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The New Leadership ParadigmBuilding a Sustainable Future for Everyone
Richard BarrettJanuary 2012
2
A Crisis in Leadership
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A Crisis in Leadership
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
4
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.
Shoshana Zuboff, Harvard Business School
5
A Crisis in Leadership
Bill George, Harvard Business School
An enormous vacuum in leadership exists today—in business, politics, government, education, religion, and nonprofit organizations. 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).
6
A Crisis in Leadership
Every successful business leader has to make the shift from “I” to “we.”
Bill George, True North: Discover Your Authentic Leadership (San Francisco: Jossey-Bass, 2007).
Bill George, Harvard Business School
7
The Global Sustainability Challenge?
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Global Sustainability Issues
Pandemics
Climate Change
Global Economy
GlobalTerrorism
Poverty Reduction
Food Resilience
Natural Disasters
Energy Resilience
Species Extinction
WaterShortages
The significant problems we face cannot be solved at the same level of thinking that created them.
Pollution
Waste Disposal
9
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.
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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
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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.
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.
Our Business Leaders need to recognise that:
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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 NEW LEADERSHIP PARADIGM
13
A New Leadership Paradigm
Richard Barrett, The New Leadership Paradigm, 2011
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.
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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, organizational 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 Personal and Cultural Transformation
19982006
Organisational Growth and
Transformation.Measuring
Consciousness by Mapping Values
Implementing Cultural Transformation.
Eight Years Experience of Measuring Personal
and Organisational Consciousness and
Exploring Whole System Change
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Origins of the Cultural Transformation Tools
Growth NeedsWhen these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment.
Deficiency NeedsAn 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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Maslow’s Needs to Barrett’s Consciousness
Know and Understand
Physiological
Safety
Love & Belonging
Self-esteemAbraham Maslow
Know and Understand
N e e d s C o n s c i o u s n e s s
Self-Actualization
Richard Barrett
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Maslow’s Needs to Barrett’s Consciousness
Know and Understand
Physiological
Safety
Love & Belonging
Self-esteem
Know and Understand
N e e d s C o n s c i o u s n e s s
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 Development of Personal Consciousness
Positive Focus / Excessive Focus
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
SurvivalFinancial Security & SafetyCreating a safe secure environment for self and significant others. Control, greed
BelongingFeeling 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 GrowthUnderstanding your deepest motivations, experiencing responsible freedom by letting go of your fears
Finding Personal MeaningUncovering your sense of purpose and creating a vision for the future you want to create
Collaborating with PartnersWorking with others to make a positive difference by actively implementing your purpose and vision
Service to Humanity and the PlanetDevoting your life in self-less service to your purpose and vision
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Positive Focus / Excessive Focus
Financial StabilityShareholder value, organisational growth, employee health, safety. Control, corruption, greed
BelongingLoyalty, open communication, customer satisfaction, friendship. Manipulation, blame
High PerformanceSystems, processes, quality, best practices, pride in performance. Bureaucracy, complacency
Continuous Renewal and LearningAccountability, adaptability, empowerment, teamwork, goals orientation, personal growth
Building Corporate CommunityShared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency
Strategic Alliances and PartnershipsEnvironmental awareness, community involvement, employee fulfillment, coaching/mentoring
Service To Humanity And The PlanetSocial responsibility, future generations, long-term perspective, ethics, compassion, humility
Stages in the Development of Organisational Consciousness
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
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Personal Values
Pick ten values/behaviours that most reflect who you are, not who you desired to become.
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Current Culture Values
Pick ten values/behaviours that most reflect how your organisation currently operates.
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Desired Culture Values
Pick ten values/behaviours that, in your opinion, are essential for your organisation to achieve its highest performance.
