Nuremberg: Values-driven organizations, communities and societies

Values-driven Organizations and Societies
Richard Barrett

Powerful metrics that enable leaders to measure and manage cultures.
www.valuescentre.com
2
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
BUILDING A VALUES-DRIVEN CULTURE
WHY ARE VALUES-DRIVEN CULTURES
IMPORTANT?

3
Values Alignment
Performance
BECAUSE VALUES-DRIVEN
CULTURES ARE THE MOST
SUCCESSFUL ON THE
PLANET

4
WHY ARE VALUES-DRIVEN CULTURES
THE MOST SUCCESSFUL?
BECAUSE THEY CARE ABOUT THE
NEEDS OF THEIR PEOPLE, AND …

5
… THEY ALSO CARE ABOUT THE NEEDS
OF ALL THEIR STAKEHOLDERS
Suppliers Community

6
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)

7
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
Investments in Values and Culture pay back!
>500 Culture
Ambassadors
to facilitate and support
values-driven culture
“Dedicated and persistent
work with our wanted
culture is one of
our most critical
success factors”
Results
Customer Satisfaction From 60 to 90%
Employee Satisfaction 90% …5 years
Owners Trust Low to High!
Delivery Precision 55 to 90%
Attractive Employer Best in Class!
Systematic Approach
>100 tools and
methods for
active dialogues
and reinforcement
Consistently
Shared
Mission, Vision
Values

9
Intangible Assets make up most of market value
17%
32%
68%
80% 84%
83%
68%
32%
20% 16%
0%
20%
40%
60%
80%
100%
1975 1985 1995 2005 2015
Intangible Assets Tangible Assets
Source: Ocean Tomo LLC, January 2015
Components of S&P 500

10
“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”

11
Peters and Waterman, “In Search of Excellence:
Lessons from America’s best run companies”, 1983
Clarifying the value system
and breathing life into it are
the greatest contributions a
leader can make.
The Leader and the Values

12
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

13
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

14
BUILDING A VALUES-DRIVEN ORGANIZATION
START WITH A VALUES SURVEY

15
PERSONAL VALUES
Which of the following values/behaviours most reflect
who you are? Pick ten.
CURRENT CULTURE
how your organisation currently operates? Pick ten.
DESIRED CULTURE
how you would like your organisation to operate? Pick
ten.

Highly Engaged Team (19)
customer satisfaction 13 2(O)
making a difference 13 6(S)
commitment 10 5(I)
employee fulfilment 10 6(O)
continuous improvement 9 4(O)
humour/ fun 9 5(O)
shared vision 9 5(O)
customer collaboration 8 6(O)
balance (home/work) 6 4(O)
teamwork 6 4 (R)
employee fulfilment 10 6(O)
shared vision 9 5(O)
continuous learning 8 4(O)
accountability 6 4(R)
innovation 6 4(O)
teamwork 6 4(R)
trust 6 5(R)
Values PlotCopyright 2015 Barrett Values Centre
I = 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 11 6(I)
continuous learning 10 4(I)
commitment 8 5(I)
financial stability 7 1(I)
trust 7 5(R)
compassion 6 7(R)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
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 DistributionCopyright 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
Personal Entropy = 0%
Cultural Entropy = 7%
Low level of
Cultural Entropy
= High level of
Employee
Engagement
26%
46%
28%
25%
48%
27%
26%
50%
24%

Highly Disengaged Team(24)
confusion (L) 15 3(O)
long hours (L) 12 3(O)
short-term focus (L) 11 1(O)
blame (L) 10 2(R)
information hoarding (L) 9 3(R)
manipulation (L) 8 2(R)
hierarchy (L) 8 3(O)
results orientation 7 3(O)
bureaucracy (L) 6 3(O)
quality 6 3(O)
information sharing 10 4(O)
quality 9 3(O)
teamwork 8 4(R)
professionalism 7 3(O)
efficiency 6 3(O)
balance (home/work) 6 4(O)
continuous learning 6 4(O)
Values PlotCopyright 2016 Barrett Values Centre
I = 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 0
CC - DC 1
PV - DC 2
Cultural Entropy:
Current Culture
47%
commitment 26 5(I)
honesty 12 5(I)
integrity 9 5(I)
adaptability 8 4(I)
continuous learning 8 4(I)
responsibility 8 4(I)
cooperation 8 5(R)
efficiency 7 3(I)
family 6 2(R)
humour/ fun 6 5(I)
Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)
7
6
5
4
3
2
1
IRS (P)=9-3-0 IRS (L)=0-0-0 IROS (P)=0-0-3-0 IROS (L)=0-3-5-0 IROS (P)=0-3-8-0 IROS (L)=0-0-0-0

Highly Disengaged Team (47)
Personal Values
Values DistributionCopyright 2016 Barrett Values Centre
Positive 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
2%
0%
0%
6%
10%
13%
21%
36%
7%
5%
0% 20% 40% 60%
1
2
3
4
5
6
7
11%
11%
25%
6%
6%
11%
16%
7%
5%
2%
0% 20% 40% 60%
1
2
3
4
5
6
7
2%
0%
0%
3%
10%
18%
32%
23%
9%
3%
0% 20% 40% 60%
1
2
3
4
5
6
7
CTS = 48-21-31 CTS = 14-16-70 CTS = 35-32-33
Personal Entropy = 2% Cultural Entropy = 2%
High level of
Cultural Entropy
= Low level of
Employee
Engagement

20
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.

