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June 9, 2013 Dr. Marilyn Taylor

June 9, 2013 Dr. Marilyn Taylor Institute for Values Based Leadership. School of Leadership Studies. Values Based Leadership and Organizational culture for High Performance and a Better world. Key Themes.

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June 9, 2013 Dr. Marilyn Taylor

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  1. June 9, 2013 Dr. Marilyn Taylor Institute for Values Based Leadership. School of Leadership Studies Values Based Leadership and Organizational culture for High Performance and a Better world

  2. 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

  3. INTRODUCTION: CONVENTIONAL ORGANIZATION LEADERSHIP

  4. 1 Organizational Consciousness Development Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  5. 2 1 Organizational Consciousness Development Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  6. 3 2 1 Organizational Consciousness Development Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  7. Acceleration of the Pace of Change • Technological change • Global connectivity • Interconnected global economy

  8. 4 3 2 1 Organizational Consciousness Development Consciousness of change: Learning and Innovation Consistent upgrade and learning Adaptability. Innovation. Collaboration. Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  9. A Lot of Improvements and Still a Lot of Problems

  10. “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 A Different Order of Change, not just Improvement

  11. ORGANIZATIONAL CULTURE

  12. 5 4 3 2 1 Organizational Consciousness Development Development of highly cohesive culture: Restrained passion, shared value Organizational Consciousness：Internal harmony Consciousness of change: Learning and Innovation Consistent upgrade and learning Adaptability. Innovation. Collaboration. Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  13. 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

  14. 6 5 4 3 2 1 Organizational Consciousness Development Strategic alliance and partnership Employee. Execution. Community. Participation Collective consciousness：Change of reality Development of highly cohesive culture: Restrained passion, shared value Organizational Consciousness：Internal harmony Consciousness of change: Learning and Innovation Consistent upgrade and learning Adaptability. Innovation. Collaboration. Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  15. 7 6 5 4 3 2 1 Organizational Consciousness Development Positive Focus/ Excessive Focus Serving humanity Ethics, social responsibility, the future generation. Social consciousness：Serving the society Strategic alliance and partnership Employee. Execution. Community. Participation Collective consciousness：Change of reality Development of highly cohesive culture: Restrained passion, shared value Organizational Consciousness：Internal harmony Consciousness of change: Learning and Innovation Consistent upgrade and learning Adaptability. Innovation. Collaboration. Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  16. 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 External cohesion 6 Internal cohesion Transformation 2 4 5 Self-esteem 7 8 1 Relationship 10 9 3 Survival

  17. Calculating Wasted Energy & Resources Current Culture 100 Employees 7 Service External cohesion 6 Internal cohesion 5 Transformation 4 Cultural Entropy Self-esteem 3 2 11% Relationship 1 Survival

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

  19. 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.

  20. Nedbank: Financial Impact of Cultural Evolution Share Price grew Revenue grew

  21. Key Financial Indicators

  22. Tor Enroth: Culture Manager at Volvo IT

  23. Volvo IT Culture – Over 10 Years 2003/ 2004 2008 2010 Grow Customer Focus – applying values in operations Ensure Resilience – Culture in Downturn 1999/ 2000 Grow ONE Company – the Volvo IT Identity Realize Strategy – Culture as an Enabler • 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 • Work with trust to decrease loss of faith and commitment in turbulent times • Maintain customer/ delivery focus • Build awareness & understanding of culture • 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 Culture - Tor Eneroth, 2010

  24. The Culture – Our Main Competitive Advantage Culture - Tor Eneroth, 2010

  25. Impact of Volvo IT Culture 2000 - 2009 Employee Satisfaction ESI 90% last 5 years Customer Satisfaction Improved more than 30% Delivery Precision From 55 to 90% Attractive employer Best in branch (IT) Culture - Tor Eneroth, 2010

  26. Investments in our Culture Pays Back! Consistently Shared Mission, Vision Values >500 Culture Ambassadors to facilitate and support “Dedicated and persistent work with our wanted culture is one of our mostcritical success factors” Systematic Approach Visible Results Customer Satisfaction 60 to 90% Employee Satisfaction ~90% Owners Trust Low to High! Delivery Precision 55 to 90% Attractive Employer Best in Class! >100 tools and methods for active dialogues and reinforcement

  27. Best Employers have Lowest Entropy This research of 163 organizations in Australia was carried out by Hewitt Associates and the Barrett Values Centre in 2008

  28. VALUES BASED LEADERSHIP

  29. Values–based leadership BALANCING HEALTHY SELF-INTEREST AND THE COMMON GOOD

  30. 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

  31. The Seven Styles of Leadership Positive Focus/Excessive Focus Wisdom/Visionary SERVICE TO HUMANITY Long-term perspective. Future generations. Ethics. COLLABORATION WITH CUSTOMERS AND LOCAL COMMUNITY Strategic allicances. Employee fulfilment. Environmental stewardship. Mentor/ Partner DEVELOPMENT OF CORPORATE COMMUNITY Positive, creative corporate culture. Shared vision and values. Integrator/ Inspirer Facilitator/ Influencer CONTINUOUS RENEWAL Promotes learning and innovation. Team builder. Empowers others. Manager/ Organiser BEING THE BEST. BEST PRACTICE Productivity, efficiency, quality, systems and processes. Bureaucracy. Complacency. Relationship Manager RELATIONSHIPS SUPPORTING CORPORATE NEEDS Good communication between employees, customers and suppliers. Manipulation. Blame. Crisis Director PURSUIT OF PROFIT & SHAREHOLDER VALUE Able to manage adversity. Directive. Willing to take charge. Exploitation. Over-control.

  32. Top Values All Values Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 • - Potentially Limiting Value Entropy = 5% • - Positive Value Canadians’ Personal Values 2009

  33. Impact of Leaders on Organizational Cultures Values Behaviors Personality Individual values and beliefs Character Individual behaviors Individual INFLUENCE Social Structures Group behaviors Culture Group values and beliefs Collective Based on the work of Ken Wilber

  34. INTERDEPENDENCE OF BUSINESS & SOCIETY

  35. 6 5 4 3 2 1 Organizational Consciousness Development Strategic alliance and partnership Employee. Execution. Community. Participation Collective consciousness：Change of reality Development of highly cohesive culture: Restrained passion, shared value Organizational Consciousness：Internal harmony Consciousness of change: Learning and Innovation Consistent upgrade and learning Adaptability. Innovation. Collaboration. Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  36. 7 6 5 4 3 2 1 Organizational Consciousness Development Serving humanity Ethics, social responsibility, the future generation. Social consciousness：Serving the society Strategic alliance and partnership Employee. Execution. Community. Participation Collective consciousness：Change of reality Development of highly cohesive culture: Restrained passion, shared value Organizational Consciousness：Internal harmony Consciousness of change: Learning and Innovation Consistent upgrade and learning Adaptability. Innovation. Collaboration. Policy and process control for high efficiency Bureaucracy. complacency Self Esteem consciousness：Organizational Reputation, Productivity Maintenance of stake holder relations in the organization Positive communication between Employee , customer and supplier. Manipulation. reprehension Relationship consciousness: Stake holder relations Seeking profit and share value. Stable financial management. . Utilization.Excessive control. Consciousness of survival: Striving for survival

  37. Re-Interpretation of Business as a Social Institution SOCIETY BUSINESS

  38. 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. Principles of Sustainable Banking

  39. 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.

  40. THANK YOU !

  41. (7) (6) (5) (4) (3) (2) (1) 原理、方法与工具 从人的需求到企业意识的七个层次 企业意识的七个层次 员工意识的七个层次 公共利益） 个人利益

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