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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
42 5
7
9
6
8
3
110
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%
1
2
3
4
5
6
7Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
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Engineering and Projects Company (339)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
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 1CC - DC 4PV - DC 2
Health Index (PL)
PV: 10-0CC: 7-3
DC: 10-0
1. honesty 169 5(I)
2. accountability 165 4(R)
3. commitment 150 5(I)
4. 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)
10. open communication 76 2(R)
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
1. continuous improvement
111 4(O)
2. customer satisfaction
111 2(O)
3. safety conscious 102 1(O)
4. cost reduction 88 1(O)
5. job insecurity (L) 77 1(O)
6. inconsistent (L) 75 3(I)
7. teamwork 74 4(R)
8. accountability 71 4(R)
9. blame (L) 71 2(R)
10. corporate image 64 3(O)
1. accountability 180 4(R)
2. customer satisfaction
147 2(O)
3. continuous improvement
143 4(O)
4. employee development 111 4(O)
5. employee recognition 96 2(R)
6. commitment 95 5(I)
7. inspirational leadership 95 6(O)
8. employee fulfilment 94 6(O)
9. teamwork 90 4(R)
10. professionalism 80 3(O)
Values Plot Copyright 2011 Barrett Values Centre February 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
1%
1%
1%
9%
12%
17%
24%
8%
6%
21%
0% 20% 40%
1
2
3
4
5
6
7
6%
5%
12%
10%
8%
14%
11%
9%
5%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
1%
0%
6%
12%
16%
19%
13%
5%
27%
0% 20% 40%
1
2
3
4
5
6
7
Engineering and Projects Company (339)
C
T
S
Values Distribution Copyright 2011 Barrett Values Centre February 2011
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 38-21-41Entropy = 3%
CTS = 25-20-55Entropy = 23%
CTS = 37-27-36Entropy = 2%
Personal Values
Current Culture Values
Desired Culture 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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Nedbank, South Africa: An Example of Cultural Evolution
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Nedbank and CTT
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Entropy 14%Entropy 25% Entropy 19% Entropy 17%
Nedbank: Current Culture Evolution
1. cost-consciousness2. profit 3. accountability 4. community involvement 5. client-driven 6. process-driven7. bureaucracy (L)8. results orientation 9. client satisfaction10. silo mentality (L)
2005
1. cost-consciousness2. accountability 3. client-driven 4. client satisfaction 5. results orientation 6. performance driven7. profit8. bureaucracy (L)9. teamwork 10. community involvement
2006
1. client-driven 2. accountability 3. client satisfaction 4. cost-consciousness5. community involvement6. performance driven 7. profit8. achievement9. being the best 10. results orientation
2007 2008
1. accountability2. client-driven 3. client satisfaction 4. community involvement 5. achievement6. cost-consciousness7. teamwork8. performance driven9. being the best 10. delivery
4 matches4 matches3 matches 5 matches
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Entropy 13% Entropy 13% Entropy 11%
Nedbank: Current Culture Evolution
2009 2010 2011
6 matches6 matches6 matches
1. accountability2. client-driven 3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork 8. employee recognition 9. being the best10. performance driven
1. accountability2. client satisfaction 3. client-driven 4. teamwork5. brand reputation6. being the best7. achievement8. commitment9. community involvement10. cost-consciousness
1. accountability2. client-driven 3. client satisfaction4. brand reputation5. achievement6. teamwork7. environmental awareness8. commitment9. being the best10. cost-consciousness
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Nedbank Group 2010
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 2CC - DC 6PV - DC 4
Health Index (PL)
PV: 10-0CC: 10-0DC: 10-0
1. accountability 7563 4(R)
2. honesty 5168 5(I)
3. commitment 4770 5(I)
4. respect 3832 2(R)
5. integrity 3508 5(I)
6. family 3504 2(R)
7. responsibility 3013 4(I)
8. caring 2992 2(R)
9. balance (home/work)
2981 4(I)
10. efficiency 2664 3(I)
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
1. accountability 4601 4(R)
2. client satisfaction 3784 2(O)
3. client-driven 3174 6(O)
4. teamwork 2204 4(R)
5. brand reputation 2193 3(O)
6. being the best 2113 3(O)
7. achievement 2098 3(I)
8. community involvement 2079 6(S)
9. cost-consciousness 2041 3(O)
