Sustainability: Leadership,
Values and Culture in a New
Leadership Paradigm
Richard Barrett
The Global Sustainability
Challenge?
Global Sustainability Issues
Global
Economy
Global
Terrorism
Pollution
Energy
Resilience
Natural
Disasters
Pandemics
The significant problems
we face cannot be solved
at the same level of
thinking that created them.
Climate
Change
Water
Shortages
Poverty
Reduction
Waste
Disposal
Species
Extinction
Food
Resilience
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.
A New Leadership Paradigm
The paradigm that divides the world
into the social sector, the private sector,
and the governmental sector
is not working.
Private
Sector
Public
Sector
Social
Sector
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
Sustainability and the New Leadership Paradigm
Our Business Leaders need to recognise that:
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 society, we will lose our economy and
our businesses will perish too.
A New Leadership Paradigm
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.
Richard Barrett, The New Leadership Paradigm, 2011
What this means for Business and Politics
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.
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.
Building a sustainable future for everyone is not just societal imperative.
It is business imperative, too.
A Crisis in Leadership
A Crisis in Leadership
John Kotter, Harvard Business School
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).
A Crisis in Leadership
Shoshana Zuboff, Harvard Business School
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.
A Crisis in Leadership
Bill George, Harvard Business School
An enormous vacuum in leadership exists today—in 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).
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 leaders—and great companies—not 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
WE NEED A NEW LEADERSHIP PARADIGM
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 Culture Change
The Three Mantras of
Culture Change
The Three Mantras of Culture Change
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.
From Leader’s Values to Shareholder Value
Corporate Sector
Leader’s Values/
Behaviours
Performance &
Shareholder
Value
Corporate
Culture
Competitive
Advantage &
Resilience
From Leadership to Customer Satisfaction
Public Sector
Leader’s values/
behaviours
Customer
Satisfaction
Organisational
Culture
Mission
Assurance
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 Good News
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.
Richard Barrett, The New Leadership Paradigm, 2011
Models and Tools for Measuring Personal,
Organisational and National Consciousness
1995
Personal
Growth and
Transformation
1998
Organisational
Growth and
Transformation.
Measuring
Consciousness by
Mapping Values
2006
2011
Implementing
Cultural
Transformation
based on eight
years experience
A Text Book, Web Site,
and Learning System
for the 21st Century
Leader
Origins of the Cultural Transformation Tools
Self Actualization
Know and
Understand
Abraham Maslow
Self-esteem
Love & Belonging
Safety
Physiological
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.
Maslow’s Needs to Barrett’s Consciousness
Self-Actualization
Know
Know and
and
Understand
Understand
Self-esteem
Abraham Maslow
Richard Barrett
Love & Belonging
Safety
Physiological
Needs
Consciousness
Maslow’s Needs to Barrett’s Consciousness
Know and
and
Know
Understand
Understand
1. Expansion of self-actualization
Self-esteem
Love & Belonging
Safety
into multiple levels.
2. Substitute ‘states of consciousness’
for hierarchy of needs.
3. Each state of consciousness
is defined by specific values
and behaviours.
Physiological
Needs
Consciousness
Stages in the Evolution of Personal Consciousness
Positive Focus / Excessive Focus
Service to Humanity and the Planet
Service
Devoting your life in self-less service
to your purpose and vision
Collaborating with Partners
Making a difference
Working with others to make a positive difference
by actively implementing your purpose and vision
Finding Personal Meaning
Internal Cohesion
Uncovering your sense of purpose and creating
a vision for the future you want to create
Personal Growth
Transformation
Self-esteem
Relationship
Survival
Understanding your deepest motivations, experiencing
responsible freedom by letting go of your fears
Self-worth
Feeling a positive sense of pride in self
and ability to manage your life. Power, status
Belonging
Feeling a personal sense of belonging, feeling loved by
self and others. Being liked, blame
Financial Security & Safety
Creating a safe secure environment for self
and significant others. Control, greed
Stages in the Evolution of Organisational Consciousness
Positive Focus / Excessive Focus
Service To Humanity And The Planet
Service
Social responsibility, future generations, long-term
perspective, ethics, compassion, humility
Strategic Alliances and Partnerships
Making a difference
Environmental awareness, community involvement,
employee fulfillment, coaching/mentoring
Building Corporate Community
Internal Cohesion
Shared values, vision, commitment, integrity,
trust, passion, creativity, openness, transparency
Continuous Renewal and Learning
Transformation
Accountability, adaptability, empowerment, teamwork,
goals orientation, personal growth
High Performance
Self-esteem
Systems, processes, quality, best practices,
pride in performance. Bureaucracy, complacency
Belonging
Relationship
Loyalty, open communication, customer satisfaction,
friendship. Manipulation, blame
Financial Stability
Survival
Shareholder value, organisational growth,
employee health, safety. Control, corruption, greed
Stages in the Evolution of National Consciousness
Positive Focus / Excessive Focus
Global Sustainability
Service
Human Rights, Future Generations,
Ecological Resilience.
