TRANSFORMATION vs CHANGERichard 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

Change is doing things differently.

A shift in behaviours

Transformation is a new way of

being.

A shift in values

THE DIFFERENCE BETWEEN TRANSFORMATION AND

CHANGE

You can change without transforming,

but you cannot transform without

changing.

TRANSFORMATION VS CHANGE

It must be obvious by now …We cannot solve our problems with the

same level of thinking that created them.

A new level of thinking =

A new level of consciousness

= A new way of being

Therefore facilitating cultural transformation is about …

Supporting individuals or groups in having new conversations that lead

to new and more “successful” ways of

being.

ORGANIZATIONS DON’T TRANSFORM. PEOPLE DO!

ORGANIZATIONAL TRANSFORMATION BEGINS WITH THE PERSONAL TRANSFORMATION OF

THE LEADERS

I am going to show you values

assessments for two teams.

Based on these results, I want you to

decide which team you would prefer to

work in.

ORGANIZATION “A”

Top ten current culture values1Customer

satisfaction2 Making a

Difference

3Commitment

5Continuous Improvement

7Shared Vision

9Balance(home/work)

4 Employee Fulfillment

6 Humor / Fun

8 Customer Collaboration

10 Teamwork

Cultural Entropy Score = 7%

93%

Cultural Health Score =

ORGANIZATION “B”

Top ten current culture values1Long hours (L)

2 Confusion (L)

3Short-term focus (L)

5Information hoarding (L)

7Hierarchy (L)

9Bureaucracy (L)

4 Blame (L)

6 Manipulation (L)

8 Results orientation

10 Quality

Cultural Entropy Score = 47%

53%

Cultural Health Score =

ORGANIZATION “B”

Low Well-Being 53%

High Cultural Entropy

47%

WHICH ORGANIZATION WOULD BE THE LEAST STRESSFUL TO

WORK IN

Long hours(L)Confusion (L)

Short-term focus (L)Blame (L)

Information hoarding (L)

Manipulation (L)Hierarchy (L)

Results orientationBureaucracy (L)

Quality

Stress InducingValues

Customer satisfactionMaking a difference

CommitmentEmployee fulfilment

Continuous improvementHumour/fun

Shared visionCustomer collaborationBalance (home/work)

Teamwork

No Stress

InducingValues

ORGANIZATION “A”

High Well-Being 93%

Low Cultural Entropy 7%

IMPORTTHE

NCEOF CULTURE

The values and beliefs that guide

and define the way in which a group of people behave and operate together.

What is Culture?

Who creates an

organizational culture?

the reflection of the values, beliefs and

behaviours of the leadership

group.

THE CULTURE OF AN ORGANIZATION IS

According to Deloitte, culture has become

one of the most important business

topics of 2016. CEOs and HR leaders now

recognize that culture drives people’s

behaviour, innovation, and customer service

of Deloitte’s survey respondents believe that “culture is a potential competitive advantage.”

82%

of leaders believe that culture is critical to their organization’s success.

84%According to PwC, 60%

think culture is more important than their strategy or their operating model.

CULTURE EATS

STRATEGY FOR

BREAKFAST

Peter Drucker

- Luther Johnson -

“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.”

of the FTSE 350 companies have seen a 10% increase in operating profits driven by their investment in culture.

55%According to E&Y,

92%of the Board Members of these companies said that a focus on culture has improved their financial performance.

Overall,

INTANGIBLE ASSETS MAKE UP MOST OF MARKET VALUE

Source: Ocean Tomo LLC, January 2015

Components of S&P 500

1975 1985 1995 2005 20150%

25%

50%

75%

100%

17%32%

68%80% 84%

83%68%

32%20% 16%

Tangible AssetsIntangible Assets

The key to success is becoming a deliberately

developmental organization.

- Dr. Robert Kegan -

THE CULTURE IS YOUR STRATEGY

Deliberately Developmental Culture

“A deliberately developmental organization is built around the simple but radical conviction that an organization will best prosper when it is more deeply aligned with people’s strongest motive,

which is to grow.

