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9 Levels of Value Systems

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A model for describing the values of an organization and selecting the right tools for digital transformation.

9 Levels of Value Systems is a model for describing the developments of value systems in individuals, groups and organizations. From this, a better understanding of the corporate culture and, above all, any need for change can be derived.

Especially when it comes to the development of the innovation culture, the model is well suited to fathom the current value system and to grasp which changes are necessary and also possible.

The 9 Levels Model is a value meta-model, a developmental model for personality development and the evolution of organizations and cultures. The classic way of application is to fill in a questionnaire that analyzes the individual’s view of the values of the organization, a team or the individual.

Why are values important?
Values are the constitutive elements of culture. They define meaning and significance within a social system (group, society, etc.). A value conveyed by culture serves as a “guideline” for people to understand or know the world and consequently becomes a premise when planning behavior. In this respect, also in the question of how innovation processes are accepted.

Values in the digital transformation
Many digital projects lead to fundamental changes in the organization. These changes very often lead to resistance, especially in organizations that still have little contact and experience with digital technologies. This resistance often has to do with the value level of the organization.
to do. It will be difficult for organizations that only focus on digital technologies and new processes in the digital transformation and forget to consider the value system. Here, a failure of the initiative is almost preprogrammed.

Here is an overview of the 9 levels:

1st level: BEIGE
The “Beige” level, from which all levels start, is characterized by strong adaptability of the individual to the environment in order to survive. In a business context, this doesn’t really happen.

2nd level: PURPUR
Social structures with a strong distribution of roles and community-oriented rituals are formed; problems are faced together, but always led by a leader to whom one is subordinate. Purple structures are found in patriarchal family businesses where it is clear “who wears the pants”.

3rd level: RED
The individual again comes more to the fore and is characterized by independence, assertiveness and striving for power. For example, new markets are conquered and positions achieved are secured. Red companies have strong hierarchies and decisions are made from the top.

4th level: BLUE
Community-oriented structures with values such as safety, order, justice and loyalty characterize blue companies. In the functional hierarchy with clearly defined rules, the individual has his responsible area of responsibility and loyally fits into the structure of the whole. Self-responsibility at this level means that everyone makes thoughtful, business-oriented decisions within their area of responsibility and the boundaries and rules set. Hierarchies remain in place, become broader and more functional, and there is usually a strong division of labor. Blue is the color of classically functional companies, large administrative bodies and, in some cases, educational institutions.

5th level: ORANGE
Competition and individual success, which then also serves the whole group, become more important. Rigid rules and structures are broken down, things become faster and more flexible, individuals measure themselves more by results, keep their sights firmly on their goals, but do not lose sight of others and the company. However, loyalty is no longer unconditional; if greater material or personal success can be expected elsewhere, the company is changed. In orange companies, leadership based on goals is important and linear organizations with process orientation, product management and project work emerge for the first time.

6th level: GREEN
The group, as a heterogeneous unit, comes more to the fore, success is understood as the result of a proper team configuration. The mutually complementary skills are promoted and used in a targeted manner, in line with the motto “achieve together what the individual would not be able to achieve”. Hierarchies are being further dissolved, and cooperation is characterized by flexibility, appreciation and integration, with values such as tolerance, togetherness and responsibility for others playing a major role. The focus is on securing long-term success, growth and improving quality through a mature error culture. In reality, you rarely find entire companies at this level; within an organization, it is multifunctional reflective teams or project teams that are at a green level.

7th level: YELLOW
From the yellow level a new group of levels begins, an understanding is established that all existing levels have their merits. At this level, people begin to take advantage of the best aspects of previous levels and work specifically in different work models of other levels to achieve specific goals. Flexibility and individuality come to the fore, accompanied by values such as competence, independence, personal responsibility and innovation. Fixed structures are less important; people feel comfortable in loose networks and virtual teams. Examples of this yellow level are rare to find, think tanks or knowledge networks are sometimes pronounced according to this level.

8th level: TEAL
The perspective of this level goes far beyond the actual work context, one understands the world as a global team acting sustainably; that means direct competition no longer exists, big connections are made, the effects on others and the environment are included and considered in one’s own actions, so that in the long run there is an overall benefit for all. This form of enterprise does not yet exist in reality.

9th level: CORAL
The ninth level is emerging, but is not yet within reach. Here will try to cope with problems and challenges of the turquoise level.

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