Sustainability: Leadership, Values and Culture in a New
Leadership Paradigm Richard Barrett
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The Global Sustainability Challenge?
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Global Sustainability Issues Pandemics Climate Change Climate
Change Global Economy Global Economy Global Terrorism Global
Terrorism Poverty Reduction Poverty Reduction Food Resilience Food
Resilience Natural Disasters Natural Disasters Energy Resilience
Energy Resilience Species Extinction Species Extinction Water
Shortages Water Shortages The significant problems we face cannot
be solved at the same level of thinking that created them.
Pollution Waste Disposal Waste Disposal
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The Sustainability Challenge The problems of existence have
become global but the decision-making structures we have for
dealing with them are national. We cannot move forward without a
high degree of global cooperation. The problems of existence have
become global but the decision-making structures we have for
dealing with them are national. We cannot move forward without a
high degree of global cooperation.
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A New Leadership Paradigm Private Sector Social Sector Public
Sector The paradigm that divides the world into the social sector,
the private sector, and the governmental sector is not working. It
creates artificial barriers. We are each a constituent of the
problem, so we have to combine our forces, our efforts, and our
competencies. Tex Gunning, Unilever, Best Foods Asia The paradigm
that divides the world into the social sector, the private sector,
and the governmental sector is not working. It creates artificial
barriers. We are each a constituent of the problem, so we have to
combine our forces, our efforts, and our competencies. Tex Gunning,
Unilever, Best Foods Asia
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Sustainability and the New Leadership Paradigm Business is a
wholly owned subsidiary of society, and society is wholly owned
subsidiary of the environment. Business is a wholly owned
subsidiary of society, and society is wholly owned subsidiary of
the environment. If we lose our environment and our life-support
systems, our society will perish. If we lose our environment and
our life-support systems, our society will perish. If we lose our
society, we will lose our economy and our businesses will perish
too. If we lose our society, we will lose our economy and our
businesses will perish too. Our Business Leaders need to recognise
that:
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Ultimately, the problems of existence we face are issues of
consciousness. We will only get beyond this stage of our collective
evolution if we can put aside our narrow self-interest, focus on
the whole system, and build a values-driven framework of policies
that support the common good. Ultimately, the problems of existence
we face are issues of consciousness. We will only get beyond this
stage of our collective evolution if we can put aside our narrow
self-interest, focus on the whole system, and build a values-driven
framework of policies that support the common good. A New
Leadership Paradigm Richard Barrett, The New Leadership Paradigm,
2011
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What this means for Business and Politics Political leaders
must give up their parochial self-interest and exaggerated false
belief in national sovereignty learn how to solve the problems of
existence through international cooperation and collaboration.
Political leaders must give up their parochial self-interest and
exaggerated false belief in national sovereignty learn how to solve
the problems of existence through international cooperation and
collaboration. Business leaders need to work with their
competitors, political and societal leaders to define a framework
of policies that support the evolution of our global society by
developing industry charters that regulate the rules of competition
between companies in a way that supports the societal common good.
Building a sustainable future for everyone is not just societal
imperative. It is business imperative, too.
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A Crisis in Leadership
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After conducting fourteen formal studies and more than a
thousand interviews, directly observing dozens of executives in
action, and compiling innumerable surveys, I am completely
convinced that most organisations today lack the leadership they
need. John P. Kotter and James L. Heskett, Corporate Culture and
Performance (New York: The Free Press, 1992). After conducting
fourteen formal studies and more than a thousand interviews,
directly observing dozens of executives in action, and compiling
innumerable surveys, I am completely convinced that most
organisations today lack the leadership they need. John P. Kotter
and James L. Heskett, Corporate Culture and Performance (New York:
The Free Press, 1992). John Kotter, Harvard Business School
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A Crisis in Leadership I have come to believe that much of what
my colleagues and I taught has caused real suffering, suppressed
wealth creation, destabilized the world economy, and accelerated
the demise of the 20th century capitalism. We managed to produce a
generation of managers and business professionals that is deeply
mistrusted and despised by a majority of people in our society and
around the world. This is a terrible failure. Shoshana Zuboff, The
Old Solutions Have Become the New Problems, Business Week,
Viewpoint, July 2, 2009. I have come to believe that much of what
my colleagues and I taught has caused real suffering, suppressed
wealth creation, destabilized the world economy, and accelerated
the demise of the 20th century capitalism. We managed to produce a
generation of managers and business professionals that is deeply
mistrusted and despised by a majority of people in our society and
around the world. This is a terrible failure. Shoshana Zuboff, The
Old Solutions Have Become the New Problems, Business Week,
Viewpoint, July 2, 2009. Shoshana Zuboff, Harvard Business
School
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A Crisis in Leadership Bill George, Harvard Business School An
enormous vacuum in leadership exists todayin business, politics,
government, education, religion, and nonprofit organisations. Yet
there is no shortage of people with the capacity for leadership.
