The secret science of

brilliant leadership
05 February 2014
www.pwc.ie/hrs
PwC
Dr. Alan Watkins
Complete Coherence
3
Volatile.Uncertain.Complex.Ambigious.
The Challenge of the Future
4
Vertical Development
Increasing sophistication of thinking &
ability to handle complexity
Horizontal Learning
Acquisition of skills, knowledge &
experience
Vertical
development
Horizontal
development
Imagination is more important than knowledge
Albert Einstein 1929
Upgrading the Human Operating System
5
Assessing Leaders
It is possible to assess people in hundreds of different ways. One way is to describe distinct types of individuals. An
example of a simple typology would be whether someone is male or female. In business one of the most widely used
typologies is Myers Briggs. Although typologies can provide useful information their primary limitation is that they rarely
have developmental implications. Thus it is difficult to change your type. You cant develop from an INTJ into an ENFP.

Other assessment instruments cherry pick a handful of individual
qualities and then try to make the case for these qualities being more
important than the qualities chosen by another assessment
instrument. We take a slightly more structured approach. Firstly all of
our assessments are all based on extensive research. Secondly they
must produce information that can be used to help the individual
actually develop. Thirdly we have designed a suite of instruments that
look at the five main lines of human development and assess each
one separately. This avoids mixing up different developmental lines.
The Leadership Values Profile (LVP) specifically focuses on the
values line of development (see next slide).
Assessment of different lines of development uncover different leadership assets & capabilities:

1. Physical: this quantifies a leaders physical energy, vitality, health risk, immunity, flexibility, coherence and a number
of other specific physiological patterns.
2. Cognitive: this assesses a number of aspects of a leaders thinking capability such as reasoning skills, problem
solving ability and perspective taking.
3. Emotion: this quantifies a leaders emotional and social intelligence including their self awareness, ability to change
emotional states and their empathic skills.
4. Values: this explores a leaders commercial and personal value systems. It also identifies the type of people a leader
tends to engage with and who they move away from.
5. Maturity: This assess a leaders ego maturity, which underpins their ability to drive organisational transformation and
handle complexity.
6
0
2
4
6
8
10
12
p
h
y
s
i
c
a
l
c
o
g
n
i
t
i
v
e
E
Q
m
a
t
u
r
i
t
y
v
a
l
u
e
s
b
e
h
a
v
i
o
u
r
c
o
n
n
e
c
t
i
v
i
t
y
i
m
p
a
c
t
T
e
a
m

D
e
v
'
t
M
g
t

C
a
p
a
b
i
l
B
U

d
e
v
t
O
r
g

m
a
t
u
r
l
e
v
e
l
s

o
f

d
e
v
e
l
o
p
m
e
n
t

internal external commercial
Key Lines of Development
7
Academic Research on Values & Culture
Geert Hofstede
Schalom H Scwartz
Clare Graves
Culture &
Values
Despite many organizations recognising the importance of culture and values the complexity of the issue means that most
businesses struggle to effect a positive cultural transformation within their workforce. This struggle is not helped by a lack of
definition or inability to discriminate the key concepts such as: culture, values, beliefs, attitudes, behaviour, climate,
personality, identity and reputation.

A value system is a cluster of related ideas that when taken together create meaning or importance for a person (value). The
values in an organisation are the emotional qualities that can usually be sensed if you walk the floor, or talk to staff. In
contrast, beliefs are normally only uncovered by asking questions about what people think is true. The informative research
on culture and value systems that has been done comes from a number of different academic centres. The main leaders of
these research efforts were Schwartz, Hofstede and Graves. Interestingly there is a very significant overlap in their findings.
8
Spiral Dynamics- Rules to Remember
The LVP draws on all of this research but leans most heavily on the work of Professor Clare Graves as his model, often
referred to as Spiral Dynamics, has the added benefit of having evolutionary implications and being better placed to drive
development. Graves model was based on empirical observational research conducted over 30 years. He identified eight
separate value systems. Each value system emerges from the previous level in an ever expanding spiral.

It is important to remember that individuals and cultures are not exclusively defined by any single level (colour). Each person
and culture embodies a mixture of value patterns, with varying degrees of intensity. Also the value system an individual
operates from at work may not be the same value system they operate from at home. The degree of difference between an
individuals profile at work and at home can itself be quite informative.
Rules to Remember about the Spiral:

1. Higher up the spiral is more sophisticated but not better
2. Each new level includes and transcends the previous level
3. The pendulum swings from the individual to the collective focus
4. Your LVP is situational and evolves over time if things change
5. Every level has an upside and a downside
6. It is the downside of one level that provides the evolutionary
momentum for the emergence of the next level
7. Globally 98% of people exist at the lower six levels (Tier 1) with
2% in the upper 2 levels (Tier 2). In business the percentage of
people in Tier 2 is nearer 10%
8. The model holds true regardless of scale:
a. Individual
b. Team
c. Business unit
d. Company
e. Nation
f. Region
g. Planet
9
Commercial Applications of the LVP
Benefits of Measuring Leadership Values

