june 9, 2013 dr. marilyn taylor institute for values based leadership. school of leadership studies...

June 9, 2013Dr. Marilyn TaylorInstitute for Values Based Leadership. School of Leadership Studies

VALUES BASED LEADERSHIP AND ORGANIZATIONAL CULTURE FOR HIGH PERFORMANCE AND A BETTER WORLD

Key Themes

• Organizational Culture --it’s significance and how we’re learning to improve it;

• Values Based Leadership – it’s critical role and how we might develop more of it; and

• Interdependence of Business and Society –how it is being recognized and its prospect for building a better world

INTRODUCTION:

CONVENTIONAL ORGANIZATION

LEADERSHIP

Consciousness of survival: Striving for survival

Seeking profit and share value. Stable financial management. . Utilization.Excessive control.1

Organizational Consciousness Development

http://www.valuescentre.com/

Relationship consciousness: Stake holder relations


Maintenance of stake holder relations in the organizationPositive communication between Employee , customer and supplier.

Manipulation. reprehension

Seeking profit and share value. Stable financial management. . Utilization.Excessive control.

2

1



Self Esteem consciousness：Organizational Reputation, Productivity



Policy and process control for high efficiencyBureaucracy. complacency




3

2

1



Acceleration of the Pace of Change

• Technological change• Global connectivity• Interconnected global

economy

Consciousness of change: Learning and Innovation




Consistent upgrade and learningAdaptability. Innovation. Collaboration.





3

2

1

4



A Lot of Improvements and Still a Lot of Problems

10

A Different Order of Change, not just Improvement

• “Discontinuous change requires discontinuous thinking. If a new way of doing things is going to be different from the old, not just an improvement on it, then we shall need to look at everything in a new way.” *

Charles Handy (1990) The age of unreason. Harvard Business School Press, p. 23

ORGANIZATIONAL CULTURE

Organizational Consciousness：Internal harmony





Development of highly cohesive culture:Restrained passion, shared value






3

2

1

5

4



What is Culture?

“...a pattern of basic assumptions—invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal integration...” p. 9

How things get done around here

Collective consciousness：Change of reality












6

3

2

1

5

4

Strategic alliance and partnershipEmployee. Execution. Community. Participation



Positive Focus/ Excessive Focus

Social consciousness：Serving the society







Serving humanityEthics, social responsibility, the future generation.







7

6

3

2

1

5

4




Placement of Values by Level

16

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

External cohesion

Internal cohesion

Transformation

Self-esteem

Relationship

Survival

4422 55

77

99

66

88

33

110


Calculating Wasted Energy & ResourcesCurrent Culture 100 Employees

Service

External cohesion

Internal cohesion

Transformation

Self-esteem

Relationship

Survival

11%

Cultural Entropy

1

2

3

4

5

6

7


Entropy 13%Entropy 25% Entropy 19% Entropy 17% Entropy 14%

Nedbank: Tracking Current Culture

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

2009

1. accountability2. client-driven 3. client satisfaction 4. cost-consciousness5. community involvement 6. achievement7. teamwork 8. employee recognition 9. being the best10. performance driven

5 matches4 matches4 matches3 matches 6 matches


25%

19%17%

14%13%

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009

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


Revenue grew

Share Price grew

Nedbank: Financial Impact of Cultural Evolution

78

100

134 136

96

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008

Closing share price (Rand)

1402715809

18948

22428 22077

0

5000

10000

15000

20000

25000

2004 2005 2006 2007 2008

Revenue Rm (operating income)


Key Financial Indicators

For the year ended 2005 2004 2003

Headline earnings Rm 3 167 1 743 55

Headline EPS cents 797 483 19

ROE % 15,5 11,1 0,4

Tor Enroth: Culture Manager at Volvo IT

Volvo IT Culture – Over 10 Years

1999/ 2000

Realize Strategy – Culture as an Enabler

2003/ 2004 2008 2010

Grow ONE Company – the Volvo IT Identity

Grow Customer Focus – applying values in operations

Ensure Resilience – Culture in Downturn

- Build a company with one culture, uniting people with different backgrounds- Build awareness & understanding of culture

- Apply our values in our work with customers, make sure we live our values- Build awareness & understanding of culture

- Work with trust to decrease loss of faith and commitment in turbulent times- Maintain customer/ delivery focus- Build awareness & understanding of culture

- Emphasize the connection to our new strategy and the requirements it poses on our culture and brand- Focus on making culture an enabler for expected business benefits

Culture - Tor Eneroth, 2010

The Culture – Our Main Competitive Advantage


Impact of Volvo IT Culture 2000 - 2009

Improved more than 30%Customer Satisfaction

ESI 90% last 5 yearsEmployee Satisfaction

From 55 to 90% Delivery Precision

Best in branch (IT)Attractive employer


Investments in our Culture Pays Back!

