Workforce Transformation: - Hitachi Consulting

A Knowledge-Driven Consulting ® White Paper
© 2007 Hitachi Consulting Corporation
Workforce Transformation:
New Leadership for the
Multi-Generational Workforce
1

Contents
Does Leadership Need to Change? ............................................................. 3
The Coming Leadership Crisis ..................................................................... 3
A Theory of Generations ............................................................................... 4
Defining the Generations .............................................................................. 5
The Generations at Work .............................................................................. 6
The Solution to Leading the Multi-Generational Workforce:
Knowledge Capital Management .................................................................. 10
Conclusion ..................................................................................................... 12
About the Author ........................................................................................... 12
About Hitachi Consulting .............................................................................. 13
References ..................................................................................................... 15
2

―Within a decade, the massive
boomer generation will begin to
retire. At the same time,
declining birth rates will mean
fewer younger workers. Through
savvy use of flexible work
arrangements, innovative
learning opportunities, and
creative compensation and
benefits programs, companies
have the opportunity to retain
valuable employees and prevent
a "brain drain."
— Ken Dychtwald
President of Age Wave
“Almost 8,000 Boomers turn 60
every day.‖
— U. S. Census Bureau
Does Leadership Need to Change?
Roger was a management consultant. For 20-plus years he helping clients build
better relationships with their customers. Roger found that while segmenting
customers, age was almost always a primary or secondary predictor of customer
preferences and behavior. No surprise that data clearly indicated age matters,
but why did it matter, he wondered? Were people changing their likes and
dislikes as they became older? Were they adopting new behaviors as they
passed through different life stages such as school, marriage, parenthood, or
retirement? Roger sensed this was only part of the story. There were also
differences that formed in certain age groups and persisted as that group grew
older. He would find to his suprise this was also true of his workforce.
Roger often interviewed bright, motivated, young people coming out of
school and seeking a career in consulting. One particular interview,
however, started a bit differently. When he went into the lobby to greet a
candidate, she was sitting with another woman, having a conversation. As
he walked back to his office with the candidate, he asked how she knew
the other woman.
"Oh, she's my mother,” she said. “She just wanted to check out what kind
of place I might be working for.”
This left Roger scratching his head. He couldn’t understand why a young
person would bring a parent to a job interview or why a parent would
agree to go. He also wasn’t sure why it bothered him so much.
Had he known then what he knows now about the unique perspective of
each of the three generations involved that day (Millennial job candidate,
Gen-X manager, and Boomer parent), it would have been crystal clear.
Roger vowed to learn more about what this new generation of workers
valued and how to get the best performance from them. He found a
delightful divergence of generations and an alarming convergence of
trends pointing to a coming crisis in leadership.
The Coming Leadership Crisis
A historic generational shift that will lead to a crisis in American business
leadership is underway. Companies that understand this shift and take action will
retain their senior leaders, attract the next level of top talent, and cultivate a new
generation of leaders. Those that don’t will find it increasingly difficult to compete
in a complex, rapidly changing, global marketplace.
The American workforce is changing in ways that are certain to create a
shortage of experienced leaders at the precise time that large enterprises are
becoming increasingly difficult to manage. These changes are due to basic
demographics, structural changes in organizations, and generational attitudes
and behaviors. The same demographics that warn of a future fiscal crisis in
Social Security and Medicare will first fuel a leadership crisis in American
business. Simply put, demographic trends have predestined that large numbers
of workers are now reaching retirement age with fewer workers to replace them.
3

―10 million positions will go
unfilled in the U.S. by 2012.‖
— Bureau of Labor Statistics
―The United States is on the
brink of a generational
transition the likes of which
has not been seen before. The
largest generation in history to
retire—some 77.5 million
people, according to the
AARP—will begin vacating the
workplace in the next five
years. And over the next 15
years, our workplaces will
continue to shift to a new
generation of leaders.‖
—Deborah Gilburg
CIO Magazine
It is estimated that almost 8,000 Boomers turn 60 every day. The peak year of
the Boomer generation was 1957 with 4.33 million births, compared to a Gen-X
generation low of 3.14 million in 1975. Those aged 45-55 (born 1952-1962) are a
healthy 46 million, but that number drops to 37 million aged 30-40 (born 1967-
1977). Immigration has filled part of this gap. In fact, Gen-X immigrants number
over 17 million, according to the U.S. Census, but immigration will not avert the
leadership crisis where as many as 10 million positions will go unfilled in the U.S.
by 2012, according to the Bureau of Labor Statistics.
