Next Generation Next Destination

SUCCESSION AND PARTNER TRANSITIONING PLANNING: A COMPELLING ISSUE FOR OUR TIMES

"Demographics are our destiny," reinvention is the new retirement," "win the talent wars" and be "the employer of choice."  Recognizing the challenges and opportunities, Practice Development Counsel's *Next Generation, Next Destination* program was developed by Phyllis Weiss Haserot and Richard T. McDermott in 2005 to achieve advance transitioning planning to benefit both senior partners and the professional growth of younger partners as well as their firms overall.

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A GENERATION LATER

I am an avid and frequent theatergoer and supporter, and I have tickets for this coming weekend to see "Vanities, A New Musical," part of my subscription to Second Stage in New York. It is a musical version of a long-running play off-Broadway. The publicity says it "spans the turbulent '60s through the late '80s and explores how important friends are as one faces life's defining moments." It follows three women over a 30 year period.

In an interview, the book writer (and playwright of the original play, Jack Heifner) and the songwriter, both men (the director is a woman) were asked if the problems the women faced would resonate with our world. David Kirshenbaum, who wrote the music and lyrics, said," We're living once again in a time of incremental but incredible revolution - politically, technically, economically, culturally - and even though the battles being waged are different, one hopes from those that were fought in the ''60s and '70s, on a certain level I think social changes are ultimately going to be just as seismic."

Do you agree? With change accelerating geometrically, especially from a technological standpoint, will the changes be even greater?

I am eager to see if I think that had the characters been texting and tweeting instead of communicating in person those bonds of friendship would be as strong. 

In any case, studies continue to be released confirming that people with a solid base of social relationships are the happiest and most able to withstand hardships. Or is it that the happiest people attract the most valuable friendships?

Phyllis Weiss Haserot     www.pdcounsel.com

REFLECTIONS ON BOOMER RETIREMENT & RECESSION

The question came up in planning a program I am presenting to a group of human resources professionals: How much has the severe recession affected Boomers' attitudes and plans for retirement? Based on national (U.S.) surveys and interviews and interviews by various generational experts (including me),  the majority of Boomers (75% in several surveys) wanted to keep working past the age of 65 when asked in and around 2005 (boom years). This is reflected in surveys sponsored by Merrill Lynch, AARP and others. 

Much of the Boomers' desire to keep working was based on non-economic grounds - and still is. They want the intellectual stimulation, social aspects, opportunity to make a difference and to continue learning. For many, it is closely tied up with their identity. Those are strong motivations,

Their resolve to keep working has only strengthened given the subsequent losses in their retirement funds. But it is not an attitudinal  turnaround, though the time frame may have changed. And the leadership tensions between Boomers and Generation X following them have heightened because of economic constraints. The problem is that the pie has shrunken both organizationally and personally, at least temporarily, under current economic conditions - which are, overall, worse than either of the generations has ever seen. While times were good, the fear was of a dangerous skill and leadership gap as Boomers eventually stopped their current careers for encore careers or retirement. And they weren't moving out fast enough for Gen Xers to take the reins. Now the two generations are competing for fewer jobs with less opportunity to hold on or to move up.

Phyllis Weiss Haserot   www.pdcounsel.com

TRANSITIONING THROUGH CROSS-TRAINING

When I talk about flexibility, I mean more than flexible hours or location. Cross-training so that people can move from one role or specialty to another enables firms to be nimble and people to remain productive when the economy sours in their area of focus.

As we move toward the "new normal" and rethink business models, we ought to be thinking about whether individuals' roles have become over-specialized to the detriment of overall goals.

The Wall Street Journal Managing/Theory & Practice column (June 22, 2009) titled "Firms Shift Underused Workers" points out as a consolation of the economic downturn that employees are gaining new skills as they are forced or volunteer to be more versatile in order to retain their jobs. It says that this versatility is found most often in smaller firms, but there is no reason that cross-training couldn't be offered at any size firm.

A poll by the Society of Human Resource Management (SHRM) in March found that 34% of 467 human resource executives reported that their employers had retrained employees for new positions in the last six months.

I believe that's a strategy that will pay off well for organizations in any type of economy and will appeal to Generation Y/Millennials who are drawn to lattice-type careers where they are continually learning new skills and becoming more valuable to employers.

Phyllis Weiss Haserot    www.pdcounsel.com

CLIENT-CENTERED MULTI-GENERATIONAL SUCCESSION PLANNING

Survey fact: Many surveys of HR professionals have found that respondents recognize succession planning as a high priority concern.

Survey fact: Those same HR professionals admit that very little is being done to address it.