Strategic Alliances with Other Nations
Making a difference
Regional Collaboration, Environmental Awareness,
Quality Of Life.
Strong Cohesive National Identity
Internal Cohesion
Trust, Openness, Transparency, Shared Vision
and Values, Fairness.
Democratic Processes
Transformation
Equality, Freedom of Speech, Consensus,
Adaptability, Accountability.
Institutional Effectiveness
Self-esteem
Rule of Law, National Pride, Governmental
Efficiency. Bureaucracy, Elitism, Power
Social Stability
Relationship
Conflict Resolution, Racial Harmony, Rituals.
Discrimination, Intolerance
Economic Stability
Survival
Prosperity. Health, Defense, Social Safety Nets.
Corruption, Greed, Violence
Placement of Values by Level
Current Culture 100 Employees
Top Ten Values
Service
1. tradition (L) (59)
2. diversity (54)
Making a difference
Internal Cohesion
Transformation
3. control (L) (53)
6
4. goals orientation (46)
2
4
5
5. knowledge (43)
6. creativity (42)
Self-esteem
7
8
7. productivity (37)
Relationship
10
10
1
8. image (L) (36)
Survival
9
3
9. profit (36)
10. open communication (31)
Distribution of Values by Level
Current Culture 100 Employees
Service
7
Making a difference
6
Internal Cohesion
5
Transformation
4
Self-esteem
3
Relationship
2
Survival
1
Cultural
Entropy
11%
Organisational (Cultural)
Values Assessments
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.
Engineering and Projects Company (339)
Personal Values
Current Culture Values
IRS (P)= 6-4-0 | IRS (L)= 0-0-0
IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0
What
employees
believe is
Desired Culture Values
necessary
for the
company to
achieve its
full potential
Level 7
Level 6
The values
Level 5 that are
important
to
Level 4
employees in their
Level 3
personal
lives.
Level 2
Level 1
Matches
PV - CC
CC - DC
PV - DC
1
4
2
Health
Index (PL)
PV: 10-0
CC: 7-3
DC: 10-0
1.
honesty
169
2.
accountability
165 4(R)
3.
commitment
4.
5(I)
150
5(I)
continuous learning
92
4(I)
5.
balance (home/work)
91
4(I)
6.
family
91
2(R)
7.
self-discipline
91
1(I)
8.
responsibility
89
4(I)
9.
respect
81
2(R)
76
2(R)
10.
open communication
1.
accountability
180 4(R)
2.
customer
satisfaction
147 2(O)
3.
continuous
improvement
143 4(O)
1(O)
4.
employee development 111 4(O)
77
1(O)
5.
employee recognition
96
2(R)
inconsistent (L)
75
3(I)
6.
commitment
95
5(I)
7.
teamwork
74
4(R)
7.
inspirational leadership 95
6(O)
8.
accountability
71
4(R)
8.
employee fulfillment
94
6(O)
9.
blame (L)
71
2(R)
9.
teamwork
90
4(R)
64
3(O)
10.
80
3(O)
1.
continuous
improvement
111 4(O)
2.
customer
satisfaction
111 2(O)
3.
safety conscious
102 1(O)
4.
cost reduction
88
5.
job insecurity (L)
6.
10.
Black Underline = PV & CC
Orange = CC & DC
Orange = PV, CC & DC
Blue = PV & DC
Values Plot
IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0
corporate image
P = Positive
L = Potentially Limiting
professionalism
I = Individual
(white circle)- What is working
R = Relationship
How employees experience the company
well? What is undermining
the sustainability of the company.