Failing to understand the impact of these demographic forces, companies have
followed short-sighted, cost-cutting strategies that have downsized, outsourced,
or made contingent millions of skilled and capable employees. Some of these
strategies were aimed directly at senior and mid-level management through buyouts
and early retirement programs contributing to the thinning ranks of
experienced leadership. There is a contradiction here. On the one hand,
companies are waging a “War for Talent,” while on the other hand, experienced
managers in their 50s and 60s remain unemployed and underemployed. Age
discrimination and outdated recruiting and hiring practices have certainly
contributed to this situation.
Specific characteristics of each generation are contributing to the crisis as well.
Many Boomers in their 50s and 60s are leaving the corporate world in search of
more meaningful, spiritually fulfilling work. Others are hoping to downshift into a
more flexible work arrangement. Gen-Xers in their 30s and 40s practically
invented the job-hopping, free-agent career path that came to dominate the
1980s and 1990s. In addition, Gen-Xers’ strong risk-taking, entrepreneurial bent
makes them a challenging cohort to lock into long-term employment. This means
that in many companies there are few mid-level leaders who possess the
sustained institutional knowledge of a company’s products, customers,
and operations.
Now in their teens and 20s, many Millennials are most comfortable in a
structured environment that provides supportive coaching and mentoring. This
implies that in the future, companies may require more—not less—mid-level and
senior management. In many ways, the old command and control leadership that
worked well for the G.I. Generation, those born between 1901 and 1924, is well
suited to the needs of the next “Greatest Generation,” the Millennials.
The impact of this leadership crisis will leave many companies without the
senior, mid-level, and emergent management talent required to effectively
compete. Companies that take steps now to address the crisis will be positioned
to thrive. In this whitepaper, we’ll delve into those steps, but before we get to that
it is important to understand the basic mechanisms of generational theory and
learn a bit about who the generations are.
A Theory of Generations
Everyone is familiar with the idea of generations. Popular media labels such as
the “Me Generation” or the “generation gap” have been with us for decades.
Politicians attack budget deficits based on the impact on “future generations” or
support entitlement programs that benefit the “older generation.” But, as we will
see, there is a great deal of confusion about who the generations are, how they
are differentiated, and why they are important.
A modern theory of generations is typically credited as originating with German
sociologist Karl Mannheim (1893-1947) and his essay, “The Problem of
Generations.” Dr. Mannheim described how a cohort’s “fresh contact” with the
prevailing culture led to differentiation between generations. A rising generation
with different formative experiences stands in opposition to the prevailing culture,
the proverbial “generation gap.” He also explained that youth are primary
participants in war, revolution, immigration, urbanization, technology, and other
social upheavals. Uncommitted to a career, family, or way of life, and impacted
by these transformational events, each particular generational cohort is a
powerful force for pressing alternatives to the status quo.
4

Defining the Generations
Generation Birth Years Notable Members
There is often confusion in the definition and use of the term “generation.” The
origin of the word generation is from the Greek word genesis, and traditionally
stood for a parent-child relationship. A second definition of generation is an agerelated
group or cohort with a collective identity. The first definition implies the
transmission of stable cultural norms and values from one generation to the next;
while the second definition emphasizes the profound differences between
generations caused by a rapidly changing modern society. It is this second
definition that we are interested in here.
There is also a great deal of confusion about which and how many years define
a generation. Marketers and researchers have employed a wide range—from
seven years to 30 years—as delineating a generation. For example, the Boomer
Generation is popularly defined by 19 years (1946-1964), whereas Generation X
is sometimes defined by a much shorter 13-year period (1965-1977). Defining
the year a generation starts is also problematic. For example, in some definitions
the Boomer Generation begins as early as 1940 and in other definitions, as late
as 1947. This is important because the length and start date of a generation can
have a dramatic effect on the size and composition of that generation.
The most useful standard is the one proposed by William Strauss and Neil Howe
in their 1991 book, Generations, which is based on the historical analysis of the
common characteristics of each generation. Some of the notable members of the
various generations and their birth years, using the Strauss and Howe standard,
are included in Table 1.