10. commitment 2020 5(I)
1. accountability 6063 4(R)
2. client satisfaction 4085 2(O)
3. balance (home/work) 3583 4(O)
4. employee recognition 2874 2(R)
5. client-driven 2646 6(O)
6. honesty 2592 5(I)
7. teamwork 2529 4(R)
8. employee satisfaction 2525 2(O)
9. commitment 2518 5(I)
10. achievement 2386 3(I)
Values Plot Copyright 2010 Barrett Values Centre April 2010
33
Nedbank: Group (2011)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0
Matches
PV - CC 2CC - DC 6PV - DC 4
Health Index (PL)
PV: 10-0CC: 10-0DC: 10-0
1. accountability 8576 4(R)
2. honesty 6133 5(I)
3. commitment 5221 5(I)
4. respect 4420 2(R)
5. family 4057 2(R)
6. integrity 4023 5(I)
7. caring 3568 2(R)
8. balance (home/work) 3526 4(I)
9. responsibility 3279 4(I)
10. efficiency 3085 3(I)
1. accountability 5464 4(R)
2. client-driven 4571 6(O)
3. client satisfaction 3486 2(O)
4. brand reputation 2740 3(O)
5. achievement 2491 3(I)
6. teamwork 2408 4(R)
7. environmental awareness
2372 6(S)
8. commitment 2263 5(I)
9. being the best 2218 3(O)
10. cost-consciousness 2187 3(O)
1. accountability 6987 4(R)
2. balance (home/work) 4183 4(O)
3. client-driven 3864 6(O)
4. client satisfaction 3742 2(O)
5. employee recognition 3297 2(R)
6. honesty 3053 5(I)
7. commitment 2953 5(I)
8. achievement 2809 3(I)
9. teamwork 2744 4(R)
10. employee satisfaction 2687 2(O)
Values Plot Copyright 2011 Barrett Values Centre April 2011
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
34
1%
0%
1%
5%
16%
16%
26%
4%
7%
24%
0% 20% 40%
1
2
3
4
5
6
7
3%
3%
5%
5%
11%
20%
13%
14%
6%
20%
0% 20% 40%
1
2
3
4
5
6
7
1%
0%
0%
5%
15%
16%
21%
12%
5%
25%
0% 20% 40%
1
2
3
4
5
6
7
Nedbank: Group (2011)
C
T
S
Values Distribution Copyright 2011 Barrett Values Centre April 2011
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 37-24-39Entropy = 2%
CTS = 33-20-47Entropy = 11%
CTS = 38-25-37Entropy = 1%
Personal Values
Current Culture Values
Desired Culture Values
35
25%
19%17%
14% 13% 13%11%
0%
5%
10%
15%
20%
25%
2005 2006 2007 2008 2009 2010 2011
Nedbank: Cultural Evolution
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 Scores
Entropy risk bands
0 -10% Healthy functioning11-20% Some problems 21-30% Significant problems 31-40% Serious situation 41%+ Critical situation
36
Nedbank: Response Rate to Values Survey
1827
6083
10155
14091
1820620184
22102
0
4000
8000
12000
16000
20000
24000
2005 2006 2007 2008 2009 2010 2011
28,898 employees in 2009
Responses
nu
mb
er
of
pa
rtic
ipa
nts
37
Nedbank: Staff Engagement
Nedbank Staff Survey Scores
59.6% 66.3%71.5% 75.1% 79%
67% 71%
0%20%40%60%80%
100%
2005 2006 2007 2008 2009 2010 2011
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Nedbank: Financial Impact of Cultural Evolution
78
100
134 136
96
124 130
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008 2009 2010
Closing share price (Rand)
Nedbank: Impact on Financial Performance
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Nedbank: Financial Impact of Cultural Evolution
1402715809
18948
22428 22077 2157023630
0
5000
10000
15000
20000
25000
2004 2005 2006 2007 2008 2009 2010
Revenue Rm (operating income)
Nedbank: Impact on Financial Performance
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What Evolution can teach us about the New Leadership Paradigm
• Three Universal Principles• Five Characteristics/Strategies• Six Levels of Decision Making
41
What is Evolution?
At each stage of evolution – from atoms, to cells, to creatures – there was not only an expansion in awareness, but also an expansion in the range of possible reactions or responses that an entity could make to changes in its internal or external environment.
Evolution: The continually unfolding ability to respond to increasingly complex life conditions.
An increase in external complexity demanded an increase in
internal complexity
42
The Universal Stages of Evolution
From the Big Bang … to the Present Day
Stage 1Entities 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 Cells Organisms Creatures Homo sapiens
43
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.
Big Bang: Particles/waves of information existing in a quantum energy field.
Carbon atom Molecules Cells
Eukaryotic cell Organisms Creatures
Homo sapiens Nations Humanity
The Universal Stages of EvolutionLevels
of
Bein
g
Evolution
44
The Human Body
Stage 1: Cells are viable independent entities that know what to do to maintain internal stability and external equilibrium
Stage 2: Cells bonded together to form group structures called organs.
