Next Generation Next Destination

GENERATION GAP FOR LEADERS

It happens every time we have a "recession" or economic turndown. But this time it is more daunting not only given the severity of the economic situation, but also given the demographic realities. The talent crunch when the economy turns up and firms are hiring again will be magnified because so many Boomers are approaching the age when they will "retire" from current positions - voluntarily or involuntarily.

In any case they may be gone. And many are managers and executives. Will there be enough people trained, experienced and ready to capably step into their shoes?

A new report from PricewaterhouseCoopers says that in 2008 over 2007, the percentage of managers and executives eligible for retirement within 5 years rose much more dramatically than it did for workers in general. (The survey covered more than 300 companies across 12 industries.)

The current recession has given organizations a breather, and many Boomers would like to keep working for a long time more, even if they can afford to retire. Surveys in 2004 and 2005, when the economy was booming and retirement funds were healthy revealed that about 80% of boomers wanted to keep working after age 65 in some capacity - reinventing retirement, as the then newly coined phrase goes.

The PricewaterhouseCoopers report as covered in the New York Times (12/27/09) contains a graph showing that about 34% of managers and 27% of executives in 2008 would be eligible for retirement in 5 years. They are closer now. The percentage for all workers was about 17%. A great opportunity for the next generation of leaders and managers, but will there be enough of them from the much smaller Generation X, and will they be ready?

Shouldn't this shake up management enough to get some serious succession planning and transitioning going at all levels?

Phyllis Weiss Haserot   www.pdcounsel.com

TRANSITIONING: A TALE OF MUTUAL MENTORING

For further evidence that many Boomers are not afraid to jump into the technology and new media world, we have the story of James R. Gaines, former top editor of Time and People magazines who joined FLYP in the summer of 2008 at age 61. FLYP is an online digital publication that combines text with Flash animation, motion graphics, streaming audio and video to do what he has always done - tell stories.

In his article in the New York Times "Preoccupations" column ( November 29, 2009), Jim Gaines talks about his mutual learning relationship with the staff of FLYP, several decades younger than he. Here are some of his thoughts about the age and experience gap.

*  Gaines figured the staff members, recently out of college, would be lucky to work with him and learn from his experience and achievements, but the opposite turned out to be true for him.

*  He feels lucky to be working with them, and they have been quite patient about helping him understand all the technology and software applications. "...I learn more than I teach most days, which is both humbling and thrilling," he wrote.

*  He is dealing with the paradox of wanting to be a colleague but knowing his role as boss: "to sustain, provide and sometimes to teach, but not necessarily be a friend." It's analogous to his role as parent at home. 

Gaines decided to ask his young staff members what they think of him and the distance between him and the staff. Some of the responses he got include:

*  "I don't ever think about Jim's age until someone in the office brings it up" (usually over some digital gaffe). 

*  "We're a small team where we can't get hung up on who is guiding who. New media isn't about who has the longest resume. It's about who has the best ideas and who can implement them the most creatively. That's something age can't really teach you."  [I comment here that this is at least partly true in many industries and fields.]

*  They are impressed with his enthusiasm, and it reinforces their excitement for what they are doing.

Gaines points out that his and their enthusiasms differ from each other. He remarks on how strongly the staff reacts to things - positively or negatively, what he sees as youthful extremes of emotion. But he is thrilled with the relationship. He concludes," The young people I work with now will be settlers of that [digital] frontier, and I can't think of anything I would rather do than help them get there."

This story illustrates an excellent example of mutual mentoring, where mentor and mentee roles shift back and forth as appropriate. It becomes a comfortable process that benefits both parties or a group.

It's one type of what I call "3rd Wave Mentoring." I will be presenting a webcast for the West LegalEdCenter on this new wave of mentoring (including mentoring circles and other networked approaches) on December 16th. Contact me at pwhaserot@pdcounsel.com for more information.

Phyllis Weiss Haserot      www.pdcounsel.com

GETTING BUY-IN AND LOYALTY FOR THE INSTITUTION

Drew Gilpin Faust, Harvard's president was the interview subject of the New York Times "Corner Office" column (Nov. 1, 2009) discussing her approach to leadership. What I took from her remarks, though coming from her experience in academia, was some advice for generating buy-in to an organization's overall success by practice group and business unit leaders.

Gilpin pointed out that one of the key reasons for leader communication frequently and repeatedly is so people will not feel a sense of mystery or suspect what a leader is up to. She said that by reaching out and listening, the leader not only can understand how others see the world, but also by having them feel listened to, they are more likely to 

TRANSITIONING AND MULTI-GENERATIONAL TEAMS: Importance of Understanding the Big Picture

Interviewed in the New York Times Sunday Business section (9/6/09) "Corner Office" column, Ford Motor CEO Alan.R.Mulally used a story to illustrate one of his most important leadership lessons: "The more that everyone comes together on what their real purpose is, the higher order of that, the better." I think this is especially applicable for gaining and maintaining the engagement and productivity of the younger generations.

