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

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Overview of the Barrett 7 Levels Models and Tools and how they impact organisational performance

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  • 1.Measuring Culture andManaging Performance

2. Why Culture?Why does culture have such an impact on the performance and success of organisations? What part do values playin building culture? 3. New principles of business Principle 1:Cultural capitalis the new frontier of competitive advantage. 4. What is culture? 1.client satisfaction2. making a difference 3. integrity4. teamwork5. humour/fun6. quality7. ethics 8. financial stability1. blameL 2. short term focusL 3. internal competitionL 4. buck passingL 5. risk averseL 6. customer satisfaction 7. information hoardingL 8. profitTalent Financialviability Excellence Ethics Resilience 5. Cultural entropy & negative impact on performance CulturalEntropy is a measure ofdysfunction .It shows the degree of non-productive or destructive energy in anorganisation .e.g. blame, manipulation, internal competition, corruption Source: Hewitt and Barrett Best Employers Australia & New Zealand 2008 6. New principles of business Principle 2:Organisationaltransformationbegins with the personal transformation of the leaders. 7. Cultural evolution begins with personal evolution The Culture of anorganisationis a reflectionof leadership values andbehaviours LVA 27 Assessors 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 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 8. Best employers focus on employee needs The distinguishing feature of the best employers was their focus onemployee needsand theemployees 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 Best Employers Values Employee recognition Teamwork Coaching/mentoring Balance (home/work) 9. Fortunes Best Companies to Work For S&P 500 Top 20- best companies to work for in the USA A portfolio of the top twenty publicly listedbest companies to work for in the USA in 2008would have returned an average annualized return of16.74%over the last ten years compared to2.83%for the S&P 500. 10. New principles of business Principle 3:Measurement matters.If you can measure it,you can manage it. 11. Measuring culture Who arethe peoplein yourorganisation? What is most important to them?

  • What kind ofcultureandbehavioursshape their work experience?
    • What is working well?
    • What is undermining performance?
    • Employee fulfilment, customer satisfaction, organisational success

Whatvaluesand behaviours do they see as necessaryforoptimal organisational performance ? 12. An example of cultural evolution 19%ENTROPY 1. profit 2. cost-consciousness 3. accountability4. community involvement5. client-driven6. bureaucracy (L) 7. process-driven 8. client satisfaction 9. results orientation10. silo mentality (L) 2005 1. accountability2. cost-consciousness 3. client-driven4. client satisfaction5. results orientation6. profit 7. performance driven8. bureaucracy (L)9. teamwork10. community involvement1. client-driven2. accountability3. client satisfaction4. cost-consciousness 5. profit 6. performance driven7. community involvement8. being the best9. achievement 10. results orientation2006 2007 25%ENTROPY 17%ENTROPY 2008 1. accountability 2. client-driven3. client satisfaction4. community involvement 5. achievement 6. cost consciousness 7. teamwork 8. performance driven 9. being the best 10. delivery14%ENTROPY 13. Powerful metrics enable leadersto measure and manage cultures Share Price Revenue Share Price grewon average38% per year from2004 to 2007 Revenue grewon average20%per year from2004 to 2007 14. Values-Driven Results Staff turnover from 24% to 15% Hospital Headline earnings300million to 2.2billion rand Engineering Company Employee satisfactionto 85%, from 49% over a five years Bank 15. Why Culture? Culture is a fundamental driver of operationaland 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 leaders values and behaviours. 16. Measuring Culture The Cultural Transformation Tools provide powerful metrics which enable leadersto actively measure and manage cultures. We make the intangible, tangible. We link culture to performance . 17. Cultural Transformation Models and Tools Overview 18. 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

19. Maslows Needs to Barretts Consciousness Know and Understand PhysiologicalSafetyLove & Belonging Self-esteem Abraham MaslowKnow and Understand Self-ActualizationRichard Barrett Needs Consciousness 20. 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
  • Coachs Values Assessment
  • School or Classroom Values Assessment
  • Community or National Values Assessment

21. Seven Levels of Consciousness 22. Survival Consciousness

  • Health
  • Financial Stability
  • Profit
  • Shareholder value
  • Employee health/safety
  • ControlExploitation
  • PRIMARY FOCUS: Foundations for Survival
  • Service
  • Making a Difference
  • Internal Cohesion
  • Transformation
  • Self-Esteem
  • Relationship
  • Survival

Personal Organisational 23. Relationship Consciousness

  • Family
  • Friendship
  • Customer satisfaction
  • Open communication
  • Respect
  • BlameManipulation
  • PRIMARY FOCUS: Relationships & connectivity
  • Service
  • Making a Difference
  • Internal Cohesion
  • Transformation
  • Self-Esteem
  • Relationship
  • Survival

Personal Organisational 24. Self-esteem Consciousness

  • Self-confidence
  • Success
  • Efficiency
  • Productivity
  • Quality
  • BureaucracyComplacency
  • PRIMARY FOCUS: Self-esteem & excellence
  • Service
  • Making a Difference
  • Internal Cohesion
  • Transformation
  • Self-Esteem
  • Relationship
  • Survival

Personal Organisational 25. 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 26. 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 27. 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 28. Service Consciousness