21
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?

22
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

25
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
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

28
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

37
MY SPEECH TODAY
HOW TO CREATE
A VALUES-DRIVEN CULTURE
VALUES-DRIVEN SOCIETIES

CTT National Assessments – Status November 2015
Denmark
2008
Latvia
2007
Sweden
2009, 2010, 2011, 2012,
2013, 2014
Iceland
2008, 2010
2014
Belgium
2010,2014
UK
2012
Finland
2010, 2011
Switzerland
2011
France
2012, 2013
2014
USA
2009, 2010, 2011
Australia
2009
Canada
2009
South Africa
2011
Bhutan
2007
Brazil
2010
Nigeria
2012
Argentina
2001**
Singapore
2012, 2015
UAE
2012
South America
North America
Africa
Asia
Oceania
Europe
Venezuela
2010 **
Trinidad & Tobago
2012
** Not statistically valid
Italy
2012

39
Cultural Values Assessment of Iceland

40
materialistic
short-term focus
educational opportunities
uncertainty about the future
corruption
elitism
material needs
Wasted resources
gender discrimination
blame
accountability
family
employment opportunities
financial stability
optimism
dependable public services
honesty
social responsibility
human rights
poverty reduction
family
honesty
responsibility
accountability
financial stability
trust
friendship
positive attitude
humour/fun
adaptability
respect
Personal Values Desired CultureCurrent Culture
Cultural
Entropy
53%

41
1200 Citizens + 300 Government, NGOs & Institution Leaders + 500 Volunteers
Themes: Education, Economy, Equal rights, Family, Environment, Public administration, Welfare, Sustainability

43
Cultural Values Assessment of Latvia
Beliefs Divide
Values Unite

44
Cultural Values Assessment of Latvia

Nuremberg: Values-driven organizations, communities and societies

46
Cultural Values Assessment of USA
family
caring
honesty
responsibility
humor/ fun
accountability
respect
positive attitude
integrity
friendship
caring
family
humor/ fun
honesty
friendship
responsibility
compassion
respect
accountability
positive attitude
Democrat
Personal Values
Republican
Personal Values

Community Building
in Australia
Values based development for poor and socially excluded
citizens to reintegrate into work and society
Grass roots community development

Community Transformation in Australia

The journey of community transformation
and the path to self determination
starts with....
Extensive community engagement and the
identification of community values and vision.
‘Self belief leads to self determination and
community ownership’

RESULTS
 60% Increase in employment
 100% Reduction in children
attending “safe house”
 50% Decrease in adult court
appearances
 Community owned policy
and programs

community engagement 6(S)
community ownership 4(S)
leadership development 6(O)
opportunity 4(O)
working together 4(R)
teamwork 4(R)
belonging 2(R)
positive attitude 5(I)
confidence 3(I)
hope 4(I)
respect 2(R)
blame (L) 2(R)
confusion (L) 3(O)
caution (L) 1(I)
control (L) 1(R)
information hoarding (L) 3(R)
human rights 7(S)
leadership development 6(O)
working together 4(R)
exploitation (L) 1(O)
respect 2(R)
Level 2011 CURRENT CULTURE 2014 CURRENT CULTURE
7
6
5
4
3
2
1
IROS (P)= 0-2-1-1 | IROS (L)=1-3-2-0 IROS (P)= 3-4-2-2 | IROS (L)=0-0-0-0
CULTURAL ENTROPY
13%
33%2011
2014

Community Building
in Sweden
Transforming public administration
in municipal communities

53
Storuman
Härnösand
Leksand
Östhammar
Mellerud
Göteborg
Värnamo
Halmstad
Sölvesborg
Community Transformation
in Sweden

54
Politicians Civil Servants
Citizens
"Bridging the
government citizen
gap"

55

UK Values Alliance
Formed in 2012 after UK National Values Assessment
Putting values at the heart of UK Society
http://valuesalliance.co.uk/

UK Values Alliance
The UK Values Alliance is a collaborative group that is seeking
to promote values in society. We formed as a result of the
recent UK National Values Survey, which demonstrated a large
gap between the personal values of UK residents and the values
they see at a national level.
We are a hub for individuals and organisations active or
interested in the field of values. Our belief is that by acting
together, we can make a bigger difference than we can by
acting alone. Our stated purpose is to build a better UK society
by helping individuals and organisations be more aware of,
understand and live their values.

For more information
and get a copy of this presentation
go to:
www.richardbarrett.net
&

Nuremberg: Values-driven organizations, communities and societies

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