Stage 3: Organs cooperate with each other to form a higher order entity.
YOU!
45
The New Leadership ParadigmLearning System
More than a Book...
A Leadership Development Learning System for the 21st Century Leader
And also ...
A Manual for Personal Evolutionary Coaching
46
Development as the Evolution of Human Consciousness
Richard Barrett
Development as ...
When Evolution produced Homo Sapiens the arrow of evolution shifted from physical evolution to consciousness evolution.
47
STAGE 1: PERSONAL MASTERYBecoming viable and independent
in your framework of existence
STAGE 2: INTERNAL COHESIONBonding to form a group structure
STAGE 3: EXTERNAL COHESIONCooperating to form a higher order entity
Human Evolution
H u m a n C o n s c i o u s n e s s( W o r l d V i e w s )
Stage 1
Stage 2
Stage 3
S t a g e s o f E v o l u t i o n
Evolu
tion
48
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
49
Stages of Leadership Development
Stage 1: Personal Mastery
Overcoming the fears of the Ego to become viable and independent in your framework of existence
Stage 2: Internal Cohesion
Aligning the motivations of the Ego with the Soul (bonding) to become an authentic individual
Stage 3: External Cohesion
Cooperating with other individuals who share the same values and mission to leverage impact
Evolu
tion
Stage 1: Team Mastery
Overcoming the fears of individual Team membersTo minimize cultural entropy
Stage 2:Internal Cohesion
Aligning the motivations of Team members with the mission of the Team for team alignment
Stage 3:External Cohesion
Cooperating with other Teams who share the same values and vision
Stage 1: Personal Mastery
Overcoming the fears of individual Staff members to minimize cultural entropy
Stage 2:Internal Cohesion
Aligning the motivations of Staff members with the vision and values of the Organization
Stage 3:External Cohesion
Cooperating with other Organizations who share the same values and vision
Leading Self Leading a Team Leading an
Organisation
50
Components of the New Leadership Paradigm Learning System
The Book
The Multi-media
Web site The Workbooks
and Journals
51
The Book
A Leadership Development Text Book
for the 21st Century Leader
(530 pages)
Part 1: FundamentalsPart 2: Leading SelfPart 3: Leading OthersPart 4: Leading an OrganisationPart 5: Leading in SocietyPart 6: AnnexesAnnex 1: The Learning SystemAnnex 2: Cultural Transformation ToolsAnnex 3: The Seven Levels of Consciousness
52
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
53
The Journals/Workbooks
Leading Self (43 Exercises)
Leading a Team (28 Exercises)
Leading an Organisation (33 Exercises)
Leading in Society (30 Exercises)
54
The Journals/Workbooks
Leading Self
Leading Others
Leading an Organisation Leading in Society
FeedbackLoops
FeedbackLoops
55
Who Will Be Using the Learning System?
• Consultants and Coaches who are supporting the next generation of leaders
• 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 organizations
• Universities and Business Schools searching for cutting-edge
training materials to support their undergraduate and mature students
• Individuals who want to grow, develop and become all they can become
56
Love, Fear and the Destiny of Nations
57
Love, Fear and the Destiny of Nations
Volume 1: The Impact of the Evolution of
Consciousness on World Affairs
Volume 2: Building Successful
Communities and Nations
Spring 2012 Winter 2012
58
National Values Assessments
Denmark Latvia Sweden Canada
Iceland Bhutan USA Belgium
AustraliaUK North West) BrazilFinland
Spain (Extremadura) Macedonia (Skopje) South Africa Switzerland
59
Stages in the Development of National Consciousness
Positive Focus / Excessive Focus
Economic Stability Prosperity. Health, Defense, Social Safety Nets. Corruption, Greed, Violence
Social StabilityConflict Resolution, Racial Harmony, Rituals. Discrimination, Intolerance
Institutional EffectivenessRule of Law, National Pride, Governmental Efficiency. Bureaucracy, Elitism, Power
Democratic ProcessesEquality, Freedom of Speech, Consensus, Adaptability, Accountability.
Strong Cohesive National IdentityTrust, Openness, Transparency, Shared Vision and Values, Fairness.
