The Importance of Values in

Building a High Performance

Culture
ByRichardBarrett

Abstract
Valuesstandattheverycoreofhumandecisionmaking.Whenweworkinan
organisationwhoseculturealignswithourpersonalvalues,wefeelliberated.Weare
abletobringourfullselvestowork.Wenotonlybringourenergy,ourcreativity,and
ourenthusiasm,wealsobringourcommitmenttothewellbeingofourassociatesand
thesuccessoftheorganisation.Unleashingthisenergyistantamounttoliberatingthe
corporatesoul.

Thecentralroleofvalues
Therearefourcriticalissuespreoccupyingtheboardroomsofbothlargeandsmall
companiesaroundtheworld:
Howdoweincreaseprofitsandshareholdervalue?
Howdoweattractandkeeptalentedpeople?
Howdowebuildbrandloyalty?
Howdoweensurethatethicspermeatethecorporateculture?Howdowebuild
aresilient,sustainablecompany?
Thecriticalissuesfacingtheleadersofourpublicservicesare:
Howdowedeliverhighquality,costeffectiveservices?
Howdoweattractandkeeptalentedpeople?
Howdoweensurethatethicspermeatetheinstitutionalculture?
Howdowebuildaresilient,sustainablesociety?

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Thekeytothesecoreissues,inbothprivateandpublicsectororganisations,isfoundin
buildingahighperformanceculture.
Intheprivatesector,thecultureofanorganisationistheprincipalsourceofits
competitiveadvantageandbranddifferentiation.Inthepublicsector,thecultureofan
agencyistheprincipalsourceofitscosteffectivenessandthequalityofservices.
Ourexperienceinmappingthevaluesofmorethan2,000privateandpublicsector
institutionsoverthepasttenyearsinmorethan60countriesallowsustostate
categoricallythatvaluesdrivenorganisationsarethemostsuccessfulorganisationson
theplanet.Thereasonsforthisaresimpletodecipher.
Intheprivatesector:
Valuesandbehaviorsdriveculture
Culturedrivesemployeefulfillment
Employeefulfillmentdrivescustomersatisfaction
Customersatisfactiondrivesshareholdervalue
Inthepublicsector:
Valuesandbehaviorsdriveculture
Culturedrivesemployeefulfillment
Employeefulfillmentdrivesmissionassurance
Missionassurancedrivescustomersatisfaction
Inbothprivateandpublicsectors,thekeytosuccesswhetheritisintermsof
employeeorcustomersatisfactionbeginswiththevaluesoftheorganisation.When
wespeakaboutvalues,wearetalkingaboutthedeeplyheldprinciples,ideals,or
beliefsthatpeopleholdoradheretowhenmakingdecisions.Individualsexpresstheir
valuesthoughtheirpersonalbehaviors;organisationsexpresstheirvaluesthrough
theirculturalbehaviors.
Valuescanbepositive,ortheycanbepotentiallylimiting.Forexample,thepositive
valueoftrustisfundamentalforcreatingacohesivegroupculture.Ontheother
hand,thepotentiallylimitingvalueofbeinglikedcancausepeopletocompromise
theirintegrityinordertosatisfytheirneedforconnection.Similarly,thepotentially
limitingvalueofbureaucracycancauserigidityandlimittheagilityofan
organisation.
Ourresearch1,andthatofothers,showsthatthereisastronglinkbetweenfinancial
performanceandthealignmentofanorganisationsculturalvalueswithemployees

Richard Barrett, Building a Values-Driven Organization: A Whole-System Approach to Cultural

Transformation, Boston: Butterworth-Heinemann, 2006.

