Workforce Transformation: - Hitachi Consulting

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―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
Page 1 and 2: A Knowledge-Driven Consulting ® Wh
Page 3 and 4: ―Within a decade, the massive boo
Page 5: Defining the Generations Generation
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Page 11 and 12: ―Organizational Change Management
Page 13 and 14: global implementations and manage t
Page 15: References Bennis, W. & Thomas, R.

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