Values based leadership richard barrett
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The document discusses values-based leadership and the importance of organizational values. It provides definitions of values and explains how values influence culture and performance. Values are described as concepts that unite individuals, while beliefs can separate them. The document also discusses how to measure organizational culture and leadership values using tools like the Cultural Values Assessment. It emphasizes that transforming culture begins with transforming leadership consciousness and values. High-performing companies are values-driven and promote employee engagement.
Values based leadership richard barrett
- 1. VALUES-BASED LEADERSHIP Richard Barrett and Tor Eneroth October 2012
- 2. Values-Based Leadership VALUES, BELIEFS AND BEHAVIOURS
- 3. 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? www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 3
- 4. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 4
- 5. 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 www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 5
- 6. 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
- 7. Positive Values and Potentially Limiting Values The concepts that values represent can be captured in one word or a short phrase. Positive Values: Honesty, integrity, openness, equality, creativity, long-term perspective, human rights, etc. Limiting Values: Blame, power, status, manipulation, greed, internal competition, hierarchy, bureaucracy, etc. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 7
- 8. Values and Leadership The real role of the leader is to manage the values of the corporation. Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983 www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 8
- 9. Values and Culture The Culture of an Therefore organizations is a reflection of leadership consciousness (values and beliefs) Organizational transformation begins with the personal transformation of the leaders www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 9
- 10. Values and Culture Successful companies Cultural Capital is the new promote from within. frontier of competitive advantage Unsuccessful companies bring in an external leader. Who you are and what your organization stands for is vitally important to its success www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 10
- 11. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 11
- 12. 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 www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 12
- 13. The Impact of Employee Engagement on Performance Top 40 Best Companies to work for in the USA Average Annualized Return 16.39% S&P 500 Average Annualized Return 4..12% Financial Returns www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 13
- 14. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 14
- 15. Conscious Capitalism www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 15
- 16. The Four Pillars of Conscious Capitalism Cultural Transformation Tools Higher Stakeholder Purpose Integration Values Conscious Conscious Culture Leadership We can measure this with a We can measure this with a Cultural Values Assessment Leadership Values Assessment (CVA) (LVA) www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 16
- 17. Conscious Capitalism Comparison of financial returns of: Firms of Endearment (FoE), Good to Great (GtoG) and S & P 500 1800% 1600% 1400% 1200% 1000% 800% 600% 400% 200% 0% 3 Year 5 Year 10 Year 15 year -200% S&P G to G F of E www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 17
- 18. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 18
- 19. Values-Based Leadership VALUES-BASED MODELS AND TOOLS FOR LEADERSHIP DEVELOPMENT AND CULTURAL TRANSFORMATION
- 20. Measuring the Cultures of Organisations and Mapping the Values of Leaders Cultural Transformation Tools Values-Driven Values-Driven Cultures Leadership 1998 2006 2011 www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 20
- 21. Barrett Values Centre www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 21
- 22. World-Wide Use of the CTT www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 22
- 23. World-Wide Use of the CTT www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 23
- 24. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 24
- 25. Hierarchy of Needs (Values) Self Actualization Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of Know and motivation and commitment. Understand Abraham Maslow Self-esteem Deficiency Needs An individual gains no sense Love & Belonging of lasting satisfaction from being able to meet these Safety needs, but feels a sense of anxiety if these needs are not met. Physiological www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 25
