www.valuescentre.com 1www.valuescentre.comwww.valuescentre.com

Cultural Transformation Tools Overview2012

Barrett Values Centre

3500+ consultants and change agents

located in 70+ countries

1.5m+ people

participated in 8000+

values assessments

in between 1998 and 2012

Core Barrett Team

18 people in the USA, UK and

Sweden

Mission:Supporting leaders in

building values-driven organisations

www.valuescentre.com 3

National/Regional Values Assessments

Australia

Belgium

Bhutan

Brazil

Canada

Denmark

Finland

Iceland

Macedonia (r)

France

Latvia

South Africa

Spain (r)

Sweden

Switzerland

United Kingdom (r)

USA

Argentina

Venezuela

Not statistically valid

(r) = Region

Requests fromUnited Arab Emirates TrinidadSingaporeNew ZealandIsraelHungaryRomaniaSlovakiaNorwayPuerto RicoCosta RicaColumbia

As at Feb 2012

4

Organizational transformation starts

with the personal transformation of the

leaders

"The thing I have learned at IBM is that culture is everything.“ Lou Gerstner

5

Organisation A Organisation B

Valueclient satisfaction making a differenceintegrity teamwork humor/fun quality ethicsfinancial stability

Level26545371

Valueblameshort term focusinternal competitionbuck passingrisk aversecustomer satisfaction information hoardingprofit

Level21231221

A Tale of Two Companies

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

Cultural Entropy8%

Cultural Entropy57%

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Organisation A Organisation B

A Tale of Two Companies

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

Cultural Entropy8%

Cultural Entropy57%

People Financial viability

Excellence Ethics Resilience

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Maslow’s Needs to Barrett’s Consciousness

Know and Understand

Physiological

Safety

Love & Belonging

Self-esteemAbraham Maslow

Know and Understand

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

Self-Actualization

Richard Barrett

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Story of a Full Spectrum Organisation

Service to humanity and societal contribution

External collaboration, community involvement

Sense of purpose & strong internal community

Ongoing improvement and employee participation

High performance systems, high quality output

Positive relationships that support organisation needs

Financial viability and employee safety

4 Transformation

1. Survival

7. Service

6. Making a Difference

5. Internal Cohesion

3. Self esteem

2. Relationship

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7 Levels of Organisational Consciousness

Positive Focus / Excessive Focus

Service

Making a Difference

Internal Cohesion

Transformation

Self-esteem

Relationship

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

Employee RecognitionLoyalty, friendship, open communication, customer satisfaction, friendship. Manipulation, blame

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

Continuous Renewal and LearningCourage, accountability, adaptability, empowerment, teamwork, goals orientation, personal growth

Building Internal CommunityShared values, vision, trust, commitment, integrity, passion, transparency, humour/fun

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

Service To Humanity and the PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humility

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Cultural Entropy

Cultural Entropy measures that percentage of fear, dysfunction, negative and destructive energy in the organisation (e.g. blame, manipulation, corruption, exploitation, bureaucracy)

40% = Crisis

10% = Healthy

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Survey Questions

1) Personal ValuesPlease select ten of the following values/behaviours that most reflect who you are, not who you desire to become.

2) Current Organisational Culture ValuesPlease select ten of the following values/behaviours that most reflect how your organisation currently operates.

3) Desired Organisational Culture ValuesPlease select ten of the following values/behaviours that you would desire for your organisation to achieve it's highest performance.

CBT Technology (154)

cost reduction (L) 76 1(O)

bureaucracy (L) 66 3(O)

confusion (L) 61 3(O)

profit 54 1(O)

information hoarding (L) 47 3(O)

short term focus (L) 47 1(O)

hierarchical (L) 45 3(O)

results orientation 39 3(O)

client satisfaction 38 2(O)

empire building (L) 36 2(R)

client satisfaction 66 2(O)

employee fulfilment 65 6(O)

continuous improvement 58 4(O)

effective communication 56 2(R)

teamwork 50 4(R)

financial stability 44 1(O)

adaptability 42 4(I)

trust 38 5(R)

professionalism 35 3(O)

vision 35 7(O)

Values Plot May 1, 2012Copyright 2012 Barrett Values Centre

I = IndividualR = Relationship

Black Underline = PV & CCOrange = PV, CC & DC

Orange = CC & DCBlue = PV & DC

P = PositiveL = Potentially Limiting (white circle)

O = OrganisationalS = Societal

Matches

PV - CC 0CC - DC 1PV - DC 2

Health Index(PL)

PV-10-0CC - 3-7

DC - 10-0

honesty 61 5(I)

commitment 60 5(I)

humour/fun 53 5(I)

reliability 51 3(R)

enthusiasm 44 5(I)

adaptability 43 4(I)

family 37 2(R)

integrity 34 5(I)

trust 34 5(R)

balance home/work 32 4(I)

Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC)

7

6

5

4

3

2

1

IRS (P)=7-3-0 IRS (L)=0-0-0 IROS (P)=0-0-3-0 IROS (L)=0-1-6-0 IROS (P)=1-3-6-0 IROS (L)=0-0-0-0

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14

Cost of Limiting Values

• Short-term Focus£3,489,818

• Confusion£3,178,636

• Bureaucracy (unnecessary)£1,799,618

• Empire Building£1,764,682

• Information Hoarding£1,634,045

• Sickness and Leavers £834,225

• Hierarchical £624,327

• Long Hours £187,909

• Total Entropy (potential business value) £13,504,261

Based on staff’s perception of lost productivity and opportunity. Annual income £33,000,000 and loss of £500,000 in 2000.

