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www.valuescentre.com 0www.valuescentre.com
Building a high performance, values-driven organisation
Richard Barrett
www.valuescentre.com 1
Who am I? – A World Traveler
Places I have lived Places I have worked
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Who am I? – A Fisherman
England Belize USA
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Who am I? An Author
19951995 19981998 20062006
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The New Operating Reality
� Competition is increasing – China, India, South America
� Change is accelerating – social, economic, technological
� Risk and uncertainty are increasing
� Complexity is increasing
� Interdependency is increasing
� Ethics and public opinion are increasingly influencing corporate decision-making
� Global economic slowdown
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Core Issues for Business
� How to attract and keep talented people –War for Talent
� How to increase profitability and shareholder value
� How to increase staff engagement
� How to increase innovation, creativity, agility, and customer satisfaction
� How to make sure ethics permeates the corporate culture and the company is in alignment with public opinion
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Organisational Resilience
Given the new operating reality, the critical question is …
How do you build an organisation that can survive and thrive in an uncertain world?
How do you build an organisation that can survive and thrive in an uncertain world?
By building a strong, adaptive and resilient core culture that is values-driven .
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Signature Workshop
The New Principles of Business
The New Principles The New Principles
of Businessof Business
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The New Principles of Business
Principle 1: Cultural capital is the new frontier of competitive advantage.
Principle 2: Organisational transformation begins with the personal transformation of the leaders.
Principle 3: Measurement matters. If you can measure it, you can manage it. Introducing the Cultural Transformation Tools
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New Principles of Business
Principle 1:
Cultural capital is the new frontier of
competitive advantage
Principle 1:
Cultural capital is the new frontier of
competitive advantage
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Culture
The culture of an organisation or any group of individuals is a reflection of the values, beliefs and behaviours of
leaders of the group.
The culture represents “the way things are done around here.”
The culture of an organisation or any group of individuals is a reflection of the values, beliefs and behaviours of
leaders of the group.
The culture represents “the way things are done around here.”
WHAT IS CULTURE?WHAT IS CULTURE?
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Values
WHAT ARE VALUES? 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: power, blame, greed, status, being liked
A shorthand method of describing our individual and collective motivations and what is important to us.
Values can be positive or potentially limiting.Values can be positive or potentially limiting.
Positive Values: Positive Values: trust, creativity, passion, honesty, integrity, clarity
Potentially Limiting Values:Potentially Limiting Values: power, blame, greed, status, being liked
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Leadership and Values
‘The real role of the chief executive is to manage the values of the organization.’
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
‘The real role of the chief executive is to manage the values of the organization.’
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
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Signature Workshop
The Link between Culture, Values,
Strategy and Brand
The Link between The Link between
Culture, Values, Culture, Values,
Strategy and BrandStrategy and Brand
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Culture and Strategy
Strong CultureStrong Culture Good StrategyGood Strategy
High PerformanceHigh Performance
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Culture and Strategy
Strong CulturePersonal AlignmentGroup Cohesion
Structural Alignment
Strong CulturePersonal AlignmentGroup Cohesion
Structural Alignment
Good StrategyClear Goals
Measurable Objectives Key Performance
Indicators
Good StrategyClear Goals
Measurable Objectives Key Performance
Indicators
High PerformanceHigh Performance
Full Spectrum LeadershipFull Spectrum Leadership
Compelling VisionInspiring Mission
Compelling VisionInspiring Mission
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Culture and Brand
Employee PerspectiveEmployee Perspective Customer PerspectiveCustomer Perspective
CULTURE BRAND CULTURE BRAND
The Culture Vision, Mission, Values
and Behaviours
The Culture Vision, Mission, Values
and Behaviours
Who you are on the inside, looks a lot like who you are on the outside
Who you are on the inside, looks a lot like who you are on the outside
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Evolution of arenas of competitive advantage
Intellectual CapitalIntellectual Capital
Cultural CapitalCultural Capital
Quality of ProductQuality of Product
ManpowerManpower
Agricultural Age
Industrial Age
Information Age
Consciousness Age
200020001900190018001800
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Evolution of competitive advantage
Industrial Age
Quality of Product
Change
QualityProductivityEfficiencySix SigmaMass
marketing
Industrial Age
Quality of Product
Change
QualityProductivityEfficiencySix SigmaMass
marketing
Information Age
Intellectual Capital
Transformation
KnowledgeLearning
EmpowermentPersonal growth
Customer satisfaction
Information Age
Intellectual Capital
Transformation
KnowledgeLearning
EmpowermentPersonal growth
Customer satisfaction
Consciousness Age
Cultural Capital
Evolution
ValuesEthicsSocial
ResponsibilityCustomer
collaboration
Consciousness Age
Cultural Capital
Evolution
ValuesEthicsSocial
ResponsibilityCustomer
collaboration
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Strong adaptive cultures = Exemplary Performance
A four year study of 9 - 10 firms in each of 20 industries, carried out by Kotter and Heskett of Harvard Business School, found
that firms with a strong adaptive culture based on shared values, outperformed firms with rigid or weak cultures
by a significant margin.
