The Values-Driven Leader - Richard Barrett

THE VALUES-DRIVEN LEADERRichard Barrett

WHO AM I?

RICHARD BARRETT

OUR VISIONTo create a positive

values-driven society.

Chairman and Founder of the Barrett Values Centre

(www.richardbarrett.net)

To support leaders in building positive

values-driven organizations.

OUR MISSION

PHIL CLOTHIER

provides powerful metrics to support leaders in building values-driven organizations and values-driven societies.

CEO of Barrett Values Centre

culturaltransformation tools®

• Personal Values Assessment• Individual Values

Assessment• Individual Development

Report Leadership Development Report

• Leadership Values Assessment

MEASUREMENT TOOLS FOR

INDIVIDUALS

MEASUREMENT TOOLS FOR HUMAN

GROUP STRUCTURES

• Cultural Values Assessment• Cultural Evolution Report• Espoused Values Analysis• Merger/Compatibility Report• Customer Values Assessment• Community Values

Assessment• National Values Assessment

Agriculture / forestry / fishingBanking / Financial ServicesCentral / Local GovernmentChemical and pharmaConstructionEducation / UniversityFast Moving Consumer GoodsFood and drinkHealthcareHospitality / TourismIT/ Telecoms/ Electronics Manufacturing

Media/Film/TV/PublishingMilitaryNGO / Not for profitOil/gas/miningPolice & JusticeProfessional ServicesRetail and wholesaleScientific / Technical / Engineering

Scientific and technicalSocial housingTransportation

The Sectors We Work In

Who creates an

organizational culture?

the reflection of the values, beliefs and

behaviours of the leadership

group.

THE CULTURE OF AN ORGANIZATION IS

If The Culture is Not WorkingIf Employees and Customers are not Getting Their Needs Met…

The Leader Must Change or You Must Change the Leader

A LOW PERFORMANCE ORGANIZATION

The culture of

an organisation

is a reflection

of leadership

consciousness.

power (L) 11 Level 3blame (L) 10 Level 2demanding (L) 10 Level 2manipulative (L) 10 Level 2experience 9 Level 3controlling (L) 8 Level 1arrogant (L) 7 Level 3authoritarian (L) 6 Level 1exploitative (L) 6 Level 1ruthless (L) 6 Level 1

Leader’s ValuesLVA Feedback 27

Assessors

PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0

Personal Entropy 64%

CVA Current Culture

Culture Values

PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0

Cultural Entropy 38%1. short-term focus (L) 13 Level

12. blame (L) 11 Level

23. manipulation (L) 10 Level

24. caution (L) 7 Level

15. cynicism (L) 7 Level

36. bureaucracy (L) 6 Level

37. control (L) 6 Level

18. cost reduction 5 Level

19. empire building (L) 5 Level

210. image (L) 5 Level

311. long hours (L) 5 Level

3

A HIGH PERFORMANCE ORGANIZATION

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

Culture ValuesCVA Current Culture

PL= 12-0 | IROS (P)= 4-2-5-1 | IROS (L)= 0-0-0-0

Cultural Entropy 7%

Internal Cohesion

The culture of

an organisation

is a reflection

of leadership

consciousness.

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

Leader’s ValuesLVA Feedback 27

Assessors

PL = 12-0 | IRO (P) = 9-1-2 | IRO (L) = 0-0-0

Internal Cohesion

Personal Entropy 9%

ORGANIZATIONS DON’T TRANSFORM. PEOPLE DO!

ORGANIZATIONAL TRANSFORMATION BEGINS WITH THE PERSONAL TRANSFORMATION OF

THE LEADERS

In the face of turbulence and change, culture and values become the major source of continuity and coherence, of renewal

and sustainability.

Leaders must find the common purpose and universal values that unite highly diverse

people while still permitting individual

identities to be expressed and enhanced.

Rosabeth Moss Kanter, Chair of the Harvard University Advanced Leadership Initiative

Clarifying the value system and breathing life into it are the greatest

contributions a leader can

make.

Peters and Waterman, “In Search of Excellence: Lessons from America’s best run

companies”, 1983

The Leader and the Values

A CRISIS IN LEADERSHI

PAfter 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.

John Kotter, Harvard Business School

A CRISIS IN LEADERSHI

PWe 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.

Shoshana Zuboff, Harvard Business School

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).

MOVING FROM

TO

IT’S ALL ABOUT MECOMMON GOOD

MOVING FROMSEPARATION &

ISOLATIONCOMMUNITY & COHESIONTO

“ ”WHAT ARE VALUES?A shorthand way of

describing our individual and collective motivations and what is important to

us.

Values are the energetic drivers of our aspirations and intentions.

Positive or Potentially Limiting?Values can be positive or potentially limiting.

Trust, creativity, passion, honesty,

integrity, clarity

Positive Values:

Bureaucracy, power, blame,

greed, hierarchy,

status-seeking

Potentially Limiting Values:

Positive values, such as friendship, trust

and creativity, help us to build relationships, connect with others

and make a contribution to the

world.

