How to Build a Values-Driven Culture

How to make organizations more valuable
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
MY TALK THIS MORING
HOW TO MAKE ORGANIZATIONS
MORE VALUABLE
BUT FIRST
WHO AM I?

3
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.

4
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.

5
2013 2016

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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… powerful metrics to support
leaders in building values-
driven organizations
and values-driven
societies.
provides …
Phil Clothier, CEO of Barrett
Values Centre.

Cultural Transformation Tools
MEASUREMENT TOOLS
FOR INDIVIDUALS
Personal Values Assessment
Individual Values Assessment
Leadership Development Report
Leadership Values Assessment
MEASUREMENT TOOLS FOR
HUMAN GROUP STRUCTURES
Cultural Values Assessment
Cultural Evolution Report
Espoused Values Analysis
Small Group Assessment
Merger/Compatibility Report
Customer Values Assessment
Community Values Assessment
National Values Assessment

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Key Stats:
Founder: Richard Barrett
Since: 1997
Scale: Over 6000 organisations use
CTT assessments in 94 counties
Values Assessments for:
Individuals, Leaders (360°), Teams
Corporations, Governments,
NGOs, Schools, Communities and
Nations
Global Network: Over 5,000
Certified Practitioners and
Consultants
Supporting Leaders in Building Values-Driven Organisations

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THE SECTORS WE WORK IN:
• Agriculture / forestry / fishing
• Banking / Financial Services
• Central / Local Government
• Chemical and pharma
• Construction
• Education / University
• Fast Moving Consumer Goods
• Food and drink
• Healthcare
• Hospitality / Entertainment /
Tourism
• IT/ Telecoms/ Electronics
• Manufacturing
• Media/Film/TV/Publishing
• Military
• NGO / Not for profit
• Oil/gas/mining
• Police & Justice
• Professional Services
• Retail and wholesale
• Scientific / Technical /
Engineering
• Scientific and technical
• Social housing
• Transportation

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MY SPEECH TODAY
HOW TO CREATE
HOW TO MAKE
ORGANIZATIONS MORE VALUABLE

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WHY ARE VALUES-DRIVEN CULTURES IMPORTANT?
Values Alignment
Performance
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 …

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

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WHEN YOU CARE ABOUT PEOPLE …
PEOPLE CARE ABOUT YOU

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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

22
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.

23
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
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

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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 satisfaction
Making a difference
Commitment
Employee fulfilment
Continuous
improvement
Humour/fun
Shared vision
Customer collaboration
Balance (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 orientation
Bureaucracy (L)
Quality
CURRENT CULTURE of
TEAM “B”

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Which of these teams do you think is the most successful?
Customer satisfaction
Making a difference
Commitment
Employee fulfilment
Continuous improvement
Humour/fun
Shared vision
Customer collaboration
Balance (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”

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“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”

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Kegan and Lahey, “An Everyone Culture: Becoming
a deliberately developmental organization”. 2016.
The culture you create is your
strategy. The key to success is
developing everyone.
The Culture is your Strategy

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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

MY SPEECH TODAY
HOW TO CREATE
LET’S TALK ABOUT VALUES
WHAT ARE THEY?
WHY ARE THEY IMPORTANT?

34
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

35
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.

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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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Let’s explore our Values

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1. Write down two values that are important to you:
EXAMPLE: Friendship and Clarity
2. Write down your beliefs that support this value:
EXAMPLE: Clarity bring focus to decision
making
3. Write down the behaviours that support this value:
EXAMPLE: Seek many opinions, synthesize
multiple data points to understand the
big picture
EXERCISE: VALUES BELIEFS AND BEHAVIOURS

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EXERCISE: VALUES BELIEFS AND BEHAVIOURS
Accountability
Achievement
Balance (home/work)
Clarity
Commitment
Compassion
Continuous learning
Cooperation
Courage
Creativity
Enthusiasm
Efficiency
Ethics
Excellence
Fairness
Family
Financial gain
Friendships
Future generations
Health
Honesty
Humor/fun
Independence
Integrity
Initiative
Intuition
Making a difference
Open communication
Openness
Personal fulfillment
Personal growth
Power
Respect
Responsibility
Risk-taking
Self-discipline
Success
Trust
Wisdom

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PERSONAL VALUES ASSESSMENT
www.valuescentre.com/pva

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Where do our Values come from?
Our values are a reflection of our needs.
(What ever we need 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 where we still have unmet
needs.

