Creating the Future: Building Values-Based Leadership National Symposium - Their Lives, Our Work Niran Jiang

1. Creating the Future:Building Values-Based LeadershipNational Symposium - Their Lives, Our WorkNiran Jiang May 17, 2007 www.ihexcellence.org

2. Whole SystemChange • Change at level of consciousness deeper than its manifestation • Whole system vision and interconnection must be addressed • The whole system for organisations embraces the planet and humanity • Whole system principles of change apply at both macro and micro levels • Connecting head with heart in a whole system framework • It is about getting in touch with humanity – have the courage to walk the talk! Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

3. Vision Long term Future generations BroadSociety and geographical Deep Reflective and spiritual Inclusive Interdependence, Integral Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

4. Broad Inclusive Vision spirituality the universe nationality nature religion shared interest sport team county family home peers work team race colour pop stars planet earth locality animals company industry language humanity environment Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

5. 1800 2000 Self Actual. Self-Belief Status & Recognition Social & Belonging Security & Shelter Basic Survival A Crisis: 6 out 10 Staff find Work Miserable ! Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

6. Today’s Business Drivers • Time • Fear • The Bottom Line We must abandon the FEAR paradigm of old for a new paradigm of TRUST in ourselves, in others, and in progress. Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

7. Failing Leadership • Traditional leadership is in decline • In Business, in Politics and in Religion • Without a respected outer authority, standards and ethics are abandoned and liberalisation becomes licence. Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

8. Future Leadership • Two forms of leadership arise • New leaders with new qualities • Inner leadership among a wider constituency • Inner leadership qualities are evoked by self-development. Values emerge that are sustainable and universal unlike those that were previously imposed. Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

9. Frontiers of Competitive Advantage Consciousness Age – Cultural Capital Information Age – Intellectual Capital Industrial Age – Quality of Product Agrarian Age - Manpower Time 1800 1900 2000 2100 Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

10. The New Operating Reality • Change is accelerating (technological,social and economic) • Risk and uncertainty are increasing (terrorism, global warming and globalisation) • Complexity is increasing • Interdependency is increasing (economic and technological) • Ethics and public opinion are increasingly influencing Corporate decision-making Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

11. Resilience • Given the new operating reality, the critical question is: How do you build an organisation that can survive and thrive in an uncertain world? By building a strong, adaptive and resilient core culture that is values-driven. Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

12. Culture Geert Hofstede defines organisational culture as: “The collective programming of the mind (values, beliefs and behaviours) which distinguishes the members of one organisation from another.” Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

13. The Iceberg Balance Sheet Tangible Drivers FinancialCapital Community Capital SocietalCapital Intangible Drivers Cultural Capital Structural Capital Intellectual Capital Social Capital Intangible value drivers represent 60% - 85% of a Company’s Market Value. Source: INNOVEST Investment Research Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

14. From Leaders’ Values to Mission Performance GOVERNMENT SECTOR Leaders’ Values/Behaviors Organizational Culture Sustainable Performance Mission Assurance Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

15. Environment • Behaviours & • Performance • Competency &Capability • Attitudes & Motivations • Beliefs & Values • Identity & Purpose Where does performance come from? Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

16. Values • Values that emerge from within during personal development • Ethical behaviour that reflects those values • Values are all inclusive • Values are not adopted from parents, social norms or religion Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

17. PAST EXPERIENCE Recall a grandparent or teacher who had a very positive impact on you. What did they do that you liked so much? (attitude and behaviour) How did they make you feel? Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

18. They …. Treated me as an equal, adult Listened to my point of view Believed that I could … Challenged me Fun, enthusiasm Cared for me, safe, support Trusted and respected me Gave me time and full attention Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

19. I felt …. • Special • Valued • Confident • Self belief Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

20. Leadership Challenge “A leader is someone people want to follow” Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

21. THE IMPORTANCE OF EQ EQ EQ 85% 66% IQ 33% IQ 15% All Kinds of Jobs Leadership Jobs One of Daniel Goleman’s research findings Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

22. EMOTIONAL INTELLIGENCE • The capacity to recognise our own feelings, and those of others… • …to motivate ourselves and managing our emotions well in ourselves and in our relationships. • Daniel Goleman 1995 Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