Strategic Alliances with Other NationsRegional Collaboration, Environmental Awareness, Quality Of Life.
Global SustainabilityHuman Rights, Future Generations, Ecological Resilience.
Service
Making a difference
Internal Cohesion
Transformation
Self-esteem
Relationship
Survival
60
Cultural Entropy in Nations
Bhutan 20
08
Denm
ark 20
08
Switzer
land 20
11
Canad
a 200
9
Sweden
2010
UK Nor
th W
est 2
010
South
Afri
ca 20
11
Australi
a 200
9
Finlan
d 2010
Brazil
2010
Belgiu
m 20
10
Latvia
2007
US 2011
Icela
nd 2010
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
6%
21%26%
32% 34%
43% 44%47% 48%
51% 53% 54% 56%
63%
Cultural entropy is a measure of the dysfunction, anxiety and fear in a social system
61
Cultural Entropy Impacts in Nations
Entropy Impact
< 10% Healthy Culture: This is a low and healthy level of cultural entropy.
11%-20% Minor Issues: This level of cultural entropy reflects some degree of dissatisfaction requiring cultural or structural adjustment. It is important to reduce the level of cultural entropy to improve individual and societal well-being.
21%-30% Significant Issues: This level of cultural entropy reflects potential unease and/or social unrest within the population requiring immediate attention. It is important to reduce the level of cultural entropy to improve individual and societal well-being.
31%-40% Serious Issues: This level of cultural entropy reflects unresolved issues among the population that, if left unaddressed, could lead to demonstrations and create conflicts requiring resolution. It is important to reduce the level of cultural entropy to improve individual and societal well-being.
41%+ Critical Issues: This level of cultural entropy reflects endemic issues that could lead to demonstrations, violent disorder and/or major financial disruption indicating a need for change in policy and/or a change in government. It is important to reduce the level of cultural entropy to improve individual and societal well-being.
Cultural Entropy in Nations
62
Iceland
Iceland Economic Collapse 2008
63
Iceland: August 2008 (635)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired 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 PL= 10-0 | IROS (P)= 3-2-3-2 | IROS (L)= 0-0-0-0
Matches
PV - CC 0CC - DC 0PV - DC 4
1. family 420 Level 2
2. honesty 297 Level 5
3. responsibility 258 Level 4
4. accountability 225 Level 4
5. financial stability 185 Level 1
6. trust 181 Level 5
7. friendship 175 Level 2
8. positive attitude 175 Level 5
9. humor/fun 158 Level 5
10. adaptability 155 Level 4
11. respect 155 Level 2
Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = organisational
Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal
1. materialistic (L) 419 Level 1
2. short-term focus (L) 324 Level 1
3. educational opportunities 275 Level 3
4. uncertainty about the future (L)
275 Level 1
5. corruption (L) 269 Level 1
6. elitism (L) 264 Level 3
7. material needs 224 Level 1
8. wasted resources (L) 207 Level 3
9. gender discrimination (L) 196 Level 2
10. blame (L) 177 Level 2
1. accountability 352 Level 4
2. family 307 Level 2
3. employment opportunities 281 Level 1
4. financial stability 249 Level 1
5. optimism 233 Level 5
6. dependable public services 228 Level 3
7. honesty 222 Level 5
8. social responsibility 174 Level 4
9. human rights 163 Level 7
10. poverty reduction 160 Level 1
Values Plot Copyright 2008 Barrett Values Centre September 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
2%
2%
0%
10%
17%
8%
24%
7%
8%
23%
0% 20% 40%
1
2
3
4
5
6
7
29%
13%
12%
5%
3%
9%
4%
7%
6%
12%
0% 20% 40%
1
2
3
4
5
6
7
0%
0%
0%
13%
11%
11%
18%
9%
11%
27%
0% 20% 40%
1
2