G.I. 1901-1924 John Kennedy, Glenn Miller, Ernest Hemingway, Joe Louis
Silent 1925-1942 Dr. Martin Luther King, Colin Powell, Jack Kerouac, Gloria Steinem
Boomer 1943-1960 Bill Clinton, Elvis Presley, Steven Spielberg, Oprah Winfrey, Bill Gates
Gen-X 1961-1981 Michael Dell, Barack Obama, Jodie Foster, Kurt Cobain, Tiger Woods
Millennial 1982-2003 Sasha Cohen, Scarlett Johanssen, Frankie Muniz, Shawn White, Lebron James
Table 1. Strauss and Howe’s Generational Labels and Intervals: United States 1901-2006
Generations are becoming an increasingly important social concept. One
important factor is the decline of race, gender, and class as cultural battle lines.
Progress on creating a multi-cultural society has reduced racial differences, and
women’s economic empowerment has placed them on a more equal footing with
men. Additionally, the triumph of capitalism over communism on the world stage
has reduced the emphasis on class divisions.
Another factor is that the pace of change in our society has quickened,
enhancing and emphasizing the differences between age groups. Consumer
culture, with its rapidly changing styles and trends, gives each generation the
clothes, music, books, and heroes to express their values and way of life. In
addition, as advances in health and medicine make it possible for the majority of
Americans to live longer and remain vital into their 70s and 80s, more
generations are active at any one time. This also engenders the potential for
intergenerational conflict, particularly in the area of government entitlement
programs. Finally, the impact of the large activist, post-war Boomer cohort in
raising the consciousness of generational issues cannot be understated.
5

―For Generations X and Y, the
old command and control
leadership is passé. The top
down leadership style that
grew from a military model is
not effective in today’s world
of rapid change. Today’s
young leaders act first and
evaluate later, because a
leader cannot afford to
carefully evaluate first in the
high-speed environment of
today."
— W. Bennis & R. Thomas
Geeks & Geezers:
How Era, Values and
Defining Moments
Shape Leaders
The Generations at Work
There are currently four active generations in the workforce: Silent, Boomer,
Gen-X, and Millennial. In order to counter the coming crisis, company leaders
must understand the formative influences on each generation, what they value at
work, and how to get the best performance from them. By maximizing the
leadership potential in each of these active generations, companies will provide
a leadership advantage over their competitors. In the final section of this
whitepaper, we address three disciplines that will enable companies to make this
advantage a sustainable one. But first, let’s meet the generations at work.
The Silent Generation
The Silent Generation is made up of those people born between 1925 and 1942.
This cohort was mostly too young to fight in WWII and came of age in the late
1940s and 1950s. Many married early and worked for large corporations under
the command and control of their G.I. Generation elders. This generation is often
associated with its many introspective intellectuals and thoughtful social activists,
such as Sandra Day O’Connor, Dr. Martin Luther King, Jr., and Gloria Steinem.
Later in life the Silent Generation broke away from conformity in a “mid-life
crisis,” resulting in soaring divorce rates and other social ills.
Primarily in their 60s and 70s, this generation is the smallest generational group
in the workforce and is leaving the workforce at a rapid rate. They are the
technicians and engineers of atomic energy, jet aircraft, and moon rockets. Silent
Generation workers swear by standard operating procedures and loyalty to one
company. They are motivated by the satisfaction of a job well done. Their
communication style is more formal with face-to-face and phone communication
instead of e-mail or voice mail. They are motivated by recognition such as
awards and plaques. Silent Generation workers are now the primary
beneficiaries of social entitlement programs such as Social Security and
Medicare. In retirement, Silent Generation workers are also collecting significant
pensions and health benefits. However these types of programs have been put
at risk because Silent Generation-era industries, such as automotive, chemicals,
materials, and manufacturing have undergone a profound realignment.
The strategic imperative is for companies to preserve the experience,
knowledge, and wisdom of the Silent Generation. In industries such as
aerospace and defense, Silent Generation managers hold much of the tacit
knowledge associated with company products that have long service lives. By
focusing on knowledge management and transfer, a topic discussed in the final
section of this whitepaper, leaders can mitigate the loss of this knowledge.
Additionally, by developing an active alumni network, companies can tap into this
knowledge even after Silent Generation workers have retired.