John P. Kotter and James L. Heskett, “Corporate Culture and Performance”, 1992
A four year study of 9 - 10 firms in each of 20 industries, carried out by Kotter and Heskett of Harvard Business School, found
that firms with a strong adaptive culture based on shared values, outperformed firms with rigid or weak cultures
by a significant margin.
John P. Kotter and James L. Heskett, “Corporate Culture and Performance”, 1992
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Impact of strong adaptive cultures
� Revenues grew four times faster than weak cultures
� Rate of job creation seven times higher
� Stock price grew twelve times faster
� Profit to performance ration was 750 percent higher
John P. Kotter and James L. Heskett, “Corporate Culture and Performance”, 1992
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Strong adaptive cultures
Strong cultures are only valuable if they exhibit the adaptive and learning qualities. Otherwise, they become
a liability during the periods of accelerated change.
This perspective offers one possible explanation why the strong culture-performance results are mixed.
“Corporate Culture and Organizational Performance”Siew Kim Jean Lee and Kelvin Yu, National University of Singapore
Strong cultures are only valuable if they exhibit the adaptive and learning qualities. Otherwise, they become
a liability during the periods of accelerated change.
This perspective offers one possible explanation why the strong culture-performance results are mixed.
“Corporate Culture and Organizational Performance”Siew Kim Jean Lee and Kelvin Yu, National University of Singapore
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Research on long lasting successful companies
Long lasting companies live their values – values-driven
Have a culture that gives guidance to employees –vision-guided and mission-driven
Jim Collins and Jerry Porass, “Built to Last: Successful habits of visionary companies”, 1995
Long lasting companies live their values – values-driven
Have a culture that gives guidance to employees –vision-guided and mission-driven
Jim Collins and Jerry Porass, “Built to Last: Successful habits of visionary companies”, 1995
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Financial returns from long lasting companies
Cumulative Stock Returns
$1 invested on January 1st ,1926 until December 31st , 1990
Long lasting successful companies
� 15 times general stock market� 6 times comparison companies
Jim Collins and Jerry Porass, “Built to Last: Successful habits of visionary companies”, 1995
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Business Needs Scorecard – Long Lasting Companies
20%
18%
6%
19%
26%
11%
Finance
Fitness
Evolution
Societal Contribution
Allocation of values of long lasting successful companies
Client Relations
Culture
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What long-lasting companies focus on
Finance
Societal Contribution
BEST EMPLOYERSAUSTRALIA 2008
Client Relations
Culture
20%
18%
6%
19%
26%
11%
Finance
Fitness
Evolution
Societal Contribution
LONG LASTING COMPANIES
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Best and worst employers in Australia 2008
Finance Finance
FitnessClient Relations
Evolution Culture
Societal Contribution
Societal Contribution
Allocation of top ten current culture values
BEST EMPLOYERS WORST EMPLOYERS
BEST EMPLOYERS FOCUS ON CULTURE BEST EMPLOYERS FOCUS ON CULTURE
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Best employers have lowest entropy
Staff Engagement
Cultural Alignment
Cultural Entropy
Tier 1 (Best) 89% 83% 5%
Tier 2 76% 66% 8%
Tier 3 55% 47% 15%
Tier 4 (Worst) 40% 34% 21%
Cultural Entropy represents the degree of dysfunction in the culture – bureaucracy, internal competition, etc.