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personalvalues.Inotherwords,whoyouareandwhatyoustandforisbecomingjust
asimportantasthequalityofproductsandservicesyouprovide.
InCorporateCultureandPerformance,JohnP.KotterandJamesL.Heskettshowthat
companieswithstrongadaptiveculturesbasedonsharedvaluesoutperformother
companiesbyasignificantmargin.2Theyfoundthat,overanelevenyearperiod,the
companiesthatcaredforallstakeholdersgrewfourtimesfasterthancompaniesthat
didnot.Theyalsodiscoveredthatthesecompanieshadjobcreationratesseventimes
higher,stockpricesthatgrewtwelvetimesfaster,andaprofitperformanceratiothat
was750timeshigherthancompaniesthatdidnothavesharedvaluesandadaptive
cultures.
InBuilttoLast:SuccessfulHabitsofVisionaryCompanies,JimCollinsandJerryPorras
showthatcompaniesthatconsistentlyfocusedonbuildingstrongvaluesdriven
culturesoveraperiodofseveraldecadesoutperformedcompaniesthatdidnotbya
factorofsix,andoutperformedthegeneralstockmarketbyafactoroffifteen.3
InFirmsofEndearment,Sisodia,WolfeandSethshowsthatcompaniesthatcareforall
stakeholdersequallyemployees,customers,investors,partnersandsocietyare
committedtoexemplarycitizenship,andembraceservantleadershipoutperformed
theS&P500andthegreatcompaniesidentifiedbyJimCollinsinGoodtoGreatby
significantmarginsoverthelongterm(SeeFigure1).4Accordingtotheauthors,these
companieshadahumanisticsoul.

2 John P. Kotter and James L. Heskett, Corporate Culture and Performance, New York: The Free Press,
1992.
3 James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies, New York:
Harper Collins, 1994.
4
Rajendra S. Sisodia, David B. Wolfe, Jagdish N. Seth. Firms of Endearment: The Pursuit of Purpose and
Profit. Upper Saddle River, New Jersey: Wharton School of Publishing, 2007.

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1200%

1000%

800%

600%

400%

200%

0%
3 Years
S&P 500

5 Years
Good to Great

10 Years

Firm s of Endearm ent

Investor
Returns

S&P500

Goodto
Great

Firmsof
Endearment

3years

38%

75%

73%

5years

13%

77%

128%

10years

122%

331%

1,026%

Figure1Three,five,andtenyearinvestorreturns

CultureandLeadership
Thevaluesthatmakeupthecultureofanorganisationareeitherareflectionofthe
underlyingbeliefsofthecurrentleadersparticularlythechiefexecutiveortheyare
thereflectionoftheheritageofpastleaders.
Mostorganisationsoperatewithdefaultcultures.Becausenooneismeasuringor
payingattentiontotheculture,theunderlyingvaluesandbeliefsoftheleaders
becomethewaythingsaredonearoundhere.
Whenthereisalackofalignmentbetweenthevaluesofthecultureofthe
organisationandthepersonalvaluesofemployees,theresultislowperformance,
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whichcanfurtherresultinlowlevelsofstaffengagementandpoorqualityofproducts
andservices.Allofthesefactorscanhaveasignificantimpactonthefinancial
performanceoftheorganisationoritsabilitytodeliverservicesofsustainablehigh
quality.
Ontheotherhand,whenthevaluesoftheorganisationareinalignmentwiththe
aspirationalvaluesofemployees,theresultishighperformance.Thereisahighlevel
ofstaffengagementandapursuitofexcellenceregardingthequalityofproductsand
services.
Therearetwoothermajorbenefitstovaluesalignment.First,whenvaluesarealigned,
thecultureofanorganisationisabletoattractandretaintalentedindividuals.This
givesorganisationsasignificantcommercialadvantage,especiallywhentalentisin
shortsupply.Second,valuesalignmentbuildsastrongbrand.Brandvaluesand
companyvaluesaretwosidesofthesamecoin.Thestrongestexternalbrandsare
alwaysthosewiththestrongestinternalcultures.
Ultimately,therefore,whetherwearetalkingabouthighperformance,brand
differentiation,orretainingtalentedindividuals,thesuccessofanorganisationis
directlyrelatedtothedegreeofalignmentthatexistsbetweentheunderlyingvalues
oftheleadersandtheaspirationalvaluesofemployees.Longterm,sustainable
successishighlydependentontheculturethattheleaderscreate.
Significantly,theculturethatleaderscreateishighlydependentonthebehaviorsof
theleadersandtheirrelationshipstootherleadersintheorganisation,andontheir
relationshipswiththeiremployees.Leaderswhoseenergiesarewrappedupinstatus
seeking,empirebuilding,andinternalcompetitioncreatetoxicenvironmentswith
littleornoorganisationalcohesion.Leaderswhosharethesamevisionandvalues,
whoworkforthecommongood,andfocusoninternalcommunitybuildingcreate
internalcohesionandvaluesalignment.
Toputitanotherway,organisationaltransformationbeginswiththepersonal
transformationoftheleaders.Organisationsdonttransform;peopledo!Thekey
factortotransformingalowperformancecultureintoahighperformancecultureis
leadership.Thisiswhyorganisationswithstrong,highperformingculturestendto
replacetheirleadersbypromotingfromwithin,whereaslowperformingculturestend
toreplacetheirleaderswithexternalcandidates.Bypromotingfromwithin,thriving
culturesareabletoretaintheirsuccessfulleadershipstyleswiththeleast
perturbation.Strugglingcultures,ontheotherhand,absolutelyneedtochangetheir
leadershipstyles.Thatiswhytheytypicallyhirefromoutsidethecompany,withthe
hopethatthenewleaderwillbringanewwayofbeingthattranslatesintoamore
dynamicculture.
Bringinginanexternalleaderisnottheonlywaytotransformanorganisational
culture.Moreandmorecompaniesareengaginginculturaltransformationprograms
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thatinvolveawholesystemapproach,whichIdescribeinBuildingaValuesDriven
Organization:AWholeSystemApproachtoCulturalTransformation.5Inordertograsp
theprocessandbenefitsofawholesystemapproachtoculturaltransformation,itis
importanttounderstandthedifferencesbetweenchange,transformationand
evolution,6andhowtomeasurethecurrentanddesiredculturesofanorganisation,
therebyidentifyingthecurrentanddesiredleadershipstyles.Fromacultural
alignmentperspective,itisnecessarytohaveaclearunderstandingofwherean
organisationisandwhereitwantstogobeforeembarkingonaprogramof
transformation.