The Boomer Generation
The much analyzed Boomer Generation represents those people born between
1943 and 1960. This cohort began life in an idyllic Father Knows Best conformity
in the 1950s and came of age in the 1960s rebelling against the world that their
G.I. and early Silent Generation parents had built for them. The Vietnam War
and campus protests against it galvanized the collective identity of this cohort.
This generation is often associated with an outspoken idealism and a somewhat
self-absorbed “Me Generation” attitude. After disillusionment set in during the
1970s, this generation became Yuppies, New Agers, Evangelicals, and Cultural
Warriors. In presidential politics, the baton was passed directly from George
Bush, Sr. (G.I.) to William Jefferson Clinton (Boomer), thus bypassing a whole
generation of accomplished Silent Generation politicians.
6

―Between 1993 and 2003, a
profound revolution has taken
place in the values and norms
of the American workplace.
In this change – called the
Generational Shift – the
prime-age workforce will be
made up increasingly of
Generation X and Generation
Y (born 1978-1986). As
Generation X and Generation
Y come to dominate the
prime-age workforce, they will
usher out the last vestiges of
the old-fashioned workplace
values and norms and finish
the workplace revolution.‖
— Bruce Tulgan
Key Findings of A Ten Year
Workplace Study
RainmakerThinking, Inc.
Primarily in their late 40s through early 60s, this generation is the largest
generational group in the workforce. Boomers are competitive, value expertise,
and believe in paying their dues. However, Boomers also retain a 1960s-era
idealism and daydream about leaving the corporate world in search of more
meaningful, spiritually fulfilling work, as mentioned above.
Corporate America’s strategic imperative is to retain senior leaders from this
generation. The good news is that many Boomers want to continue to work and
contribute. Some studies have shown they will need to work due to scant
retirement savings. Boomers love pep talks and appreciate public recognition of
their good work. The keys to retaining the best of these senior leaders are to
provide flexible job arrangements, promote individual goals/rewards, and
develop a meaningful company vision and mission. As we discuss in the final
section, companies that embrace corporate Human Capital Management may be
best positioned to retain Boomers.
Generation X
In the shadow of the Boomers, Generation X is made up of those individuals
born between 1961 and 1981. They had the unfortunate luck of being born into
the least child-centered era in the 20 th century. The proliferation of widely
available and accepted birth control and abortions dramatically reduced the
number of live births in the 1960s and 1970s. These independent, “latch-key”
kids grew up in front of the TV as parents of both sexes focused on careers,
relationships, and lifestyles. Reacting to the background of defeat in Vietnam, oil
embargos, economic insecurity, Watergate, and AIDS, this cohort grew up with a
distrust of institutions and a deeply internalized self-reliance. As young adults,
they expressed themselves on the cultural edge with punk, grunge, and hip-hop
music and fashion.
Gen-Xers’ first contact with the workplace was during an era of downsizing and
restructuring. This led them to adopt an entrepreneurial, free-agent approach to
employment which focused on building marketable skills to take with them to the
next job. They believe actions speak louder than words and are often skeptical of
the idealism of their Boomer co-workers. Their job-hopping means many have
followed alternative career paths and they may lack the institutional knowledge
that was typical of middle managers in an earlier era of near-lifetime
employment. They make up for this with a savvy ability to make correct decisions
quickly with incomplete information, often to the bewilderment of their Boomer
bosses. Many Gen-Xers appreciate extra time off and hope to retire in their 50s.
The strategic imperative here is for companies to attract the top talent in this
generation. The good news is that Gen-Xers are very likely to make mid-career
lateral moves if given the opportunity to build new skills in an environment that
values their innovation and risk-taking. And don’t give up on those employees
who have left: many companies are experiencing a “boomerang” effect where
former Gen-Xer workers return with new skills and experience.
In order to attract the best of this generation, companies must invest in
developing their human capital, as discussed in the final section of this
whitepaper. Leaders should note that Gen-Xers want success on their own
terms, and by supporting their success they can become a magnet for what will
soon be the most important leadership group in American business.