In a survey of companies in the northeast U.S. by Right Management and Practice Development Counsel (summer 2008), only approximately 9% of respondents said that a knowledge transfer process is in place. How will they survive if the creative class of Baby Boomers walks out, voluntarily or involuntarily, with their knowledge cache of skills, expertise, judgment and relationships?

What are the threats to a firm's client-centered, multi-generational succession planning?

Phyllis Weiss Haserot     www.pdcounsel.com

BE PREPARED: PERSONAL TRANSITIONING

Some of the most difficult transitions are personal ones, including confronting the inevitable. It is a generational transition as well. Planning way ahead maximizes the control you can exert and prevents and relieves a lot of stress on family. Yet, given the strong emotional factors involved, people put off planning , getting documents in order, consulting health, financial, legal and other advisers and communicating their most personal thoughts and wishes. Rationally, we know we are not immortal, but many of us act as if we are.

To the rescue, popular and highly respected New York Times Personal Health columnist Jane Brody has put all you need to think about and discuss into a heartfelt book, her latest, "Jane Brody's Guide to the Great Beyond" (Random House 2009). It is subtitled " A Practical Primer to Help You and Your Loved Ones Prepare Medically, Legally, and Emotionally for the End of Life." While this is clearly a serious subject, it is written with her light touch and includes several New Yorker cartoons.

Brody describes herself as "a staunch advocate of a healthy life filled with nutritious food and regular exercise designed to help people live life as fully as possible."  She explains and gives examples of how planning and preparing helps people live as well as possible and experience comfort and joy right up till the end. Thoroughly researched, there are so many options spelled out, many most of us would never have known about.

I highly recommnend you get your copy and digest and follow it as early as you can. Use it as a jumping off point for sensitive and honest communications with your adult children and with your parents, depending on where you fall on the generational spectrum.

We never know what is around the corner for us whether regarding work or personal matters. "Be prepared" is not just for Boy Scouts. When we have done and communicated all we can, we can rest easier for possibly many decades to come.

Phyllis Weiss Haserot    www.pdcounsel.com

LEADERSHIP IN THE PROFESSIONS - SURVEY

It would not be surprising to find that perceptions of the most urgent challenges for leaders change with the economy. A spring 1009 survey of over 200 business leaders and 700 accountants by Ajilon Finance and the Institute of Management Accountants (IMA) found that some high priorities change from economic boom times to busts but others maintain their importance. Unfortunately, disconnects persist between employers and employees about which leadership skills are valued and how.

*    While a third of accountants surveyed think the ability to inspire and motivate talent is the most important leadership attribute for quality leadership, and it is followed by communication skills and people management skills (what I call human performance skills, better known as "soft" skills), those accountants think that it is the knowledge and expertise and keen decision-making skills that are rewarded. This state of affairs is true of other professions as well. I would add that as a consequence, the latter hard skills are the ones that are most frequently exercised.

*   On the positive side, just under a third of respondents say training is considered a non-discretionary expense, even when belts are being tightened. While I think that figure needs to be a lot higher to maintain high quality, productivity and growth, a significant number of companies/firms acknowledge the importance of training and professional development. Other non-discretionary items I am glad to see on the tough economic times list are succession planning (number 1), workforce flexibility and enhancing the brand.

*   And about what is needed to be a more effective leader themselves, the most frequently cited factor was "more time" - more than twice as many mentions as more money or more influence.

*  The 200 business leaders attending the 2008 World Business Forum  selected "recruiting and managing generations X and Y as their number two greatest workforce issue.

*   While recruiting and retaining talent was the number one challenge cited for good economic times, in downturns the main focus was said to be generating revenue. Pursuing growth opportunities was important in both good and bad times.

Phyllis Weiss Haserot    www.pdcounsel.com

BOOMERS FUNDING REINVENTION

I have seen several articles and pitches for articles about people over age 50 opening 529 college savings plans - for themselves. It seems to be a hot topic, or at least a warming one.

Since the Boomers have shown themselves to be continual learners, perhaps this is a trend that will play out as they reinvent themselves for encore careers for both financial and fulfillment reasons. A niche market for financial planners? and for college communities?  The latter have already experienced growth as retirees and pre-retirees move to locations where they can be students and soak up the cultural atmosphere that institutions of higher education bring. Now they have a new way to fund their continuing education.

Phyllis Weiss Haserot    www.pdcounsel.com

CROSS-GENERATIONAL ALUMNI-STUDENT PUBLIC INTEREST ACTION

Since I put together and facilitate *cross-generational conversation* groups, primarily focusing on the workplace, I am always interested to see initiatives that encourage multi-generational collaboration.