Potentially limiting values do just the opposite. They

may help us meet our short-term needs, but in the long-term they are

divisive. They are sourced from the fears the ego has about getting its survival, safety and security needs met.

Positive or Potentially Limiting?

Positive values Potentially limiting values

Future generations, long-term perspective, compassion, humilityCooperation, actualizing meaning, empathy, intuition, mentoring Integrity, alignment, authenticity, creativity, passion, honesty, trustAdaptability, courage, continuous improvement, accountability

The fear-based needs of the ego

Pride in achievements, self-reliant, security, confidence, excellence

Power, status, glamour, rigidity, arrogance, impatience, image

Family, friendship, loyalty, safety, belonging, harmony, caring

Blame, judgement, jealousy, gossip, demanding, revenge

Health, nutrition, financial stability, strength, self-discipline, survival

Greed, territorial, manipulative, controlling,

ruthless, corrupt

7

65432

1

WHERE DO OUR VALUES COME FROM?

Our values are a reflection of our needs. (What ever we need, is what

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 which we have not yet mastered—unmet needs.

YOUR PRIMARY MOTIVATIONTO MEET THE NEEDS OF THE STAGE OF PSYCHOLOGICAL DEVELOPMENT YOU ARE AT

YOUR SECONDARY MOTIVATIONTO SATISFY THE UNMET NEEDS

OF THE STAGES OF PSYCHOLOGICAL DEVELOPMENT YOU HAVE PASSED THROUGH

The needs you have failed to master.

UNMET NEEDS FROM THE EARLY STAGES

The presence of limiting values at the survival relationship

and self-esteem levels of consciousness.

I am not enough

I am not loved

enough

I don’t have

enough

Values?‘S

What are Donald

In the Introduction to The New Leadership Paradigm I plotted

the values of several leaders based on the

books they had written about leadership.

DisciplinedGiving backImage (L)LoyaltyPassionProfitReciprocityRevenge (L)Ruthless (L)Winning

A toxic mixture

of values

2010

Unmet needs

Service

Making a difference

Internal cohesion

Transformation

Self-esteem

Relationships

Survival

THE SEVEN STAGES OFPSYCHOLOGIC L

DEVELOPMENT

A PERSONAL JOURNEYEvery person is on an evolutionary

journey of psychological development.

SERVING

INTEGRATING

SELF-ACTUALIZING

INDIVIDUATING

DIFFERENTIATING

CONFORMING

SURVIVING

No one is born a leader. It is a role you grow into. Some people naturally grow into leadership roles;

some go all out to seek a leadership role and others

have leadership thrust upon them.

BECOMING AGREAT LEADER

Whatever the case, the journey to becoming a

successful leader is the same; there are four stages of psychological

development you must master to become a great leader.

Some, like me, choose not to be a leader of people, but a leader of thoughts.

B) become responsible and accountable for every aspect of your life; and

THE FOUR STAGES OF LEADERSHIP DEVELOPMENT

A) know yourself—identify your most important values and the behaviours that align with those values;

The Individuating Stage (25-39 years)

C) learn to manage your fears and develop your emotional intelligence skills.

In addition, you will be looking for opportunities to explore your gifts and talents—find out what you are good at and like doing and what you are not so good

and do not like doing. We don't want to be micro-managed, but we do want someone we can turn to for advice. Someone we know

wecan rely on who has our best interests at heart.

Without freedom, autonomy and challenges at this stage of development, you will not experience well-

being.

B) find your purpose in life—the work that you love to do; and


A) release any fears you may have about fully expressing who you really are;

The Self-Actualizing Stage (40-49 years)

C) express your creativity.

In addition, you will be looking for opportunities to align your purpose with your work so you find meaning

in your life.

You will want a job that allows you to fully express who you are, sparks your creativity and unleashes your

passion.

If you cannot fully express who you are, you will not experience well-being.

B) develop your empathy and social intelligence skills; and,


A) release any fears you have about forming unconditional loving relationships;

The Integrating Stage (50-59 years)

C) actualize your purpose by connecting with other like-minded individuals to make a difference in the world.

In addition, you will be looking for opportunities to collaborate

with other like-minded individuals on projects that allow you to actualize your purpose in

life. If you cannot connect with others to make a difference, you will not experience well-

being.

B) develop your compassion skills; and,


A) release any fears you have about your self-worth;

The Serving Stage (60 + years)

C) let yourself be guided by your soul’s inspiration.

In addition, you will be looking for opportunities to participate in acts of self-less service by alleviating suffering and/or caring for the well-being of future

generations, humanity and the planet.

You want to leave the world a better place than you found it.

If you cannot make a contribution, you will not experience well-being.

VALUES-DRIVEN CULTURESare the most successful

Because they care about the needs of their employees, and

…

CUSTOMERS SUPPLIERS

INVESTORS COMMUNITY

… they also care about the

needs of their

stakeholders

This is one of the four pillars of conscious

capitalism.

THE PILLARS OF CONSCIOUS CAPITALISM

Higher purpose: A purpose that goes beyond only

generating profits and creating shareholder value.