Change,TransformationandEvolution
Towardtheendofthelastcentury,manyorganisationsboughtintoachange
conceptknownasreengineering.Inasurveyofalmostonehundredreengineering
projects,twothirdswerejudgedasproducingmediocreormarginalresults.The
principalreasonforfailurewasthelackofattentiongiventothehumandimension
particularly,peoplesfearandanxietyofdownsizing.Moraleslumpedin72percentof
thecompaniesdownsized.Itwaslaterrecognisedthatwhatwasmissingfromthe
reengineeringapproachwasthepeopleorculturaldimensionofchange.ThomasH.
Davenport,inanarticleforFastCompanymagazineentitledWhyEngineeringFailed,
notesthatCompaniesthatembracedreengineeringasasilverbulletarenowlooking
atwaystorebuildtheorganisationstornsocialfabric.7
Thisisacluetotheimportantdistinctionbetweenchangeandtransformation.Change
isanewwayofdoing.Transformationisanewwayofbeing.Evolutionoccursonly
whenindividualsororganisationsembraceacontinualstateoftransformationand
change.
Change:Adifferentwayofdoing.Doingwhatwedonow,butdoingitina
moreefficient,productive,orqualityenhancingway.
Transformation:Adifferentwayofbeing.Transformationinvolveschangesat
thedeepestlevelsofbeliefs,values,andassumptions.Transformationresults
infundamentalshiftsinpersonalandcorporatebehaviorandorganisational
systemsandstructures.Transformationoccurswhenweareabletolearnfrom
ourmistakes,areopentoanewfuture,andcanletgoofthepast.
Evolution:Astateofcontinualtransformationandchange.Evolutioninvolves
constantadjustmentsinvalues,behaviors,andbeliefsbasedonlearning
gainedfrominternalandexternalfeedback.Evolutionmosteasilyoccursin
individualsandorganisationsthatareadaptable,trusting,open,and

Richard Barrett, Building a Values-Driven Organization: A Whole-System Approach to Cultural

Transformation, Boston: Butterworth-Heinemann, 2006.
6
Richard Barrett, Liberating the Corporate Soul: Building a Visionary Organization, Boston: ButterworthHeinemann, 1998; pp. 12-13.
7
T. H. Davenport, The Fad That People Forgot, Fast Company (October 1995); pp. 6974.