The problem is we have a wrongheaded notion of what constitutes a
leader, driven by an obsession with leaders at the top. Bill
George, True North: Discover Your Authentic Leadership (San
Francisco: Jossey-Bass, 2007). An enormous vacuum in leadership
exists todayin business, politics, government, education, religion,
and nonprofit organisations. Yet there is no shortage of people
with the capacity for leadership. The problem is we have a
wrongheaded notion of what constitutes a leader, driven by an
obsession with leaders at the top. Bill George, True North:
Discover Your Authentic Leadership (San Francisco: Jossey-Bass,
2007).
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A New Leadership Paradigm Average leaders take care of
themselves and their families. Good leaders take care of
themselves, their families, and some of the community. Great
leadersand great companiesnot only take care of all stakeholders
but also want to change the world. They want to leave the world
better than they found it. Tex Gunning, Unilever, Best Foods Asia
Average leaders take care of themselves and their families. Good
leaders take care of themselves, their families, and some of the
community. Great leadersand great companiesnot only take care of
all stakeholders but also want to change the world. They want to
leave the world better than they found it. Tex Gunning, Unilever,
Best Foods Asia
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A shift in focus from I to we A shift from self-interest to the
common good A shift from being the best in the world to the best
for the world. WE NEED A NEW LEADERSHIP PARADIGM We need a Culture
Change
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The Three Mantras of Culture Change
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Cultural Capital is the new frontier of competitive advantage.
Organisational transformation begins with the personal
transformation of the leaders. Measurement matters. If you can
measure it you can manage it.
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From Leaders Values to Shareholder Value Corporate Sector
Leaders Values/ Behaviours Corporate Culture Corporate Culture
Competitive Advantage & Resilience Competitive Advantage &
Resilience Performance & Shareholder Value Performance &
Shareholder Value
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From Leadership to Customer Satisfaction Public Sector Leaders
values/ behaviours Organisational Culture Organisational Culture
Mission Assurance Mission Assurance Customer Satisfaction Customer
Satisfaction
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The Leader and the Values Tom Peters, In Search of Excellence:
Lessons from Americas best run companies, 1983 The real role of the
leader is to manage the values of the corporation.
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For the first time in human history we have the possibility of
making the evolution of consciousness, conscious. Why now? Because
we can measure it, both at a personal, organisational and national
level. And if you can measure it, you can manage it. For the first
time in human history we have the possibility of making the
evolution of consciousness, conscious. Why now? Because we can
measure it, both at a personal, organisational and national level.
And if you can measure it, you can manage it. The Good News Richard
Barrett, The New Leadership Paradigm, 2011
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Models and Tools for Measuring Personal, Organisational and
National Consciousness 1998 2011 19952006 Personal Growth and
Transformation Organisational Growth and Transformation. Measuring
Consciousness by Mapping Values Organisational Growth and
Transformation. Measuring Consciousness by Mapping Values
Implementing Cultural Transformation based on eight years
experience A Text Book, Web Site, and Learning System for the 21 st
Century Leader A Text Book, Web Site, and Learning System for the
21 st Century Leader
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Origins of the Cultural Transformation Tools Growth Needs When
these needs are fulfilled they do not go away, they engender deeper
levels of motivation and commitment. Growth Needs When these needs
are fulfilled they do not go away, they engender deeper levels of
motivation and commitment. Deficiency Needs An 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. Deficiency
Needs An 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 & Belonging
Self-esteem Know and Understand Abraham Maslow Self
Actualization
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Maslows Needs to Barretts Consciousness Know and Understand
Physiological Safety Love & Belonging Self-esteem Abraham
Maslow Know and Understand NeedsConsciousness Self-Actualization
Richard Barrett
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Maslows Needs to Barretts Consciousness Know and Understand
Physiological Safety Love & Belonging Self-esteem Know and
Understand Needs Consciousness 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.