This research of 160 organisations in Australia was carried out by Hewitt Associates and the Barrett Values Centre in 2008
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Low entropy leads to high financial returns
EntropyLevel
3 Year Revenue Growth %
29% 11.07%
This research of 163 organisations in Australia was carried out by Hewitt Associates and the Barrett Values Centre in 2008
Cultural Entropy represents the degree of dysfunction in the culture – bureaucracy, internal competition, etc.
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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 past ten years –compared to 2.83% for the S&P 500.
S&P 500S&P 500
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New Principles of Business
Principle 2:
Organisational transformation begins with the personal transformation of the leaders.
Organisations don’t transform.People do.
Principle 2:
Organisational transformation begins with the personal transformation of the leaders.
Organisations don’t transform.People do.
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The leader and the values
As a leader, your values define the organisational culture, and
Your culture defines your competitive advantage.
In particular:
Your ability to attract and keep talented peopleYour ability to attract and keep talented people
Your ability to build and sustain high-performanceYour ability to build and sustain high-performance
Your ability to build resilience and adaptive capacityYour ability to build resilience and adaptive capacity
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The leader and the values
‘The excellent companies developed cultures that incorporated the values and practices of their great leaders, and those shared values
can be seen to survive for decades.’
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
‘The excellent companies developed cultures that incorporated the values and practices of their great leaders, and those shared values
can be seen to survive for decades.’
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
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The leader and the values
‘The real role of the leader is to manage the values of the corporation.’
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
‘The real role of the leader is to manage the values of the corporation.’
Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983
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John McFarlane, CEO, ANZ
Living the
Values
Living the
Values
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From leader’s values to shareholder value
Leader’s values/ behaviours
Leader’s values/ behaviours
Corporate Sector
Corporate Culture
Corporate Culture
CompetitiveAdvantage
CompetitiveAdvantage
Shareholder Value
Shareholder Value
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From leader’s values to shareholder value
LeadershipDevelopment
LeadershipDevelopment
Corporate Sector
EmployeeFulfillment
EmployeeFulfillment
CustomerSatisfaction
CustomerSatisfaction
Shareholder Value
Shareholder Value
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New Principles of Business
Principle 3:
Measurement matters. If you can measure it,you can manage it.
An introduction to the Cultural Transformation Tools
Principle 3:
Measurement matters. If you can measure it,you can manage it.
An introduction to the Cultural Transformation Tools
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Richard BarrettRichard Barrett
Maslow’s Needs to Barrett’s Consciousness
Know and Understand
Physiological
Safety
Love & Belonging
Self-esteem
Self-Actualization
Abraham Maslow Abraham Maslow Know and
Understand
NeedsNeeds ConsciousnessConsciousness
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Stages in the Development of Organisational Consciousness
Service
SERVICE TO HUMANITY AND THE PLANETSocial responsibility, future generations, long-term perspective, ethics, compassion, humility
External Cohesion
STRATEGIC ALLIANCES AND PARTNERSHIPSCollaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring
Internal Cohesion
BUILDING CORPORATE COMMUNITYShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Transformation