Investment Leadership – Jim Ware’s book contains data showing the comparison between healthy and unhealthy cultures and bottom line performance.

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Core Values – Lived or Ignored?

1. long hours (L)2. being the best3. cost reduction (L)4. poor communication (L)5. client collaboration6. bureaucracy (L)7. confusion (L)8. arrogance (L)9. hierarchy (L)10. silo mentality (L)

Cultural Entropy 37%

1. accountability2. customer satisfaction 3. being the best 4. commitment 5. compassion 6. continuous improvement 7. integrity8. teamwork 9. cost effectiveness10. respect

Cultural Entropy 9%

Core Valuesclient collaborationteamworkdeliverymeritocracyintegrity

Core Values (I-Care)integritycompassionaccountabilityrespectexcellence

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Cultural Evolution Begins with Personal Evolution

The culture ofan organisationis a reflectionof the leadership consciousness.

power (L) 11 Level 3

blame (L) 10 Level 2

demanding (L) 10 Level 2

manipulative (L) 10 Level 2

experience 9 Level 3

controlling (L) 8 Level 1

arrogant (L) 7 Level 3

authoritarian (L) 6 Level 1

exploitative (L) 6 Level 1

ruthless (L) 6 Level 1

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

2. blame (L) 11 Level 2

3. manipulation (L) 10 Level 2

4. caution (L) 7 Level 1

5. cynicism (L) 7 Level 3

6. bureaucracy (L) 6 Level 3

7. control (L) 6 Level 1

8. cost reduction 5 Level 1

9. empire building (L) 5 Level 2

10. image (L) 5 Level 3

11. long hours (L) 5 Level 3

LV A Feedback 14 Assessors

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

CVA Current Culture

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

Cultural Entropy 38% Personal Entropy 64%

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The culture ofan organisationis a reflectionof the leadership consciousness.

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

LV A 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%

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Cultural Evolution – Whole System Change

PersonalityIndividual values and beliefs

CharacterIndividual behaviors

CultureGroup values and beliefs

Social StructuresGroup behaviors

Values Behaviors

Personal Alignment

Structural Alignment

Values Alignment

Mission Alignment

Individual

Collective

Thank you Ken Wilber

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Whole Systems Change – Preparation Phase

4. Define core values

& behaviours in the

organisation

3. Revisit the existing vision & mission or

engage in the 4 why’s process

to create one

1. Commitment from leadership

to the transformation process

2. Baseline measurement (CVA)

of the organisation & creation of

performance scorecard

How can we remain adaptable?

How can we position

ourselves for the future?

How can we build our

long-term resilience?

5. Develop the compelling

Reasons for change

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Whole Systems Change: Implementation Phase

Why?

6. Personal Alignment

Begins with the leadership team and later expands to the larger leadership group including managers and supervisors

7. Structural Alignment

New employee/Executive selection

New employee/Executive orientation

Employee/executiveperformance evaluation

Employee/executivepromotion criteria

Talent selection and development programmes

Management development programmes

Leadership development Programs

Values Awareness programmes

8. Values Alignment

Integrate the core values and behaviours of the organsiation into the executive and employee population.

9. Mission Alignment

Integrate the vision and mission of the organisation into the executive and employee population.

1998

2006

2010

2012

1995

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Exec Team Current Culture Employee Current Culture

Matches1

Bank Example

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

(white circle) O = OrganizationalS = Societal

Copyright 2008 Barrett Values Centre

IROS (P)= 0-1-3-0 | IROS (L)= 0-2-5-0

1. long hours (L) 314 3(O)

2. being the best 295 3(O)

3. cost reduction 286 1(O)

4. poor communication (L) 280 2(R)

5. client first 268 6(R)

6. bureaucracy (L) 263 3(O)

7. confusion (L) 255 3(O)

8. arrogance (L) 252 3(R)

9. hierarchy (L) 250 3(O)

10. results orientation 243 3(O)

11. silo mentality (L) 243 3(O)

IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0

1. being the best 8 3(O)

2. accountability 5 4(R)

3. client satisfaction 5 2(O)

4. honesty 5 5(I)

5. teamwork 5 4(R)

6. achievement 4 3(I)

7. brand image 4 3(O)

8. excellence 4 3(I)

9. staff engagement 4 5(O)

10. trust 4 5(R)

economic growthcaring for elderlyaffordable housingconcern for future generationsjob securitysocial justicecaring for the disadvantagedenvironmental awarenesshuman rightsmaterial wealth

caring for elderlyeconomic growthconcern for future generationsjob securityenvironmental awarenesscaring for the disadvantagedaffordable housingeducationhonestyprosperity

Latvian Desired Culture

Russian Desired Culture

familycaringhonestyresponsibilityhumor/ funaccountabilityrespectpositive attitudeintegrityfriendship

caringfamilyhumor/ funhonestyfriendshipresponsibilitycompassionrespectaccountabilitypositive attitude

Democrat Personal Values

RepublicanPersonal Values