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transparent,andhaveaprofoundcommitmenttolearningandself
development.
Thefundamentalchangethatoccursduringculturaltransformationisashiftin
attitudefromWhatsinitforus(me)?toWhatsbestforthecommongood?There
isashiftinfocusfromItoWe.Thisinvolvesmovingfromanexclusivefocusonthe
pursuitofprofittothebroaderpursuitofagroupofobjectivesthatareinstrumentalin
meetingshareholder,employee,customer,supplier,community,andsocietalneeds.
AnEvolutionaryModelforMeasuringChangeandTransformation
Themodelweuseformeasuringthevaluesoforganisationsisknownastheseven
levelsofconsciousnessmodelalsoknownastheBarrettmodel.Unlikemostother
businessmodels,theBarrettmodelisevolutionaryinnature.Eachlevelinthemodel
correspondstoanevolutionarystageinthegrowthindevelopmentandconsciousness
oftheorganisation.
Thesevenstagesinthedevelopmentoforganisationalconsciousnessaresummarised
inthefollowingdiagramandtable,anddescribedindetailinthefollowingparagraphs.
Themodelappliestoalltypesoforganisationscorporations,government
departments,municipalagencies,institutions,nongovernmentalorganisations(NGO),
andeducationalestablishments.Thefocusofthistableisonaforprofitorganisation.
Thedifferencesbetweenthistypeoforganisationandothertypesoforganisationare
mainlyinthewaytheyarefinancedorfunded,andthewaytheydistributetheir
productsand/orservices.ThetabledescribingtheSevenLevelsofOrganisational
Consciousnessshouldbereadstartingfrombottomandworkingup.
Service

Making a difference

Internal cohesion

Transformation

Self-esteem

Relationships

Survival

Figure2:Thesevenlevelsofconsciousnessmodel
Whilethemodelasawholefocusesontheneedsoftheorganisation,differentlevels
ofconsciousnessfocusontheneedsofspecificstakeholders.Atthefirstlevelof
consciousnessthereisaspecificfocusontheneedsofinvestorsandemployees;atthe
secondlevelontheneedsofemployeesandcustomers;atthethirdfourthandfifth
levelsontheneedsofemployees;atthesixthlevelonneedsofemployees,partners,
andthelocalcommunity,andattheseventhlevelonemployees,partnersandsociety.
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Ultimately,nomatterwhattypeoforganisationisunderconsideration,itisthe
employeesexperienceoftheorganisation,andtheleadersabilitytoinspirethemto
unlocktheirdiscretionaryenergythatisfundamentalfactorindeterminingthe
organisationslevelofsuccess.
Thelowerneeds,levels1to3,focusonthebasicneedsofbusinessthepursuitof
profitorfinancialstability,buildingemployeeandcustomerloyalty,andhigh
performancesystemsandprocesses.Theemphasisattheselowerlevelsisontheself
interestoftheorganisationanditsshareholders.AbrahamMaslowreferredtothe
needsofthesethreelevelsofconsciousnessasdeficiencyneeds.Anorganisation
gainsnosenseoflastingsatisfactionfrombeingabletomeettheseneeds,butthe
leadersfeelasenseofanxietyifthesebasicneedsarenotmet.
Thefocusofthefourthlevelistransformationashiftfromfearbased,rigid,
authoritarianhierarchiestomoreopen,inclusive,adaptivesystemsofgovernancethat
empoweremployeestooperatewithresponsiblefreedom(accountability).
Thehigherneeds,levels5to7,focusonculturalcohesionandalignment,building
mutuallybeneficialalliancesandpartnerships,longtermsustainabilityandsocial
responsibility.AbrahamMaslowreferredtotheseasgrowthneeds.Whenthese
needsaremettheydonotgoaway.Theyengenderdeeperlevelsofcommitmentand
motivation.
LevelsofConsciousness

Motivation

Service

Socialresponsibility:Workingwithotherorganisationsandthestakeholdersofthe
organisationinpursuitofsocietalobjectivesthatenhancethesustainabilityof
humanityandtheplanet,whiledeepeningthelevelofinternalconnectivityinside
theorganisationbyfosteringcompassion,humilityandforgiveness.

