Berlin: Leadership in values-driven organizations

Leadership in Values-Driven OrganizationsRICHARD BARRETT

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com

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MY SPEECH TODAY

HOW TO CREATE A VALUES-DRIVEN CULTURE

MY TALK THIS EVENINGLEADERSHIP IN VALUES-DRIVEN

ORGANIZATIONS

BUT FIRST WHO AM I?


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Who am I?Chairman and Founder of the Barrett Values Centre(www.richardbarrett.net)

OUR MISSION

To support leaders in building positive values-driven organizations.

OUR VISION

To create a positive values-driven society.

My Books

1998 2006 2010 20111995

2012 2013 2014 2015 2016

Books about Personal Transformation

1995

2012

Books about Organizational Transformation

1998 2006

2013

Books about National Transformation

2011

2015

Books about Leadership

2010

2014

Books about Psychology

2012 2014 2016


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Organizational Transformation

“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 Global Business, Babson College, USA.


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2013 2016


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Today: A deeper dive into leadership …


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A Crisis in Leadership

John Kotter, Harvard Business School

After conducting fourteen formal studies and more than a thousand interviews, directly observing dozens of executives in action, and compiling innumerable surveys, I am completely convinced that most organisations today lack the leadership they need.


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A Crisis in Leadership

Shoshana Zuboff, Harvard Business School

We managed to produce a generation of managers and business professionals that is deeply mistrusted and despised by a majority of people in our society and around the world. This is a terrible failure.

Global Sustainability Issues

Pandemics

Climate Change

Global Economy

GlobalTerrorism

Poverty Reduction

Food Resilience

Natural Disasters

Energy Resilience

Species Extinction

WaterShortages

The significant problems we face cannot be solved at the same level of thinking that created them.

Pollution

Waste Disposal


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The Sustainability Challenge

Richard Barrett

The problems of existence have become global but the decision-making structures we have for

dealing with them are national.

We cannot move forward without a New Leadership Paradigm.

Sustainability and the New Leadership Paradigm

Business is a wholly owned subsidiary of society, and society is wholly owned subsidiary of the environment.

If we lose our environment and our life-support systems, our society will perish.

If we lose our society, we will lose our economy and our businesses will perish too.

Our Business Leaders need to recognise that:

What this means for Business

Building a sustainable future for everyone is not just societal imperative. It is business imperative, too.

Business leaders need to work with their competitors, political and civic leaders to define a

framework of policies that support the evolution of our global society by developing industry charters

that regulate the rules of competition between companies in a way that supports the global goals for

sustainable development.


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The Global Goals for Sustainable Development


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WHAT IS BEING called forth in business and politics is a global paradigm shift. It’s a shift from a world focused on self-interest to a world focused on the common good. It’s a shift from “what’s in it for me” to “what’s best for everyone;” from being the best in the world, to being the best for the world.

Richard Barrett, The New Leadership Paradigm

A New Leadership Paradigm


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EVERY SUCCESSFUL BUSINESS LEADER HAS TO MAKE THE SHIFT

FROM “I” TO “WE.”

Bill George, True North: Discover Your Authentic Leadership (San Francisco: Jossey-Bass, 2007).


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SEPARATION AND ISOLATION COMMUNITY AND COHESION

Moving from … To …


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MY SPEECH TODAY

HOW TO CREATE A VALUES-DRIVEN CULTURE

WHERE SHOULD WE BEGIN?

START BY BUILDING VALUES-DRIVEN ORGANIZATIONS

WHY A VALUES-DRIVEN CULTURE?

Values Alignment

Perfo

rman

ce

BECAUSE VALUES-DRIVEN CULTURES ARE THE MOST SUCCESSFUL ON THE PLANET


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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


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Chapman and Sisodia, “Everybody Matters” 2015.

Everyone wants to do better. Trust them. Leaders are everywhere. People achieve good things, big and small, every day. Celebrate them. Everybody matters. Show

them.

The Extraordinary Power of Caring for your People like your Family


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Bob Chapman, CEO of the $1.7 billion company Barry-Wehmiller.

The Extraordinary Power of Caring for your People like your Family

Raj Sisodia, Professor of Global Business, Babson College, USA.


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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 their employee’s needs.

The Top 40 Best Companies to Work For (USA)


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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.


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Intangible Assets make up most of market value

1975 1985 1995 2005 20150%

20%

40%

60%

80%

100%

17%32%

68%80% 84%

83%68%

32%20% 16%

Intangible Assets Tangible Assets

Source: Ocean Tomo LLC, January 2015

Components of S&P 500


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I am going to show you values assessments of two teams.

Based on the results, I want you to decide which team you would

choose to work in.


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Customer satisfactionMaking a difference

CommitmentEmployee fulfilment

Continuous improvementHumour/funShared vision

Customer collaborationBalance (home/work)

Teamwork

CURRENT CULTURE of TEAM “A”

Long hours(L)Confusion (L)

Short-term focus (L)Blame (L)

Information hoarding (L)

Manipulation (L)Hierarchy (L)

Results orientationBureaucracy (L)

Quality

CURRENT CULTURE of TEAM “B”


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Which of these teams do you think is the most successful?