7

The Millennial Generation
The heralded Millennial Generation includes members born between 1982 and
2003. Perhaps the most protected generation in history, Millennials have been
raised with bike helmets, Drug-Free Zones, Nannycams, Baby on Board signs
and No Child Left Behind standards. Concerned about their child’s self-esteem,
Boomers and early Gen-Xer parents have made sure that these children feel
special and wanted. Millennials have grown up during the economic prosperity of
the 1990s and early 2000s. Their technology and media savvy orientation makes
even Gen-Xers feel less than cutting edge. In opinion polls, Millennials expect to
become rich and famous, and the sooner the better. The result is that this
generation is the most optimistic and civic-minded since the G.I. generation, and
some have gone so far as to predict that this will be the new “Greatest
Generation.”
Now in their teens and 20s, many Millennials are entering the adult workforce for
the first time. Many of them are predictably most comfortable in a secure,
structured organization with clear goals and expectations. They like to know how
they fit into the “big picture.” They prefer informal communication such as e-mail
and hallway conversations, and are adept at new forms of communication such
as blogs, wikis, and text-messaging. They are motivated by state-of-the-art
technology and training in the workplace. Unlike their Boomer parents, they see
little reason to pay their dues; and, unlike their Gen-Xer older siblings, they trust
the organization to quickly move them up a defined career track. If they don’t find
this at your company, they will move on or even move back home, since many
parents provide their Millennial children an economic safety net. Most Millennials
are comfortable working in a culturally diverse workplace and are adept at
building a strong social network. Boomers are proud of the fact that Millennials
want to change the world for the better, while Gen-Xers are disappointed in the
Millennials’ lack of independence and constant need for reinforcement.
The strategic imperative here is for companies to grow the next generation of
leaders. Millennials need to see a defined career path that moves them quickly
into meaningful positions which implies more management levels and a less flat
organization. In the G.I. generation, promising managers were routinely rotated
through the various corporate divisions as a way to groom them for senior
leadership positions. This is a practice that the Wall Street Journal says
companies are finding valuable in developing new leaders. In many ways, the
old command and control leadership style that worked well for the G.I.
Generation is well suited to the needs of this next “Greatest Generation.” The
philosophy of Human Capital Management, discussed in the final section,
provides the type of structured goals, career paths, mentoring, and feedback
mechanisms that will feel intuitively right to Millennials.
8

Generation What They Value Getting Their Best
Silent
―Preserve
Institutional
Knowledge‖
Boomer
―Retain Senior
Leaders‖
Gen-X
―Attract Top
Talent‖
Millennial
―Grow the Next
Generation‖
Loyalty to the company
Standard operating procedures
Satisfaction of a job well done
Winning against the competition
Commitment to the company’s mission
Paying your dues; gaining knowledge and experience
Freedom to innovate and take calculated risks
Relying on your own intellect and instincts to quickly
size up a situation
Success on their own terms
Having goals and a plan to reach them
Balancing work/life while finding a way to benefit society
Working in diverse teams and maintaining a strong
social network
Table 2. Generational Work Values and Leadership Best Practices.
Preserve their experience,
knowledge, and wisdom
Develop an active alumni
network
Make retention a priority
Feed their idealistic, spiritual side
Provide flexible work
arrangements
Provide training and learning
opportunities
Recruit outside for lateral
career movers
Provide for non-traditional
career paths
Provide structured career
paths with clear goals and
feedback
Develop mentoring,
coaching, and leadership
programs
Create a volunteer
community involvement
program
9

―It is not necessary to change.
Survival is not mandatory.‖
— W. Edwards Deming
The Solution to Leading the Multi-Generational
Workforce: Knowledge Capital Management
In the previous section we discussed a number of tactical initiatives for managing
the multi-generational workforce. In this last section, we briefly describe the key
strategic imperative we refer to as Knowledge Capital Management. Companies
have three classes of capital assets:
� Financial Assets—cash, stocks, and bonds
� Physical Assets—plants, equipment and materials
� Knowledge Capital
Knowledge Capital is comprised of three areas:
� Human Capital: The skills and knowledge of people
� Structural Capital: The capabilities of the organization to meet
market demands
� Customer Capital: The customer and partner relationships and solutions
Accountants often think of Knowledge Capital as “intangibles” or “goodwill,” but
research shows it often makes up one-half to two-thirds of a company’s stock
value. To better address this bottom-line asset, Knowledge Capital Management
would incorporate the disciplines of:
� Knowledge Management
� Human Capital Management
� Corporate Social Responsibility
� Organizational Change Management
The integration of these disciplines into corporate culture would enable
companies to achieve a sustainable, competitive advantage. These disciplines
would need to become critical components of the effective leadership in a multigenerational
workplace.