Paraphrasing the story in a nutshell: A reporter stops by a construction site and interviews three bricklayers, asking each one, "What are you doing?" The three answers he got were:  

*  "Well, I'm making a living laying these bricks."

*  "Well, I'm practicing the profession of bricklaying. I'm going to be the best bricklayer ever."....And the third one said:

*  "I'm developing a cathedral."

In Mulally's words: "  There is technical excellence and professionalism, but we all want to contribute to making a cathedral. And the more we feel that, and we know what our part in it is, the more I think you can take the team performance to a whole other level of excellence.... the higher the compelling vision that you can articulate, the more it pulls everybody in."

In most firms there is too little attention paid to painting the big picture, especially for young professionals and staff so that they understand how their often narrow slice of an engagement or function in an organization's overall purpose is essential to bringing value to a client. Understanding the importance of their role usually transforms their attitude toward their work and the people they work with. More senior professionals and executives need to bear that in mind when giving assignments and holding team meetings. This applies to everyday client work and internal projects as well as when transitioning responsibilities and clients to the next generation of leaders and managers.

Take the extra time to explain and reinforce in compelling terms the big picture and each individual's value in achieving an excellent result. It will pay off in enthusiasm, productivity and retention of talent and clients.

Please share some examples of the difference knowing and conveying the big picture has made in your experience.

Phyllis Weiss Haserot     www.pdcounsel.com

TRANSITIONING TO GEN X LEADERS

A blog post from a publication in Australia, WAtoday, speculating on Gen X Leaders got to me by way of a Google Alert a few days ago. It speculates on what Gen X leaders may be like as they finally are taking over gradually (some of them can't wait!) from the Boomer leaders and whether they will be different from Boomers as leaders. Take a look.

I think the Gen X leaders will be substantially different from the older half of the Boomer cohort leaders because those generations are typically different from each other and because they are facing fast-changing circumstances.

What do you think?

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

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

BE AN OPTIMIST LEADER: RE-THINK, RE-ALIGN, RE-INVENT

In my opinion, these times call for practical, compassionate, open-minded optimists. Here are some of the attributes that come to mind to lead your organization or community in a constructive direction.

*  Retain core values, but challenge assumptions based on previous circumstances - quickly.

*  Think positively, and if there is anger, channel it constructively.

*  Identify and realistically assess the forces that influence the present and what will be the "new normal." These are economic, social, political, cultural and competitive forces and trends. What will that new normal look like and where are the opportunities?

*  Communicate transparently and authentically. To inspire and engener trust, loyalty, engagement and commitment, keep people in the loop.

* Invite and be open to advice and new perspectives from your team and from respected outsiders.

*  Feel and convey empathy. Look outside yourself, help others when they need it, and believe that "what goes around comes around."

*  Be a role model at whatever level you are. Show confidence and optimism and encourage it in others. Have goals and action plans and keep raising the bar.

*  Maintain a supportive enviroinment for yourself, your family, friends and colleagues.

*  Stay engaged, accessible and ready to move as required.

*  Both stay aware in the present moment and be future-oriented. Optimists believe in a positive future. Optimist leaders want to show the way.

Phyllis Weiss Haserot      www.pdcounsel.com

GEN X CAREER TRANSITIONING QUANDARY

A New York Times "Jobs" column (Dec. 28, 2008) titled "Former Bankers Turn to a Creative Plan B" brought to my mind some good news/bad news thoughts on leadership by the Generation Xers. The good news is that people - even people who have been very driven to make a lot of money in business careers - are taking the opportunity in times of economic turmoil to pursue their creative bent. Some of them are feeling they have nothing to lose taking a risk on a new, personally appealing direction. A growing creative work force and more recognition that it is our human creativity that brings the most progress in the long run is a good thing.

The bad news is that an exodus from the corporate and professional worlds by creative Gen Xers may result in a widening leadership gap in the generation that needs to step into the Boomer shoes as they retire or transition out themselves.  All the individuals interviewed for the article ranged from age 33 to 38 and had held executive positions in financial services companies. Of course, some of them had no choice but to leave their current post. They were laid off and so were pushed to turnto their creative muse. Others are volunteering to leave, taking a severance package to finance their writing, performing or other creative pursuit.

The potential Gen X leadership gap has two or three sources: first, the generation itself is only about 57% as large as the Boomer generation it succeeds;  second, a significant number of members of the generation are not interested in taking leadership responsibility, preferring to attend to their personal lives and interests (work/life flexibility); and third, some Gen Xers are discouraged from sticking around, afraid they will miss their chance at running things because the Boomers are slow to leave. This is an issue business and all walks of life will have to contend with. While the next generation (Y or Millennials) is generally ambitious and eager to move up quickly, they will be too inexperienced for senior leadership in most instances for a while.

How can we retain enough of "the creative class" in organizations of all types to prevent a serious leadership gap in the next 10 years?

Will this be a significant problem, or will it be resolved with a combination of Boomers staying on, Gen Y preparing and moving up at record speed, and paradigm changes emerging from the current economic crisis and government leadership committed to leading change?  Your thoughts?

Phyllis Weiss Haserot      www.pdcounsel.com