financial stability 6 1(O)
teamwork 6 4(R)
customer satisfaction 12 2(O)
continuous improvement 10 4(O)
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 Plot June 22, 2015Copyright 2015 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 4
CC - DC 6
PV - DC 4
Cultural Entropy:
Current Culture
7%
family 15 2(R)
humour/ fun 11 5(I)
well-being (physical/ emotional/
mental/ spiritual)
11 6(I)
continuous learning 10 4(I)
commitment 8 5(I)
accountability 7 4(R)
financial stability 7 1(I)
trust 7 5(R)
compassion 6 7(R)
integrity 6 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=6-4-1 IRS (L)=0-0-0 IROS (P)=1-1-8-1 IROS (L)=0-0-0-0 IROS (P)=0-3-6-1 IROS (L)=0-0-0-0

Highly Engaged Team (19)
Personal Values
Values Distribution June 22, 2015Copyright 2015 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%
5%
14%
9%
21%
25%
17%
9%
0% 20% 40% 60%
1
2
3
4
5
6
7
2%
0%
5%
6%
10%
4%
20%
28%
24%
1%
0% 20% 40% 60%
1
2
3
4
5
6
7
0%
0%
0%
5%
9%
10%
27%
23%
22%
4%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24
Cultural Entropy = 0%
Low level of
Cultural Entropy
= High level of
Employee
Engagement
High level of
Values
Alignment
26%
46%
28%
25%
48%
27%
26%
50%
24%

Five 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.
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.
Becoming
Disengaged
Employees are becoming frustrated, anxious and fearful
about not being able to satisfy their needs.
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.

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.

63
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?

64
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 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
Cultural Evolution Begins with Personal Evolution
Cultural Entropy 7%Personal Entropy 9%
Culture ValuesLeader’s Values
The culture of
an organisation
is a reflection
of 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 of
an organisation
is a reflection
of 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

67
How to Measure Personal Entropy?
LEADER’S VALUES
Which of the following values/behaviours
most reflect how you operate? Pick ten.
ASSESSOR’S OBSERVED VALUES OF LEADER
Which 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 Values
7
6
5
4
3
2
1
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=Positive
L=Potentially Limiting (white circle)
I=Individual
R=Relationship
O=Organisational
S=Societal
Entropy = 27%

10%
50%
30%
10%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 40-50-10
Entropy = 10%
CTS = 20-20-60
Entropy = 27%
Leader
High Entropy Leader (20 Assessors)
Positive Values
Potentially Limiting Values
Observed Values
C
T
S
C=Common Good
T=Transformation
S=Self-Interest
9%
8%
10%
1%
7%
25%
20%
12%
5%
3%
0% 20% 40% 60%
1
2
3
4
5
6
7
1
2
3
4
5
6
7

70
BUILDING A VALUES-DRIVEN CULTURE
THE JOURNEY

SA Bank: Evolution of Current Culture
1. cost-consciousness
2. profit
3. accountability
4. community involvement
5. client-driven
6. process-driven
7. bureaucracy (L)
8. results orientation
9. client satisfaction
10. silo mentality (L)
2005
2. accountability
3. client-driven
6. performance driven
7. profit
8. bureaucracy (L)
9. teamwork
2006
1. client-driven
2. accountability
7. profit
8. achievement
9. being the best
2007 2008
1. accountability
2. client-driven
5. achievement
7. teamwork
9. being the best
10. delivery
3 Matches CC-
DC
Entropy 25%
4 Matches CC-
DC
Entropy 19%
4 Matches CC-
DC
Entropy 17%
5 Matches CC-
DC
Entropy 14%

2009 2010 2011
1. accountability
2. client-driven
6. achievement
7. teamwork
8. employee recognition
9. being the best
1. accountability
3. client-driven
4. teamwork
5. brand reputation
6. being the best
7. achievement
8. commitment
1. accountability
2. client-driven
4. brand reputation
5. achievement
6. teamwork
7. environmental awareness
8. commitment
9. being the best
6 Matches CC-
DC
Entropy 13%
6 Matches CC-
DC
Entropy 13%
6 Matches CC-
DC
Entropy 11%
2012
1. accountability
3. client-driven
4. brand reputation
5. teamwork
10. people-centred
5 Matches CC-
DC
Entropy 10%

2013 2014
5 Matches CC-
DC
Entropy 11%
6 Matches CC-
DC
Entropy 13%
1. accountability
3. client-driven
4. brand reputation
7. teamwork
8. achievement
9. integrity
1. accountability
3. client-driven
4. brand reputation
6. teamwork
10. commitment
Despite a slight rise
in cultural entropy,
profitability and
productivity
continue to increase
year on year.

Evolution of Number of Survey Participants
8%
25%
38%
51%
67%
73%
77%
75% 74% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005200620072008200920102011201220132014
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.
25%
19%
17%
14%
13% 13%
11%
10%
11%
13%
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cutlural Entropy

Income Evolution
0%
5%
10%
15%
20%
25%
30%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Income Cultural Entropy
Annual
income
increases as
cultural
entropy falls.
Global Economic
Meltdown

0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1000
1200
1400
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenue per Capita Cultural Entropy
Income per
capita
increases as
cultural
entropy falls.
Productivity Evolution
Global Economic
Meltdown

0%
5%
10%
15%
20%
25%
30%
0
2000
4000
6000
8000
10000
12000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Profit Cutlural Entropy
Profit increases
as cultural
entropy falls.
Profit Evolution
Global Economic
Meltdown

Books by Richard Barrett
1998 2006 2010 20111995
2012 2013 2014 2015 2016 Forthcoming

How to Create a Values-Driven Culture

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (11)

Similar to How to Create a Values-Driven Culture

Similar to How to Create a Values-Driven Culture (18)

More from Barrett Academy

More from Barrett Academy (10)

Recently uploaded

Recently uploaded (20)

How to Create a Values-Driven Culture