3
4
5
6
7
Iceland: August 2008 (635)
C
T
S
Values Distribution Copyright 2008 Barrett Values Centre September 2008
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 39-23-38Entropy = 4%
CTS = 17-12-71Entropy = 54%
CTS = 38-27-35Entropy = 0%
Personal Values
Current Culture Values
Desired Culture Values
65
Iceland: August 2008 (635) Potentially Limiting Values
Potentially Limiting Values (votes)
materialistic (419)
short-term focus (324)
uncertainty about the future (275)
corruption (269)
elitism (264)
wasted resources (207)
gender discrimination (196)
blame (177)
ethnic discrimination (171)
bureaucracy (158)
66
Iceland
Iceland National Assembly 2009/2010
1200 Citizens + 300 Government, NGOs & Institution Leaders + 500 Volunteers
Themes: Education, Economy, Equal rights, Family, Environment, Public administration, Welfare, Sustainability
67
USA 2009
US Government forced to bail out banks and industry -2007 / 2008
68
USA: Group (1502)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 5-6-0 | IRS (L)= 0-0-0 IROS (P)= 0-0-0-0 | IROS (L)= 3-3-4-0 IROS (P)= 2-1-3-4 | IROS (L)= 0-0-0-0
Matches
PV - CC 0CC - DC 0PV - DC 1
Health Index (PL)
PV: 11-0CC: 0-10DC: 10-0
1. family 691 2(R)
2. caring 657 2(R)
3. honesty 576 5(I)
4. humor/fun 548 5(I)
5. compassion 469 7(R)
6. responsibility 461 4(I)
7. friendship 407 2(R)
8. respect 392 2(R)
9. accountability 388 4(R)
10. independence 359 4(I)
11. patience 359 5(I)
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
1. corruption (L) 748 1(O)
2. blame (L) 681 2(R)
3. bureaucracy (L) 681 3(O)
4. crime/violence (L) 628 1(R)
5. uncertainty about the future (L)
567 1(I)
6. wasted resources (L) 552 3(O)
7. materialistic (L) 527 1(I)
8. unemployment (L) 466 1(O)
9. conflict/aggression (L) 426 2(R)
10. poverty (L) 358 1(I)
1. accountability 703 4(R)
2. concern for future generations
516 7(S)
3. employment opportunities 497 1(O)
4. caring for the elderly 467 4(S)
5. affordable housing 429 1(O)
6. peace 429 7(S)
7. caring for the disadvantaged 398 4(S)
8. financial stability 368 1(I)
9. quality of life 335 6(I)
10. poverty reduction 325 1(O)
Values Plot Copyright 2009 Barrett Values Centre January 2009
3%
2%
1%
4%
18%
11%
27%
5%
9%
19%
0% 20% 40%
1
2
3
4
5
6
7
27%
12%
13%
4%
3%
8%
5%
9%
7%
13%
0% 20% 40%
1
2
3
4
5
6
7
2%
1%
2%
11%
6%
12%
14%
13%
17%
22%
0% 20% 40%
1
2
3
4
5
6
7
USA: Group (1502)
C
T
S
Values Distribution Copyright 2009 Barrett Values Centre January 2009
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 41-19-40Entropy = 6%
CTS = 21-13-66Entropy = 52%
CTS = 44-22-34Entropy = 5%
Personal Values
Current Culture Values
Desired Culture Values
70
Bhutan
Bhutan prioritise *GNH above GDP(*Gross National Happiness)
Bhutan: Group (403)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 4-4-1 | IRS (L)= 1-0-0 IROS (P)= 1-0-8-2 | IROS (L)= 0-0-0-0 IROS (P)= 1-1-7-1 | IROS (L)= 0-0-0-0
Matches
PV - CC 1CC - DC 6PV - DC 2
Health Index (PL)
PV: 9-1CC: 11-0DC: 10-0
1. friendship 180 2(R)
2. continuous learning 160 4(I)
3. compassion 128 7(R)
4. caution (L) 122 1(I)
5. sincerity 121 5(I)
6. social justice 118 7(S)
7. self-discipline 102 1(I)
8. optimism 95 5(I)
9. helpfulness 94 2(R)
10. caring 92 2(R)
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
1. continuous improvement 195 4(O)
2. environmental protection
104 1(O)
3. strict moral/religious codes
104 3(O)
4. political rights 102 3(O)
5. education 100 4(O)
6. nature conservancy 91 6(S)
7. shared vision 90 5(O)
8. information availability 88 3(O)
9. shared values 88 5(O)
10. contentment 87 5(I)
11. social justice 87 4(S)
1. education 115 4(O)
2. continuous improvement 113 4(O)