Makinga
difference

Strategicalliancesandpartnerships:Buildingmutuallybeneficialallianceswith
otherorganisationsandthelocalcommunitytoprotecttheenvironment,while
deepeningthelevelofinternalconnectivityinsidetheorganisationbyfostering
internalcooperationbetweenbusinessunitsanddepartments.

Internalcohesion

Strongcohesiveculture:Enhancingtheorganisationscapacityforcollectiveaction
byaligningemployeemotivationsaroundasingularmission,aninspiringvisionand
asharedsetofvaluesthatcreatecommitmentandintegrity,andunleash
enthusiasm,creativityandpassion.

Transformation

Adaptabilityandcontinuouslearning:Givingemployeesavoiceindecisionmaking
andmakingthemaccountableandresponsiblefortheirownfuturesinan
environmentthatsupportsinnovation,continuousimprovement,knowledge
sharing,andthepersonalgrowthanddevelopmentofallemployees.

SelfEsteem

Highperformancesystemsandprocesses:Creatingasenseofemployeeprideby
establishingpolicies,procedures,systems,processesandstructuresthatcreate
orderandenhancetheperformanceoftheorganisationthroughtheuseofbest
practices.Focusonthereductionofbureaucracy,hierarchy,silomentality,power
andstatusseeking,confusion,complacency,andarrogance.

Relationship

Relationshipsthatsupporttheorganisation:Buildingharmoniousrelationships
thatcreateasenseofbelongingandloyaltyamongemployeesandcaringand

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connectionbetweentheorganisationanditscustomers.Focusonthereductionof
Internalcompetition,manipulation,blame,internalpolitics,genderandethnic
discrimination.
1

Survival

Pursuitofprofitandshareholdervalue:Creatinganenvironmentoffinancial
stability,andfocusingonthehealth,safetyandwelfareofallemployees.Focuson
thereductionofexcessivecontrolandcaution,shorttermfocus,corruption,greed
andexploitation.

Organisationsthatfocusexclusivelyonthesatisfactionofthelowerneedsarenot
usuallymarketleaders.Theycanachievesomesuccessfinancially,butingeneralthey
aretoointernallyfocusedandselfabsorbed,ortoorigidandbureaucratictobeatthe
topoftheirgame.Theyareunabletoadapttochangingmarketconditions:theyare
notadaptable,anddonotempoweremployees.Consequently,thereislittle
enthusiasmamongtheworkforce,andthereislittleinnovationandcreativity.These
organisationsareoftenruledbyfear,andarenothealthyplacestowork.Employees
oftenfeelfrustrated,andcomplainaboutstress.
Organisationsthatfocusexclusivelyonthesatisfactionofthehigherneedslackthe
basicbusinessskillsandcapabilitiesnecessarytooperateeffectively.Theyare
ineffectualandimpracticalwhenitcomestofinancialmatters.Theyarenotcustomer
oriented,andtheylackthesystemsandprocessesnecessaryforhighperformance.
Theyaresimplynotgroundedintherealityofbusiness.Thesecharacteristicsareoften
foundinnongovernmentalorganisationsandnotforprofitorganisations.
Themostsuccessfulorganisationsarethosethathavemasteredboththeir
deficiencyneedsandtheirgrowthneeds.Theyoperatefromfullspectrum
consciousness.Theycreateaclimateoftrust,havetheabilitytomanagecomplexity,
andcanrespondorrapidlyadapttoallsituations.

FullSpectrumConsciousness
FullspectrumorganisationsdisplayallthepositiveattributesoftheSevenLevelsof
OrganisationalConsciousness.
Theymastersurvivalconsciousnessbyfocusingonprofit,financialstability,and
thehealthandsafetyofemployees.
Theymasterrelationshipconsciousnessbyfocusingonopencommunication,
employeerecognition,andcustomersatisfaction.
Theymasterselfesteemconsciousnessbyfocusingonperformance,results,
quality,excellence,andbestpractices.
Theymastertransformationconsciousnessbyfocusingonadaptability,
innovation,employeeempowerment,employeeparticipation,andcontinuous
learning.Theymasterinternalcohesionconsciousnessbydevelopingaculture

