1. VALUES-BASED LEADERSHIP
Richard Barrett and Tor Eneroth
October 2012

2. Values-Based Leadership
VALUES, BELIEFS AND BEHAVIOURS

3. Let’s Begin by Talking About Values
1. What are values?
2. Why are values so important?
3. What is the impact of Values on performance?
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4. What are Values?
Academic Definition:
The ideals and customs of a society toward which the people
have an effective regard.
My Definition:
Values are a shorthand method of describing what is
important to us individually or collectively (as a human group
structure—an organisation, community or nation) at any given
moment in time.
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5. What are Values?
Values:
Values are concepts that transcend contexts. They are universal.
Beliefs:
Beliefs are contextual. They are defined by the cultural context.
VALUES UNITE, BELIEFS SEPARATE
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6. Exercise: Values, Beliefs and
Behaviours
1. Choose 3 values that are important to you and
enter them in the left hand column of the worksheet
EXAMPLE: Clarity
2. Write down your beliefs
that support this value in middle column
EXAMPLE: Clarity bring focus to decision making
3. Write down the behaviours
you exhibit that support this value
EXAMPLE: Seek many opinions, synthesize
multiple data points to understand the big picture

7. Positive Values and Potentially Limiting Values
The concepts that values represent can be captured in one
word or a short phrase.
Positive Values:
Honesty, integrity, openness, equality, creativity, long-term
perspective, human rights, etc.
Limiting Values:
Blame, power, status, manipulation, greed, internal
competition, hierarchy, bureaucracy, etc.
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8. Values and Leadership
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
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9. Values and Culture
The Culture of an
Therefore
organizations is a reflection
of leadership consciousness
(values and beliefs)
Organizational
transformation begins with
the personal transformation
of the leaders
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10. Values and Culture
Successful companies
Cultural Capital is the new promote from within.
frontier of competitive
advantage Unsuccessful companies
bring in an external leader.
Who you are and what your
organization stands for
is vitally important to its
success
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11. Why Are Values So Important?
• Values-based organisations attract talented people. They
nurture and develop the skills and leadership qualities of all
employees.
• Values-based organisations build trust thereby increasing
the internal cohesion of your workforce and the goodwill of
the communities and societies in which you operate.
• Values-based decision-making is the best mode of decision-
making we have for navigating complexity and dealing with
uncertainty. It makes us focus on our human needs.
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12. The Evolution of Human Consciousness
At this point in our human history, we are witnessing an
unprecedented shift in human values. Millions of people all over the
world are demanding their voices be heard, not just in how our
nations are governed, but also in how our organisations are run.
They want equality, fairness and transparency; they want to be
responsible and accountable for their lives; and, they want to trust
and be trusted.
Most importantly they want to work for organisations that are seen
to be ethical and are doing the right thing in the eyes of society.
THE EDUCATED MASSESS ARE INDIVIDUATING
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13. The Impact of Employee Engagement
on Performance
Top 40 Best Companies to work for in the USA Average
Annualized
Return
16.39%
S&P 500 Average
Annualized
Return
4..12%
Financial Returns
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14. High Performing Organisations
Based on their research with more than 7,000 organisations, Aon
Hewitt found that high performing companies:
….Keep focused on the long-term; maintain a consistent
employee proposition and a clear set of values.
….They manage change in a way that is consistent with their
values and aligned with their overall goals.
….They use employee based information to drive their actions ...
and involve multiple stakeholders in their decision-making.
