1. The New Leadership ParadigmRichard BarrettMay 2011

2. Why do We Need a New Leadership Paradigm?

3. The Global 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.

4. Global Sustainability Challenge 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

5. A Lack of Cooperation 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 Private Sector Social Sector Public Sector

6. A Lack of Compassion 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 Private Sector Social Sector Public Sector

7. 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.

8. A Crisis in Leadership

9. 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).

10. A Crisis in Leadership ShoshanaZuboff, 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. ShoshanaZuboff, “The Old Solutions Have Become the New Problems,” Business Week, Viewpoint, July 2, 2009.

11. 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).

12. A NewLeadership Paradigm 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.

13. What this means for Politics and Business 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.

14. 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

15. What Evolution can teach us about the New Leadership Paradigm The Three Universal Principles of Evolution

16. The Universal Stages of Evolution From the Big Bang … to the Present Day Stage 1 Entities learn how to become viable and independent in their frameworks of existence. Stage 2 As life conditions become more complex, viable independent entities bond with each other to create a group structures. Stage 3 Viable independent group structures then cooperate with each other to form a higher order entity. Energy Atoms Molecules CellsOrganisms CreaturesHomo sapiens

17. The Universal Stages of Evolution Levels of Being Homo sapiens Humanity Nations Eukaryotic cell Creatures Organisms Carbon atom Cells Molecules Particles/waves of information existing in a quantum energy field. Evolution Stage 1: Entities learn how to become viable and independent in their frameworks of existence. Stage 2: As life conditions become more complex, viable independent entities bond with each other to create a group structures. Stage 3: Viable independent group structures then cooperate with each other to form a higher order entity.

18. Three-Stage Leadership Development STAGE 3: EXTERNAL COHESIONEncourage teams and business units to collaborate together to form a higher order entity known as the organization Evolution Human Consciousness (World Views) Stages of Evolution Stage 3 STAGE 2: INTERNAL COHESION Encourage individuals to bond together to form teams and business units with common values and a sense of shared mission and vision Stage 2 Stage 1 STAGE 1: PERSONAL MASTERY Encourage individuals to become viable independent (be accountable and responsible for who they are)

19. The New Leadership Paradigm Learning System More than a Book... A Leadership Development Learning System for the 21st Century Leader And also ... A Manual for Evolutionary Coaching

20. Components of the New Leadership Paradigm Learning System The Book The Multi-media Web site The Workbooks and Journals

21. The Book A Leadership Development Text Book for the 21st Century Leader (530 pages) Part 1: Fundamentals Part 2: Leading Self Part 3: Leading Others Part 4: Leading an Organisation Part 5: Leading in Society Part 6: Annexes Annex 1: The Learning System Annex 2: Cultural Transformation Tools Annex 3: The Seven Levels of Consciousness

22. The Web Site A State-of-the-Art, Multi-media, Web site that is constantly updated based on the feedback of users and as new articles, videos, books and other materials become available www.newleadershipparadigm.com

23. The Journals/Workbooks Leading Self (43 Exercises) Leading a Team (28 Exercises) Leading an Organisation (33 Exercises) Leading in Society (30 Exercises)

24. Leading Yourself If you can’t lead yourself, then you will not be able to lead others If you can’t lead others, then you will not be able to lead an organisation If you can’t lead an organisation, then you will not be able to lead a community or a nation

26. Change agents and OD practitioners who are looking for new, cost effective ways to make leadership training available to large numbers of people in their organisations

27. Universities and Business Schools searching for cutting-edge training materials to support their undergraduate and mature students

29. 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

30. 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

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

32. 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

33. Stages in the Development 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

34. Stages in the Development of Organisational Consciousness Positive Focus / Excessive Focus Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility 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 Financial Stability Shareholder value, organisational growth, employee health, safety. Control, corruption, greed Survival

35. Stages in the Development of National Consciousness Positive Focus / Excessive Focus Global Sustainability Human Rights, Future Generations, Ecological Resilience. 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 Economic Stability Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence Survival

36. 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 Transformation 4 2 5 Self-esteem 7 8 10 1 10 Relationship 9 3 Survival

37. 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

38. Organisational (Cultural) Values Assessments

39. What are Values? 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

40. 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.

41. Personal Values Pick ten values/behaviours that most reflect who you are, not who you desired to become.

42. Current Culture Values Pick ten values/behaviours that most reflect how your organisation currently operates.

43. Desired Culture Values Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.

44. 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 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 How employees experience the company - What is working well? What is undermining the sustainability of the company. Values Plot Copyright 2011 Barrett Values Centre February 2011

45. Personal Values Current Culture Values Desired Culture Values Engineering and Projects Company (339) C Common Good Transformation T Self Interest S Total number of votes for all values at each level CTS = 38-21-41 Entropy = 3% CTS = 25-20-55 Entropy = 23% CTS = 37-27-36 Entropy = 2% 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

46. Cultural Entropy in Organisations Cultural Entropy

47. Results from 100 Leaders (Based on Feedback from Leaders for Change)

48. The values you believe are necessary for your company to achieve its full potential Leaders 4 Change: Employed by an organization (95) 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 in your personal lives. IROS (P)= 1-1-5-0 | IROS (L)= 0-1-4-0 IROS (P)= 1-3-6-0 | IROS (L)= 0-0-0-0 IRS (P)= 8-2-0 | IRS (L)= 0-0-0 Matches PV - CC 1 CC - DC 2 PV - DC 2 Health Index (PL) PV: 10-0 CC: 7-5 DC: 10-0 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 How you experience your company - What is working well? What is undermining the performance of your company. Values Plot Copyright 2011 Barrett Values Centre May 2011

49. Personal Values Current Culture Values Desired Culture Values Leaders 4 Change: Employed by an organization (95) C T S Total number of votes for all values at each level CTS = 49-24-27 Entropy = 2% CTS = 26-21-53 Entropy = 22% CTS = 42-30-28 Entropy = 1% 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 May 2011

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

51. Leaders 4 Change: Employed by an organization (95) Values Jumps A value jump occurs when there are more votes for a value in the Desired Culture than in the Current Culture. Listed below are the values with the largest increase in votes. The values in bold are represented in the Desired Culture. Values Jumps Table Copyright 2011 Barrett Values Centre May 2011

52. The Importance of Values Alignment If you had the choice, would you work in an organisation where the company values do not match your own values? Based on Survey of Leaders for Change

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

55. 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%

56. 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

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

58. 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

59. Nedbank: Cultural Evolution Nedbank Staff Survey Scores

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

61. National and Regional Values Assessments

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

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

64. National Assessment Sweden: Group (1030) The values that citizens want to see more of in the country. 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 people in their personal lives. IROS (P)= 1-0-1-2 | IROS (L)= 2-1-3-0 IROS (P)= 1-1-2-6 | IROS (L)= 0-0-0-0 IRS (P)= 5-5-0 | IRS (L)= 0-0-0 Matches PV - CC 0 CC - DC 2 PV - DC 0 Health Index (PL) PV: 10-0 CC: 4-6 DC: 10-0 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 How citizens experience the values in Sweden. Values Plot Copyright 2011 Barrett Values Centre March 2011

65. Personal Values Current Culture Values Desired Culture Values National Assessment Sweden: Group (1030) C T S CTS = 42-21-37 Entropy = 5% CTS = 25-16-59 Entropy = 42% CTS = 41-24-35 Entropy = 2% C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values Values Distribution Copyright 2011 Barrett Values Centre March 2011

66. Cultural Entropy Impacts in Nations Cultural Entropy in Nations