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Stages in the Evolution of Personal Consciousness Positive
Focus / Excessive Focus Service Making a difference Internal
Cohesion Transformation Self-esteem Relationship Survival Financial
Security & Safety Creating a safe secure environment for self
and significant others. Control, greed Belonging Feeling a personal
sense of belonging, feeling loved by self and others. Being liked,
blame Self-worth Feeling a positive sense of pride in self and
ability to manage your life. Power, status Personal Growth
Understanding your deepest motivations, experiencing responsible
freedom by letting go of your fears Finding Personal Meaning
Uncovering your sense of purpose and creating a vision for the
future you want to create Collaborating with Partners Working with
others to make a positive difference by actively implementing your
purpose and vision Service to Humanity and the Planet Devoting your
life in self-less service to your purpose and vision
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Positive Focus / Excessive Focus Financial Stability
Shareholder value, organisational growth, employee health, safety.
Control, corruption, greed Belonging Loyalty, open communication,
customer satisfaction, friendship. Manipulation, blame High
Performance Systems, processes, quality, best practices, pride in
performance. Bureaucracy, complacency Continuous Renewal and
Learning Accountability, adaptability, empowerment, teamwork, goals
orientation, personal growth Building Corporate Community Shared
values, vision, commitment, integrity, trust, passion, creativity,
openness, transparency Strategic Alliances and Partnerships
Environmental awareness, community involvement, employee
fulfillment, coaching/mentoring Service To Humanity And The Planet
Social responsibility, future generations, long-term perspective,
ethics, compassion, humility Stages in the Evolution of
Organisational Consciousness Service Making a difference Internal
Cohesion Transformation Self-esteem Relationship Survival
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Stages in the Evolution of National Consciousness Positive
Focus / Excessive Focus Economic Stability Prosperity. Health,
Defense, Social Safety Nets. Corruption, Greed, Violence Social
Stability Conflict Resolution, Racial Harmony, Rituals.
Discrimination, Intolerance Institutional Effectiveness Rule of
Law, National Pride, Governmental Efficiency. Bureaucracy, Elitism,
Power Democratic Processes Equality, Freedom of Speech, Consensus,
Adaptability, Accountability. Strong Cohesive National Identity
Trust, Openness, Transparency, Shared Vision and Values, Fairness.
Strategic Alliances with Other Nations Regional Collaboration,
Environmental Awareness, Quality Of Life. Global Sustainability
Human Rights, Future Generations, Ecological Resilience. Service
Making a difference Internal Cohesion Transformation Self-esteem
Relationship Survival
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Placement of Values by Level 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) 10 4 4 2 2 5 5 7 7 9 9 6 6 8 8 3 3 1 Service
Making a difference Internal Cohesion Transformation Self-esteem
Relationship Survival
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Cultural Entropy Distribution of Values by Level Current
Culture 100 Employees 11% Service Making a difference Internal
Cohesion Transformation Self-esteem Relationship Survival 1 2 3 4 5
6 7
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Organisational (Cultural) Values Assessments
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What is Culture? 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 and the legacy of past leaders.
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Engineering and Projects Company (339) Level 7 Level 6 Level 5
Level 4 Level 3 Level 2 Level 1 Personal ValuesCurrent Culture
ValuesDesired Culture Values IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS
(P)= 0-2-5-0 | IROS (L)= 1-1-1-0IROS (P)= 1-3-6-0 | IROS (L)=
0-0-0-0 Matches PV - CC1 CC - DC4 PV - DC2 Health Index (PL) PV:
10-0 CC: 7-3 DC: 10-0 1. honesty1695(I) 2. accountability1654(R) 3.
commitment1505(I) 4. continuous learning924(I) 5. balance
(home/work)914(I) 6. family912(R) 7. self-discipline911(I) 8.
responsibility894(I) 9. respect812(R) 10. open communication762(R)
Black Underline = PV & CCOrange = CC & DCP = PositiveL =
Potentially Limiting I = IndividualO = Organizational Orange = PV,
CC & DCBlue = PV & DC(white circle)R = RelationshipS =
Societal 1. continuous improvement 1114(O) 2. customer satisfaction
1112(O) 3. safety conscious1021(O) 4. cost reduction881(O) 5. job
insecurity (L) 771(O) 6. inconsistent (L) 753(I) 7. teamwork744(R)
8. accountability714(R) 9. blame (L) 712(R) 10. corporate
image643(O) 1. accountability 1804(R) 2. customer satisfaction
1472(O) 3. continuous improvement 1434(O) 4. employee development
1114(O) 5. employee recognition 962(R) 6. commitment 955(I) 7.