>500 Culture Ambassadors to facilitate and support

“Dedicated and persistent

work with our

wanted culture

is one of our most

critical success

factors”Visible ResultsCustomer Satisfaction 60 to 90%Employee Satisfaction ~90%Owners Trust Low to

High!Delivery Precision 55 to 90%Attractive Employer Best in

Class!

Systematic Approach

>100 tools and methods for active dialogues and reinforcement

>100 tools and methods for active dialogues and reinforcement

Consistently Shared Mission, Vision Values

Best Employers have Lowest Entropy

Staff Engagement Cultural Entropy

Tier 1 (Best) 89% 5%

Tier 2 76% 8%

Tier 3 55% 15%

Tier 4 (Worst) 40% 21%

This research of 163 organizations in Australia was carried out by Hewitt Associates and the Barrett Values Centre in 2008


VALUES BASED LEADERSHIP

BALANCING HEALTHY SELF-INTEREST AND THE COMMON GOOD

VALUES–BASED LEADERSHIP

Some Features of Values Based Leadership

• Develops shared vision and values linked to strategy and structure

• Fosters employee development and invites their leadership and responsibility

• Recognizes employees’ meanings in their work• Models their values in action • Creates enduring commitment in stakeholder

relationships and in the wider community• Keeps a long term perspective

The Seven Styles of Leadership

Wisdom/Visionary

Mentor/ Partner

Integrator/ Inspirer

Facilitator/ Influencer

Manager/ Organiser

Relationship Manager

Crisis Director

SERVICE TO HUMANITYLong-term perspective. Future generations. Ethics.

COLLABORATION WITH CUSTOMERS AND LOCAL COMMUNITY

Strategic allicances. Employee fulfilment. Environmental stewardship.

DEVELOPMENT OF CORPORATE COMMUNITYPositive, creative corporate culture. Shared vision and

values.

CONTINUOUS RENEWALPromotes learning and innovation. Team builder.

Empowers others.

BEING THE BEST. BEST PRACTICEProductivity, efficiency, quality, systems and processes.

Bureaucracy. Complacency.

RELATIONSHIPS SUPPORTING CORPORATE NEEDSGood communication between employees, customers and

suppliers.Manipulation. Blame.

PURSUIT OF PROFIT & SHAREHOLDER VALUEAble to manage adversity. Directive. Willing to take

charge.Exploitation. Over-control.

Positive Focus/ Excessive Focus


Canadians’ Personal Values 2009

1. Honesty

2. Family

3. Caring

4. Humor/Fun

5. Respect

6. Friendship

7. Responsibility

8. Positive Attitude

9. Trust

10. Patience

All Values

Entropy = 5%

- Potentially Limiting Value

- Positive Value

Level 7

Level 6

Level 5

Level 4

Level 3

Level 2

Level 1

Top Values

Impact of Leaders on Organizational Cultures

PersonalityIndividual values

and beliefs

Character Individual behaviors

CultureGroup values and beliefs

Social Structures

Group behaviors

Individual

Collective

Values Behaviors

Based on the work of Ken Wilber

INFLUENCE


INTERDEPENDENCE OF

BUSINESS & SOCIETY













6

3

2

1

5

4




Social consciousness：Serving the society







Serving humanityEthics, social responsibility, the future generation.







7

6

3

2

1

5

4




Re-Interpretation of Business as a Social Institution

SOCIETY

BUSINESS

SOCIETY

BUSINESS

PRINCIPLES OF SUSTAINABLE BANKING

1. Triple bottom line approach (people, planet, prosperity) at the heart of the business model;

2. Grounded in communities, serving the real economy and enabling new business models to meet the needs of both;

3. Long-term relationships with clients and a direct understanding of their economic activities and the risks involved;

4. Long-term, self-sustaining, and resilient to outside disruptions;5. Transparent and inclusive governance;6. All of these principles embedded in the culture of the bank.

http://www.gabv.org/

Values Based Leaders have a Wider Perspective“... the distinguishing feature of “firms of endearment” is that they treat all stakeholders—employees, customers, investors, partners, and society—equally. In addition, they fully recognize that they are a part of an economic ecosystem with many interdependent participants. They are committed to exemplary citizenship, and they embrace the concept of servant leadership.

THANK YOU !

原理、方法与工具

从人的需求到企业意识的七个层次

员工意识的七个层次

企业意识的七个层次

服务社会服务社会

变革现实变革现实

人生意义培养内涵

个人成长转换升华

个人成就

自我尊严自我尊严

人际关系各方关系

健康安全求得生存

(1)

(2)

(3)

(4)

(5)

(6)

(7)

公共利益）

个人利益


june 9, 2013 dr. marilyn taylor institute for values based leadership. school of leadership studies...

Documents

excessive control

process control

based leadership

reprehensionseeking

high efficiencybureaucracy

high performance

survivalseeking profit

different order of change