CONTINUOUS RENEWAL AND LEARNINGAccountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth
Self-Esteem
HIGH PERFORMANCESystems, processes, quality, best practices, pride in performance,
Relationship
EMPLOYEE RECOGNITIONLoyalty, open communication, customer satisfaction,friendship,
Survival
FINANCIAL STABILITYShareholder value, profit, organisational growth, employee health and safety
Positive Focus / Excessive FocusExcessive Focus
Control, Corruption, Greed
Bureaucracy, Complacency
Manipulation, Blame
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CTT – Sample of Corporate Clients
ABN AmroANZ Bank AstraZenecaBanque PopulaireBarclays CapitalBP OilBridgestone FirestoneCampbell’s FoodCommonwealth Bank Computer AssociatesCorningCampbell’s FoodComputer AssociatesDeutsche BankDHLErnst & Young
EricssonExxonFord Motor CompanyIBM IKEAIng BankJohnson & JohnsonKLMKraftKPMGLloyds TSBL’OrealMarsh McLennanMicrosoftMcDonald’sMotorola
NedBankNestleNortelPetrobrasPfizer PWCSEB Bank SkandiaSmith & NephewTotal PetroleumUnileverVattenfallVolvoWegmansWrigleyXerox
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Cultural Values Assessment (CVA)
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CVA: Demographics
42
Usually anonymous unless working with Senior Team
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CVA: Personal Values
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CVA: Current Culture Values
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CVA: Desired Culture Values
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Placement of values by level
46
Current Culture 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)
ServiceService
External cohesionExternal cohesion
Internal cohesionInternal cohesion
TransformationTransformation
Self-esteemSelf-esteem
RelationshipRelationship
SurvivalSurvival
4422 55
77
99
66
88
33
110
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Distribution of values by level
47
Current Culture 100 Employees
ServiceService
External cohesionExternal cohesion
Internal cohesionInternal cohesion
TransformationTransformation
Self-esteemSelf-esteem
RelationshipRelationship
SurvivalSurvival
11%
Cultural Entropy
Cultural Entropy
1
2
3
4
5
6
7
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Cultural Entropy – Definition
CULTURAL ENTROPY
Cultural entropy is the amount of energy in an organization that is consumed in unproductive work. It is a measure of the friction, and pent-up frustration that
exists within an organization.
CULTURAL ENTROPY
Cultural entropy is the amount of energy in an organization that is consumed in unproductive work. It is a measure of the friction, and pent-up frustration that
exists within an organization.
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Cultural Entropy
Cultural entropy represents the degree of dysfunction in a culture
Entropy Impact
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Signature Workshop
Examples of Cultural Values Assessments
Examples of Examples of
Cultural Values Cultural Values
AssessmentsAssessments
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Flexlite (53)
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= 4-7 | IROS (P)= 0-0-4-0 | IROS (L)= 0-4-3-0 PL= 11-0 | IROS (P)= 1-5-5-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 0CC - DC 1PV - DC 2
1. honesty 27 Level 5
2. commitment 24 Level 5
3. accountability 20 Level 4
4. adaptability 18 Level 4
5. reliability 18 Level 3
6. responsibility 18 Level 4
7. trust 17 Level 5
8. fairness 16 Level 5
9. caring 15 Level 2
10. humor/fun 15 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. blame (L) 27 Level 2
2. long hours (L) 24 Level 3
3. profit 23 Level 1
4. bureaucracy (L) 22 Level 3
5. control (L) 21 Level 1
6. cost reduction 20 Level 1
7. productivity 20 Level 3
8. short-term focus (L) 18 Level 1
9. manipulation (L) 15 Level 2
10. continuous improvement 14 Level 4
11. power (L) 14 Level 3
1. customer satisfaction 31 Level 2
2. accountability 26 Level 4
3. continuous improvement 24 Level 4
4. commitment 20 Level 5
5. quality 15 Level 3
6. teamwork 15 Level 4
7. cooperation 14 Level 5
8. employee fulfillment 14 Level 6
9. employee recognition 14 Level 2