Copyright 2011 Barrett Values Centre
O = Organizational
S = Societal
February 2011
Engineering and Projects Company (339)
Common Good
C
Transformation
T
Self Interest
S
Total number of
votes for all values
at each level
Values Distribution
C = Common Good
T = Transformation
S = Self-Interest
Cultural Entropy %
of Votes for Limiting
Copyright 2011 Barrett Values Centre Values
Positive Values
Potentially Limiting
Values
February 2011
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.
Value Jumps
Votes for Values in
Current Culture
Votes for Values in
Desired Culture
Current
Culture
Votes
Desired
Culture
Votes
Value
Jump
accountability
71
180
109
inspirational leadership
15
95
80
employee fulfilment
23
94
71
employee recognition
28
96
68
employee development
57
111
54
professionalism
36
80
44
efficiency
30
74
44
commitment
55
95
40
honesty
33
70
37
balance (home/work)
29
66
37
Value
35
Nedbank, South Africa:
An Example of Cultural Evolution
Nedbank: Current Culture Evolution
2005
2007
2008
2009
1. cost-consciousness
2. accountability
3. client-driven
4. client satisfaction
5. results orientation
6. performance driven
7. profit
8. bureaucracy (L)
9. teamwork
10. community involvement
1. client-driven
2. accountability
3. client satisfaction
4. cost-consciousness
5. community involvement
6. performance driven
7. profit
8. achievement
9. being the best
10. results orientation
1. accountability
2. client-driven
3. client satisfaction
4. community involvement
5. achievement
6. cost-consciousness
7. teamwork
8. performance driven
9. being the best
10. delivery
1. accountability
2. client-driven
3. client satisfaction
4. cost-consciousness
5. community involvement
6. achievement
7. teamwork
8. employee recognition
9. being the best
10. performance driven
3 matches
4 matches
4 matches
5 matches
6 matches
Entropy 25%
Entropy 19%
Entropy 17%
Entropy 14%
Entropy 13%
1. cost-consciousness
2. profit
3. accountability
4. community involvement
5. client-driven
6. process-driven
7. bureaucracy (L)
8. results orientation
9. client satisfaction
10. silo mentality (L)
2006
Nedbank: Cultural Evolution
Entropy Scores
Entropy reduction leads to improved performance—increased revenues, profits
and share price. Working toward entropy of <10% will result in healthy functioning
of the organisation and improvement of staff morale.
25%
25%
20%
19%
15%
17%
14%
10%
13%
Entropy risk bands
<10%
10-19%
20-29%
30-39%
40%>
5%
0%
2005
2006
2007
2008
2009
Healthy functioning
Some problems requiring careful monitoring
Significant problems requiring attention
Crisis situation requiring immediate change
Impending risk of implosion, bankruptcy or
failure
Cultural Entropy
Cultural entropy
represents the degree of dysfunction in a culture
Entropy
Impact
<10%
Prime: Healthy Functioning
11-19%
Minor Issues: Requiring cultural and/or structural adjustment
20-29%
Significant Issues: Requiring cultural and
structural transformation, and leadership coaching
30-39%
Serious Issues: Requiring cultural and structural transformation, leadership
mentoring/coaching, and leadership development
40-49%
Critical Issues: Requiring cultural and structural transformation, selective
changes in leadership, leadership mentoring/coaching
and leadership development
Nedbank: Response Rate to Values Survey
63.0%
20000
Response rate
50.4%
number of participants
16000
35.5%
12000
8000
28.0%
4000
6083
18206
14091
10155
20.2%
0
1827
2005
2006
2007
2008
2009
28,898 employees in 2009
Nedbank: Cultural Evolution
Nedbank Staff Survey Scores
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
59.6%
66.3%
2005
2006
71.5%
75.1%
78.8%
2007
2008
2009
Nedbank: Financial Impact of Cultural Evolution
Closing share price (Rand)
160
140
Share Price grew
average 20.4%
(CAGR)
per year from 2004 to 2007
120
134
136
100
100
80
96
78
60
40
20
0
2004
2005
2006
2007
2008
Revenue Rm (operating income)
25000
Revenue grew
average 16.9%
(CAGR) per year from 2004 to 2007
20000
22077
2007
2008
18948
15000
10000
22428
14027
15809
5000
0
2004
2005
2006
CAGR : Compound Annual Growth Rate
Values in Organisations
Tom Boardman Former CEO of Nedbank, South Africa
National and Regional Values
Assessments
National/Regional Values Assessments
Denmark
Latvia
Sweden
Canada
Iceland
Bhutan
USA
Belgium
Finland
UK North West)
Australia
Brazil
Spain (Extremadura)
Macedonia (Skopje)
Argentina
Venezuela
Entropy Percentages by Nation (2007 – 2010)
80%
72%
70%
63%
60%
60% 58%
54% 53%
51%
50%
48%
43% 42%
40%
39%
34% 32%
30%
21%
20%
10%
4%
Cultural entropy is a measure of the dysfunction in a social system
Bhutan
Denmark
Canada
Sweden
Spain (EXT)
Australia
UK (NW)
Finland
Brazil
Belgium
Latvia
USA
Argentina
Iceland
Venezuela
0%
Cultural Entropy Impacts in Nations
Cultural Entropy in Nations
Entropy
Impact
< 10%
This a low level of entropy and augurs well for the future.