3. freedom of speech 113 4(O)
4. economic growth 107 1(O)
5. social justice 100 4(S)
6. contentment 93 5(I)
7. environmental protection 89 1(O)
8. compassion 83 7(R)
9. full employment 82 3(O)
10. strict moral/religious codes
82 3(O)
Values Plot Copyright 2009 Barrett Values Centre January 2009
3%
1%
2%
5%
12%
10%
25%
10%
14%
19%
0% 20% 40%
1
2
3
4
5
6
7
2%
1%
1%
8%
8%
13%
18%
10%
9%
32%
0% 20% 40%
1
2
3
4
5
6
7
2%
1%
1%
8%
8%
12%
17%
10%
11%
31%
0% 20% 40%
1
2
3
4
5
6
7
Bhutan: Group (403)
C
T
S
Values Distribution Copyright 2009 Barrett Values Centre January 2009
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 49-19-32Entropy = 6%
CTS = 37-32-31Entropy = 4%
CTS = 38-31-31Entropy = 4%
Personal Values
Current Culture Values
Desired Culture Values
73
Canadian National Assessment: Group (1250)
Level 7
Level 6
Level 5
Level 4
Level 3
Level 2
Level 1
Personal Values Current Culture Values Desired Culture Values
IRS (P)= 5-5-0 | IRS (L)= 0-0-0 IROS (P)= 1-0-2-1 | IROS (L)= 1-1-4-0 IROS (P)= 0-1-5-4 | IROS (L)= 0-0-0-0
Matches
PV - CC 0CC - DC 1PV - DC 0
Health Index (PL)
PV: 10-0CC: 4-6
DC: 10-0
1. honesty 577 5(I)
2. family 481 2(R)
3. caring 436 2(R)
4. humor/fun 427 5(I)
5. respect 371 2(R)
6. friendship 360 2(R)
7. responsibility 353 4(I)
8. positive attitude 324 5(I)
9. trust 322 5(R)
10. patience 313 5(I)
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
1. bureaucracy (L) 471 3(O)
2. human rights 444 7(S)
3. freedom of speech 375 4(O)
4. wasted resources (L) 371 3(O)
5. unemployment (L) 304 1(O)
6. crime/violence (L) 299 1(R)
7. law enforcement 284 3(O)
8. corruption (L) 274 1(O)
9. uncertainty about the future (L)
272 1(I)
10. quality of life 259 6(I)
1. accountability 511 4(R)
2. caring for the elderly 461 4(S)
3. affordable housing 450 1(O)
4. effective healthcare 400 1(O)
5. caring for the disadvantaged
377 4(S)
6. concern for future generations
356 7(S)
7. poverty reduction 342 1(O)
8. employment opportunities 337 1(O)
9. human rights 320 7(S)
10. governmental effectiveness
317 3(O)
Values Plot Copyright 2009 Barrett Values Centre May 2009
2%
2%
1%
6%
17%
10%
29%
7%
8%
18%
0% 20% 40%
1
2
3
4
5
6
7
16%
6%
10%
6%
4%
10%
6%
12%
12%
19%
0% 20% 40%
1
2
3
4
5
6
7
2%
1%
2%
14%
5%
12%
12%
15%
15%
23%
0% 20% 40%
1
2
3
4
5
6
7
Canadian National Assessment: Group (1250)
C
T
S
Values Distribution Copyright 2009 Barrett Values Centre May 2009
C = Common GoodT = TransformationS = Self-Interest
Positive ValuesPotentially Limiting Values
CTS = 44-18-38Entropy = 5%
CTS = 30-19-51Entropy = 32%
CTS = 42-23-35Entropy = 5%
Personal Values
Current Culture Values
Desired Culture Values
75
Development as ...
Development as Economic Growth (GNP)
USA, Iceland, Canada
Development as Human Happiness (GNH)
Bhutan
Whatever you focus on and measure is what you get.
76
Cultural Entropy and Fear
At any moment in time:
Cultural Entropy = RF + DNA F + SF + ∑PF
RF = Regime Fear
DNA F = Cultural DNA Fear
SF = Situational Fear
PF = Personal Fear
77
Cultural Fears Defined
There are three types of cultural fear:
a) Regime FearThe fear that is generated in totalitarian or authoritarian regimes that prevents people speaking the truth as they see it, and expressing a voice of dissention.
b) Cultural “DNA” FearThe fear that is based on the historical journey of
an ethnic group that is passed from one generation to the next about meeting its deficiency needs. Power – Distance, Individualism – Collectivism, Masculinity – Femininity, Uncertainty Avoidance
c) Situational FearThe fear that is generated by citizen’s reactions to events that destabilize the internal instability and external disequilibrium of the nation.
