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They will purchase a company and plunder its assets. They see people and the
Earth as resources to be exploited for gain.When asked to conform to regulations, they do
the minimum. They have an attitude of begrudging compliance. Organizations experience their
deepest fears at this level of consciousness.
Level 2: Relationship Consciousness
The second need for an organization is harmonious interpersonal relationships and good
communications. Without good relationships with employees, customers and suppliers, company
survival is compromised. However, when companies become too entrenched at this level of
consciousness they place importance on relationships not for what they can give, but for what
they can take. What they put into a relationship is purely based on what they think they will
get back. Companies at this level tend to be strong on tradition and image, and weak on
flexibility and entrepreneurship. Rules are important because there is little trust. They
demand discipline and obedience from their employees. Family businesses tend to operate from
relationship consciousness. This limits their ability to become successful because they are
unable to trust outsiders in management positions.
Level 3: Self-esteem Consciousness
The third need for an organization is self-esteem. Self-esteem consciousness shows up in
organizations as best practice and a desire for greatness. Organizations which operate from
this level want to be the biggest or best at what they do. Consequently, they are very
competitive and are constantly seeking ways to improve their cost effectiveness. Organizations
at this level see management as a science. They focus on improving corporate
fitness-productivity, efficiency, time management and quality control. They are ready to train
their staff as long as the training can be seen to have a direct impact on the bottom line.
Control is maintained through hierarchical power structures that often do little more than
cater to the managers' needs for status, privilege and recognition. Companies that are
predominantly focused at this level of consciousness can easily degenerate into
bureaucracies. When this happens, failure or collapse will eventually occur unless the
organization is able to embrace transformation.
Level 4: Transformation Consciousness
This is the bridge that companies must cross to create organizational cohesion and shift their
belief systems from self-interest to the common good. The principal focus at this level of
consciousness is self-knowledge and continuous-renewal. Organizations enter the process of
transformation either because it is the next natural step in their evolution or because their
viability is threatened. In either case the process begins with employee participation and
involvement. Everyone is asked to take responsibility for making the business a success.
Risk-taking is encouraged. During transformation, the culture of the organization shifts from
control to trust, from punishment to incentives, from exploitation to ownership, and from fear
to truth. Mechanisms are put in place to promote innovation and learning. The tyranny of the
financial bottom line begins to disappear as organizations start to measure their success
against a broader set of indicators.
Level 5: Internal Cohesion
The focus at this level of consciousness is internal connectedness. This is achieved through
the development of a strong positive spirit with shared vision and values. By focusing on the
needs of its people, the organization develops commitment and enthusiasm, and encourages
higher levels of personal productivity and creativity. Values such as humour, transparency
and passion become important. Failures become lessons, and work becomes fun. At this level of
consciousness, organizations recognize the importance of employees finding meaning and purpose
through their work. They encourage the alignment of their employees' personal motivations with
the organization's vision and mission and support employees in becoming all they can become
in terms of their professional and personal growth.
Level 6: Making a Difference
The main areas of focus at this level are external connectedness and an increase of internal
connectedness through mentoring and coaching, and employee fulfillment. Partnerships are
created with customers and suppliers, and the organization finds ways to support the local
community. Organizations that embrace inclusion consciousness recognize the importance of
strategic alliances, being respected members of the local community and good global
citizens. They seek to support the local economy by collaborating with local businesses, and
voluntarily addressing environmental and social concerns. They go beyond the letter of the
law in dealing with their environmental responsibilities. They support employees in finding
personal fulfillment at work and create opportunities for them to make a difference in the
local community. At this level of consciousness organizations care for the whole employee-for
their physical, emotional, mental and spiritual needs.
Level 7: Service
The primary focus of organizations at this level is service to humanity and the planet. They
have a global vision. There is recognition of the interconnectedness of all life and the need
for both individuals and institutions to take responsibility for the welfare of the whole. At
this level of consciousness, organizations care deeply about ethics, justice, human rights,
peace and the impact of present day actions on future generations-sustainable development.
Social activism and consciously directed philanthropy become integral parts of their
corporate strategy. They understand the importance of societal goodwill in building a
successful organization. They observe the highest ethical principles and always consider the
long term impacts of their decisions and actions. By taking a strong moral position, they are
able to garner the respect and goodwill of their employees and society-at-large.
Distribution of Consciousness
Organizations do not operate from any one level of Organizations do not operate from any one
specific level of consciousness. They tend to be clustered around three or four levels. Most
organizations are focused in the lower three levels of consciousness-self-interest-profit and
growth (Level 1), customer satisfaction (Level 2) and productivity, efficiency and quality
(Level 3).
The most successful organizations that are among the 100 Best Companies to work
for tend to be distributed across the full spectrum of consciousness with particular focus
in the upper levels of consciousness-the common good-learning and innovation (Level 4),
internal cohesion (Level 5), employee fulfillment, customer/supplier collaboration
(Level 6) and ethics and social responsibility (Level 7).
Copyright © 1998 - 2001.
Cultural Transformation Tools® Richard Barrett & Associates LLC.
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