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PRIMARY
MOTIVATION
THE NEEDS OF THE STAGE
OF PSYCYHOLOGICAL
DEVELOPMENT YOU
ARE AT

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SECONDARY
MOTIVATION
THE UNMET NEEDS
OF THE STAGES OF
PSYCYHOLOGICAL
DEVELOPMENT YOU
HAVE PASSED THROUGH
The needs you have failed
to master.

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Facilitating human potential
This is not a book about
coaching per se, it is
about the framework of
human development that
coaches need to be
familiar with to facilitate
the full emergence of
their client’s potential.

45
MY SPEECH TODAY
HOW TO CREATE
STAGES OF PSYCHOLOGICAL DEVELOPMENT
WHAT ARE THEY?
WHY ARE THEY IMPORTANT?

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A personal journey
Every person is on an
evolutionary journey of
psychological development.
Surviving
Conforming
Differentiating
Individuating
Self-actualizing
Integrating
Serving

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Stages, Levels and World Views
 We grow in stages of psychological
development
 We operate at levels of consciousness
 We live inside (are embedded in) cultural
world views

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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 Consciousness
Serving SERVICE
Integrating MAKING A DIFFERENCE
Self-actualising INTERNAL COHESION
Individuating TRANSFORMATION
Differentiating SELF-ESTEEM
Conforming RELATIONSHIP
Surviving SURVIVAL
EvolutionofPersonalConsciousness

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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

53
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 ADULT
25-39 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
ADULTHOOD
40-49 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 ADULT
50-59 Years Old
Aligning with others!
CONNECTION
Ability to satisfy the desire
to make a difference
in your world.

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SERVING

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SERVING
Stage Motivation
SENIOR
60+ Years Old
Finding fulfilment!
CONTRIBUTION
Ability to satisfy your
desire to serve the
greater good.

64
What motivates employees
is the
satisfaction of their needs.

65
What Employees Value
at different levels of consciousness
A safe working environment and pay and benefits
that are sufficient to take care of family
Opportunities to work in a congenial atmosphere
where people care and respect each other
Opportunities to grow professionally with
support, feedback and coaching
Opportunities and challenges by being made
accountable for projects and processes
Opportunities for personal growth and develop-
ment to support you in living your life purpose
Opportunities to leverage your contribution by
collaborating with other like-minded individuals
Opportunities to serve others and care for the
well-being of the Earth’s life support systems
Surviving
Relationship
Self-esteem
Transformation
Internal cohesion
Making a difference
Service
Levels of Consciousness Primary Motivations

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67

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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.

69
DONALD
TRUMP

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DONALD TRUMP
In the Introduction to
The New Leadership
Paradigm I plotted the
values of several
leaders based on the
books they had written
about leadership.

71
DONALD TRUMP
Disciplined
Giving back
Image (L)
Loyalty
Passion
Profit
Reciprocity
Revenge (L)
Ruthless (L)
Winning
A toxic
mixture of
values
2010
Unmet
needs

72
Key findings of the Grant Study
“It is the quality of a child’s
total experience, not any
particular trauma or any
particular relationship,
that exerts the clearest
influence on adult
psychopathology.”
George E. Vaillant:
Director of the Grant
Study from 1972-2005
HARVARD UNIVERSITY

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Other research
“The LSE research indicates
that a child’s emotional
health is far more important
to their satisfaction levels as
an adult than other factors,
such as, whether they
achieve academic success
when young, or wealth
when older.”
Lord Richard Layard
LONDON SCHOOL
OF ECONOMICS