Knowledge Management
Knowledge Management (KM) involves systematically managing the tacit and
explicit knowledge in an organization. Knowledge Management includes taking
tacit knowledge—information in people’s brains—and making it explicit, as well
as connecting individuals to share tacit and explicit knowledge. KM is a strategy
and process that is enabled by technology, but is not just a technology solution.
Making knowledge explicit prevents the company’s knowledge capital from
walking out the door with retiring Silent and Boomer Generation retirees. By
developing communities of practice and linking experts to Gen-X and Millennial
newcomers, it accelerates learning and knowledge transfer in an organization.
Millennials have the ability to build social networks and will naturally create and
participate in communities. Ultimately, this makes the organization more
effective, productive, and profitable.
Human Capital Management
Human Capital Management (HCM) is a transformation of the human resources
function that treats employees as assets, with quantitative links to individual
performance that align and integrate to the company’s strategic goals. The
critical success factors to strategically lead HCM must be data-oriented, factbased,
and have a long-term commitment to valuing human capital as a strategic
asset. People must be seen as valued assets who can only be enhanced
through investment.
Effective Human Capital Management provides the framework for clear goals
linked to performance and commensurate rewards. That type of transparency in
10

―Organizational Change
Management provides a
methodology and the tools so
companies can obtain greater
economic value faster by
effectively developing,
deploying, and aligning a
company’s assets to the
initiative.‖
— Beth Montag-Schmaltz
Hitachi Consulting
an organization appeals to all employees, but is absolutely necessary when
working with the Millennial Generation. To establish a goal-performance-reward
culture that would effectively meet the needs of a multi-generational population,
would require taking into consideration the diverse needs and expectations of
each of the generational cohorts. This would mean, for instance, the values of
each of the generational cohorts would need to be considered when designing
effective benefits, promotion paths, evaluations, succession planning,
compensation, workplace diversity, or equal employment programs. Thus,
leaders will need to define how the business acquires, develops, deploys,
motivates, and retains employees in each generational cohort.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) is not charity; it is the recognition that
companies must take into account the impact on all stakeholders, including
employees, shareholders, customers, suppliers, and the communities in which
they operate. CSR is also good business as consumers recognize the value of a
socially responsible brand and are often willing to pay a premium for those
products. Products as diverse as Newman’s Own Salad Dressing and the Toyota
Prius Hybrid have shown companies the logic of “doing well by doing good.”
Dozens of studies have found that well-run, profitable businesses also have
strong social and environmental records, and vice versa. Companies that
embrace this discipline will be most successful in retaining the idealistic
Boomers, as well as attracting socially conscious Gen-Xers and Millennials.
Some critics deride CSR as naïve, but they often use as evidence the faulty
accounting assumptions that fail to place any value on Knowledge Capital.
Organizational Change Management
Organizational Change Management (OCM) comprises the organizational
design, communication, learning, and governance related to any organizational
change. Change may come as the result of shifts in business priorities, new
product introductions, technology implementation, or any of a myriad of
other causes. The one constant in business today is that the pace of change
is accelerating.
In order to communicate effectively to the diverse set of generational cohorts and
have the changes to your organization have a positive impact, an effective
Organizational Change Management program is required. Imagine a
communication about a change to the company’s benefit programs. It may be
viewed by Millennials with indifference, by Gen-Xers with skepticism, and by
Boomers with moral outrage. Without effective change management, even a
positive communication about new benefits can have unintended consequences.
Table 3 summarizes the disciplines and components of the Knowledge Capital
Management strategy with links to the three areas of focus.
The final hurdle is changing accounting standards to recognize and include the
value of the human, social, and organizational “intangibles,” and to correctly
include knowledge capital assets. The recent trend for U.S. companies to
outsource their customer service function is an example of undervaluing
knowledge capital assets. The decision to reduce the cost of headcount by
outsourcing seemed like a smart financial move—until customers started leaving
as a result. Traditional accounting did not consider the actual knowledge
capital those employees had provided the company or the potential cost of
lost customers.