- Kegan and Lahey -

We grow when we are able to get our

needs met. Whatever our

needs are, is what we value.

NEEDS & VALUES

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.

Employees needs are determined by the stage of psychological development they

are at.

What are the needs of your employees?

THE SEVEN STAGES OFPSYCHOLOGIC L

DEVELOPMENT

A PERSONAL JOURNEYEvery person is on an evolutionary

journey of psychological development.

SERVING

SELF-ACTUALIZING

INDIVIDUATING

DIFFERENTIATING

CONFORMING

SURVIVING

INTEGRATING

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.

SURVIVING

76

5432

1 SURVIVINGINFANCY:

0-2 Years Old

NEED TO MANAGE

YOUR ENVIRONMENT

GETTING BASIC PHYSIOLOGICAL NEEDS MET

STAYING ALIVE!

MOTIVATION

CONFORMING

CHILDHOOD: 3-7 Years Old

NEED TO FEEL ACCEPTANCE & BELONGING IN

FAMILY

FEELING LOVED AND PROTECTED

KEEPING SAFE!

MOTIVATION

CONFORMING

76

5432

1

DIFFERENTIATING

TEENAGER: 8-24 Years Old

NEED TO FEEL ACCEPTANCE

AND BELONGING IN PEEERGROUP

BEING RECOGNIZED AND VALUED

FEELING SECURE!

MOTIVATION

DIFFERENTIATING

76

5432

1

INDIVIDUATING

YOUNG ADULT: 25-39 Years Old

NEED FOR FREEDOM AND

AUTONOMY

RESPONSIBILITY AND

ACCOUNTABILITY FOR YOUR LIFE

RELEASING YOUR FEARS!

MOTIVATION

INDIVIDUATING

76

5432

1

SELF-ACTUALIZING

ADULTHOOD: 40-49 Years Old

SELF-ACTUALIZING

NEED FOR MEANING AND

PURPOSE

BECOMING FULLY

WHO YOU ARE!

SELF-EXPRESSION

MOTIVATION

76

5432

1

INTEGRATING

MATURE ADULT: 50-59 Years Old

INTEGRATING

DESIRE TO MAKE A

DIFFERENCE

UNCONDITIONALLOVING

RELATIONSHIPSEMPATHY

CONNECTING

MOTIVATION

76

5432

1

SERVING

SENIOR: 60+ Years Old

DESIRE TO SERVE THE GREATER

GOOD

SELF-LESS SERVICE

COMPASSION

CONTRIBUTING

MOTIVATION

76

5432

1

SERVING

How Do You Know What Employees

Needs Are?Carry Out A Cultural Values

Assessment Using the Cultural Transformation

Tools

THE SEVEN LEVELS OF

MODELCONSCIOUS ESS

ORIGINS OF THE 7 LEVELS MODEL

Know and

Understand

Physiological

Belonging

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.

Love &

Self-esteem

Safety

Self Actualization

Abraham Maslow

MASLOW’S NEEDS TO BARRETT’S CONSCIOUSNESS

Know and

Understand

Physiological

BelongingLove &

Self-esteem

Safety

Abraham Maslow

7

6

543

2

1

Richard Barrett

Self-Actualization

Needs Consciousness

7

65432

1

MASLOW’S NEEDS TO BARRETT’S CONSCIOUSNESS

Service

Making a differenceInternal Cohesion

Transformation

Self-esteem

Relationship

Survival

Know and

Understand

Physiological

BelongingLove &

Self-esteem

Safety

3. Each state of consciousness is

defined by specific values

and behaviours.

1. Expansion of self-actualization into

multiple levels.2. Substitute states of consciousness for hierarchy of needs.

ConsciousnessNeeds

THE SHIFT FROM “I” TO “WE”

Service

Making a differenceInternal Cohesion

Transformation

Self-esteem

Relationship

Survival

COMMON GOOD AND CONTRIBUTION

(WE)

SELF INTEREST AND PERFORMANCE (I)

TRANSFORMATION

7

65432

1

Evol

utio

n of

Per

sona

l Co

nsci

ousn

ess

Positive Focus/ Excessive Focus

Service Service to Humanity and the PlanetCompassion, Humility, Future Generations.

