Barrett Values Centre Measuring Culture And Managing Performance Nov 2009 Pc Slideshare

www.valuescentre.com 1www.valuescentre.com

Measuring Culture and Managing Performance

www.valuescentre.com 2

Why Culture?

Why does culture have such an impact on the performance and success of

organisations?

What part do values play in building culture?


Cultural capital is the new frontier of competitive

advantage.

New principles of business

Principle 1: Principle 1:


1. client satisfaction 2. making a difference3. integrity 4. teamwork 5. humour/fun 6. quality 7. ethics8. financial stability

1. blame L2. short term focus L3. internal competition L4. buck passing L5. risk averse L6. customer satisfaction 7. information hoarding L8. profit

What is culture?

Talent Financial viability

Excellence Ethics Resilience


Cultural entropy & negative impact on performance

Cultural EntropyEntropy is a measure of dysfunctiondysfunction.

It shows the degree of non-productive or destructive energy in an organisation.

e.g. blame, manipulation, internal competition, corruption

Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008



Organisational transformation begins with the personal transformation

of the leaders.



Cultural evolution begins with personal evolution

The Culture of an organisation is a reflection of leadership values and behaviours

LVA 27 Assessors

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

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

CVA Current Culture

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

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


Best employers focus on employee needs

Best Employers Values

Employee recognition

Teamwork

Coaching/mentoring

Balance (home/work)

The distinguishing feature of the best employers was their focus on employee needs and the employees’ experience.

The following table shows the values that were present in the top ten current culture values of the best companies, that

were not present in the worst companies.

The distinguishing feature of the best employers was their focus on employee needs and the employees’ experience.

The following table shows the values that were present in the top ten current culture values of the best companies, that

were not present in the worst companies.

Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008


Fortune’s Best Companies to Work For

A portfolio of the top twenty publicly listed best companies to work for in the USA in 2008 would have returned an average annualized return of 16.74% over the last ten years – compared to 2.83% for the S&P 500.

S&P 500

Top 20- best companies to work

for in the USA



Measurement matters. If you can measure it,

you can manage it.



Measuring culture

Who are the people the people in your organisation? What is most important to them?

What kind of cultureculture and behaviours shape their work experience?

o What is working well?o What is undermining performance?

Employee fulfilment, customer satisfaction, organisational success

What valuesvalues and behaviours do they see as necessary for optimal organisational performanceoptimal organisational performance?


19% ENTROPY

An example of cultural evolution

1. profit2. cost-consciousness3. accountability 4. community involvement 5. client-driven 6. bureaucracy (L)7. process-driven8. client satisfaction9. results orientation 10. silo mentality (L)

2005

1. accountability 2. cost-consciousness3. client-driven 4. client satisfaction 5. results orientation 6. profit7. performance driven 8. bureaucracy (L) 9. teamwork 10. community involvement

1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. profit6. performance driven 7. community involvement 8. being the best 9. achievement10. results orientation

2006 2007

25%25% ENTROPY 17% ENTROPY

2008

1. accountability2. client-driven 3. client satisfaction 4. community involvement5. achievement6. cost consciousness7. teamwork8. performance driven9. being the best10. delivery

14% 14% ENTROPYENTROPY


Powerful metrics enable leaders to measure and manage cultures

Share Price grew on average 38%38%

per year from 2004 to 2007

Share Price

Revenue

Revenue grew on average 20% 20%

per year from 2004 to 2007


Values-Driven Results

Staff turnover from 24% to 15%

HospitalHospital

Headline earnings 300million to 2.2billion rand

Engineering CompanyEngineering Company

Employee satisfaction to 85%, from 49% over a five years

BankBank


Why Culture?

Culture is a fundamental driver of operational and financial performance

Mapping the values of your culture provides a detailed roadmap for building a sustainable, high

performance organisation

The culture of an organisation is a reflection of the leader’s values and behaviours.


Measuring Culture

The Cultural Transformation Tools providepowerful metrics which enable leaders

to actively measure and manage cultures.

We make the intangible, tangible.We link culture to performance.


Cultural Transformation Models and Tools Overview


Cultural Transformation Model

A framework for understanding how

individuals, teams and organisations

develop and grow

•Seven Levels of Personal

Consciousness

•Seven Levels of Organisational

Consciousness

•Seven Levels of Leadership

Consciousness


Maslow’s Needs to Barrett’s Consciousness

Know and Understand

Physiological

Safety

Love & Belonging

Self-esteemAbraham Maslow

Know and Understand

Needs Consciousness

Self-Actualization

Richard Barrett


Cultural Transformation Tools

Assessment instruments for measuring the consciousness and mapping the values of individuals, teams and organisations

• Individual Values Assessment Team Values Assessment Cultural Values Assessment Leadership Values Assessment Merger and Acquisition Compatibility Assessment Client Assessment of Corporate Values Coach’s Values Assessment School or Classroom Values Assessment Community or National Values Assessment


