1. Sustainability: Leadership, Values and Culture in a New Leadership Paradigm Richard Barrett

2. The Global Sustainability Challenge?

3. Global Sustainability Issues Pollution Global Terrorism Global Economy Energy Resilience Pandemics Natural Disasters The significant problems we face cannot be solved at the same level of thinking that created them. Climate Change Species Extinction Food Resilience Water Shortages Waste Disposal Poverty Reduction

4. 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.

5. A NewLeadership Paradigm Private 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 Social Sector Public Sector

6. 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.

7. 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

8. 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.

9. A Crisis in Leadership

10. 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).

11. 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.

12. 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).

13. A NewLeadership 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

14. 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

15. The Three Mantras of Culture Change

16. 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.

17. From Leader’s Values to Shareholder Value Corporate Sector Leader’s Values/ Behaviours Performance & Shareholder Value Corporate Culture Competitive Advantage & Resilience

18. From Leadership to Customer Satisfaction Public Sector Leader’s values/ behaviours Organisational Culture Customer Satisfaction Mission Assurance

19. 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

20. 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

21. Models and Tools for Measuring Personal, Organisational and National Consciousness 2011 1998 1995 2006 Personal Growth and Transformation 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 21st Century Leader

22. Origins of the Cultural Transformation Tools Self Actualization Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment. Know and Understand 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. Abraham Maslow Self-esteem Love & Belonging Safety Physiological

23. Maslow’s Needs to Barrett’s Consciousness Self-Actualization Know and Understand Know and Understand Self-esteem Abraham Maslow Richard Barrett Love & Belonging Safety Physiological Needs Consciousness

24. Maslow’s Needs to Barrett’s 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. Know and Understand Know and Understand Self-esteem Love & Belonging Safety Physiological Consciousness Needs

25. Stages in the Evolution of Personal Consciousness Positive Focus / Excessive Focus Service to Humanity and the Planet Devoting your life in self-less service to your purpose and vision Service Collaborating with Partners Working with others to make a positive difference by actively implementing your purpose and vision Making a difference Finding Personal Meaning Uncovering your sense of purpose and creating a vision for the future you want to create Internal Cohesion Personal Growth Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Transformation Self-worth Feeling a positive sense of pride in self and ability to manage your life. Power, status Self-esteem Belonging Feeling a personal sense of belonging, feeling loved by self and others. Being liked, blame Relationship Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed Survival

26. Stages in the Evolution of Organisational Consciousness Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Positive Focus / Excessive Focus Service Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Making a difference Building Corporate Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Internal Cohesion Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Transformation High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Self-esteem Belonging Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame Relationship Survival Financial Stability Shareholder value, organisational growth, employee health, safety. Control, corruption, greed

27. Stages in the Evolution of National Consciousness Global Sustainability Human Rights, Future Generations, Ecological Resilience. Positive Focus / Excessive Focus Service Strategic Alliances with Other Nations Regional Collaboration, Environmental Awareness, Quality Of Life. Making a difference Strong Cohesive National Identity Trust, Openness, Transparency, Shared Vision and Values, Fairness. Internal Cohesion Democratic Processes Equality, Freedom of Speech, Consensus, Adaptability, Accountability. Transformation Institutional Effectiveness Rule of Law, National Pride, Governmental Efficiency. Bureaucracy, Elitism, Power Self-esteem Social Stability Conflict Resolution, Racial Harmony, Rituals. Discrimination, Intolerance Relationship Survival Economic Stability Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence

28. 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) Service Making a difference 6 Internal Cohesion 4 2 5 Transformation 7 8 Self-esteem 10 1 10 Relationship 9 3 Survival

29. Distribution of Values by Level Current Culture 100 Employees 7 Service 6 Making a difference 5 Internal Cohesion 4 Transformation Cultural Entropy Self-esteem 3 11% 2 Relationship 1 Survival

30. Organisational (Cultural) Values Assessments

31. 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.

32. What employees believe is necessary for the company to achieve its full potential Engineering and Projects Company (339) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 The values that are important to employees in their personal lives. IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 0-2-5-0 | IROS (L)= 1-1-1-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0 Matches PV - CC 1 CC - DC 4 PV - DC 2 Health Index (PL) PV: 10-0 CC: 7-3 DC: 10-0 How employees experience the company - What is working well? What is undermining the sustainability of the company. Black Underline= PV & CCOrange= CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange= PV, CC & DCBlue= PV & DC (white circle) R = Relationship S = Societal Values Plot Copyright 2011 Barrett Values Centre February 2011

33. Engineering and Projects Company (339) C Common Good Transformation T Self Interest S Total number of votes for all values at each level C = Common Good T = Transformation S = Self-Interest Cultural Entropy % of Votes for Limiting Values Positive Values Potentially Limiting Values Values Distribution Copyright 2011 Barrett Values Centre February 2011

34. 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.

35. Value Jumps Votes for Values in Current Culture Votes for Values in Desired Culture 35

36. Nedbank, South Africa: An Example of Cultural Evolution

38. Nedbank: Current Culture Evolution 2005 2006 2007 2008 2009 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 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. 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) 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 4 matches 6 matches 4 matches 5 matches 3 matches Entropy 14% Entropy 25% Entropy 13% Entropy 19% Entropy 17%

39. 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. Entropy risk bands <10% Healthy functioning 10-19% Some problems requiring careful monitoring 20-29% Significant problems requiring attention 30-39% Crisis situation requiring immediate change 40%> Impending risk of implosion, bankruptcy or failure

40. Cultural Entropy Cultural entropy represents the degree of dysfunction in a culture

41. Nedbank: Response Rate to Values Survey 63.0% Response rate 50.4% 35.5% number of participants 28.0% 20.2% 28,898 employees in 2009

42. Nedbank: Cultural Evolution Nedbank Staff Survey Scores

43. Nedbank: Financial Impact of Cultural Evolution Share Price grewaverage 20.4% (CAGR) per year from 2004 to 2007 Revenue grew average 16.9% (CAGR) per year from 2004 to 2007 CAGR : Compound Annual Growth Rate

44. Values in Organisations Tom Boardman Former CEO of Nedbank, South Africa

45. National and Regional Values Assessments

46. National/Regional Values Assessments Denmark Latvia Sweden Canada Iceland Bhutan USA Belgium Australia UK North West) Brazil Finland Venezuela Argentina Macedonia (Skopje) Spain (Extremadura)

47. Entropy Percentages by Nation (2007 – 2010) Cultural entropy is a measure of the dysfunction in a social system

48. Cultural Entropy Impacts in Nations Cultural Entropy in Nations

49. What citizens believe is necessary for the country to achieve its full potential Iceland: August 2008 (635) Personal Values Current Culture Values Desired Culture Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 The values that are important to citizens in their personal lives. 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 PL= 10-0 | IROS (P)= 3-2-3-2 | IROS (L)= 0-0-0-0 Matches PV - CC 0 CC - DC 0 PV - DC 4 Black Underline= PV & CCOrange= CC & DCP = PositiveL = Potentially Limiting I = Individual O = organisational Orange= PV, CC & DCBlue= PV & DC(white circle) R = Relationship S = Societal How citizens experience the country - What is working well? What is undermining the sustainability of the country. Values Plot Copyright 2008 Barrett Values Centre September 2008

50. Personal Values Current Culture Values Desired Culture Values Iceland: August 2008 (635) C T S C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values Values Distribution Copyright 2008 Barrett Values Centre September 2008

52. www.valuescentre.com