Making a DifferenceMaking a Difference in the CommunityActualising Meaning, Collaboration, Intuition, Mentoring, Empathy.

Internal Cohesion Finding Meaning in ExistenceIntegrity, Alignment, Authenticity, Creativity, Passion, Honesty, Trust.

Transformation Continuous Growth and DevelopmentAdaptability, Continuous Improvement, Courage, Team Player.

Self-esteemBuilding a Sense of Self WorthPride in Self, Self-Reliant, Self-discipline, Positive Self Image. Arrogance, Status, Power, Glamour, Rigidity.

RelationshipHarmonious RelationshipsFamily, Friendship, Belonging, Open Communication, Ritual. Blame, Jealously, Judgment, Conflict, Gossip.

SurvivalPhysical Survival and SafetyHealth, Nutrition, Financial Stability, Self-Defence. Violence, Greed, Corruption, Territorial.

7

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1

7 LEVELS OF PERSONAL CONSCIOUSNESS

Positive Focus/ Excessive Focus

ServiceService to Humanity and the PlanetSocial Responsibility, Future Generations, Long-Term Perspective, Ethics, Compassion, Humility.

Making a DifferenceStrategic Alliances and PartnershipsEnvironmental Awareness, Community Involvement, Employee Fulfilment, Coaching/Mentoring.

Internal CohesionBuilding Internal CommunityShared Values, Vision, Commitment, Integrity, Trust, Passion, Creativity, Openness, Transparency.

TransformationContinuous Renewal and LearningAccountability, Adaptability, Empowerment, Teamwork, Goals Orientation, Personal Growth.

Self-esteemHigh PerformanceSystems, Processes, Quality, Best Practices, Pride in Performance. Bureaucracy, Complacency.

Relationship Harmonious RelationshipsLoyalty, Open Communication, Customer Satisfaction, Friendship. Manipulation, Blame.

SurvivalFinancial StabilityShareholder Value, Organisational Growth, Employee Health, Safety. Control, Corruption, Greed.

7

65432

1

7 LEVELS OF ORGANISATIONAL CONSCIOUSNESS

1

2

3

4

5

Identify behaviours

THE CULTURAL TRANSFORMATION PROCESS

Cultural Values Assessment

Share results and start dialogue

Prioritize values

6Create culture development plan

Implement changes and programmes

PERSONAL VALUES

Which of the following

values/behaviours most reflect who you are?

Pick ten.

CURRENT CULTURE

Which of the following

values/behaviours most reflect

how your organisation

currently operates? Pick ten.

DESIRED CULTURE

Which of the following

values/behaviours most reflect

how you would like your

organisation to operate? Pick

ten.

PLACEMENT OF VALUES BY LEVEL (100 EMPLOYEES)

Current Culture

10

42 5

7

9

6

8

3

110

1Tradition (L) (59)

2 Diversity (54)

3Control (L) (53)

5Knowledge (43)

7Productivity (37)

9Profit (36)

4 Goals orientation (46)

6 Creativity (42)

8 Image (L) (36)

10Open

Communication (31)

Top Ten ValuesService

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival

PLACEMENT OF VALUES BY LEVEL (100 EMPLOYEES)

Current Culture

Service

Making a difference

Internal Cohesion

Transformation

Self-esteem

Relationship

Survival 1

2

3

4

5

6

77

6

5

4

3

2

1

0% 10% 20% 30% 40%

4%

10%

20%

19%

16%

9%

10%

0%

0%

0%

0%

7%

2%

2%

11%

Cultural Entropy

Cultural entropy significantly impacts employee engagement

0% 8% 15% 22% 30%25%

39%

53%

66%

80%

94%

Cultural Entropy

Empl

oyee

Eng

agem

ent

WHAT IS CULTURAL ENTROPY?

UNNECESSARY OR UNPRODUCTIVE WORK

—WORK THAT DOES NOT ADD VALUE.