74
MY SPEECH TODAY
HOW TO CREATE
SEVEN LEVELS OF CONSCIOUSNESS MODEL
ORIGINS AND APPLICATIONS?

75
Origins of the Seven Levels Model
Growth Needs
When these needs are fulfilled they do not
go away, they engender deeper levels of
motivation and commitment.
Deficiency Needs
An 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

76
Need s Con s ciou s n es 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

77
Maslow’s Needs to Barrett’s Consciousness
Need s Con s ciou s n es 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
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival

78
The Shift from “I” to “We”
Service
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
COMMON GOOD AND
CONTRIBUTION (WE)
SELF INTEREST AND
PERFORMANCE (I)
TRANSFORMATION
EvolutionofPersonalConsciousness
Making a difference

79
SEPARATION AND ISOLATION COMMUNITY AND COHESION
The Shift from “I” to “We”

Seven Levels of Personal Consciousness
Positive Focus/ Excessive Focus
Service Service to Humanity and the Planet
Compassion, Humility, Future Generations.
Making a Difference
Making a Difference in the Community
Actualising Meaning, Collaboration, Intuition,
Mentoring, Empathy.
Internal Cohesion
Finding Meaning in Existence
Integrity, Alignment, Authenticity, Creativity, Passion,
Honesty, Trust.
Transformation
Continuous Growth and Development
Adaptability, Continuous Improvement, Courage,
Team Player.
Self-esteem
Building a Sense of Self Worth
Pride in Self, Self-Reliant, Self-discipline, Positive Self
Image. Arrogance, Status, Power, Glamour, Rigidity.
Relationship
Harmonious Relationships
Family, Friendship, Belonging, Open Communication,
Ritual. Blame, Jealously, Judgment, Conflict, Gossip.
Survival
Physical Survival and Safety
Health, Nutrition, Financial Stability, Self-Defence.
Violence, Greed, Corruption, Territorial.

Seven Levels of Organisational Consciousness
Positive Focus/ Excessive Focus
Service
Service to Humanity and the Planet
Social Responsibility, Future Generations, Long-Term
Perspective, Ethics, Compassion, Humility.
Making a Difference
Strategic Alliances and Partnerships
Environmental Awareness, Community Involvement,
Employee Fulfilment, Coaching/Mentoring.
Internal Cohesion
Building Internal Community
Shared Values, Vision, Commitment, Integrity,
Trust, Passion, Creativity, Openness, Transparency.
Transformation
Continuous Renewal and Learning
Accountability, Adaptability, Empowerment, Teamwork,
Goals Orientation, Personal Growth.
Self-esteem
High Performance
Systems, Processes, Quality, Best Practices,
Pride in Performance. Bureaucracy, Complacency.
Relationship
Harmonious Relationships
Loyalty, Open Communication, Customer Satisfaction,
Friendship. Manipulation, Blame.
Survival
Financial Stability
Shareholder Value, Organisational Growth,
Employee Health, Safety. Control, Corruption, Greed.

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BUILDING A VALUES-DRIVEN ORGANIZATION
START WITH A VALUES SURVEY

83
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

84
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.

85
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
110
Current Culture
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival

86
11%
1
2
3
4
5
6
7
Cultural
Entropy
Placement of Values by Level (100 employees)
Current Culture
Service
Makingadifference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival

87
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.

88
Cultural Entropy and Employee 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

89
Cultural entropy
significantly
impacts
employee
engagement.
25%
35%
45%
55%
65%
75%
85%
0% 5% 10% 15% 20% 25% 30%
Cultural Entropy
EmployeeEngagement
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
Cultural Entropy and Employee Engagement

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
Cultural Entropy = 0%
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 (24)
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
Cultural Entropy = 2% Cultural Entropy = 2%
High level of
Cultural Entropy
= Low level of
Employee
Engagement

95
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.

96
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?

97
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.

98
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

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

101
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

104
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

113
Free material on Change & Transformation
To grow a shared culture
To lead people through change
Available on www.valuescentre.com
To plan and lead
cultural transformation
Checklist and overview

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

How to Build a Values-Driven Culture

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