10. information sharing 13 Level 4
11. respect 13 Level 2
Values Plot Copyright 2008 Barrett Values Centre August 2008
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Flexlite (53)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values
PL= 10-0 | IRS (P)= 5-5-0 | IRS (L)= 0-0-0
Matches
PV - CC 0CC - DC 1PV - DC 2
1. honesty 27 Level 5
2. commitment 24 Level 5
3. accountability 20 Level 4
4. adaptability 18 Level 4
5. reliability 18 Level 3
6. responsibility 18 Level 4
7. trust 17 Level 5
8. fairness 16 Level 5
9. caring 15 Level 2
10. humor/fun 15 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
Values Plot Copyright 2008 Barrett Values Centre August 2008
www.valuescentre.com 53
Flexlite (53)
Current Culture Values
PL= 4-7 | IROS (P)= 0-0-4-0 | IROS (L)= 0-4-3-0
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. blame (L) 27 Level 2
2. long hours (L) 24 Level 3
3. profit 23 Level 1
4. bureaucracy (L) 22 Level 3
5. control (L) 21 Level 1
6. cost reduction 20 Level 1
7. productivity 20 Level 3
8. short-term focus (L) 18 Level 1
9. manipulation (L) 15 Level 2
10. continuous improvement 14 Level 4
11. power (L) 14 Level 3
Values Plot Copyright 2008 Barrett Values Centre August 2008
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Flexlite (53)
Desired Culture Values
PL= 11-0 | IROS (P)= 1-5-5-0 | IROS (L)= 0-0-0-0
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 satisfaction 31 Level 2
2. accountability 26 Level 4
3. continuous improvement 24 Level 4
4. commitment 20 Level 5
5. quality 15 Level 3
6. teamwork 15 Level 4
7. cooperation 14 Level 5
8. employee fulfillment 14 Level 6
9. employee recognition 14 Level 2
10. information sharing 13 Level 4
11. respect 13 Level 2
August 2008
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Flexlite (53)
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= 4-7 | IROS (P)= 0-0-4-0 | IROS (L)= 0-4-3-0 PL= 11-0 | IROS (P)= 1-5-5-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 0CC - DC 1PV - DC 2
1. honesty 27 Level 5
2. commitment 24 Level 5
3. accountability 20 Level 4
4. adaptability 18 Level 4
5. reliability 18 Level 3
6. responsibility 18 Level 4
7. trust 17 Level 5
8. fairness 16 Level 5
9. caring 15 Level 2
10. humor/fun 15 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. blame (L) 27 Level 2
2. long hours (L) 24 Level 3
3. profit 23 Level 1
4. bureaucracy (L) 22 Level 3
5. control (L) 21 Level 1
6. cost reduction 20 Level 1
7. productivity 20 Level 3
8. short-term focus (L) 18 Level 1
9. manipulation (L) 15 Level 2
10. continuous improvement 14 Level 4
11. power (L) 14 Level 3
1. customer satisfaction 31 Level 2
2. accountability 26 Level 4
3. continuous improvement 24 Level 4
4. commitment 20 Level 5
5. quality 15 Level 3
6. teamwork 15 Level 4
7. cooperation 14 Level 5
8. employee fulfillment 14 Level 6
9. employee recognition 14 Level 2
10. information sharing 13 Level 4
11. respect 13 Level 2
Values Plot Copyright 2008 Barrett Values Centre August 2008
Flexlite (53)
C
T
S
Values Distribution Copyright 2008 Barrett Values Centre August 2008
C = Common GoodT = TransformationS = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 42-24-34Entropy = 4%
CTS = 13-17-70Entropy = 41%
CTS = 33-27-40Entropy = 0%
Personal Values
Current Culture Values
Desired Culture Values
Personal Current Culture Desired Culture
Flexlite (53)
Positive Values Distribution Copyright 2008 Barrett Values Centre August 2008
Flexlite (53)
Current Culture Values Desired Culture Values
Finance Finance
FitnessClient
Relations
Evolution Culture
Societal
ContributionSocietal
Contribution
Current Culture
Desired Culture
Financecost reduction
profit
Fitness
bureaucracy (L)
long hours (L)
productivity
accountability
quality
Client Relations
customer
satisfaction
Evolution
continuous
improvement
short-term focus
(L)
continuous
improvement
Culture
blame (L)
control (L)
manipulation (L)
power (L)
cooperation
employee
fulfillment
employee
recognition
respect
teamwork
Societal Contribution
Business Needs Copyright 2008 Barrett Values Centre August 2008
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Best Employers in Australia Top 9 (1744)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