inspirational leadership 956(O) 8. employee fulfillment 946(O) 9.
teamwork 904(R) 10. professionalism 803(O) Values PlotCopyright
2011 Barrett Values CentreFebruary 2011 The values that are
important to employees in their personal lives. How employees
experience the company - What is working well? What is undermining
the sustainability of the company. What employees believe is
necessary for the company to achieve its full potential
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Engineering and Projects Company (339) C T S Values
DistributionCopyright 2011 Barrett Values CentreFebruary 2011 C =
Common Good T = Transformation S = Self-Interest Positive Values
Potentially Limiting Values Total number of votes for all values at
each level Cultural Entropy % of Votes for Limiting Values Common
Good Transformation Self Interest
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Definition of Cultural Entropy Cultural Entropy Cultural
entropy is the amount of energy consumed in unproductive work. It
is a measure of the conflict, friction, and frustration that exists
within an organisation or social system. Cultural Entropy Cultural
entropy is the amount of energy consumed in unproductive work. It
is a measure of the conflict, friction, and frustration that exists
within an organisation or social system.
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35 Value Current Culture Votes Desired Culture Votes Value Jump
accountability 71180 109 inspirational leadership 1595 80 employee
fulfilment 2394 71 employee recognition 2896 68 employee
development 57111 54 professionalism 3680 44 efficiency 3074 44
commitment 5595 40 honesty 3370 37 balance (home/work) 2966 37
Value Jumps Votes for Values in Current Culture Votes for Values in
Desired Culture
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Nedbank, South Africa: An Example of Cultural Evolution
Nedbank: Cultural Evolution Entropy reduction leads to improved
performanceincreased revenues, profits and share price. Working
toward entropy of 51%This is a high level of entropy that could
lead to riots, civil disobedience and social unrest. This indicates
a need for a change in policy that could also be accompanied by a
change in government
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Iceland: August 2008 (635) Level 7 Level 6 Level 5 Level 4
Level 3 Level 2 Level 1 Personal ValuesCurrent Culture
ValuesDesired Culture Values PL= 11-0 | IRS (P)= 6-5-0 | IRS (L)=
0-0-0 PL= 2-8 | IROS (P)= 1-0-1-0 | IROS (L)= 2-3-3-0PL= 10-0 |
IROS (P)= 3-2-3-2 | IROS (L)= 0-0-0-0 Matches PV - CC0 CC - DC0 PV
- DC4 1. family420Level 2 2. honesty297Level 5 3.
responsibility258Level 4 4. accountability225Level 4 5. financial
stability185Level 1 6. trust181Level 5 7. friendship175Level 2 8.
positive attitude175Level 5 9. humor/fun158Level 5 10.
adaptability155Level 4 11. respect155Level 2 Black Underline = PV
& CCOrange = CC & DCP = PositiveL = Potentially Limiting I
= IndividualO = organisational Orange = PV, CC & DCBlue = PV
& DC(white circle)R = RelationshipS = Societal 1. materialistic
(L) 419Level 1 2. short-term focus (L) 324Level 1 3. educational
opportunities275Level 3 4. uncertainty about the future (L)
275Level 1 5. corruption (L) 269Level 1 6. elitism (L) 264Level 3
7. material needs224Level 1 8. wasted resources (L) 207Level 3 9.
gender discrimination (L) 196Level 2 10. blame (L) 177Level 2 1.
accountability352Level 4 2. family307Level 2 3. employment
opportunities281Level 1 4. financial stability249Level 1 5.
optimism233Level 5 6. dependable public services228Level 3 7.
honesty222Level 5 8. social responsibility174Level 4 9. human
rights163Level 7 10. poverty reduction160Level 1 Values
PlotCopyright 2008 Barrett Values CentreSeptember 2008 The values
that are important to citizens in their personal lives. How
citizens experience the country - What is working well? What is
undermining the sustainability of the country. What citizens
believe is necessary for the country to achieve its full
potential
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Iceland: August 2008 (635) C T S Values DistributionCopyright
2008 Barrett Values CentreSeptember 2008 C = Common Good T =
Transformation S = Self-Interest Positive Values Potentially
Limiting Values Personal Values Current Culture Values Desired
Culture Values
Slide 51
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