The amount of energy that is consumed in an organisation

doing

that employees encounter in their day-to-day

activities that prevent the organisation from operating at peak

performance and cause employees to experience stress and prevent them from getting their needs

met.

It is a measure of the CONFLICT, FRICTION AND FRUSTRATION

CULTURAL ENTROPY

HIGHLY ENGAGED <10%

ENGAGED 11-20%

BECOMING DISENGAGED 21-30%

DISENGAGED 31-40%

HIGHLY DISENGAGED > 41%

EMPLOYEE ENGAGEMENT

They bring passion and purpose to their work.

They care passionately

about the future of the

company.

Highly engaged

employees identify with

the company.

They want the company to do the right thing.

They are willing to

invest their discretionary effort to make the company a

success.

HIGHLY ENGAGED EMPLOYEE

SThey want to feel pride in the way the

company behaves.

They are committed and loyal.

HOW DOES CULTURAL ENTROPY ARISE?

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.

WHAT IS PERSONAL ENTROPY?

FEAR-DRIVEN ENERGY Personal entropy is the amount of

that a person expresses in his or her day-to-day interactions with other people.

Personal entropy is a measure of your lack of internal

alignment.Personal entropy arises from

subconscious fear-based beliefs learned when we were young about meeting our survival, safety and security needs.

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%

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

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)

customer satisfaction 12 2(O)

continuous improvement 10 4(O)

employee fulfilment 10 6(O)

making a difference 9 6(S)

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

MatchesPV - CC 4CC - DC 6PV - DC 4

Cultural Entropy:Current Culture

7%

family 15 2(R)

making a difference 13 6(S)

humour/ fun 11 5(I)

well-being 11 6(I)

continuous learning 10 4(I)

commitment 8 5(I)

accountability 7 4(R)

financial stability 7 1(I)

trust 7 5(R)

compassion 6 7(R)

TEAM “A” (19 PEOPLE)

C

T

S 2

1

3

4

5

6

7

TEAM “A” (19 PEOPLE)

Values Distribution

Positive ValuesPotentially Limiting Values

C = Common GoodT = TransformationS = Self-Interest

7

6

5

4

3

2

1

0% 60%

9%

17%

25%

21%

9%

14%

5%

0%

0%

0%

7

6

5

4

3

2

1

0% 60%

1%

24%

28%

20%

4%

10%

6%

5%

0%

2%

7

6

5

4

3

2

1

0% 60%

4%

22%

23%

27%

10%

9%

5%

0%

0%

0%

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

26%

46%

28%

25%

48%

27%

26%

50%

24%

Low level of Cultural

Entropy = High level of

Employee Engagement

Cultural Entropy = 7%

Personal Values

Current Culture Values

Desired Culture Values

Copyright 2015 Barrett Values Centre

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

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)

continuous improvement 11 4(O)

information sharing 10 4(O)

quality 9 3(O)

customer satisfaction 8 2(O)

teamwork 8 4(R)

accountability 7 4(R)

professionalism 7 3(O)

efficiency 6 3(O)

balance (home/work) 6 4(O)

continuous learning 6 4(O)

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 0CC - DC 1PV - 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)

TEAM “B” (35 PEOPLE)

TEAM “B” (35 PEOPLE)

C

T

S 2

1

3

4

5

6

7

Values Distribution

Positive ValuesPotentially Limiting Values

C = Common GoodT = TransformationS = Self-Interest

Cultural Entropy = 47%

Personal Values

Current Culture Values

Desired Culture Values

Copyright 2015 Barrett Values Centre

7

6

5

4

3

2

1

0% 60%

5%

7%

36%

21%

13%

10%

6%

0%

0%

2%

7

6

5

4

3

2

1

0% 60%

2%

5%

7%

16%

11%

6%

6%

25%

11%

11%

7

6

5

4

3

2

1

0% 60%

3%

9%

23%

32%

18%

10%

3%

0%

0%

2%

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

High level of Cultural

Entropy = Low level of Employee

Engagement

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

FOR MORE INFORMATIONGo to:

www.valuescentre.com www.richardbarrett.net

Contact Me: richard@valuescentre.com

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