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:

1. All ideas compete on an equal footing
2. Contribution counts for more than credentials
3. Hierarchies are natural, not prescribed
4. Leaders serve rather than preside
5. Tasks are chosen, not assigned
6. Groups are self-defining and organizing
7. Resources get attracted, not allocated
8. Power comes from sharing information, not hoarding it
9. Opinions compound and decisions are peer-reviewed
10. Users can veto most policy decisions
11. Intrinsic rewards matter most
12. 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.

For me, children surely do act in ways that we adults can learn from. For example, children, as is said, say the darndest things. In the context of leadership lessons, what this means is that we need to speak openly and truthfully. Simply put, we all benefit from this degree of openness in our communications. Such genuine, albeit sometimes difficult to hear, communication is what leads to better outcomes without leaving thoughts lingering in our minds that can cloud progress. So, be sure to follow a child’s lead and speak from the heart, without filtering or couching our language to avoid direct discourse.

Next, like kids do incessantly, leaders must explore their curiosities in an effort to learn more, achieve more and gain greater understanding. In doing so, we must understand the risks involved – both of our actions and in our inactions. As I’ve said in prior posts, “Granted, there are risks associated with change, but don’t fall victim to the false notion that there are no risks in not changing. In fact, the risks of inaction often times far outweigh the risks of doing something.” As such, we must properly evaluate these risks and take an appropriate course of action. And furthermore, we must accept that failure ought to be tolerable. In fact, “failure is not only acceptable but, in many ways, desirable for it rewards us with lessons that could not otherwise be learned.” So, don’t allow yourself to be limited by fear of failure or controlled by risk aversion. Do what children do and evaluate risks, understand your abilities and take appropriate chances.

Lastly, keep asking questions. Kids are well known for the forever string of “Why?” In reality, many adults find this incessant questioning a challenge. A comedian, Louis CK, has a great bit on this exact issue that is sure to prompt a laugh. However, in business, as business leaders, it is actually in our interests, at times, to keep asking questions, push the thinking of the team, and ensure that the rationale for any recommendation is well thought out. In fact, there is a great story about Toyota and the “Five Whys” method of troubleshooting in order to reach a clearer understanding of the root cause of a problem. So, take a lesson from this childhood exercise and deploy it within your own realm. You’ll surely see just how beneficial it can be.

Nina Nets It Out: As leaders we can learn things from just about anywhere. If we simply accept that even the youngest amongst our society have plenty to offer us in this regard, we will reap many benefits that otherwise might go unattained. Take guidance from these little ones and their free-spirited approaches to handling situations that they confront.

Now, when I say “succession”, I am not just talking about filling roles that will be vacated over time. As leaders we must think broader than this. We must consider the future impact of new workers on our work environments. We need to consider change management, business process, HR — in fact, we need to re-think the way that we manage the business of doing business. And if this post by Ryan Healy is any indication, Generation Y are ready, and expecting, to help.

Ryan sets out ten ways that Generation Y will change the workplace. And while there are some excellent points, my favorites include:

• We’ll redefine retirement — the suggestion is that a career will be made up of multiple, mini retirements that occur in sync with life changing events (think childbirth, middle age etc) — “When we hit 65, it will be the new 45.”
• We’ll find real mentors — Ryan suggests that the quality and pervasiveness of mentoring will improve. I too would like to see this expand particularly as it relates to women in the work place.

Let’s face it, organizations are going to need as much innovation as possible. It is claimed that over the next five years approximately 62 million Baby Boomers will be retiring, being replaced by around 40 million from the ranks of Generation Y. The net deficit is significant and the potential impact on businesses is enormous. Add to this the different approach to work that is fundamental to Generation Y and it becomes clear that leaders need to begin addressing these future challenges now — we need to begin to put “success” back into succession:

S – stimulate — Generation Y are renowned for being easily bored. Leaders will ensure that our teams have meaningful work that engages and challenges them. Provide opportunities outside your line of business to stop them looking to your competitor for inspiration.

U – understanding — Realize that Generation Y are wholly different. Change your methods of review and assessment. Decrease the cycle times for recognition and reward.

C- connect — This is the always-on generation. Don’t fear their network of connections — embrace it. There is wisdom in the crowd and it can be deployed to provide competitive advantage if managed well.

C – chaos — Generation Y demand streamlining — they reject the seeming chaos of bureaucracy and encumbrances of red tape.

E – embrace technology — To Generation Y technology is not an “enabler” it is a fact of life. They have never not been online. Technology should be used to provide flexibility (virtual teams, global collaboration etc), knowledge sharing, and career development (virtual classrooms, eLearning).

S – sayonara seniority — Promotion due to seniority is out with Generation Y. It is all about merit and performance. Workforce knowledge and career acceleration initiatives need to be put in place and embedded within your company’s DNA.

S – salaries — Demand is likely to drive up starting salaries — and when coupled with sites like Payscale.com and an openness in communication, Generation Y is likely to cost business more.

Nina Nets It Out: Preparing the way for Generation Y is no simple task. As leaders we need to begin re-imagining our businesses to not only attract but to retain and to grow this new generation of leaders.