Twenty years ago, the Princeton class of 1955 started "Princeton Project 55." According to the web site, "Princeton Project 55 (PP55) is an independent nonprofit 501(c)(3) organization dedicated to providing opportunities for college alumni to improve our society. By bringing alumni together with students and recent graduates, Princeton Project 55 provides many opportunities for building the commitment, leadership, and mentoring needed to solve critical issues affecting the public interest."

"Princeton Project 55 believes that there is a vast untapped resource of energy and expertise among college alumni that is available for the public good. We accomplish our mission through a variety of approaches including matching recent graduates with year-long fellowships in public-service organizations, providing mentors and professional development; supporting alumni from other universities engaged in similar initiatives; and collaborating with on-campus programs to raise the profile of civic engagement among current undergraduates."

Spreading the model and enthusiasm, there are 40 colleges and universities for which the Princeton group has set the example. The name was chosen not just to recognize the class that started the initiative, but more significantly to signal the age they thought many people are able to commit to taking on civic activities.The organization has a board composed of four generations of alumni, including some very well known names. Of course it has a Facebook page.

Phyllis Weiss Haserot    www.pdcounsel.com

CROSS-GENERATIONAL APPEAL

President Barack Obama, in his commencement speech at Arizona State University on May 13th, made several significant points for Gen Y/Millennials students that translate also to Boomers thinking about their next career destination. (Below are quotes or paraphrases as I jotted them down.)

*  Success is not pursuing celebrity and material things or status, a title.. Relentless pursuit of superficial markers can lead to complacency rather than doing your best.

*  We need to continually adapt.

*  We need your daring and enthusiasm.

*  Commit to do what's meaningful to you. Follow your passions to change the world. You have no excuses not to change the world.

*  Be someone who cares.

*  Choices over a lifetime make a lasting legacy. Your body of work is never finished.

Interestingly, there was big applause when helping not-for-profits and teaching were mentioned; not much enthusiasm was exhibited when business was mentioned. It remains to be seen if that is just a sign of the times or an attitude that persists.

Much of this is not dramatically different from the typical commencement speech year after year. But it has a special resonance in these tumultuous times and severe economic downturn. People need to rethink their priorities, whether by choice or not. After long careers, many Boomers are looking to reconnect to their more youthful vision of changing the world and working for the public good. There is much to be done if people let go of a definition of success that starts with a dollar sign. Yes, we need to be productive  and self-sufficient, but that's only the beginning. As an eternal optimist, I believe in unforeseen opportunities and that good can and will come of it.

Phyllis Weiss Haserot     www.pdcounsel.com

INVEST IN NEXT GEN X LEADERS NOW!

Many smart companies have not abandoned training in these tight economic times. They are betting that training and coaching the next generation in leadership skills will help them through the recovery period and give them an edge when competitors start building again.

True, many companies have cut training. A survey in December of 117 large U.S. companies by Watson Wyatt Worldwide Inc. revealed that 23% of respondents had cut training and 18% planned cuts in 2009. But others are investing in leadership development, which is gaining a growing share of training budgets. And that's a departure from the past according to Yaarit Silverstone, global managing director for the organizational effectiveness practice at Accenture Ltd. Cutting leadership training in past downturns had led to mid-level managers and top performers exiting when the economy recovered.

While business schools had been benefiting when things were booming, companies are sending fewer people to executive education courses. And rather than asking business schools to create custom courses for them, they are saving money by conducting the training in-house - either using staff or bringing in outside experts. Those employers want to be sure that the people they have are well prepared to lead during a recovery when they tend not to leave and afterwards. They are using both web-based and live training. For example, Canon USA Inc. is combining web tools and instructor-led courses to increase the training for newly promoted managers over the past efforts. Some of the attention is on strategic decision-making and influencing employees.

The focus on leadership development has been observed even in companies that are reducing headcount. And that is wise. For the immediate present the people remaining need to be more skilled to do more with less and keep clients satisfied and loyal.

For the future when the economy turns up, there may well be a leadership gap in numbers, since Generation X, who will need to fill the experienced Boomers' shoes as the latter leave the work force, is a significantly smaller generation. In general, they have not been trained with the same attention that the Boomers got coming up the ranks. And many Gen Xers have expressed less interest in taking on greater responsibility.

It certainly seems like investing in next generation leaders, to engage them in making them the best they can be, needs to be a high and urgent priority for any business that intends to survive and thrive now and in "the new normal."

Phyllis Weiss Haserot    www.pdcounsel.com