Supervising Generation Y employees (born 1977 – 1990) and Millennial employees (born 1991 – ) poses several challenges. One of my clients, who has become fairly frustrated, says:
“It isn’t just that younger employees have short attention spans and lack social skills and basic manners. The biggest challenge we see if that today’s young people exhibit an odd mix of insecurity AND cockiness. One minute they are convinced they know everything and should be in charge. The next minute, they don’t know very basic aspects of the work to be done. They simply don’t know what they don’t know.”
“As a result of that one factor, younger people think they deserve fascinating high paying positions with a degree of independence and authority…before they have done anything to earn those jobs. And if they can’t easily land one of those rewarding jobs, they actually give up and settle for entry level roles at fast food restaurants.”
If your business is experiencing something similar…don’t ignore it. More and more executives are starting to realize that the disconnect between various generations will soon stunt their business growth and profitability.
Many younger people crave the opportunity to create. Installing a highly participative interdisciplinary approach to product development is one way to reach and retain young employees. No matter what their core jobs are, younger employees can often provide new insights and ways to utilize technology. If your Baby Boomer managers can get past the negative/provocative manner used by Generation Y and Millenials to make suggestions (“I don’t know why you don’t…”), your business can end up with some exciting ideas. If the cross functional product development groups are then expected to go far enough with their analysis that they can present actual business proposals, your younger employees have the opportunity to learn what they did not realize they didn’t know…and have a reason to stay.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2012 is Ambler’s 8th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
The brother came to quarterly board meetings, but that was about it. He happily pulled his share of the profits from the family business for years and years and years. Amazingly, he became tired of having to go to board meetings and asked his siblings to just buy him out which they did.
The sister had an impressive title. According to the company’s organizational chart, she oversaw four departments. The reality was that professional managers had been brought in to really run the departments. They each kept her informed just in case, but no real value resulted from their meetings with her.
The younger brother was president, and he wanted the business to truly grow, be successful, and stand for something. He developed a strategic plan, invested in multiple locations, and occasionally tried to motivate his sister. One day, the sister came into a management meeting and loudly declared, “I don’t want to be held accountable by anyone,” and the sibling president was put on the spot. He could have just fired his sister, bought her out, and kept growing the business. But instead, he invested hours and hours, days and days, weeks and weeks to get a fair valuation, find buyers, and negotiate the best price.
The parent and each sibling ended up with a great deal of money…multi-millions.
So now, no one in the family is talking to the younger brother. He got them more money than they could have ever imagined. He was the only sibling actually working. The reasons? “[He] had embarrassed his siblings. [He] should have tried harder.”
The sister spoke up recently and actually asked to help. She didn’t want her children to think that she didn’t work/have a job or career.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2012 is Ambler’s 8th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Recently, we’ve been seeing more and more leaders of midsized companies struggle with succession and feeling forced to consider affiliation with larger entities because they have gaps in their leadership and no way to do succession from within.
Assessments are revealing that rigid work schedules and lack of choice in benefits may have played larger roles in sabotaging their retention, leadership development, and succession from within than they would have ever imagined. Schedules and benefits impact every generation of employees.
In general, folks from the “Baby Boomer Generation” value self actualization, learning, and making a difference. Their parents taught them to work hard and stay with one company. But their life experiences have taught them that loyalty is no longer rewarded. Often referred to as the “Sandwich Generation” Baby Boomers need time to take care of grandchildren or an aging parent with Alzheimer’s disease. Rigid office hours can chase Baby Boomers away.
“Generation Xers” can seem more cynical and self absorbed. Think about what they have experienced in their lives: Presidents who lie. Wars with unclear mandates. Corporate corruption. Long term employees losing their pensions. Plus television, video games, computers, and cell phones going faster and faster and faster. It makes sense that Gen Xers take a shorter term view and don’t trust long term promises. Why would they want equity in a company if they don’t trust that it will even exist in a few years? They value their personal time but are insulted if their bosses assume that means they won’t work hard.
Think about the “Radio Generation.” They want to be and stay retired. Right? They have a strong work ethic but already put in their time. Right? They just want to reminisce about the past and aren’t interested in learning anything new. Right? It’s the younger people who want flexible schedules and benefits. Right?