- 26. Needs to Consciousness Self-Actualization Know and Understand Abraham Maslow Richard Barrett Self-esteem Love & Belonging Safety Physiological Needs Consciousness www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 26
- 27. Needs to Values to Consciousness Self-Actualization self-actualization 1. Expansion of into multiple levels. Know and 2. Substitute levels of consciousness Understand for hierarchy of needs. 3. Each level of consciousness Self-esteem is defined by specific values and behaviours. Love & Belonging Safety Physiological Needs Consciousness www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 27
- 28. Levels of Personal Consciousness Positive Focus / Excessive Focus Service to Humanity and the Planet Service Devoting your life in self-less service to your purpose and vision Collaborating with Partners Making a Difference Working with others to make a positive difference by actively implementing your purpose and vision Finding Personal Meaning Internal Cohesion Uncovering your sense of purpose and creating a vision for the future you want to create Transformation Personal Growth Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Self-esteem Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status Relationship Belonging Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Survival Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 28
- 29. Levels of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity And The Planet Social responsibility, future generations, long-term Service perspective, ethics, compassion, humility Strategic Alliances and Partnerships Making a Difference Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Building Corporate Community Internal Cohesion Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Continuous Renewal and Learning Transformation Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth High Performance Self-esteem Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Belonging Relationship Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Financial Stability Survival Shareholder value, organisational growth, employee health, safety. Control, corruption, greed www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 29
- 30. The Culture Values Survey (CVA) Three Questions: PERSONAL VALUES Which of the following values and 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 30
- 31. Placement of Values by Level Current Culture 100 Employees Service Top Ten Values 1. tradition (L) (59) Making a Difference 2. diversity (54) Internal Cohesion 6 3. control (L) (53) 4. goals orientation (46) Transformation 2 4 5 5. knowledge (43) 6. creativity (42) Self-esteem 7 8 7. productivity (37) Relationship 10 10 1 8. image (L) (36) 9. profit (36) 9 3 Survival 10. open communication (31) www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 31
- 32. Distribution of Values by Level Current Culture 100 Employees Service Making a Difference Internal Cohesion Transformation Cultural Self-esteem Entropy Relationship 11% Survival www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 32
- 33. Engineering Company (339) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 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 1. honesty 169 5(I) 1. continuous 111 4(O) 1. accountability 180 4(R) 2. accountability 165 4(R) improvement 2. customer 147 2(O) PV - CC 1 CC - DC 4 2. customer 111 2(O) satisfaction PV - DC 2 3. commitment 150 5(I) satisfaction 3. continuous 143 4(O) 4. continuous learning 92 4(I) Health 3. safety conscious 102 1(O) improvement Index (PL) 5. balance (home/work) 91 4(I) 4. cost reduction 88 1(O) 4. employee development 111 4(O) 6. family 91 2(R) PV: 10-0 5. job insecurity (L) 77 1(O) 5. employee recognition 96 2(R) CC: 7-3 7. self-discipline 91 1(I) DC: 10-0 6. inconsistent (L) 75 3(I) 6. commitment 95 5(I) 8. responsibility 89 4(I) 7. teamwork 74 4(R) 7. inspirational leadership 95 6(O) 9. respect 81 2(R) 8. accountability 71 4(R) 8. employee fulfilment 94 6(O) 10. open communication 76 2(R) 9. blame (L) 71 2(R) 9. teamwork 90 4(R) 10. corporate image 64 3(O) 10. professionalism 80 3(O) 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 www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 33