Customer satisfactionMaking a difference

CommitmentEmployee fulfilment

Continuous improvementHumour/funShared vision

Customer collaborationBalance (home/work)

Teamwork

Long hours(L)Confusion (L)

Short-term focus (L)Blame (L)

Information hoarding (L)Manipulation (L)

Hierarchy (L)Results orientation

Bureaucracy (L)Quality

CURRENT CULTURE of TEAM “A”

CURRENT CULTURE of TEAM “B”

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 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.

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.

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


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41


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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.


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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.


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Stages and Levels

Stages Levels of ConsciousnessServing SERVICE

Integrating MAKING A DIFFERENCE

Self-actualising INTERNAL COHESION

Individuating TRANSFORMATION

Differentiating SELF-ESTEEM

Conforming RELATIONSHIP

Surviving SURVIVAL Evol

ution

of P

erso

nal C

onsc

ious

ness


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Stages of Psychological Development

Surviving


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INFANCY 0-2 Years Old

Staying alive! COMPETENCY

Ability to meet basic physiological needs.

Surviving

Stage Motivation


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Conforming


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Conforming

Stage Motivation

CHILDHOOD 3-7 Years Old

Keeping safe and secure!BEING LOVED

Ability to feel accepted and sense of belonging.


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Differentiating


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Differentiating

Stage Motivation

TEENAGER +8-24Years Old

Distinguishing yourself!CONFIDENCE

Ability to feel respected and recognized by others.


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INDIVIDUATING


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INDIVIDUATING

Stage Motivation

YOUNG ADULT25-39 Years Old

Releasing your fears!ACCOUNTABILITY

Finding freedom and autonomy to understand

who you really are.


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SELF-ACTUALIZING


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SELF-ACTUALIZING

Stage Motivation

ADULTHOOD40-49 Years Old

Becoming who you are!SELF-EXPRESSION

Ability to satisfy your desire for meaning

and purpose.


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INTEGRATING


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INTEGRATING

Stage Motivation

MATURE ADULT50-59 Years OldAligning with others!

CONNECTIONAbility to satisfy the desire

to make a difference in your world.


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SERVING


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SERVINGStage Motivation

SENIOR60+ Years Old

Finding fulfilment! CONTRIBUTION

Ability to satisfy your desire to serve the

greater good.

BUILDING A VALUES-DRIVEN CULTURE

The Seven Levels of Consciousness Model

Origins of the Cultural Transformation Tools

Growth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.

Deficiency NeedsAn 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

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

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

Physiological

Safety

Love & Belonging

Self-esteem

Know and Understand

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Stages in the Development of Personal Consciousness

Positive Focus / Excessive Focus

Financial Security & SafetyCreating a safe secure environment for self and significant others. Control, greed

BelongingFeeling 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 GrowthUnderstanding your deepest motivations, experiencing responsible freedom by letting go of your fears

Finding Personal MeaningUncovering your sense of purpose and creating a vision for the future you want to create

Collaborating with PartnersWorking with others to make a positive difference by actively implementing your purpose and vision

Service to Humanity and the PlanetDevoting your life in self-less service to your purpose and vision

Service

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Making a difference

Positive Focus / Excessive Focus

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

BelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blame

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

Continuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growth

Building Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency

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

Service To Humanity And The PlanetSocial 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


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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


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BUILDING A VALUES-DRIVEN ORGANSIATION

START WITH A VALUES SURVEY

The Values Survey

PERSONAL VALUESWhich of the following values/behaviours most reflect who you are? Pick ten.

CURRENT CULTUREWhich of the following values/behaviours most reflect how your organisation currently operates? Pick ten.

DESIRED CULTUREWhich 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

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Current Culture

Service

Making a difference

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

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

Cultural Entropy and Engagement

Cultural entropy significantly

impacts employee

engagement.

0% 5% 10% 15% 20% 25% 30%25%

35%

45%

55%

65%

75%

85%

Cultural Entropy

Empl

oyee

Eng

agem

ent

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


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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)

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 = 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 4CC - 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)

7654321

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 ValuesPotentially Limiting Values

Current Culture Values

Desired Culture Values

C

T

S 2

1

3

4

5

6

7

C = Common GoodT = TransformationS = Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

14%

9%

21%

25%

17%

9%

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

5%

6%

10%

4%

20%

28%

24%

1%

1

2

3

4

5

6

7

0% 20% 40% 60%

0%

0%

0%

5%

9%

10%

27%

23%

22%

4%

CTS = 51-21-28 CTS = 53-20-27 CTS = 49-27-24Cultural Entropy = 0%

Cultural Entropy = 7%Cultural Entropy = 0%

Low level of Cultural Entropy = High level of

Employee Engagement

26%

46%

28%

25%

48%

27%

26%

50%

24%


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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.