PL = 10-0S|S
IRS (P) = 7-3-0S|SIRS (L) = 0-0-0S
PL = 10-0S|S
IROS (P) = 1-4-5-0S|SIROS (L) = 0-0-0-0S
PL = 10-0S|S
IROS (P) = 2-4-4-0S|SIROS (L) = 0-0-0-0S
Matches
PV - CC=3
CC - DC=9
PV - CC=4
1. commitment 693 Level 5
2. balance (home/work) 634 Level 4
3. achievement 629 Level 3
4. honesty 578 Level 5
5. accountability 560 Level 4
6. caring 512 Level 2
7. enthusiasm 509 Level 5
8. adaptability 441 Level 4
9. family 439 Level 2
10. humor/fun 437 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. achievement 670 Level 3
2. customer satisfaction 567 Level 2
3. brand image 526 Level 3
4. accountability 524 Level 4
5. being the best 524 Level 3
6. continuous improvement 483 Level 4
7. employee recognition 465 Level 2
8. balance (home/work) 463 Level 4
9. coaching/mentoring 439 Level 6
10. teamwork 438 Level 4
1. accountability 637 Level 4
2. customer satisfaction 617 Level 2
3. continuous improvement 561 Level 4
4. achievement 540 Level 3
5. coaching/mentoring 511 Level 6
6. balance (home/work) 475 Level 4
7. teamwork 475 Level 4
8. brand image 451 Level 3
9. employee recognition 445 Level 2
10. commitment 417 Level 5
Dot Plotcopyright
August 2008
C
T
S
Values Distributioncopyright
August 2008
C = Common GoodT = TransformationS = Self-Interest
Positive Values
Potentially Limiting
Values
CTS = 40-21-39Entropy = 4%
CTS = 35-24-41Entropy = 5%
CTS = 37-26-37Entropy = 1%
Personal Values
Current Culture Values
Desired Culture Values
Best Employers in Australia Top 9 (1744)
Personal Current Culture Desired Culture
Positive Values Distribution
copyrightAugust 2008
Best Employers in Australia Top 9 (1744)
www.valuescentre.com 62
Signature Workshop
Cultural EvolutionExamples
Cultural Cultural
EvolutionEvolution
Examples Examples
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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 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
ENTROPY 25% ENTROPY 19% ENTROPY 17%
2008
1. accountability2. client-driven 3. client satisfaction 4. achievement5. teamwork6. performance driven 7. community involvement 8. being the best 9. commitment10. cost-consciousness
ENTROPY 13%
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An example of cultural evolution
2005 2008
CTS = 29-21-50Entropy = 13%
CTS = 24-17-59Entropy = 25%
RESULTS
•5 point increase in common good and 9 point decrease in self-interest – shift towards full-spectrum
•12 point decrease in cultural entropy – revenues grew by 60%
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An example of cultural evolution
Share Price grew on average 38% per year from 2004 to 2007
Share Price grew on average 38% per year from 2004 to 2007
Share Price
Revenue
Revenue grew on average 20% per year from 2004 to 2007
Revenue grew on average 20% per year from 2004 to 2007
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An example of cultural evolution
2003
1. Profit2. Customer focus3. Community involvement4. Accountability5. Organisational growth6. Achievement7. Brand image8. Results orientation9. Shareholder value10.Cost reduction.
2006 2008
ENTROPY 16% ENTROPY 11% ENTROPY 9%
1. Customer focus2. Cost reduction3. Accountability4. Profit5. Continuous improvement6. Achievement7. Community involvement8. Results orientation9. Shareholder value10.Customer satisfaction
1. Profit2. Customer focus3. Community involvement4. Results orientation5. Organisational growth6. Brand image7. Accountability8. Achievement 9. Customer satisfaction10.Shareholder value.
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An example of cultural evolution
2003 2008
CTS = 25-20-55Entropy = 16%
CTS = 31-20-49Entropy = 9%
RESULTS
•6 point increase in common good and decrease in self-interest – shift towards full-spectrum
•7 point decrease in cultural entropy – revenues grew by 60%
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An example of cultural evolution
Share Price grew on average 18% per year from 2003 to 2007
Share Price grew on average 18% per year from 2003 to 2007
Share Price
Revenue
Revenue grew on average 15% per year from 2003 to 2007
Revenue grew on average 15% per year from 2003 to 2007
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