- 34. Engineering Company (339) Personal Current Culture Desired Culture Values Values Values 6% 5% 5% 7 7 7 Common Good C C 8% 9% 13% 6 6 6 24% 11% 19% 5 5 5 TT 21% 20% 27% Transformation 4 4 4 17% 14% 16% 3 1% 3 12% 3 0% Self Interest SS 2 1% 12% 2 8% 5% 2 1% 12% 9% 10% 6% 1 1% 1 6% 1 1% 0% 20% 40% 0% 20% 40% 0% 20% 40% CTS = 38-21-41 CTS = 25-20-55 CTS = 37-27-36 Entropy = 3% Entropy = 23% Entropy = 2% Total number of votes for all values at each level C = Common Good Positive Values T = Transformation Cultural Entropy % of Potentially Limiting S = Self-Interest Votes for Limiting Values Values www.valuescentre.com Values Distribution Powerful metrics that enable leaders to measure and manage cultures. 34
- 35. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 35
- 36. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 36
- 37. LVA for Darth Vader Darth's Values Assessors' Top 11 Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Matching Level 1 Values PL = 10-0 | IRO (P) = 7-0-3 | IRO (L) = 0-0-0 PL = 7-4 | IRO (P) = 6-0-1 | IRO (L) = 0-4-0 ambitious Level 3 achievement Level 3 Matches 2 courage Level 4 authoritarian (L) Level 1 creativity Level 5 being the best Level 3 How excellence Level 3 competitive (L) Level 2 Others see integrity Level 5 demanding (L) Level 2 Darth long-term perspective Level 7 determination Level 4 passion Level 5 excellence Level 3 results orientation Level 3 knowledge Level 4 strategic alliances Level 6 power (L) Level 3 How Darth vision Level 7 results orientation Level 3 sees risk-taking Level 4 himself Orange = Values match P = Positive I = Individual L = Potentially Limiting R = Relationship (white circle) O = organisational www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 37
- 38. LVA for Darth Vader Darth's Assessors' Values Values 20% 0% 7 7 CC 10% 0% 6 6 30% 0% 5 5 TT 10% 27% 4 4 30% 36% 3 0% 3 9% SS 0% 0% 2 0% 2 18% 0% 0% 1 0% 1 9% Level of Personal 0% 20% 40% 60% 0% 20% 40% 60% Entropy CTS = 60-10-30 CTS = 0-27-73 Entropy = 0% Entropy = 36% www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 38
- 39. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 39
- 40. 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. www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 40
- 41. Cultural Entropy and Personal Entropy Culture Values Leader’s Values CVA Current Culture LV A Feedback 14 Assessors The culture of an organisation is a reflection of the leadership consciousness. PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0 Cultural Entropy 38% Personal Entropy 64% 1. short-term focus (L) 13 Level 1 power (L) 11 Level 3 2. blame (L) 11 Level 2 blame (L) 10 Level 2 demanding (L) 10 Level 2 3. manipulation (L) 10 Level 2 manipulative (L) 10 Level 2 4. caution (L) 7 Level 1 experience 9 Level 3 5. cynicism (L) 7 Level 3 controlling (L) 8 Level 1 6. bureaucracy (L) 6 Level 3 arrogant (L) 7 Level 3 7. control (L) 6 Level 1 authoritarian (L) 6 Level 1 8. cost reduction 5 Level 1 exploitative (L) 6 Level 1 9. empire building (L) 5 Level 2 ruthless (L) 6 Level 1 10. image (L) 5 Level 3 11. long hours (L) 5 Level 3 www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 41
- 42. Values-Based Leadership FOUR CONDITIONS FOR CULTURE CHANGE
- 43. Human Systems Interior Exterior Personality Character Individual Values and Actions and Beliefs of the Behaviours Leaders of the Leaders Culture Society Collective Values and Actions and Beliefs of the Behaviours of the Organization Organization Based on the Work of Ken Wilber www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 43
- 44. Four Conditions for Culture Change Interior Exterior Character: Personality: Actions and Values and Personal Alignment Behaviours Beliefs of an Individual of an Individual Individual Mission Alignment Values Alignment Culture: Social Values and Structures: Beliefs Actions and of an Behaviours of Collective Organisation an Organisation Structural Alignment www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 44
- 45. Stages in Cultural Change When the leaders The leaders values change behaviours change Interior Exterior Individual 1 2 Collective 3 4 The values of the Behaviours of organization change organization change www.valuescentre.com 45 Powerful metrics that enable leaders to measure and manage cultures.
- 46. 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” www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 46
- 47. New Leadership Paradigm Learning System The Book The Multi-media Web site The Workbooks and Journals www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 47
- 48. For More Information: Go to: www.valuescentre.com www.newleadershipparadigm.com www.valuesjournal.com www.valuescentre.com Powerful metrics that enable leaders to measure and manage cultures. 48