11

Discipline Focus Components
Strategy All
Organization OCM
People HCM
Process All
Technology KM
Management understanding & committing
Aligning the approach with the business strategy
Roadmap for transforming into a High Performance Organization
Defining the roles and functional responsibilities within the
organization
Developing and tailoring approach to meet specific business needs
Evaluating impact on all stakeholders
Evolving the principle of employees as key resources to optimize
enterprise performance
Promoting the company brand and company culture to enhance
performance and develop loyalty
Integration and alignment of key business processes
Targeted investments in people (e.g., total comp., talent mgt.,
succession mgt.)
Unit and individual performance linked to organizational goals
Integrated systems supporting data-driven decisions
Enabling process automation
Enabling key metrics
Table 3. Knowledge Capital Management Disciplines and Components
―The five basic differences
between generations can be
categorized into values around
career, speed, loyalty, balance,
and heroes. And each of these
differences leads to the need
for different styles
of leadership.‖
— W. Bennis & R. Thomas
Geeks & Geezers: How Era,
Values and Defining Moments
Shape Leaders
Conclusion
This whitepaper describes a historic generational shift that is underway and will
lead to a crisis in American business leadership. Understanding this shift and
recommending specific actions is the primary focus of this material. Companies
that heed the call will retain their senior leaders, attract the next level of top
talent, and grow a new generation of leaders. Those that don’t will find it
increasingly difficult to compete in a complex, rapidly changing,
global marketplace.
For more information about what is possible from a Knowledge Capital
Management perspective please email Brian Johnson at
BRJohnson@hitachiconsulting.
About the Author
Brian R. Johnson is a managing vice-president for Hitachi
Consulting. He is responsible for profitable growth and
intellectual property development in the areas of sales,
marketing, and customer service optimization and automation.
Johnson has spent his entire 21-year professional career
assisting companies with improving and automating their
customer-facing functions.
Johnson has extensive experience helping clients develop
strategies, design technology solutions, plan for complex
12

global implementations and manage the process and organizational change
required to successfully transform themselves into customer-centric
organizations. Prior to joining Hitachi Consulting, he spent ten years leading
commercial software development teams in the creation of software for sales,
customer service, direct marketing, field service, human resources, and financial
applications.
Johnson holds a Bachelor degree in Computer Science and Economics as well
as an MBA in Information Systems from the University of Colorado. Johnson is a
Ph.D. Candidate in Applied Management and Decision Sciences at Walden
University.
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White Papers
� Customer Advocacy Part I: Creating the Business Case for Customer-Centric
Companies with Fanatical Customer Advocates
� Creating the Single View of the Customer: The Value of Accurate, Reliable,
Consistent Customer Data to the Bottom Line
� Protecting Customer Data: How Much is Your Customer’s Trust Worth? Part 1:
The Business Case for Privacy
� Workforce Transformation: New Leadership for the Multi-Generational
Workforce
� Changing Leadership to Lead Change and Enhance Executive
Accountability: An Organizational Change Management Series
� Knowledge Management: The ROI of Employee Braintrust: Strategies for
Reserving the Organizational Knowledge Drain
� Service Oriented Architecture (SOA) Goverance: Revolutionizing Business to
Meet Customer Demands
� Fact-Based Business Decisions: Business Performance Management and
Business Intelligence in Today’s Enterprise
� Calculating Your Brand Ambassador’s Bottom-line Value: The ROI of The
Contact Center and Contact Center Agents
� Return on Advertising Dollars (ROAD): How to Make the Most of Your Budge
and Incorporate New Media
� Marketing Optimization: The CMO and Strategic Leadership In The
New World of Marketing
Books:
� The Leadership Advantage, AMG Press, 2007
� Reinventing Your Contact Center: Managers Guide To Managing
Multi-Channel Contact Centers, Prentice Hall, 2006
� Integrating Your People with Process and CRM Technology:
Change Management That Provides An ROI, Anton Press, 2005.
� CRM: The Bottom Line to Optimizing Your ROI, Prentice Hall, 2001
� Recruiting and Retaining Call Center Employees, ASTD, 2001.