Measuring a leaders value system can benefit an organisation in a number of ways. It helps:

1. Identify the commercial & personal value system that drives each leader forward
2. Provide insights on a leaders strengths, blind spots and motivations
3. Rapidly build a language for understanding how to get the best out of a team
4. Align stakeholders on the key commercial priorities to ensure synergies are optimised
5. Create a cultural shift within the business built around an advanced performance mindset
6. Bring the brand values alive within the business in a much more tangible way
7. Clarify whether a leaders values suit the team & business challenge that they face
Personal
Leadership
Alignment &
Engagement
Talent Asses. &
Recruitment
Cultural
Transformation
M&A Diligence
& Integration
Team
Dynamics
Levels of
Spiral Dynamics
get through
stay alive
whats in it for me
I have what I need
survive
beige
survival
no progress
Survival
The Beige value system is not assessed in the LVP as it
is assumed that the vast majority of people in
organizations have evolved beyond this level.

Who Are They?
This value system may still be apparent in certain
populations within an industrialized society. For
example, it may be present amongst the homeless, the
unemployed, the sick or the marginalized. In times of
economic hardship it may be possible to witness some
very basic beige behaviour within organizations as
simple survival motives kick in. This may be the case in
situations of bankruptcy or potential redundancy.
Get Through
Stay Alive
Whats In It For Me
I Have What I Need
Survive
Common Thoughts
Commercial Drives
What drives people with this value system are their immediate basic
needs. They are highly attuned to their physical senses which are
often heightened. Satisfaction of basic biological needs tends to stop
action and provoke rest until these needs must be addressed again.
As such people at this level tend not to plan at all. They live from
day to day.

Development
The best way to help Beige individuals is to bring them together
with others Beige individuals so they can start to bond and realize
they are not alone.

Communication
To reach them you often have to directly encounter them. They may
not engage with modern communication channels or if they do this
is in a haphazard way. You must address their short-term needs
first.
Individual Focus
dont risk it
stay vigilant
work together
look after the family
stay together

purple
safety and
belonging
no direction
The Purple value system is seen in many organizations
either in the early stages of an companys evolution; during
mergers and acquisitions; in specific functions or in
geographically separate offices.

Who Are They?
They are small teams for whom their tribe is their main
point of connection. They can feel somewhat separate from
the corporate machine or mission. The sense of bonding
with their colleagues keeps them from leaving and they
can often be mildly hostile to the company itself. Their
analysis of the situation is not sophisticated and they can
easily fall into the victim mode and believe that the
business is not working in their interests.
Commercial Drives
They are driven by having a safe place to work where no-one rocks
the boat too much or creates too much change. They are very quick
to sense a personal or commercial threat and they can react
strongly to protect their own position and the security of their tribe.

Development
The best way to help Purple individuals move forward is to identify
the natural red leaders who are trusted by the tribe, promote them
and allow them to lead the rest of their colleagues.

Communication
They must be reassured that change will not threaten the tribe. In
fact change must be sold as a way of protecting the tribe. They will
engage as a group and can be inspired by a charismatic
presentation. It is vital to allow time for the tribe to debate the
suggested change and reach a collective agreement.
Dont Risk It
Stay Vigilant
Work Together
Look After the Family
Stay Together
Common Thoughts
Belonging
Collective Focus
go for it
keep moving
work hard, play hard
have fun
take charge

red
make it happen
ego mania
The Red value system is the second most common
perspective in business and many companies have
unconsciously chosen red as their corporate colour. It is
particularly prevalent in the early stages of a companys
evolution or in divisions that are opening up new territories.
Certain functions, such as sales, are often red.

Who Are They?
Many CEOs and leaders drive their business forward from
this perspective. They are often charismatic individuals who
lead by dint of their authority. They tend to operate a hub
& spoke command and control model of leadership. They
are good at taking charge and great at simplifying and
clarifying the priorities.
Commercial Drives
They always want to be number 1 in their markets. They are restless,
relentless and resilient with a strong sense of urgency. They move fast
to get control and dominate by dint of their status or power. They are
good in a fight, an emergency or in a turnaround where they can be
the hero in the hunt for glory.

Development
The best way to help Red individuals is to show them how, with a little
more structure, they can celebrate an even greater victory. The knack is
to help them work smarter not harder, a little more skill and a little less
speed is often whats required.