23. THE QUADRANTS OF EQ All change starts here Self Others Self Awareness Awareness of Others Self Social Management Skills Actions Awareness Positive impact on others Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

24. AWARENESS is “Self-Realised High Quality Relevant Input” Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

25. RESPONSIBILITY is “The Performer’s Choiceto Take Ownership” Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

26. EQ and Values Feedback that your emotional intelligence gives is values laden. • It comes directly from the soul • It tells us what we feel is right and what we feel is wrong • It is not based on the logic of the mind but on the intuition of the heart Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

27. Ericsson Ford Motor Co. Beyond Petroleum IKEA ING Bank Nestle Kraft L’Oreal Microsoft AGSM Mars Ernst & Young McKinsey & Co. PricewaterhouseCoopers KPMG Siemens Volvo Unilever Telstra World Bank Cultural Transformation Tools Some of the 600+ CTT Users in 28 Countries: Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

28. Seven Corporate Transformation Tools • Individual Assessments • Team Culture Assessments • Corporate Culture Assessments • Mergers and Acquisitions Compatibility • Cultural Compatibility Assessments – Selection of New Employees • Customer Assessment of Corporate Values • Leadership Values Assessments Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

29. Seven Levels of Organisational Excellence Clarifies the values of individuals and organisations by mapping values on the Seven Levels of Consciousness. Measurement matters. If you can’t measure it, you can’t manage it. Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

30. Values-Based Leadership Model * Crisis Director Manage adversity, deliver results Value Drivers: • Financial Growth • Shareholder Value • Viability * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

31. Values-Based Leadership Model * Relationship Manager Promotes positive relationships internally and externally Value Drivers: • Customer Satisfaction • Open Communication • Respect * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

32. Values-Based Leadership Model * Manager/Organiser Manage process and system, best practice builder Value Drivers: • Efficiency • Productivity • Quality * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

33. Values-Based Leadership Model * Facilitator/Influencer Empowers others, promotes learning & innovation Value Drivers: • Continuous Improvement • Diversity • Teamwork * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

34. Values-Based Leadership Model * Integrator/Inspirer Creates cohesion, shared values/vision, & community spirit Value Drivers: • Integrity • Cooperation • Trust * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

35. Values-Based Leadership Model * Mentor/Partner Systems perspective, promote alliances and partnerships Value Drivers: • Mentoring • Collaboration • Making a Difference * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

36. Values-Based Leadership Model * Wisdom/Legacy Service to humanity, global vision for sustainability Value Drivers: • Justice • Future Generations • Humility * Cultural Transformation Tools is a proprietary model developed by Richard Barrett & Associates LLC Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

37. 7 6 5 4 3 2 1 The Seven Levels of Leadership Excellence Being (Meaning/Purpose) Significance Wisdom/Legacy Mentor/Partner Integrator/Inspirer Facilitator/Influencer Manager/Organizer Success Relationship Manager Crisis Director Doing (Skill/Competency) Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

38. Positive Focus / Excessive Focus SERVICE TO HUMANITY Long-term perspective. Future generations. Ethics. 7 WISDOM/VISIONARY COLLABORATION WITH CUSTOMERS & THE LOCAL COMMUNITY 6 Strategic alliances. Employee fulfillment. Environmental stewardship. MENTOR/PARTNER 5 DEVELOPMENT OF CORPORATE COMMUNITY INTEGRATOR/INSPIRER Positive, creative corporate culture. Shared vision and values. CONTINUOUS RENEWAL 4 FACILITATOR/INFLUENCER Promotes learning and innovation. Team builder. Empowers others. BEING THE BEST. BEST PRACTICE MANAGER/ORGANIZER 3 Productivity, efficiency, quality, systems and processes. RELATIONSHIPS THAT SUPPORT ORG NEEDS 2 RELATIONSHIP MANAGER Good communication between employees, customers and suppliers. PURSUIT OF ORG VALUE & MISSION 1 CRISIS DIRECTOR Able to manage adversity. Directive. Willing to take charge. The Seven Levels of Leadership Excellence Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

39. “If I had one hour to save the world, I would spend 50 minutes defining the problems and 10 minutes executing the solutions” • Albert Einstein Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