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basedonsharedvalues,andasharedvisionthatengendersanorganisation
wideclimateoftrust.
Theymastermakingadifferenceconsciousnessbycreatingstrategicalliances
andpartnershipswithotherorganisationsandthelocalcommunity,aswellas
developingmentoring,coachingandleadershipdevelopmentprogrammesfor
employees.
Theymasterserviceconsciousnessbyfocusingonsocialresponsibility,ethics,
andsustainability,andkeepingalongtermperspectiveontheirbusinessandits
impactonfuturegenerations,aswellasembracingcompassion,humilityand
forgiveness.
Eachofthesevenlevelsoforganisationalconsciousnessisdescribedinmoredetail
below.
Level1:Survivalconsciousness
Thefirstneedforanorganisationisfinancialsurvival.Withoutprofitsoraccesstoa
continuingstreamoffunds,organisationsquicklyperish.Everyorganisationneedsto
makefinancialstabilityaprimaryconcern.Apreconditionforsuccessatthislevelisa
healthyfocusonthebottomline.
Whencompaniesbecometooentrenchedinsurvivalconsciousnessandhavedeep
seatedinsecuritiesaboutthefuture,theydevelopanunhealthyshorttermfocuson
shareholdervalue.Insuchsituations,makingthequarterlynumberssatisfyingthe
needsofthestockmarketcanpreoccupythemindsoftheleaderstotheexclusionof
allotherfactors.Thisleadstoexcessivecontrol,micromanagement,caution,anda
tendencytoberiskaverse.
Businessesthatoperateinthiswayarenotinterestedinstrategicalliances;takeovers
aremoretheirgame.Theywillpurchaseacompanyandplunderitsassets.Theysee
peopleandtheEarthasresourcestobeexploitedforgain.Whenaskedtoconformto
regulations,theydotheminimum.Theyhaveanattitudeofbegrudgingcompliance.
Organisationsexperiencetheirdeepestfearsatthislevelofconsciousness.
Level2:Relationshipconsciousness
Thesecondneedforanorganisationisharmoniousinterpersonalrelationshipsand
goodinternalcommunications.Withoutgoodrelationshipswithemployees,customers
andsuppliers,companysurvivaliscompromised.
Thecriticalissueatthislevelofconsciousnessistocreateasenseofloyaltyand
belongingamongemployees,andasenseofcaringandconnectionbetweenthe
organisationanditscustomers.Preconditionsforcreatingasenseofbelongingare
opencommunication,mutualrespectandemployeerecognition.Preconditionsfor
caringarefriendliness,responsivenessandlistening.Whentheseareinplace,loyalty