Seven Levels of Consciousness


Personal

Organisational

Survival Consciousness

• Health• Financial Stability

• Profit• Shareholder value• Employee health/safety

Control…Exploitation

PRIMARY FOCUS: Foundations for Survival

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Personal

Organisational

Relationship Consciousness

• Family• Friendship

• Customer satisfaction• Open communication• Respect

Blame…Manipulation

PRIMARY FOCUS: Relationships & connectivity

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Personal

Organisational

Self-esteem Consciousness

• Self-confidence• Success

• Efficiency• Productivity• Quality

Bureaucracy…Complacency

PRIMARY FOCUS: Self-esteem & excellence

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Personal

Organisational

Transformation

• Courage• Personal growth

• Innovation• Diversity• Teamwork

PRIMARY FOCUS: Learning & continuous improvement

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Personal

Organisational

Internal Cohesion Consciousness

• Trust• Enthusiasm

• Integrity• Cooperation• Shared vision

PRIMARY FOCUS: Alignment & authenticity

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Personal

Organisational

Making a Difference Consciousness

• Mentoring• Volunteer work

• Employee fulfillment• Environmental awareness• Strategic alliances

PRIMARY FOCUS: Collaboration

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Personal

Organisational

Service Consciousness

• Wisdom• Humility

• Ethics• Future Generations• Long-Term Perspective

PRIMARY FOCUS: Selfless Service

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival


Full-Spectrum Consciousness

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

Long-term viability

Collaboration

Shared vision

Continuous Improvement

Best Practices

Customer Satisfaction

Financial Stability


Alignment of Employee & Organisational Consciousness

CorporateConsciousness

Difficult to hire and keep people who are here

Individual Consciousness

When organisations are here....


CBT Staff (154)

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Personal Values Current Culture Values Desired Culture Values

PL= 10-0 | IRS (P)= 7-3-0 | IRS (L)= 0-0-0 PL= 4-6 | IROS (P)= 0-0-4-0 | IROS (L)= 1-0-5-0 PL= 10-0 | IROS (P)= 1-2-7-0 | IROS (L)= 0-0-0-0

Matches

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

1. honesty 61 Level 5


3. humor/fun 53 Level 5

4. reliability 51 Level 3

5. enthusiasm 44 Level 5

6. adaptability 43 Level 4

7. family 37 Level 2


9. trust 34 Level 5

10. balance (home/work) 32 Level 4

Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational

Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal

1. cost reduction 76 Level 1

2. bureaucracy (L) 66 Level 3

3. confusion (L) 61 Level 3

4. profit 54 Level 1

5. information hoarding (L) 47 Level 3

6. short-term focus (L) 47 Level 1

7. hierarchical (L) 45 Level 3

8. results orientation 39 Level 3

9. client focus 38 Level 2

10. empire building (L) 36 Level 2

1. client satisfaction 66 Level 2

2. employee fulfillment 65 Level 6

3. continuous improvement 58 Level 4

4. effective communication 56 Level 2

5. teamwork 50 Level 4

6. financial stability 44 Level 1

7. adaptability 42 Level 4

8. client focus 38 Level 2

9. professionalism 35 Level 3

10. vision 35 Level 7

Values Plot Copyright 2008 Barrett Values Centre August 2008


Cost of limiting values


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.


Aligned Organization – Sterling Bank (979)

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Personal Values Current Culture Values Desired Culture Values

PL= 10-0 | IRS (P)= 5-5-0 | IRS (L)= 0-0-0 PL= 10-0 | IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 PL= 10-0 | IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0

Matches

PV - CC 3CC - DC 8PV - DC 2

1. honesty 532 Level 5


3. family/friendship 479 Level 2

4. reliability 387 Level 3


6. friendliness 294 Level 2

7. responsibility 283 Level 4

8. humor/fun 276 Level 5

9. courtesy 263 Level 2

10. trust 255 Level 5

Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational

Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal

1. customer service 504 Level 6



4. community involvement

399 Level 6


6. organizational growth 296 Level 1

7. being the best 285 Level 3



10. friendliness 252 Level 2



3. customer service 489 Level 6

4. employee fulfillment 477 Level 6

5. community involvement

430 Level 6




9. being the best 288 Level 3

10. accessibility 274 Level 2

Values Plot Copyright 2008 Barrett Values Centre August 2008


Whole Systems ChangeCultural Evolution


Cultural Evolution – Whole System Change

Personality

Individual values and beliefs

Character

Individual behaviors

Culture

Group values and beliefs

Social Structures

Group behaviors

ValuesValues BehaviorsBehaviors

Group Cohesion – Capacity for Collective ActionGroup Cohesion – Capacity for Collective Action

