VALUES-BASED LEADERSHIP Elizabeth Filippouli CEO & Founder Global Thinkers & Global Thinkers Forum

DECISION MAKING, VALUES, BELIEFS AND BEHAVIOURS Values-Based Leadership

How do we make Decisions? STAGE 1 Data Gathering STAGE 1 Data Gathering REACTION Instincts Subconscious beliefs REACTION Instincts Subconscious beliefs REFLECTION Intuition Inspiration REFLECTION Intuition Inspiration RESPONSE Conscious Beliefs Values RESPONSE Conscious Beliefs Values STAGE 2 Information Processing STAGE 2 Information Processing STAGE 3 Meaning- Making STAGE 3 Meaning- Making STAGE 4 Decision- Making STAGE 4 Decision- Making

Let’s Talk About Values 1. What are values? 2. Why are values so important? 3. What is the impact of Values on performance?

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.

What are Values vs. Beliefs? 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 Personal Values Video YouTube

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

Exercise Values vs. Beliefs vs. Behaviours (example) VALUESBELIEFSBEHAVIOURS IntegrityImportant for Genuine Relationships Being honest, genuine, transparent Risk-TakingNecessary for Development Open to trying new roads, exploring new pathways, risking money, effort FamilyCritical for a Balanced LifeMaintain a balanced work/life pattern

Positive Values and Potentially Limiting Values The concepts that values represent can be captured in one word or a short phrase. Limiting Values: Blame, power, status, manipulation, greed, internal competition, hierarchy, bureaucracy, etc. Positive Values: Honesty, integrity, openness, equality, creativity, long-term perspective, human rights, etc.

Whole System Change Process Values & Beliefs of the Individual Actions & Behaviours of the Individual Values & Behaviours of the Collective Actions & Behaviours of the Collective INTERNAL EXTERNAL INDIVIDUAL COLLECTIVE

Stages in Cultural Change InteriorExterior Individual Collective When the leaders values change The leaders behaviours change The values of the organization change Behaviours of organization change

Values and Leadership Tom Peters, “In Search of Excellence: Lessons from America’s best run companies”, 1983 The real role of the leader is to manage the values of the organization.

Values and Culture The Culture of an organizations is a reflection of leadership consciousness (values and beliefs) Organizational transformation begins with the personal transformation of the leaders Therefore

Values and Culture Cultural Capital is the new frontier of competitive advantage Who you are and what your organization stands for is vitally important to its success Successful companies promote from within. Unsuccessful companies bring in an external leader.

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.

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

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.

VALUES-BASED MODELS AND TOOLS FOR LEADERSHIP DEVELOPMENT AND CULTURAL TRANSFORMATION Values-Based Leadership

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.

Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment. Growth Needs When these needs are fulfilled they do not go away, they engender deeper levels of motivation and commitment. 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. 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. Physiological Safety Love & Belonging Self-esteem Know and Understand Abraham Maslow Self Actualization Hierarchy of Needs (Values) VALUES BASED BEHAVIOUR

Needs Needs to Societal Consciousness Abraham Maslow Self-Actualization Richard Barrett Physiological Safety Love & Belonging Self-esteem Know and Understand Consciousness

Survival Levels of Personal Consciousness Positive Focus / Excessive Focus Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship Financial Security & Safety Creating a safe secure environment for self and significant others. Control, greed Belonging Feeling 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 Growth Understanding your deepest motivations, experiencing responsible freedom by letting go of your fears Finding Personal Meaning Uncovering your sense of purpose and creating a vision for the future you want to create Collaborating with Partners Working with others to make a positive difference by actively implementing your purpose and vision Service to Humanity and the Planet Devoting your life in self-less service to your purpose and vision

Levels of Organisational Consciousness Positive Focus / Excessive Focus Financial Stability Shareholder value, organisational growth, employee health, safety. Control, corruption, greed Belonging Loyalty, open communication, customer satisfaction, friendship. Manipulation, blame High Performance Systems, processes, quality, best practices, pride in performance. Bureaucracy, complacency Continuous Renewal and Learning Accountability, adaptability, empowerment, teamwork, goals orientation, personal growth Building Corporate Community Shared values, vision, commitment, integrity, trust, passion, creativity, openness, transparency Strategic Alliances and Partnerships Environmental awareness, community involvement, employee fulfillment, coaching/mentoring Service To Humanity And The Planet Social responsibility, future generations, long-term perspective, ethics, compassion, humility Survival Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship

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. 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.

LVA for Darth Vader Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Darth's ValuesAssessors' Top 11 Values Matches 2 ambitiousLevel 3 courageLevel 4 creativityLevel 5 excellenceLevel 3 integrityLevel 5 long-term perspectiveLevel 7 passionLevel 5 results orientationLevel 3 strategic alliancesLevel 6 visionLevel 7 Orange = Values matchP = PositiveI = Individual L = Potentially Limiting R = Relationship (white circle)O = organisational achievementLevel 3 authoritarian (L)Level 1 being the bestLevel 3 competitive (L)Level 2 demanding (L)Level 2 determinationLevel 4 excellenceLevel 3 knowledgeLevel 4 power (L)Level 3 results orientationLevel 3 risk-takingLevel 4 PL = 10-0 | IRO (P) = | IRO (L) = PL = 7-4 | IRO (P) = | IRO (L) = How Darth sees himself How Others see Darth Matching Values

CTS = Entropy = 0% CTS = Entropy = 36% Darth's Values Assessors' Values Level of Personal Entropy LVA for Darth Vader C T S C T S