78
Personal Fear Defined
Personal fear has two components:
a) Quality of parental upbringingThe level of fear that we learn in our early years within in our family environment about satisfying our deficiency needs.
b) Cultural “DNA” FearThe fear that is based on the historical journey of an ethnic group that is passed from one generation to the next about meeting its deficiency needs.
79
Level of Fear vs. Democracy Index
Democracy Index
Leve
l of
Fea
r
1 2 3 4 5 6 7 8 9 100
50
100
150
200
250
300
350
Authoritarian Regime
Pseudo-Democracy
Electoral Democracy
Liberal Democracy
80
Full Democracies (Liberal Democracies)
Democracy Index
Level of
Fear
8 8.5 9 9.5 100
50
100
150
200
250
300
350
Denmark, Sweden, Norway, Netherlands, Finland, New Zealand, Switzerland, Australia, Canada, Spain, Germany, Ireland, Belgium, Italy, USA, UK, Greece, France, Portugal.
81
Democracy and Fear
The nations with the highest levels of Cultural DNA fear tend to be:
a) Poor—they have a level of per capita income below $10,000 that does not allow people to satisfy their physiological deficiency needs.
b) High Inequality—powerful elites and dominated masses.
c) The people do not feel safe. No Social Safety Nets.
The nations with the lowest levels of Cultural DNA fear tend to be:
a) Rich—they have achieved a level of per capita income that allows people to satisfy their physiological deficiency needs.
b) Egalitarian—the people pay very little attention to race, gender or class
divisions.
c) Social Safety Nets: The people feel cared for and safe—they trust that things will work out and are therefore at ease with uncertainty.
82
The Level of Trust in Democracies
At one end of the democracy continuum we have nations with strong fear-based cultures (pseudo-democracies), and at the other end of the continuum we have nations with high trust-based cultures (liberal democracies). We would expect therefore, to see that the nations with the highest levels of democracy operate with the highest levels of trust.
0 10 20 30 40 50 60 70 800
50
100
150
200
250
300
350
Most People can be trusted (% agreeing)
Level of
Fear
0 10 20 30 40 50 60 70 807.5
8
8.5
9
9.5
10
Most People can be trusted (% agreeing)
Dem
ocr
acy
In
dex
83
Trust and Inequality
0 10 20 30 40 50 60 70 80
Most People can be trusted (% agreeing)
Inco
me Inequalit
y
Low
Hig
h
People are more likely to trust each other in societies where income inequality is small, and less likely to trust each other where income inequality is large. The highest levels of trust in the world are found in the Nordic nations and the Netherlands.
84
How do we reduce fear and increase trust?
Reducing Cultural Fear
1. Evolve into a liberal democracy. Becoming a democracy begins to reduce the level of “regime” fear.
2. Reduce the level of Cultural DNA Fear by satisfying peoples’ physiological and psychological deficiency needs.
3. Reduce Inequality ... Increase trust
4. Manage and reduce the level of “Situational” fears.
85
How do we reduce fear and increase trust?
Reducing Personal Fear
1. Improve the quality of parenting (minimize learned fears associated with satisfying deficiency needs).
The depth and intensity of our learned personal fears depends on:
a) the level of cultural fear that is transmitted to us through our parents and close relatives, and
b) the psychological evolution of our parents—the level of individuation and self-actualization they have reached. The more individuated and self-actualized they are, the less personal fears we will assimilate during our childhood and teenage years.
86
There comes a moment in the evolution of every society when the complexity of life conditions that are impacting its survival become so overwhelming that it is impossible for any leader, no matter how intelligent, or any political party, no matter how skilled, to fully control the society’s future.
The only way to survive in such situations is to work together with other societies for the good of the whole. This has become a fundamental and urgent requirement on which the well-being of humanity now depends.
Richard Barrett
The Need for Global Governance
87
Stage 1:
Nations become viable and independent democracies
Stage 2:
Nations bond together to form regional group structures... Eg. European Union
Stage 3:
Regional Group Structures cooperate to form a higher order entity – global democratic governance
Getting to Global Governance
88
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