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andsatisfactionamongemployeesandcustomerswillbehigh.Traditionandrituals
helpcementthesebonds.
Fearsaboutbelongingandlackofrespectleadtofragmentation,dissensionand
disloyalty.Whenleadersmeetbehindcloseddoors,orfailtocommunicateopenly,
employeessuspecttheworst.Cliquesformandgossipbecomesrife.Whentheleaders
aremorefocusedontheirownsuccessratherthanthesuccessoftheorganisation,
theybegintocompetewitheachother.Whenleadersdisplayterritorialbehaviors,
blame,internalcompetitionandinformationhoardingbecomerife,increasingthelevel
ofculturalentropy.Familybusinessesoftenoperatefromlevel2consciousness
becausetheyareunabletotrustoutsidersinmanagementpositions.
Level3:SelfEsteemconsciousness
Thefocusofthethirdleveloforganisationalconsciousnessisonperformanceand
measurement.Itisaboutkeepingabalancedandwatchfuleyeonallthekey
operationalindicators.
Atthislevelofconsciousness,theorganisationisfocusedonbecomingthebestitcan
bethroughtheadoptionofbestpracticesandafocusonquality,productivityand
efficiency.Systemsandprocessesarestronglyemphasisedandstrategiesare
developedtoachievedesiredresults.Reengineering,SixSigmaandTotalQuality
Managementaretypicalresponsestoissuesofperformanceatthislevelof
consciousness.Thecriticalissueatthislevelofconsciousnessistodevelopacultureof
continuousimprovement.Apreconditionforcontinuousimprovementisthe
encouragementandrewardofexcellence.
Level3organisationstendtobestructuredhierarchicallyforthepurposesofcentral
control.Topdownistheprimarymodeofdecisionmaking.Thehierarchicalstructure
alsoprovidesopportunitiesforrewardingindividualswhoarefocusedontheirown
personalsuccess.Steephierarchiesoftenservenootherpurposethantocaterto
managersneedsforrecognition,status,andselfesteem.Tomaintaincentralcontrol,
level3organisationsdeveloprulestoregulateandbringordertoallaspectsoftheir
business.
Companiesthatarepredominantlyfocusedatthislevelofconsciousnesscaneasily
degenerateintopowerbasedsilos,rigidauthoritarianbureaucraciesand/oragroupof
internallycompetitiveoverachievers.Whenthishappens,failureorcollapsewill
eventuallyoccurunlesstheorganisationcanswitchfrombeinginternallyfocusedto
externallyfocused,andbecomemoreadaptable.
Level4:Transformationconsciousness
Thefocusofthefourthleveloforganisationalconsciousnessisonadaptability,
employeeempowerment,andcontinuouslearning.Thecriticalissueatthislevelof
consciousnessishowtostimulateinnovationsothatnewproductsandservicescanbe
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developedtorespondtomarketopportunities.Thisrequirestheorganisationtobe
agileandflexible,andtakerisks.
Tofullyrespondtothechallengesofthislevelofconsciousnesstheorganisationmust
activelygarneremployeesideasandopinions.Everyonemustfeelthathisorhervoice
isbeingheard.Thisrequiresmanagersandleaderstoadmittheydonothaveallthe
answersandinviteemployeeparticipation.Formanyleadersandmanagersthisisa
newrolerequiringnewskillsandcapabilities.Thatiswhyitisimportanttodevelopthe
emotionalintelligenceofmanagers.Theymustbeabletofacilitatehighperformance
inlargegroupsofpeoplewhoarelookingforequalityandresponsiblefreedom.They
wanttobeheldaccountablenotmicromanagedandsupervisedeverymomentof
everyday.
Oneofthedangersatthislevelofconsciousnessistobecomeoverlybiasedtoward
consensus.Whilesomelevelofconsensusisimportant,ultimatelydecisionsmustget
made.
Apreconditionforsuccessatthislevelofconsciousnessisencouragingallemployees
tothinkandactlikeentrepreneurs.Moreaccountabilityisgiventoeveryoneand
structuresbecomelesshierarchical.Teamworkisencouragedandmoreattentionis
giventopersonaldevelopmentandrelationshipskills.Diversityisseenasapositive
assetinexploringnewideas.Thisshift,whichbringsresponsiblefreedomandequality
toworkers,cannotfullyachievethedesiredresultsunlessallemployeesandteams
sharethesamesenseofdirectionorpurpose.Thisrequiresashifttothefifthlevelof
consciousness.
Level5:Internalcohesionconsciousness
Thefocusatthefifthleveloforganisationalconsciousnessisonbuildingcultural
cohesionanddevelopingacapacityforcollectiveaction.Forthistohappen,leaders
andmanagersmustsetasidetheirpersonalagendasandworkforthecommongood.
Thecriticalissueatthislevelofconsciousnessisdevelopingasharedvisionofthe
futureandasharedsetofvalues.Thesharedvisionclarifiestheintentionsofthe
organisationandgivesemployeesaunifyingpurposeanddirection.Thesharedvalues
provideguidanceondecisionmaking.Whenthevaluesaretranslatedintobehaviors,
theyprovideasetofparametersthatdefinetheboundariesofresponsiblefreedom.
Thevaluesandbehaviorsmustbereflectedinalltheprocessesandsystemsofthe
organisationwithappropriateconsequencesforthosewhoarenotwillingtowalkthe
talk.
Apreconditionforsuccessatthislevelistobuildaclimateoftrust.Aligning
employeespersonalsenseofmissionwiththeorganisationssenseofvisionwill
createaclimateofcommitmentandenthusiasmatalllevelsoftheorganisation.
Personalproductivityandcreativityincreaseasindividualsalignwiththeirpassion.