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 = 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 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)

7654321

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 (24)

Personal Values

Values DistributionCopyright 2016 Barrett Values Centre


Current Culture Values

Desired Culture Values

C

T

S 2

1

3

4

5

6

7

C = Common GoodT = TransformationS = Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

0%

6%

10%

13%

21%

36%

7%

5%

1

2

3

4

5

6

7

0% 20% 40% 60%

11%

11%

25%

6%

6%

11%

16%

7%

5%

2%

1

2

3

4

5

6

7

0% 20% 40% 60%

2%

0%

0%

3%

10%

18%

32%

23%

9%

3%

CTS = 48-21-31 CTS = 14-16-70 CTS = 35-32-33Cultural Entropy = 2% Cultural Entropy = 2%

Cultural Entropy = 47%

High level of Cultural Entropy

= Low level of Employee

Engagement


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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?


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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.

continuous learning 11 Level 4generosity 11 Level 5commitment 10 Level 5positive attitude 10 Level 5vision 10 Level 7ambitious 9 Level 3making a difference 8 Level 6results orientation 8 Level 3honesty 7 Level 5integrity 7 Level 5intuition 7 Level 6leadership developer 7 Level 6

1. customer satisfaction 16 Level 22. commitment 11 Level 53. continuous learning 11 Level 44. making a difference 11 Level 65. global perspective 9 Level 36. mentoring 9 Level 67. enthusiasm 8 Level 58. leadership development 8 Level 69. integrity 7 Level 510. open communication 7 Level 211. optimism 7 Level 512. shared values 7 Level 5

Cultural Evolution Begins with Personal Evolution

Cultural Entropy 7%Personal Entropy 9%

Culture ValuesLeader’s Values

The culture ofan organisationis a reflectionof 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 ofan organisationis a reflectionof 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


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How to Measure Personal Entropy?

LEADER’S VALUESWhich of the following values/behaviours most reflect how you operate? Pick ten.

ASSESSOR’S OBSERVED VALUES OF LEADERWhich 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 Values7654321

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=PositiveL=Potentially Limiting (white circle)

I=IndividualR=RelationshipO=OrganisationalS=Societal

Entropy = 27%

1

2

3

4

5

6

7

0% 20% 40% 60%

10%

50%

30%

10%

CTS = 40-50-10Entropy = 10%

CTS = 20-20-60

Entropy = 27%

Leader

High Entropy Leader (20 Assessors)


Observed Values

C

T

S

C=Common GoodT=TransformationS=Self-Interest

1

2

3

4

5

6

7

0% 20% 40% 60%

9%

8%

10%

1%

7%

25%

20%

12%

5%

3%

1

2

3

4

5

6

7

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.


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BUILDING A VALUES-DRIVEN CULTURETHE JOURNEY

SA Bank: Evolution of Current Culture

1. cost-consciousness2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)

2005

1. cost-consciousness2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork 10. community involvement

2006

1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation

2007 2008

1. accountability2. client-driven 3. client satisfaction 4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery

3 Matches CC-DCEntropy 25%





2009 2010 2011

1. accountability2. client-driven 3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork 8. employee recognition 9. being the best10. performance driven

1. accountability2. client satisfaction 3. client-driven 4. teamwork5. brand reputation6. being the best7. achievement8. commitment9. community involvement10. cost-consciousness

1. accountability2. client-driven 3. client satisfaction4. brand reputation5. achievement6. teamwork7. environmental awareness8. commitment9. being the best10. cost-consciousness




2012

1. accountability2. client satisfaction 3. client-driven4. brand reputation5. teamwork6. employee recognition7. environmental awareness8. performance driven9. community involvement10. people-centred



2013 2014



1. accountability2. client satisfaction3. client-driven4. brand reputation5. employee recognition6. performance driven7. teamwork8. achievement9. integrity10. community involvement

1. accountability2. client satisfaction 3. client-driven 4. brand reputation5. employee recognition6. teamwork7. performance driven8. environmental awareness9. community involvement10. commitment

Despite a slight rise in cultural entropy,

profitability and productivity

continue to increase year on year.

Evolution of Number of Survey Participants

20052006200720082009201020112012201320140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

8%

25%

38%

51%

67%73%

77% 75% 74% 75%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. 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

0%

5%

10%

15%

20%

25%

30%

25%

19%17%

14%13% 13%

11%10%

11%13%

Cutlural Entropy

Income Evolution

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

50001000015000200002500030000350004000045000

0%

5%

10%

15%

20%

25%

30%

Income Cultural Entropy

Annual income

increases as cultural

entropy falls.

Global Economic Meltdown

2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

0%

5%

10%

15%

20%

25%

30%

Revenue per Capita Cultural Entropy

Income per capita

increases as cultural

entropy falls.

Productivity Evolution


2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

2000

4000

6000

8000

10000

12000

0%

5%

10%

15%

20%

25%

30%

Profit Cutlural Entropy

Profit increases as cultural

entropy falls.

Profit Evolution



97

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To grow a shared culture

To lead people through change

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go to:

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