Not necessarily. Life expectancy is extending longer and longer. Many senior citizens view using their brains as very important to staying healthy. I know several seniors who definitely have the capacity and interest in continuing to work. They may not want to start the work day at dawn. They would like a little time in the morning for a doctor’s appointment or a cup of coffee with friends at the local McDonalds. And the benefit package they want/need is long term care insurance. Their dependability and loyalty can be worth a great deal to a company.
Are your scheduling policies and lack of a cafeteria plan for benefits sabotaging your succession plan?
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2012 is Ambler’s 8th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Disillusion. What a fascinating word. How many Baby Boomer business owners do you know (perhaps yourself?) who have become disillusioned?
The recession and the long period of uncertainty that has followed. It looks like the underlying causes of the implosion of the financial industry in 2008 haven’t been addressed let alone resolved. Government officials haven’t risen to the occasion and done the jobs citizens pay them to do. Disillusion.
International competition. Most Baby Boomer business owners recognize globalization. But how does a privately held US based company compete with a business based in China where the hourly workers are paid so much less and work so many more hours without overtime rates involved? Disillusion.
Advances in technology. Oh it’s great to participate on a SKYPE call with your grandchildren who live on the other side of the country. And Wii bowling is fun. Getting movies through Netflix for your flat screen HD/3D television is a pleasant perk. But on the business side, technology keeps raising customer expectations and the EXPENSE, the constant training, the disruption, and the bottomless pit of change related to IT can be very discouraging to a Baby Boomer owner of a privately held midsized company. Disillusion.
If it is a family owned business, the next generation doesn’t seem to want to learn leadership skills or work hard. They don’t seem ready or as interested in taking over the family business. An unfulfilled life plan. Disillusion.
There are solutions to this situation. They all begin with the Baby Boomer owners doing some self examination to admit how disillusioned they have become. Plus, in many cases, they would need to be willing to be a whole lot less stubborn. Less pride and less secrecy. The rules have changed and continuing to run a business in a state of denial won’t help.
My prediction? There will be a SPIKE (huge rise) in the number of (formerly midsized) businesses being dissolved in a few years. Unaddressed disillusion leads to dissolution.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieve accelerated growth with sustained profitability® through opportunity & resource analysis, strategic planning, executive advisory services, growth financing, and targeted search. 2012 is Ambler’s 8th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
If you are the majority owner of a business and feel yourself shutting down when the subject of succession comes up, consider the following layers:
This sequence may seem obvious, but it is NOT what most people do.
Many business owners end up with a scramble of facts and emotions about themselves and other people. Loyalty. Fear of the future. Legacy. Entitlement. Guilt. Disappointment.
Especially during uncertain economies (NOW), many owners approach succession – related analysis from a pessimistic almost cynical viewpoint. I have seen owners work themselves up into horrible resentments based on arguments they have had with themselves in their own minds. Without assistance, they never reach question # 4…let alone question # 5.
The optimally sized business meets its obligations to the owners, its key stakeholders, and its future. When there are honest answers to questions 1-3 , the optimal size becomes self evident and can guide strategic decision making focused on the market place, product differentiation, productivity, etc. with far fewer negative assumptions, resentments, and fear.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™. Ambler is wrapping up her 7th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
As a Baby Boomer CEO/President of a midsized company, you have reached the point when at least the question of succession and/or transition into retirement has come up. You’ve worked at it (and are a little lucky) so you have a management team that is interested and thinks they are ready to step up and make decisions you have been handling for YEARS. Perhaps, you’ve concluded that you want to stay on as the Chairman of the Board (or Emeritus CEO) to keep active, still make a contribution, mentor key people, and serve as a safety net. But will you be able to let go of day-to-day decisions? Will the managers be able to break the habit of depending on you?
One of my clients in this position said he felt like “a surgeon with a team of eager but junior doctors all around him, but he was afraid to let go of the bleeders or the patient might die”.
This situation provides an excellent opportunity for a business to make the shift from top down (autocratic) leadership to more participative management styles that encourage people to accept more responsibility, take initiative, consider consequences and weigh options.
It helps to promote/hire a President who views the role as facilitator, a hub, or orchestra leader. Replacing yourself with another top down autocratic leader simply protracts the over dependence on an individual. No matter how experienced or bright you or your successor is, a bottle neck develops and the business is less resilient. What if you or your autocratic successor becomes ill? Go on a long vacation? Lose interest? Have an accident? It is also a disincentive for talented people to remain with the company.