The culture of an organisation is a reflection of the leadership consciousness. power (L)11Level 3 blame (L)10Level 2 demanding (L)10Level 2 manipulative (L)10Level 2 experience9Level 3 controlling (L)8Level 1 arrogant (L)7Level 3 authoritarian (L)6Level 1 exploitative (L)6Level 1 ruthless (L)6Level 1 1. short-term focus (L)13Level 1 2. blame (L)11Level 2 3. manipulation (L)10Level 2 4. caution (L)7Level 1 5. cynicism (L)7Level 3 6. bureaucracy (L)6Level 3 7. control (L)6Level 1 8. cost reduction5Level 1 9. empire building (L)5Level image (L)5Level long hours (L)5Level 3 LV A Feedback 14 Assessors PL = 1-9 | IRO (P) = | IRO (L) = CVA Current Culture PL= 1-10 | IROS (P)= | IROS (L)= Cultural Entropy 38% Personal Entropy 64% Culture ValuesLeader’s Values Cultural Entropy and Personal Entropy

Personal Disorder Personal Entropy Represents the amount of fear-driven energy that a person expresses in his or her day-to-day interactions with other people. EntropyImpact 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 %Significant Issues: Requiring leaders to examine how their behaviours may be compromising relationships with peers and subordinates, and negatively impacting their goals %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.

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.

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) Survival Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship

Distribution of Values by Level Current Culture 100 Employees Cultural Entropy 11% Survival Service Making a Difference Internal Cohesion Transformation Self-esteem Relationship

Engineering Company (339) Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal ValuesCurrent Culture ValuesDesired Culture Values IRS (P)= | IRS (L)= IROS (P)= | IROS (L)= IROS (P)= | IROS (L)= Matches PV - CC1 CC - DC4 PV - DC2 Health Index (PL) PV: 10-0 CC: 7-3 DC: honesty 1695(I) 2. accountability 1654(R) 3. commitment 1505(I) 4. continuous learning 924(I) 5. balance (home/work) 914(I) 6. family 912(R) 7. self-discipline 911(I) 8. responsibility 894(I) 9. respect 812(R) 10. open communication 762(R) Black Underline = PV & CCOrange = CC & DCP = PositiveL = Potentially Limiting I = IndividualO = Organizational Orange = PV, CC & DCBlue = PV & DC(white circle)R = RelationshipS = Societal 1. continuous improvement 1114(O) 2. customer satisfaction 1112(O) 3. safety conscious 1021(O) 4. cost reduction 881(O) 5. job insecurity (L) 771(O) 6. inconsistent (L) 753(I) 7. teamwork 744(R) 8. accountability 714(R) 9. blame (L) 712(R) 10. corporate image 643(O) 1. accountability 1804(R) 2. customer satisfaction 1472(O) 3. continuous improvement 1434(O) 4. employee development 1114(O) 5. employee recognition 962(R) 6. commitment 955(I) 7. inspirational leadership 956(O) 8. employee fulfilment 946(O) 9. teamwork 904(R) 10. professionalism 803(O)

C T S Values Distribution C = Common Good T = Transformation S = Self-Interest Positive Values Potentially Limiting Values CTS = Entropy = 3% CTS = Entropy = 23% CTS = Entropy = 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 Engineering Company (339) C T S

Cultural Disorder Cultural Disorder Represents the degree of dysfunction (the amount of fear-driven energy that is found in a human group structure) EntropyImpact 0 -10%Healthy: This is a low and healthy level of cultural entropy %Minor Issues: This level of cultural entropy reflects issues requiring cultural or structural adjustment %Significant Issues: This level of cultural entropy reflects significant issues requiring cultural and structural transformation and leadership coaching %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.

FOUR CONDITIONS FOR CULTURE CHANGE Values-Based Leadership

Cultural Disorder and Personal Disorder Where does cultural disorder (or 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.

Human Systems InteriorExterior Individual Collective Personality Values and Beliefs of the Leaders Personality Values and Beliefs of the Leaders Character Actions and Behaviours of the Leaders Character Actions and Behaviours of the Leaders Culture Values and Beliefs of the Organization Culture Values and Beliefs of the Organization Society Actions and Behaviours of the Organization Society Actions and Behaviours of the Organization Based on the Work of Ken Wilber

Four Conditions for Culture Change Interior Exterior Individual Collective Personality : Values and Beliefs of an Individual Personality : Values and Beliefs of an Individual Culture : Values and Beliefs of an Organisation Culture : Values and Beliefs of an Organisation Social Structures : Actions and Behaviours of an Organisation Social Structures : Actions and Behaviours of an Organisation Character : Actions and Behaviours of an Individual Character : Actions and Behaviours of an Individual Mission Alignment Values Alignment Structural Alignment Personal Alignment

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”

Questions to reflect on VALUES & discuss What are the shared values that we need for us to be successful in our team? Is our team motivated enough? If no, why? What are the values that create motivation and spirit in our team? What behaviours will be critical in our interactions with the stakeholders to our team? How is our level of trust within our team? Is it healthy and productive or does it need to be addressed?

Questions to reflect on LEARNING & discuss How shall we work to bring the collective team knowledge and experiences to the surface and benefit from it? How can we learn from our experiences during our daily operations? Do we give ourselves enough time to connect? In what way could this team contribute to my personal and professional growth?

Thank you! Elizabeth Filippouli CEO, Global Thinkers & Global Thinkers Forum Can we help you with a Values/Culture Assessment? Can we help your organization transform?