Communication
It must be made very clear to red individuals how they can personally
contribute. The battle must remain exciting or fun if their interest is to
be maintained. They prefer short to the point communications keep
it simple stupid is a mantra of theirs.
Common Thoughts
Go For It
Keep Moving
Work Hard Play Hard
Have Fun
Take Charge
Power
Individual Focus
plan it carefully
stick to the plan
be loyal and respectful
stick to your principles
do the right thing
blue
stability and
order
rigidity and rules
Government departments, bureaucracies and public sector
partnerships often have a blue culture. These are systems
built on rules and order. All businesses must go through a
blue phase to build a stable platform for growth. It is often
insufficient discipline or sloppy methods that impair large
companies from achieving their potential. Good organization
and high quality processes can make a massive difference to
most companies.

Who Are They?
Blue CEOs and leaders are often values driven or financial
value drivers building their company through M&A
processes. Blue individuals are also more common in
specialists functions such as finance, accounting or IT.
Commercial Drives
Blue individuals want to do the right thing in the right way. They are
comfortable following the rules of a higher authority, whether that be
the company, their boss or God. They are accurate, crisp and want to
deliver to a high quality standard. They consider the meaning of their
work and have a desire to bring stability.

Development
The best way to help Blue individuals out of their tendency to get
stuck in the rules is to encourage them to experiment and show
individuals how this could benefit them personally. This is an appeal
to self-interest, which will succeed if it appears to be the right thing to
do and does not contravene the individuals sense of right and wrong.

Communication
All communication must be neat, tidy and be well presented. Meetings
must be well structured, stick to time and follow a disciplined process.
Blue people tend to be diplomatic, avoid conflict, and are efficient
completer finishers who like to take the moral high ground.
Plan It Carefully
Stick to the Plan
Be Loyal & Respectful
Stick to Your Principles
Do the Right Thing
Common Thoughts
Order
Collective Focus
orange
make it work
adapt based on feedback
achieve the targets
figure it out
succeed

growth and wealth
greed and exploitation
Most businesses operate from an orange value system. In
fact orange is over represented in corporate livery. Building
on a blue infrastructure orange focuses on doing what it
takes to beat the competition, succeed and deliver profits.

Who Are They?
Most CEOs are professional managers. They may also be
commercial executors or the corporate entrepreneurs. All
operate from the orange value system and focus on
delivering short-term business performance while
leveraging the resources available to them. They take a
pragmatic no nonsense view of the world and they are
happy to do what it takes to achieve the targets they set
for themselves.
Commercial Drives
Orange individuals want to make money and win. They are very
competitive on many fronts. They have a slightly more mature
ambition compared to red individuals and are more able to take
advantage of other peoples abilities to achieve their own goals. They
are very rational and like to understand how things work so they can
make the machinery of business deliver its profits.
Common Thoughts
Make It Work
Adapt Based on Feedback
Achieve the Targets
Figure it Out
Succeed
Wealth
Individual Focus
Development
To help Orange individuals out of their tendency to be too rational, too
materialistic or too self interested it may benefit them to cultivate an
ability for reflection. They may also find it useful to work on their
emotional intelligence and ability to take people with them.

Communication
All communication must be outcome focused and make it clear how the
plan will work to deliver the desired result. There also has to be an
opportunity for the individuals to work the issue and make changes. They
will also need to know how it works financially.
include others
take people with you
listen and be sensitive
take care
do it together
green
caring and people
stagnant and touchy
Green businesses often emerge as an antidote to orange
excess. They are motivated by finding a more caring
inclusive way of proceeding that benefits the many not
just the few. Such businesses are rarely in the FTSE 100
although there are companies whose internal culture has a
strong green orientation. The importance of the green
perspective is increasing as a result of social networking.

Who Are They?
Green CEOs and leaders are often ambassadorial in style.
They are generally more emotionally intelligent and are
driven by a desire to help. They attempt to embrace all
views and avoid creating two tier systems or hierarchies.
Green prefers a flat level playing field.
Commercial Drives
Green leaders focus on taking people with them and will slow down to
make sure no-one is left behind. They try to achieve win:win
relationships and will often go the extra mile to make sure people
are able to contribute. They are motivated by human contact and
achieving results through the team. Being liked is often more important
than competitive advantage.
Common Thoughts
Include Others
Take People With You
Listen & Be Sensitive
Take Care
Do It Together
Social
Collective Focus
Development
Paradoxically individuals who operate with this perspective can polarize
people. They can slip into negative judgmentalism if their attempts to
help or care are thwarted. They may need help to see more than their
own perspective. They may also benefit from being more flexible and
decisive if they truly want to create benefits for the many.