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Customer and Channel Solution Case Studies:
• Case Study: Aviall - CRM and Supply Chain Optimization
• Case Study: Avocent Sales
• Case Study: Avocent - Worldwide Business Processes
• Case Study: Birkenstock
• Case Study: Cable Operator
• Case Study: Charitable Organization
• Case Study: Customer Care for Coffee Retailer
• Case Study: F5 Networks
• Case Study: Leading Food Products Company
• Case Study: IHOP
• Case Study: Indoff
• Case Study - International Relief Organization – CRM
• Case Study: Large Software Customer Contact Strategy
• Case Study: Large Financial Institution
• Case Study: Customer Intelligence for Global Software Company
• Case Study: Large Software - Global Marketing Standards
• Case Study: Marketing Campaign Reporting for Global Software Company
• Case Study: Sales Force Transformation for Global Software Company
• Case Study: Macromedia
• Case Study: Network Computing Company
• Case Study: National Oilwell
• Case Study: Oil Field Services
• Case Study: Raytheon
• Case Study: Semiconductor Manufacturer
• Case Study: Third Party Logistics Provider
• Case Study: Toyota Motor Sales
• Case Study: Wireless Telecommunications Company
• Case Study: Wireless Telecommunications Segmentation
About Hitachi Consulting
As Hitachi, Ltd.'s (NYSE: HIT) global consulting company, with operations in the
U.S., Europe and Asia, Hitachi Consulting is a recognized leader in delivering
proven business and IT solutions to Global 2000 companies across many
industries. We leverage decades of business process, vertical industry, and
leading-edge technology experience to understand each company's unique
needs. From business strategy development through application deployment,
our consultants are committed to helping clients quickly realize measurable
business value and achieve sustainable ROI.
Hitachi Consulting's client base includes nearly 35 percent of the Fortune 100,
25 percent of the Global 100, as well as many leading mid-market companies.
We offer a client-focused, collaborative approach, and knowledge throughout
each engagement. For more information, call 1.877.664.0010 or visit
www.hitachiconsulting.com.
Hitachi Consulting -- Inspiring your next success! ®
© 2007 Hitachi Consulting Corporation
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Moments Shape Leaders. Massachusetts: Harvard Business School Press.
Bagby, M. Rational Exuberance: The Influence of Generation X on the New American
Economy. New York: Penguin Group, 1998. ISBN 0-525-94408-7
Coupland, D. Generation X: Tales for an Accelerated Future. New York: St. Martin’s Press,
1990. ISBN 0-312-05436-X
Dychtwald, K. & Flower, J. Age Wave: How the Most Important Trend of Our Time will
Change Your Future. New York: Bantam Doubleday Dell, 1990. ISBN 0-553-34806-X
Edmunds, J., & Turner, B. S., (2002). Generational Consciousness, Narrative, and Politics.
Oxford: Rowman & Littlefield Publishers.
Goldberg, Beverly. Age Works: What Corporate America Must do to Survive the Graying of
the Workforce. New York: Simon & Schuster, 2000. ISBN 0-684-85759
Hankin, H. The New WorkForce: Five Sweeping Trends That Will Shape Your Company's
Future. New York: AMACOM. 2005. ISBN 0-8144-0829-X
Hicks, R. & Hicks, K. Boomers, Xers and Other Strangers: Understanding the Generational
Differences that Divide Us. Wheaton: Tyndale House Publishers, 1999. ISBN 1-56179-677-8
Howe, Neil, and William Strauss. Millennials Rising: The Next Great Generation. New York:
Random House, 2000. ISBN 0-375-70719-0
Mannheim, K., (1997). The Problem of Generations. In Essays on the Sociology of
Knowledge. London: Routledge.
Markert, J., (2004). Demographics of Age: Generational and Cohort Confusion. Journal of
Current Issues and Research in Advertising. 26(2), 11-25.
McCarthy, Sheryl. Too Young to Retire, Too Old to be Hired. USA Today, January 31,
2007.
Pilcher, J., (1994). Mannheim’s Sociology of Generations: an Undervalued Legacy. British
Journal of Sociology, 45(3), 481-495.
Richard, Judy W., and Carol D’Amico. Workforce 2020: Work and Workers in the 21st
Century. 5th printing. Indianapolis: Hudson Institute, Inc., 1999. ISBN 1-55813-061-6
Strauss, W. & Howe, N. Generations: The History of America’s Future, 1584 to 2069. New
York: William Morrow, 1991. ISBN 0-688-11912-3
Tulgan, B. Winning the Talent Wars: How to Manage And Compete In The High-Tech,
High-Speed, Knowledge-Based, Super-Fluid Economy. New York: W. W. Norton &
Company, Inc. 2001. ISBN 0-393-01958-6
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