11%-20%
This is a relatively low level of entropy indicating that there is some degree of
dissatisfaction with the current culture that could lead to social unrest.
21%-30%
This is a moderate level of entropy indicating potential unease among the
population and/or potential conflict situations that need to be addressed.
31%-40%
This is a relatively high level of entropy indicating unresolved issues that if left
unaddressed could lead to significant social unrest.
41%-50%
This level of entropy indicates leadership issues that if left unaddressed could lead
to changes in government.
>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
Iceland: August 2008 (635)
Personal Values
Current 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)= 2-3-3-0
Level 7
Level 6
The values
Level 5 that are
important
to citizens
Level 4
in their personal
Level 3
lives.
What
citizens
believe is
Desired Culture Values
necessary
for the
country to
achieve its
full potential
Level 2
Level 1
Matches
PV - CC
CC - DC
PV - DC
0
0
4
1. family
420 Level 2
1. materialistic (L)
419 Level 1
1. accountability
352
Level 4
2. honesty
297 Level 5
2. short-term focus (L)
324 Level 1
2. family
307
Level 2
3. responsibility
258 Level 4
3. educational opportunities
275 Level 3
3. employment opportunities
281
Level 1
4. accountability
225 Level 4
4. uncertainty
275 Level 1
4. financial stability
249
Level 1
5. financial stability
185 Level 1
5. corruption (L)
269 Level 1
5. optimism
233
Level 5
6. trust
181 Level 5
6. elitism (L)
264 Level 3
6. dependable public services
228
Level 3
7. friendship
175 Level 2
7. material needs
224 Level 1
7. honesty
222
Level 5
8. positive attitude
175 Level 5
8. wasted resources (L)
207 Level 3
8. social responsibility
174
Level 4
9. humor/fun
158 Level 5
9. gender discrimination (L)
196 Level 2
9. human rights
163
Level 7
10. adaptability
155 Level 4
10. blame (L)
177 Level 2
10. poverty reduction
160
Level 1
11. respect
155 Level 2
Black Underline = PV & CC
Orange = CC & DC
Orange = PV, CC & DC
Blue = PV & DC
Values Plot
PL= 10-0 | IROS (P)= 3-2-3-2 | IROS (L)= 0-0-0-0
about the future (L)
P = Positive
L = Potentially Limiting
I = Individual
How citizens experience the country
- What
(white
circle) is working well?
R = Relationship
What is undermining the sustainability
Copyright 2008 Barrett Values Centre
of the country.
O = organisational
S = Societal
September 2008
Iceland: August 2008 (635)
Personal
Values
Current Culture
Values
Desired Culture
Values
C
T
S
C = Common Good
T = Transformation
S = Self-Interest
Values Distribution
Copyright 2008 Barrett Values Centre
Positive Values
Potentially Limiting
Values
September 2008
To get a copy of this presentation:
http://www.slideshare.net/BarrettValues
Other relevant Web sites:
•www.newleadershiparadigm.com
•www.valuescentre.com