40. The Leader and the Current Culture Luxury Products Distributor Current Culture Values 2006 (CVA) Leader’s Values 2006 (LVA) Bureaucracy Empire building Image Blame Cynicism Manipulation Control Caution Short-term focus Cost reduction Demanding (8) (L) Arrogant (7) (L) Blame (6) (L) Authoritarian (5) (L) Experience (5) Information hoarder (5) (L) Manipulative (5) (L) Ruthless (5) (L) Positive attitude (4) Entropy = 64% Entropy = 52% Current Culture Nine limiting values in the Current Culture.Very high level of cultural entropy = 64% LVA Results Seven limiting values.Very high level of personal entropy = 52% Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

41. Smooth Sailing 1. blame L 2. short term focus L 3. internal competition L 4. buck passing L 5. risk averse L 6. customer satisfaction 7. information hoarding L 8. profit A Tale of Two Cultures Sinking Ship 1. client satisfaction 2. client collaboration 3. integrity 4. teamwork 5. humour/fun 6. quality 7. balance (home/work) 8. financial stability Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

42. Cultural Performance Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

43. ANZ Bank: People are the key driver of long-term competitive advantage Share price • Talented people • Sustainable leadership • Growth opportunities • Return on equity • Cost of capital • Strong brand • Vibrant culture $26.50 Strategic Focus $18.30 The average compound growth rate18% per annum since 1998 $9.66 Intangible net assets per share Tangible net assets per share Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

44. ANZ Bank: Evolution of Profit * including significant items under AGAAP Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

45. ANZ Group overall employee satisfaction Cultural Transformation Program Begins Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

46. ANZ Bank: Current Culture 2000 to 2005 2002 2003 2000 2001 2005 cost reduction customer focus shareholder value accountability continuous improvement profit results orientation achievement community involvement customer satisfaction teamwork being the best organisational growth bureaucracy balance (home/work) long hours productivity brand image hierarchical can do approach commitment 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. cost reduction profit shareholder value results orientation accountability continuous improvement customer focus bureaucracy achievement goals orientation hierarchical short term focus long hours commitment risk aversion cost reduction shareholder value accountability customer focus profit results orientation continuous improvement achievement bureaucracy being the best customer satisfaction goals orientation brand image organisational growth long hours teamwork control hierarchical commitment community involvement customer focus cost reduction accountability continuous improvement achievement profit results orientation community involvement shareholder value customer satisfaction teamwork bureaucracy being the best hierarchical balance (home/work) commitment long hours organisational growth brand image productivity customer focus community involvement cost reduction accountability results orientation brand image achievement profit bureaucracy customer satisfaction continuous improvement shareholder value teamwork being the best balance (home/work) perform best practice long hours organisational growth hierarchical Key: Enhancing valuesLimiting values Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

47. ANZ has materially outperformed peers in efficiency Cost to Income • The Australian banking sector has enjoyed a decade of efficiency gains • ANZ has outstripped its competitors and has achieved world class efficiency • ANZ was in the top 5 banks in the world in terms of efficiency, TSR and risk-adjusted relative shareholder return over the five years to 2003 Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE Source: Published financial reports

48. ANZ Next Steps: Total Organisational Coherence Personal Values Current ANZ Values 2003 Desired ANZ Values 2003 Key focus in next phase Sustainable Holistic Coherent Transformational Best-practice Professional Viable Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

49. Case Example - Background • One of the fastest growing IT services company in the Asia Pacific region with more than 500 people. • IHE engaged in 2005, to design/deliver a change program to expand their leadership capacity and to build a high performance culture. • The business objectives behind are to sustain performance, retain talents and improve shareholders’ value. • On top of that, the MD of the company clearly stated that they wanted to go beyond performance excellence to create “happiness” in their work environment. • Through one on one interviews with all senior managers, a range of issues were identified, including structural impediments, hidden/limiting values, resource misalignment, change weariness, inconsistent management language, rocky communication and minimal collaborations. Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE

50. Case Example - Objectives • Three key areas of focus for change were identified • Develop values-based leadership capability as a foundation to activate culture change in the organisation • Shift senior managers’ focus from managing results to managing people, and broaden their performance management spectrum to include the intangibles • Balance individual excellence with teamwork excellence and create a shared culture identity and organisational cohesion Cultivating Human Excellence in People and Organisations Copy right contents, not to be used for commercial purposes without prior permission from IHE