Communication
All communication must be customer focused and sensitive to minorities. They respond well to
sincerity and heartfelt expressed emotion moves them. They want to feel involved and will welcome
the opportunity to participate and say their piece. They can react badly to assertive leaders with
simple answers.
innovate the future
solve the issues
be flexible and spontaneous
first look to yourself
learn and take responsibility
yellow
innovation and responsibility
complex and conceptual
Yellow businesses are innovation engines coming up with
smart solutions to complex problems. They succeed by
changing the game, creating a paradigm shift or setting a
new context. Yellow businesses are usually small or if large
they are organized on a small scale. They are competitive
because they are fast, flexible and able to hack around
older less optimal structures.

Who Are They?
Less than 2% of leaders are truly yellow innovators. This
perspective is more common in Generation Y (high yellow
with high red). The yellow mavericks in organizations do not
follow a traditional career path. If it is not working they will
often leave and try their hand elsewhere.
Commercial Drives
Yellow leaders dont wait to be asked, they take responsibility
for the solution. They see multiple perspectives and can easily
handle conflicts of interest. They are drawn to complex
problems and see them as a challenge. They are excited by
new ideas and want to have an impact beyond their company.

Development
To help Yellow individuals achieve their impact it is often
necessary to help them with the way that they language their
Common Thoughts
Innovate the Future
Solve the Issues Live
Be Flexible & Spontaneous
First Look to Yourself
Learn and Take Responsibility
Innovation
Individual Focus
ideas. They can over complicate things or wrongly assume that people
follow the sophistication of their thought processes. They can appear
dispassionate and aloof and this may impair their ability to connect and
land their views.

Communication
To engage effectively with yellow individuals it is vital to lay out the
conceptual frame for the conversation first. Then there has to be sufficient
substance to the message otherwise yellow individuals will perceive it as
light weight, not serious and not worthy of consideration.
consider everything
balance everything
take the long term view
take nothing personally
be of service for greater good
turquoise
system balance
cool and baffling
Turquoise organizations tend to be movements rather than
formal businesses. Their focus tends to be evolutionary and
long term. Such movements look for ways to create cultural
and social change for the benefit of all people without falling
into the trap of being too prescriptive or patronizing.

Who Are They?
Turquoise CEOs and leaders are very rare, and when found
they are normally at the helm of social or public enterprises.
They can often appear distracted because they are computing
very broad data sets. They can show up as many different
colours, being very adaptive and situational in their leadership
style. They can be strongly commercial or global missionaries
and normally do not see their role as constrained by the
businesses they may run.
Commercial Drives
Turquoise leaders are not afraid to turn a profit if this helps the
cause. They are also interested in being of service and living
their life as an example. System harmony, increasing maturity
and natural emergence all invigorate their actions. They are
focused on leading beyond their authority and look for ways to
be of service to everyone.

Development
To help turquoise individuals succeed in the world it can help
them to connect with the less sophisticated perspectives which
they may have less familiarity with. They may also struggle with
being fierce when they need to be. They often prefer to be
tolerant, loving and allowing. They may suffer from excessive
humility which can often be misperceived as a lack resolve.

Communication
To engage turquoise individuals it often helps to state clearly
whether there is a greater social or evolutionary intention.
Common Thoughts
Consider Everything
Balance Everything
Take the Long Term View
Take Nothing Personally
Be of Service for Greater Good
System Balance
Collective Focus
PWC Event
Table Data
28
9
24
14
20
10
13
10
0
5
10
15
20
25
30
35
40
Table 1
10
16
14
24
15
12
8
0
5
10
15
20
25
30
35
40
Table 4
10
15
24
17
18
10
6
0
5
10
15
20
25
30
35
40
Table 2
10
24
11
29
9
10
8
0
5
10
15
20
25
30
35
40
Table 3
Leadership Values Profile (LVP) Tables 1-4
29
6
17
5
9
23
27
14
0
5
10
15
20
25
30
35
40
Table 6
9
15
10
15
17
24
12
0
5
10
15
20
25
30
35
40
Table 7
12
16
13
18
15 15
12
0
5
10
15
20
25
30
35
40
Table 8
10
12
14
20
22
13
9
0
5
10
15
20
25
30
35
40
Table 5
Leadership Values Profile (LVP) Tables 5-8
30
Additional Resources
www.complete-coherence.com
Being Brilliant Every Day
6.5 hours of audio
Desktop App
CardioSense Trainer
Coherence:
The Secret Science of Brilliant Leadership
e-Development Academy
Online leadership development
I-phone App
CST Mobile
This content is for general information purposes only, and should not be used as a substitute
for consultation with professional advisors.
PwC firms help organisations and individuals create the value theyre looking for. Were a
network of firms in 158 countries with close to 169,000 people who are committed to delivering
quality in assurance, tax and advisory services. Tell us what matters to you and find out more
by visiting us at www.pwc.com
2014 PricewaterhouseCoopers. All rights reserved. PwC refers to the Irish member firm,
and may sometimes refer to the PwC network. Each member firm is a separate legal entity.
Please see www.pwc.com/structure for further details.