  • Wisdom
  • Humility
  • Ethics
  • Future Generations
  • Long-Term Perspective
  • PRIMARYFOCUS: Selfless Service
  • Service
  • Making a Difference
  • Internal Cohesion
  • Transformation
  • Self-Esteem
  • Relationship
  • Survival

Personal Organisational 29. 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 30. Alignment of Employee & Organisational Consciousness Corporate Consciousness Difficult to hire and keep people who are here Individual Consciousness When organisations are here.... 31. 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 0 CC - DC 1 PV - DC 1 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially LimitingI = 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 1.honesty 61 Level 5 2.commitment 60 Level 5 3.humor/fun53 Level 5 4.reliability 51 Level 3 5.enthusiasm 44 Level 5 6. adaptability 43 Level 4 7.family 37 Level 2 8.integrity 34 Level 5 9.trust34 Level 5 10.balance (home/work) 32 Level 4 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 satisfaction66 Level 2 2.employee fulfillment65 Level 6 3.continuous improvement 58 Level 4 4.effective communication56 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.professionalism35 Level 3 10.vision35 Level 7 32. Cost of limiting values 33. 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 staffs perception of lost productivity and opportunity.Annual income 33,000,000 and loss of 500,000 in 2000.

Investment Leadership Jim Wares book contains data showing the comparison between healthy and unhealthy cultures and bottom line performance. 34. 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 3 CC - DC 8 PV - DC 2 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially LimitingI = 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 1.honesty 532 Level 5 2. commitment 498 Level 5 3.family/friendship 479 Level 2 4.reliability 387 Level 3 5. integrity 321 Level 5 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 1. customer service 504 Level 6 2. teamwork 487 Level 4 3. customer satisfaction 476 Level 2 4. community involvement 399 Level 6 5. vision 373 Level 7 6.organizational growth 296 Level 1 7. being the best 285 Level 3 8. integrity 275 Level 5 9. commitment 261 Level 5 10. friendliness 252 Level 2 1. teamwork 513 Level 4 2. customer satisfaction 491 Level 2 3. customer service 489 Level 6 4.employee fulfillment 477 Level 6 5. community involvement 430 Level 6 6. integrity 337 Level 5 7. commitment 301 Level 5 8. vision 295 Level 7 9. being the best 288 Level 3 10.accessibility 274 Level 2 35. Whole Systems Change Cultural Evolution 36. Cultural Evolution Whole System Change Personality Individual values and beliefs Character Individual behaviors Culture Group values and beliefs Social Structures Group behaviors Values Behaviors Group Cohesion Capacity for Collective Action Personal Alignment Structural Alignment Values Alignment Mission Alignment Individual Collective Barrett Values Centre 37. Signature Workshop Implementing Whole-System Change 2006 38. 6. Survey of Key Drivers Whole System Change: Preparation Phase 3. Choose Values Select Behaviors 2. Create Vision and Mission 4. Evaluate Cultural Resilience 7. Develop Implementation Strategy 8. Develop Objectives and Key Performance Indicators 5. Develop Compelling Reasons for Change 1. BusinessAssessment 1. CTT ValuesAssessment 39. Why? Whole System Change: Implementation Phase 9. Structural Alignment New employee/executiveselection New employee/executiveorientation Employee/executive performance evaluation Employee/executive promotion criteria Talent selection anddevelopment programs Managementdevelopment programs Leadership developmentprograms11. Personal AlignmentPrograms (Executive Population) 13. Business orFunctional Unit Group Cohesion Programs 14. Values Awareness Program for ManagersSpecifically designedfor executive,managerialand employeepopulations includingvalues-basedbusiness simulations,ethical dilemmas,theater,etc. 15. Values Management of Organization, Business Units and Sub-Unitsand Behavior Alignment of Executive Population 10. LVA Coaching and Action Plans (Executive Group CEO and Business Unit Leaders) 12. LVA Coaching and Action Plans(Executive Population) 40. Stages in the Development of Organisational Consciousness Positive Focus/Excessive Focus Control, Corruption, Greed Bureaucracy, Complacency Manipulation, Blame Service SERVICE TO HUMANITY AND THE PLANET Social responsibility, future generations, long-term perspective, ethics, compassion, humility External Cohesion STRATEGIC ALLIANCES AND PARTNERSHIPS Collaboration, environmental awareness, community involvement, employee fulfillment, coaching/mentoring Internal Cohesion BUILDING CORPORATE COMMUNITY Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparencyTransformation CONTINUOUS RENEWAL AND LEARNING Accountability, adaptability, empowerment, delegation, teamwork, innovation, goals orientation, personal growth Self-Esteem HIGH PERFORMANCE Systems, processes, quality, best practices, pride inperformance, Relationship EMPLOYEE RECOGNITION Loyalty, open communication, customer satisfaction, friendship,Survival FINANCIAL STABILITY Shareholder value, profit, organisational growth,employee healthand safety 41. Values Based Decision Making 42. 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 unconscious INTUITION INSTINCTS SUB CONSCIOUS BELIEFS CONSCIOUS BELIEFS VALUES 43. Cultural Entropy Cultu...