Stakeholder orientation: All stakeholders are important. The business must seek to optimize

value creation for them all.

Conscious leadership: Conscious leaders are motivated primarily by service to the firm’s higher purpose

and creating value for all stakeholders.

Conscious culture and management: The culture of a conscious business is a source of

great strength and stability for the firm, ensuring that its purpose and core values endure over time and through leadership transitions.

PASSION

PURPOSE

THE ROOTS OF CONSCIOUS CAPITALISMHow World-Class Companies Profit from Passion and Purpose

18 FIRMS OF ENDEARMENT

FOEAverage

Annualized Return

13.10%

S&P 500Average

Annualized Return 4.12%

$140m

$280m

$420m

$560m

Port

folio

Val

ue

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Firms of Endearment focus on meeting all stakeholders needs. The four pillars of FoE are Conscious Leadership, Conscious Culture,

Stakeholder Orientation and a Higher Purpose supported by Core Values.

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.

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

Wehmiller.

The Top 40 Best Companies to Work

For (USA)

BCWFAverage

Annualized Return

16.39%

S&P 500Average

Annualized Return

4.12%

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.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$0.8m

$1.7m

$2.6m

$3.5m

$4.4m

Port

folio

Val

ue

https://www.valuescentre.com/resources/case-studies?

23 CASE STUDIES OF SUCCESSFUL TRANSFORMATION

2005 2006 2007 2008

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)

1. cost-consciousness2. accountability 3. client-driven

4. client satisfaction 5. results orientation 6. performance driven

7. profit8. bureaucracy (L)

9. teamwork 10. community

involvement

1. client-driven 2. accountability

3. client satisfaction 4. cost-consciousness

5. community involvement

6. performance driven 7. profit

8. achievement9. being the best

10. results orientation

1. accountability2. client-driven

3. client satisfaction 4. community

involvement 5. achievement

6. cost-consciousness7. teamwork

8. performance driven9. being the best

10. delivery3 Matches CC-

DCEntropy 25%

4 Matches CC-DC

Entropy 19%

4 Matches CC-DC

Entropy 17%

5 Matches CC-DC

Entropy 14%

NEDBANK-EVOLUTION OF CURRENT CULTURE


2009 2010 2011 2012


3. client satisfaction 4. cost-consciousness

5. community involvement 6. achievement7. teamwork

8. employee recognition 9. being the best

10. performance driven


3. client satisfaction4. brand reputation5. achievement

6. teamwork7. environmental

awareness8. commitment

9. being the best10. cost-consciousness

1. accountability2. client satisfaction

3. client-driven 4. teamwork

5. brand reputation6. being the best7. achievement8. commitment9. community

involvement10. cost-consciousness


3. client-driven4. brand reputation

5. teamwork6. employee recognition

7. environmental awareness

8. performance driven9. community

involvement10. people-centred

3 Matches CC-DC

Entropy 13%

6 Matches CC-DC

Entropy 13%

6 Matches CC-DC

Entropy 11%

5 Matches CC-DC

Entropy 10%


2013 2014


3. client-driven 4. brand reputation

5. employee recognition6. teamwork

7. performance driven8. environmental

awareness9. community

involvement10. commitment


3. client-driven4. brand reputation

5. employee recognition6. performance driven

7. teamwork8. achievement

9. integrity10. community

involvement5 Matches CC-

DCEntropy 11%

6 Matches CC-DC

Entropy 13%

Despite a slight rise in cultural entropy,

profitability and productivity

continue to increase year on year.

NEDBANK-EVOLUTION OF SURVEY PARTICIPANTS

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.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0%

20%

40%

60%

80%

100%

8%

25%

38%

51%

67%73%

77%75%74%75%

NEDBANK-EVOLUTION OF CULTURAL ENTROPY

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%

7%

13%

20%

26%

33%

25%

19%17%

14%13%13%11%10%11%

13%

Cultural Entropy

INCOME EVOLUTION

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

10000

20000

30000

40000

50000

0%

7%

13%

20%

26%

33%

IncomeCultural Entropy

Global Economic Meltdown

Annual income increases as cultural

entropy falls.

PRODUCTIVITY EVOLUTION


Income per capita increases as cultural

entropy falls.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

325

650

975

1300

1625

0%

7%

13%

20%

26%

33%

Revenue per CapitaCultural Entropy

PROFIT EVOLUTION


Profit increases as cultural entropy falls.

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

2750

5500

8250

11000

0%

7%

13%

20%

26%

33%

ProfitCultural Entropy

FREE MATERIALS

To lead people through

change

To grow a shared

cultureTo plan and lead

cultural transformation

Checklist and

overview

Available on www.valuescentre.com

http://www.valuescentre.com/

FOR MORE INFORMATIONGo to:

www.valuescentre.com www.richardbarrett.net

Contact Me: [email protected]



http://www.richardbarrett.net/

mailto:[email protected]

1995 1998 2006 2010 2011

2012 2013 2014 2015 2016

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