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15. Conscious Capitalism
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16. The Four Pillars of Conscious Capitalism
Cultural Transformation Tools
Higher Stakeholder
Purpose Integration
Values
Conscious Conscious
Culture Leadership
We can measure this with a We can measure this with a
Cultural Values Assessment Leadership Values Assessment
(CVA) (LVA)
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17. Conscious Capitalism
Comparison of financial returns of:
Firms of Endearment (FoE), Good to Great (GtoG) and S & P 500
1800%
1600%
1400%
1200%
1000%
800%
600%
400%
200%
0%
3 Year 5 Year 10 Year 15 year
-200%
S&P G to G F of E
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18. www.valuescentre.com
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19. Values-Based Leadership
VALUES-BASED MODELS AND TOOLS
FOR LEADERSHIP DEVELOPMENT AND
CULTURAL TRANSFORMATION

20. Measuring the Cultures of Organisations and
Mapping the Values of Leaders
Cultural Transformation Tools
Values-Driven Values-Driven
Cultures Leadership
1998 2006 2011
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21. Barrett Values Centre
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22. World-Wide Use of the CTT
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23. World-Wide Use of the CTT
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24. Needs, Values and Motivations
Our values are always directed towards the
satisfaction of our needs, and, our needs are
always the source of our motivations.
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25. Hierarchy of Needs (Values)
Self Actualization
Growth Needs
When these needs are fulfilled they do not
go away, they engender deeper levels of
Know and motivation and commitment.
Understand
Abraham Maslow Self-esteem
Deficiency Needs
An individual gains no sense
Love & Belonging of lasting satisfaction from
being able to meet these
Safety needs, but feels a sense of
anxiety if these needs are not
met.
Physiological
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26. Needs to Consciousness
Self-Actualization
Know and
Understand
Abraham Maslow Richard Barrett
Self-esteem
Love & Belonging
Safety
Physiological
Needs Consciousness
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27. Needs to Values to Consciousness
Self-Actualization self-actualization
1. Expansion of
into multiple levels.
Know and 2. Substitute levels of consciousness
Understand for hierarchy of needs.
3. Each level of consciousness
Self-esteem
is defined by specific values
and behaviours.
Love & Belonging
Safety
Physiological
Needs Consciousness
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28. Levels 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
Transformation Personal Growth
Understanding your deepest motivations, experiencing responsible
freedom by letting go of your fears
Self-esteem Self-worth
Feeling a positive sense of pride in self
and ability to manage your life. Power, status
Relationship Belonging
Feeling a personal sense of belonging, feeling loved by self and
others. Being liked, blame
Survival Financial Security & Safety
Creating a safe secure environment for self
and significant others. Control, greed
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29. Levels of Organisational Consciousness
Positive Focus / Excessive Focus
Service To Humanity And The Planet
Social responsibility, future generations, long-term
Service
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
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30. The Culture Values Survey (CVA)
Three Questions:
PERSONAL VALUES
Which of the following values and behaviours most reflect who you
are? Pick ten.
CURRENT CULTURE
Which of the following values/behaviours most reflect how your
organisation currently operates? Pick ten.
DESIRED CULTURE
Which of the following values/behaviours most reflect how you
would like your organisation to operate? Pick ten.
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31. Placement of Values by Level
Current Culture 100 Employees
Service
Top Ten Values
1. tradition (L) (59)
Making a Difference
2. diversity (54)
Internal Cohesion 6 3. control (L) (53)
4. goals orientation (46)
Transformation 2 4 5
5. knowledge (43)
6. creativity (42)
Self-esteem 7 8
7. productivity (37)
Relationship 10
10 1 8. image (L) (36)
9. profit (36)
9 3
Survival
10. open communication (31)
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32. Distribution of Values by Level
Current Culture 100 Employees
Service
Making a Difference
Internal Cohesion
Transformation
Cultural
Self-esteem Entropy
Relationship 11%
Survival
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33. Engineering Company (339)
Personal Values Current Culture Values Desired Culture Values