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Inlevel5organisations,failuresbecomelessons,andworkbecomesfun.Thekeyto
successatthislevelofconsciousnessistheestablishmentofastrong,positive,unique
culturalidentitythatdifferentiatestheorganisationfromitscompetitors.Theculture
oftheorganisationbecomespartofthebrand.Thisisparticularlyimportantinservice
organisationswhereemployeeshaveclosecontactwithcustomersandthegeneral
public.Atthisandsubsequentlevelsofconsciousness,organisationspreservetheir
uniqueculturebypromotingfromwithin.
Level6:Makingadifferenceconsciousness
Thefocusatthesixthleveloforganisationalconsciousnessisondeepeningthelevelof
internalconnectednessintheorganisationandexpandingthesenseofexternal
connectedness.
Internally,thefocusisonhelpingemployeesfindpersonalfulfillmentthroughtheir
work.Externally,thefocusisonbuildingmutuallybeneficialpartnershipsandalliances
withbusinesspartners,thelocalcommunity,andincertaincircumstanceswithnon
governmentalorganisationsinotherwordswithallstakeholders.
Thecriticalissueatthislevelofconsciousnessisthatemployeesandcustomersseethe
organisationismakingadifferenceintheworld,eitherthroughitsproductsand
services,itsinvolvementinthelocalcommunityoritswillingnesstofightforcauses
thatimprovethewellbeingofhumanity.Employeesandcustomersmustfeelthatthe
companycaresaboutthemandtheirfuture.
Companiesoperatingatthislevelofconsciousnessgotheextramiletomakesurethey
arebeingresponsiblecitizens.Theysupportandencourageemployeesactivitiesinthe
localcommunitybyprovidingtimeoffforemployeestodovolunteerworkand/or
makingafinancialcontributiontothecharitiesinwhichemployeesareinvolved.
Atthislevelofconsciousness,organisationscreateanenvironmentwhereemployees
canexcel.Theorganisationsupportsemployeesinbecomingalltheycanbecomeboth
intermsoftheirprofessionalandtheirpersonalgrowth.Everyonesupportseveryone
else.
Apreconditionforsuccessatthislevelisdevelopingleaderswithastrongsenseof
empathy.Leadersmustrecognisethattheymustnotonlyprovidedirectionforthe
organisation,buttheymustalsobecometheservantsofthosewhoworkforthem.
Theymustcreateanenvironmentthatsupportseveryemployeeinaligningtheirsense
ofpersonalmissionwiththevisionandmissionofthecompany.Atthislevelof
consciousness,leadersmustbecomementorstherebycreatingpoolsoftalentfor
successionplanning.Leadershipdevelopmentisgivensignificantemphasisatthislevel
ofconsciousness.
Level7:Serviceconsciousness

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Thefocusattheseventhleveloforganisationalconsciousnessisacontinuationofthe
previouslevelafurtherdeepeningoftheinternalconnectedness,andafurther
expansionofexternalconnectedness.
Internallythefocusoftheorganisationisonbuildingaclimateofethics,humilityand
compassion.Externally,thefocusisonlocal,nationalorglobalactivisminbuildinga
sustainablefutureforhumanityandtheplanet.
Thecriticalissueatthislevelofconsciousnessisdevelopingadeepsenseofsocial
responsibilitythroughouttheorganisation.Atthislevelofconsciousness,organisations
careaboutsocialjusticeandhumanrights.Theycareaboutecologyandtheglobal
environment.
Apreconditionforsuccessatthislevelofconsciousnessisselflessservice,displayed
throughaprofoundcommitmenttothecommongoodandtothewellbeingoffuture
generations.Tobesuccessfulatlevel7,organisationsmustembracethehighest
ethicalstandardsinalltheirinteractionswithemployees,suppliers,customers,
shareholdersandthelocalcommunity.Theymustalwaysgiveconsiderationtothe
longtermimpactsoftheirdecisionsandactions.
Conclusions
Fullspectrumconsciousnessandvaluesalignmentarebecomingthemostsignificant
factorsinpredictingorganisationalsuccess.Companiesthatconsciouslyfocusontheir
valuesaremoreresilient,moresustainableandmoresuccessfulthanallother
companies.Theleadersofthesecompaniesrecognisetheimportanceofcreatingan
organisationalculturethatcontinuallyevolvesandgrowsandservestheneedsofall
stakeholdergroups.

RichardBarrett
February2010

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