Personal Alignment

Structural Alignment

Values Alignment

Mission Alignment

IndividualIndividual

CollectiveCollective

BarrettValues Centre


Signature Workshop

Implementing Implementing Whole-SystemWhole-System

ChangeChange

Implementing Implementing Whole-SystemWhole-System

ChangeChange

20062006


6. Surveyof Key Drivers

6. Surveyof Key Drivers

Whole System Change: Preparation Phase

3. Choose ValuesSelect Behaviors3. Choose ValuesSelect Behaviors

2. Create Visionand Mission

2. Create Visionand Mission

4. Evaluate CulturalResilience

4. Evaluate CulturalResilience

7. DevelopImplementation

Strategy

7. DevelopImplementation

Strategy

8. Develop Objectives andKey Performance Indicators8. Develop Objectives andKey Performance Indicators

5. Develop Compelling Reasons for Change5. Develop Compelling Reasons for Change

1. Business Assessment1. Business Assessment

1. CTT Values Assessment

1. CTT Values Assessment


Why?

Whole System Change: Implementation Phase

9. StructuralAlignment

9. StructuralAlignment

New employee/executive selection

New employee/executive orientation

Employee/executiveperformance evaluation

Employee/executivepromotion criteria

Talent selection and development programs

Management development programs

Leadership development programs

11. Personal Alignment Programs

(Executive Population)

11. Personal Alignment Programs

(Executive Population)

13. Business or Functional UnitGroup Cohesion

Programs

13. Business or Functional UnitGroup Cohesion

Programs

14. ValuesAwareness Program

for Managers

14. ValuesAwareness Program

for Managers

Specifically designed for executive, managerial

and employee populationsincluding

values-based business simulations,

ethical dilemmas, theater,

etc.

15. Values Management of Organization, Business Units and Sub-Units and Behavior Alignment of Executive Population

15. Values Management of Organization, Business Units and Sub-Units and Behavior Alignment of Executive Population

10. LVA Coaching and Action Plans(Executive Group – CEO and Business Unit Leaders)

10. LVA Coaching and Action Plans(Executive Group – CEO and Business Unit Leaders)

12. LVA Coaching and Action Plans (Executive Population)

12. LVA Coaching and Action Plans (Executive Population)


Stages in the Development of Organisational Consciousness

ServiceSERVICE TO HUMANITY AND THE PLANETSocial responsibility, future generations, long-term perspective, ethics, compassion, humility

External CohesionSTRATEGIC ALLIANCES AND PARTNERSHIPSCollaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring

Internal CohesionBUILDING CORPORATE COMMUNITYShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency

TransformationCONTINUOUS RENEWAL AND LEARNINGAccountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth

Self-EsteemHIGH PERFORMANCESystems, processes, quality, best practices, pride in performance,

RelationshipEMPLOYEE RECOGNITIONLoyalty, open communication, customer satisfaction,friendship,

SurvivalFINANCIAL STABILITYShareholder value, profit, organisational growth, employee health and safety

Positive Focus / Excessive FocusExcessive Focus

Control, Corruption, Greed

Bureaucracy, Complacency

Manipulation, Blame


Values Based Decision Making


Five Modes of Decision Making

Based on past: DNA encoded reaction. Action precedes thought.

Based on past: Learned reaction. Action precedes thought.

Based on past: Considered response. Pause between event and response.

Future orientation. Consciously creating the future.

Based on what wants to emerge.Tap into the collective unconsciousINTUITIONINTUITIONINTUITIONINTUITION

INSTINCTSINSTINCTS

SUB CONSCIOUS BELIEFSSUB CONSCIOUS BELIEFSSUB CONSCIOUS BELIEFSSUB CONSCIOUS BELIEFS

CONSCIOUS BELIEFSCONSCIOUS BELIEFSCONSCIOUS BELIEFSCONSCIOUS BELIEFS

VALUESVALUESVALUESVALUES


Cultural Entropy

Cultural entropy represents the degree of dysfunction in a culture

Entropy Impact

<10% Prime: Healthy Functioning

11-19% Minor Issues: Requiring cultural and/or structural adjustment

20-29% Significant Issues: Requiring cultural and structural transformation, and leadership coaching

30-39% Serious Issues: Requiring cultural and structural transformation, leadership mentoring/coaching, and leadership development

40-49% Critical Issues: Requiring cultural and structural transformation, selective changes in leadership, leadership mentoring/coaching and leadership development


Barrett Values Centre Vision, Mission and Values

Internal External

Vision To be a global resource for

the evolution of human Consciousness

To create a values-driven society

MissionTo build a worldwide network of change agents committed

to cultural transformation

To support leaders in building values-driven organizations

Values: Employee fulfilment, commitment, customer satisfaction, shared vision

Barrett Values Centre Measuring Culture And Managing Performance Nov 2009 Pc Slideshare

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Transcript of Barrett Values Centre Measuring Culture And Managing Performance Nov 2009 Pc Slideshare