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
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 1. honesty 169 5(I) 1. continuous 111 4(O) 1. accountability 180 4(R)
2. accountability 165 4(R) improvement 2. customer 147 2(O)
PV - CC 1
CC - DC 4 2. customer 111 2(O) satisfaction
PV - DC 2 3. commitment 150 5(I)
satisfaction 3. continuous 143 4(O)
4. continuous learning 92 4(I)
Health 3. safety conscious 102 1(O) improvement
Index (PL)
5. balance (home/work) 91 4(I)
4. cost reduction 88 1(O) 4. employee development 111 4(O)
6. family 91 2(R)
PV: 10-0 5. job insecurity (L) 77 1(O) 5. employee recognition 96 2(R)
CC: 7-3 7. self-discipline 91 1(I)
DC: 10-0 6. inconsistent (L) 75 3(I) 6. commitment 95 5(I)
8. responsibility 89 4(I)
7. teamwork 74 4(R) 7. inspirational leadership 95 6(O)
9. respect 81 2(R)
8. accountability 71 4(R) 8. employee fulfilment 94 6(O)
10. open communication 76 2(R)
9. blame (L) 71 2(R) 9. teamwork 90 4(R)
10. corporate image 64 3(O) 10. professionalism 80 3(O)
Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational
Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal
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34. Engineering Company (339)
Personal Current Culture Desired Culture
Values Values Values
6% 5% 5%
7 7 7
Common Good C C
8% 9% 13%
6 6 6
24% 11% 19%
5 5 5
TT
21% 20% 27%
Transformation 4 4 4
17% 14% 16%
3 1% 3 12%
3 0%
Self Interest SS 2 1%
12%
2
8%
5%
2 1%
12%
9% 10% 6%
1 1% 1 6%
1 1%
0% 20% 40% 0% 20% 40% 0% 20% 40%
CTS = 38-21-41 CTS = 25-20-55 CTS = 37-27-36
Entropy = 3% Entropy = 23% Entropy = 2%
Total number of votes for
all values at each level C = Common Good Positive Values
T = Transformation Cultural Entropy % of Potentially Limiting
S = Self-Interest
Votes for Limiting Values Values
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Values Distribution
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35. Cultural Entropy
Cultural Entropy
Represents the degree of dysfunction (the amount of fear-driven energy
that is found in a human group structure)
Entropy Impact
0 -10% Healthy: This is a low and healthy level of cultural entropy.
11-20% Minor Issues: This level of cultural entropy reflects issues requiring cultural or
structural adjustment.
21-30% Significant Issues: This level of cultural entropy reflects significant issues requiring
cultural and structural transformation and leadership coaching.
31-40% Serious Issues: This level of entropy reflects serious problems requiring cultural and
structural transformation, leadership development and coaching.
41%+ Critical Issues: This level of cultural entropy reflects critical problems requiring
cultural and structural transformation, selective changes in leadership, leadership
development and coaching.
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36. The Leadership Values Survey (LVA)
The Leadership Values Assessment is a
feedback instrument that compares a
leader’s perception of the values he or
she believes best describe his or her
management/operational style with their
colleagues’ perception of their
management/operational style.
The instrument also compares leader’s
perception of their own strengths, and
the behaviours that they believe they
need to improve or stop, with the
assessors’ perceptions and measures
personal entropy.
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37. LVA for Darth Vader
Darth's Values Assessors' Top 11 Values
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Matching
Level 1
Values
PL = 10-0 | IRO (P) = 7-0-3 | IRO (L) = 0-0-0 PL = 7-4 | IRO (P) = 6-0-1 | IRO (L) = 0-4-0
ambitious Level 3 achievement Level 3
Matches 2
courage Level 4 authoritarian (L) Level 1
creativity Level 5 being the best Level 3
How
excellence Level 3 competitive (L) Level 2
Others see
integrity Level 5 demanding (L) Level 2
Darth
long-term perspective Level 7 determination Level 4
passion Level 5 excellence Level 3
results orientation Level 3 knowledge Level 4
strategic alliances Level 6 power (L) Level 3
How Darth vision Level 7 results orientation Level 3
sees risk-taking Level 4
himself
Orange = Values match P = Positive I = Individual
L = Potentially Limiting R = Relationship
(white circle) O = organisational
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38. LVA for Darth Vader
Darth's Assessors'
Values Values
20% 0%
7 7
CC
10% 0%
6 6
30% 0%
5 5
TT
10% 27%
4 4
30% 36%
3 0% 3 9%
SS
0% 0%
2 0% 2 18%
0% 0%
1 0% 1 9% Level of
Personal
0% 20% 40% 60% 0% 20% 40% 60% Entropy
CTS = 60-10-30 CTS = 0-27-73
Entropy = 0%
Entropy = 36%
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39. Personal Entropy
Personal Entropy
Represents the amount of fear-driven energy that a person expresses
in his or her day-to-day interactions with other people.
