There is no doubt that we are facing challenging times. Within many workplaces we are losing experienced workers as they are either retrenched or retire, replacing them, if at all, with the sea of less experienced Generation Y. This is part of a structural realignment that has been underway now for some years, with many Western countries facing the situation where population is both shrinking and aging:
Think of 20-somethings as a single work force, the best educated there is. In Japan, that work force will shrink by one-fifth in the next decade — a considerable loss of knowledge and skills. At the other end of the age spectrum, state pensions systems face difficulties now, when there are four people of working age to each retired person. By 2030, Japan and Italy will have only two per retiree; by 2050, the ratio will be three to two.
But as I have suggested previously, leaders need to work now to prepare their businesses for a different kind of future. We need to re-think the way that we manage the business of doing business – for economic crisis or not, the landscape in which many of us work will never be the same again. This means that, as leaders, we must now begin the hard work of orienting our organizations, our processes and our business cultures toward a new way of working that is more resilient and flexible – and one that builds learning into the very DNA of our operations. For while the “war for talent” goes through a recession-driven hiatus, this is not a permanent cease-fire. As the leading management author, Gary Hamel suggests:
Sure, it’s a buyer’s market for talent right now, but that won’t always be the case—and in the future, any company that lacks a vital core of Gen F [Facebook] employees will soon find itself stuck in the mud.
Hamel goes on to outline 12 characteristics of online life that will impact our management practices in the years ahead:
- All ideas compete on an equal footing
- Contribution counts for more than credentials
- Hierarchies are natural, not prescribed
- Leaders serve rather than preside
- Tasks are chosen, not assigned
- Groups are self-defining and organizing
- Resources get attracted, not allocated
- Power comes from sharing information, not hoarding it
- Opinions compound and decisions are peer-reviewed
- Users can veto most policy decisions
- Intrinsic rewards matter most
- Hackers are heroes
Now, I could easily write on each of these points, but I would like to concentrate on the last point – hackers are heroes. Having worked in IT companies for many years, I have had the benefit of seeing the power, innovation and energy that can come from genius programmers who push the limits of the work that they do. They truly provide the breakthroughs that we crave. But often this innovation comes at a cost – for while “hackers” make life uncomfortable for the organizations, they are celebrated in online communities. This can lead to a mis-match between the type of employee that we “want” and the type of employee that we “need”.
I have a feeling that, in the future, we will need to find a more cohesive way of bringing these “mavericks” into the fold of corporate life. And the thing is, we can’t wait for Gen Y to force this transition upon us – we should be actively preparing the ground work now. Our future prosperity and success may well depend upon it.
Nina Nets It Out: With so much change underway, you could be forgiven for wanting to “take cover”. However, now is the perfect time to begin the transformations that will pave your way for future success. Begin rethinking the way that your company works with the younger generation of workers. They are, after all, the future leaders of your business.
I have a real problem with Hamel’s use of “hacker” in his piece. The reason is that the word has morphed from a very positive appellation to a strongly negative one, with implications of illegal behavior. I think your description of the characteristics is great, but I think we need something at least neutral to name the people you describe.
Congratulations! This post was selected as one of the five best independent business blog posts of the week in my Three Star Leadership Midweek Review of the Business Blogs.
http://blog.threestarleadership.com/2009/04/08/4809-midweek-look-at-the-independent-business-blogs.aspx
Wally Bock
Hi Wally,
Thanks as always for commenting and your insights. Whether the word “hacker” connotes good or bad, one thing is sure, we must find ways to engage these folks within the corporate realms. We must determine what type of “red carpet” we can roll out to invite them in on their terms.
I know several of these types of individuals, and wonder if they will ever be receptive to the idea of being brought “into the fold of corporate life.” Like so many in the younger generations, they tend to be more free-spirited and entrepreneurially-minded. It seems most likely that the way to incorporate these workers will be on a contract basis. After all, they really tend to make more money that way while maintaining their independent status. However, I do know one “hacker” who thrives in a corporate IT department while maintaining a web design business on the side.
Hi Hayli,
I agree in general with your point about the younger generation being free-spirited and entrepreneurially-minded. I simply am suggesting that it would be beneficial to have them within the “fold of corporate life”, but not prescribing a particular method to doing so. My conclusion is that we must begin rethinking the way that companies work with the younger generation of workers. If doing so as contractors suits all parties, then so be it. If direct employment suits all parties, then that works just fine as well. Whatever manner of engagement works, we must engage this generation to reap the benefits that they offer.
Enlightened is the word I would use to describe your piece, Nina. The 12 characteristics are not only admirable ones but welcome ones in my mind (and I’m a boomer). We need a transformation. We need different rules of engagement. We need a paradigm shift. We absolutely need grassroots leadership that is more organic, more synergistic, the type that Facebook and Linkedin and open forum blogs nurture. The mass of energy vibrating from the velocity sweeping over the electronic network is phenomenal, and most of it is being done in time outside of corporate life. How much more beneficial it could be if we truly could embrace such a transformation as you describe..
Hi Vita,
Thanks for your comments and passion about the wave of changes taking place given technology’s advancements and the power or benefits we could reap if we’re successful at channeling it within corporate environments. It is just that thought – the benefits we could reap – which astounds me when I do take a moment to contemplate its potential.
If you ever want to concentrate a post on any of the other points, let me know. Our company is bottom up, not top down, so many of these points we embrace every day.
Part of our company culture is ‘Best idea wins’. As such there is very little ego and politics. Peer review is a great way to build trust through collaboration. We share information by virtue of our web based task management system, Qtask. It’s all about transparency. We live in it. (goodbye email hell!)
I found your post through the ‘Stevies Award’ and have been enjoying it. Our company has submitted this year. Fingers crossed!
Hi Emi,
Thanks for commenting. I can appreciate the bottom up approach and how it can show different perspectives than top down management styles. I like the idea of peer review and transparency. They are both valuable tools for building trust amongst team members, partners, customers, etc.
Also, I am so glad that you found my blog and wish you the best of luck in your submission this year!