Unleashing human potential for performance and profit

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Keynote speech at the EMCC conference in Athens in November 2013

Text of Unleashing human potential for performance and profit

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UNLEASHING HUMAN POTENTIAL FOR PERFORMANCE AND PROFITMy Journey

199820062010

20112012Learning Modules:Leading SelfLeading a TeamLeading an OrganisationLeading in SocietyUpdate and new research

2013Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#

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

Evolutionary Coaching

A values-based approach to unleashing human potential

2010201220132014Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Measuring culture

to improve performance

Measuring leadership

to improve culture

What I am going to be talking about Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Cultural capital is the new frontier of competitive advantage.

The culture of an organisational is a reflection of leadership consciousnessthe stage of psychological development that the leaders have reached.

Cultural transformation begins with the personal transformation of the leaders. Organisations dont transform; people do.

Measurement matters: Whatever you measure (focus your attention on a regular basis ) tends to improve.

The Four Mantras of Culture ChangePowerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#The Leader and the ValuesPeters and Waterman, In Search of Excellence: Lessons from Americas 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 method of describing our individual and collective motivations and what is important to us.

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

Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#The Big Question

Why are values-driven organisations the most successful organisations on the planet?What do they focus on?What makes them successful?

They care about the needs of their people Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Q. Where can we find such organisations?

A. The Best Companies to Work For.

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

S&P 500Average Annualized Return 16.39%Average Annualized Return 4.12%BCWFThe Best Companies to Work For engender high levels of employee engagement and commitment, because the leaders of these organisations focus on meeting employees basic needs and satisfying their growth needs: they focus on helping their employees feel happy and fulfilled. The Top 40 Best Companies to Work For (USA)Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#The Top 40 Best Companies to Work For (USA)Adobe Systems Inc.Adobe SystemsInc.AflacInc.Amazon.com Inc.American Express Co.Autodesk Inc.Build-A-Bear Workshop Inc.Capital Trust Inc. Class A.Chesapeake Energy Corp.Devon Energy Corp.DreamworksAnimation SKG Inc.EOG ResourcesFactSetResearch Systems Inc.General Mills Inc.

Goldman Sachs Group Inc.Goldman Sachs Group Inc.GoogleInc. Class A.Hasbro, Inc.Intel Corp.Intuit Inc.Marriott International Inc.Mattel Inc.Medical Properties Trust Inc.MensWearhouseMicrosoft Corp.National Instruments Corp.NetAppInc.Nordstrom Inc.

Novo Nordisk, A/S ADRNovoNordisk, A/S ADRNustarEnergy, L.P.Publix SuperMkts, Inc.Qualcomm Inc.RackspaceHosting Inc.Salesforce.com Inc.Southern MichiganBankcorp.St Jude Medical, Inc.Starbucks CorporationStryker CorporationSVB Financial GroupUltimate Software Group, Inc.Umpqua HoldingsCorporationWhole Food Markets, Inc.Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Eighteen Firms of Endearment

FOEAverage Annualized Return 13.10%S&P 500Average Annualized Return 4.12%$140m$280m$420m$560mPortfolio Value20022003200420052006200720082009201020112012Firms of Endearment focus on meeting all stakeholders needs. The four pillars of FoE are Conscious Leadership, Conscious Culture, Stakeholder Integration and a Higher Purpose supported by Core Values.Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Eighteen Firms of Endearment

*Amazon.com Inc.*Best Buy Co Inc.BMW*CarMax Inc.*Caterpillar Inc.*CommerceBanksharesInc.Container Store*Costco Wholesale Corporation*eBay Inc.*Google Inc. Class A.

*Harley-Davidson Inc.*Honda Motor Co.IDEOIKEA*Jet Blue*Johnson & JohnsonJordans FurnitureL.L. BeanNew BalancePatagonia

ProgressiveInsuranceREI*Southwest Airlines Co.*Starbucks Corporation*Timberland Inc.*Toyota Motor Corp.Trader Joe's*UPS Inc.Wegmans*Whole Foods Markets, Inc.* Firms of Endearment for which financial data were readily available for their North America operations. Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Conscious Capitalism Movement

20122007Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#

GtGAverage Annualized Return 5.32%S&P 500Average Annualized Return 4.12%$60m$100m$140m$180mPortfolio Value2002200320042005200620072008200920102011201220mThe 10 Good to Great Companies (Jim Collins)The seven characteristics Collins identified in the so-called Good to Great companies, on their own, are not sufficient for long-term success. Focusing on the needs of your employees and the culture of the company are more important. Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#AbbottLaboratoriesAbbott Laboratories*Circuit City**FannieMaeGilletteCompanyKimberly-ClarkKimberley-ClarkKroger Co.Nucor Corp.PhilipMorris International Inc.Pitney BowesInc.Pitney BowesInc.Walgreen Company***Wells Fargo & Co.

* No longer trading. ** Involved in a home mortgage scandal.*** Received $25 billion bailout from the Troubled Asset Relief Program (TARP) as part of the United States governments response to the subprime mortgage crisis of 2008. The 10 Good to Great CompaniesPowerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#The difference between the best companies to work for and other companies is They Care About The Needs of Their Employees they care about what their employees value. Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#

At any given moment in time, the values that are most important to us are a reflection of the stage of psychological development we have reached and the unmet needs of the stages of psychological development we have passed through but haven not yet mastered.

Our needs (what we value) have always been, and always will be the principal drivers of our behaviors and actions.What motivates us is the satisfaction of our needsPowerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Values, Needs and MotivationsTherefore, if you know what your values are then you know what stage of psychological development you are operating from and what stages you have passed through where you still have unmet needs. These are the levels of consciousness you will be operating from.Powerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#Stages of Psychological Development

Surviving: Staying alive and healthy in the best possible conditions. Conforming: Keeping safe and secure by staying loyal to your family, kin and culture. Differentiating: Distinguishing yourself from the crowd by honing your skills and talents. Individuating: Letting go of the aspects of your parental and cultural conditioning that no longer serve you. Self-actualizing: Becoming more fully who you are by leading a values- and purpose-driven life. Integrating: Aligning with others who share the same values and purpose to create a better world.Serving: Fulfilling your destiny by caring for the well-being of humanity and/or the planet.

Evolution of Personal ConsciousnessPowerful metrics that enable leaders to measure and manage cultures.www.valuescentre.com#

The Seven Levels of Consciousness Model22Origins of the Cultural Transformation ToolsGrowth 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 & BelongingSelf-esteemKnow and UnderstandAbraham Maslow

Self Actualization23Corrected quote for accuracy.

NeedsConsciousnessSelf-Actualization

Richard Barrett

Safety Love & BelongingSelf-esteemPhysiological Safety Love & BelongingSelf-esteemKnow and UnderstandAbraham Maslow

Maslows Needs to Barretts Consciousness24Corrected quote for accuracy.Maslows Needs to Barretts Consciousness

NeedsConsciousness 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.ServiceMaking a differenceInternal CohesionTransformationSelf-esteemRelationshipSurvivalPhysiological Safety Love & BelongingSelf-esteemKnow and Understand25Corrected quote for accuracy. Stages in the Development of Personal ConsciousnessPositive Focus / Excessive Focus

ServiceMaking a difference