Entropy Impact
0 -6% Healthy: Authentic individual. Decision-making not driven by fears.
7-10% Minor Issues: Requiring leaders to examine how their behaviours and actions are affecting
people around them, their decision-making processes or their degree of work/life balance.
11-15% Significant Issues: Requiring leaders to examine how their behaviours may be compromising
relationships with peers and subordinates, and negatively impacting their goals.
16-20% Serious Issues: Requiring leaders to examine how their behaviours may be compromising
relationships with peers and subordinates, and negatively impacting their goals.
21%+ Critical Issues: Requiring leaders to examine how their behaviours might be compromising
their personal integrity and their ability to inspire and lead the people around them.
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40. Cultural Entropy and Personal Entropy
Where does cultural entropy come from:
• The personal entropy generated by the current leaders of the
organisation (business unit, department, etc.); and
• The entropic legacy of past leaders, which has been
institutionalized within the organization’s policies, processes,
systems and structures.
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41. Cultural Entropy and Personal Entropy
Culture Values Leader’s Values
CVA Current Culture LV A Feedback 14 Assessors
The culture of
an organisation
is a reflection
of the leadership
consciousness.
PL= 1-10 | IROS (P)= 0-0-1-0 | IROS (L)= 2-4-4-0 PL = 1-9 | IRO (P) = 1-0-0 | IRO (L) = 1-8-0
Cultural Entropy 38% Personal Entropy 64%
1. short-term focus (L) 13 Level 1 power (L) 11 Level 3
2. blame (L) 11 Level 2 blame (L) 10 Level 2
demanding (L) 10 Level 2
3. manipulation (L) 10 Level 2
manipulative (L) 10 Level 2
4. caution (L) 7 Level 1
experience 9 Level 3
5. cynicism (L) 7 Level 3
controlling (L) 8 Level 1
6. bureaucracy (L) 6 Level 3
arrogant (L) 7 Level 3
7. control (L) 6 Level 1
authoritarian (L) 6 Level 1
8. cost reduction 5 Level 1 exploitative (L) 6 Level 1
9. empire building (L) 5 Level 2 ruthless (L) 6 Level 1
10. image (L) 5 Level 3
11. long hours (L) 5 Level 3
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42. Values-Based Leadership
FOUR CONDITIONS FOR CULTURE CHANGE

43. Human Systems
Interior Exterior
Personality Character
Individual Values and Actions and
Beliefs of the Behaviours
Leaders of the Leaders
Culture Society
Collective Values and Actions and
Beliefs of the Behaviours of the
Organization Organization
Based on the Work of Ken Wilber
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44. Four Conditions for Culture Change
Interior Exterior
Character:
Personality:
Actions and
Values and Personal Alignment Behaviours
Beliefs
of an
Individual of an
Individual
Individual
Mission Alignment
Values Alignment
Culture: Social
Values and Structures:
Beliefs Actions and
of an Behaviours of
Collective Organisation an Organisation
Structural Alignment
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45. Stages in Cultural Change
When the leaders The leaders
values change behaviours change
Interior Exterior
Individual 1 2
Collective 3 4
The values of the Behaviours of
organization change organization change
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46. A New Leadership Paradigm
• A shift from “I” to “we”
• A shift from “what’s in it for
me” to “what’s best for the
common good”
• A shift from being the “best in
the world” to the “best for the
world”
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47. New Leadership Paradigm Learning System
The
Book The
Multi-media
Web site The Workbooks
and Journals
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48. For More Information:
Go to:
www.valuescentre.com
www.newleadershipparadigm.com
www.valuesjournal.com
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