Millennials have more sophisticated information tools and are usually more adept at using them in the workplace. In other words, most have the data and social skills to back up their assertions.
Children today know more because they can discover information much more quickly – and with the right environment, they can use that information to create exciting products and services. Today's 5-year-olds can create items that a 12-year-old could not create 10 years ago, or adults a generation ago.
There always has been, and always will be, generations that challenge the status quo with more knowledge and creative capability than their predecessors. But the new dynamic is how different generations must coexist in larger numbers in the workplace.
Increased health and longevity has a huge impact on the workforce. For many, retirement at the end of a career no longer makes sense, but sabbaticals during careers may.
In the past, people retired at age 65, expecting a lifespan of about 10 more years. Today, many young people can expect to be active and productive for 20 or 30 years past age 65. The 100-year life will be a reality for many. The trend also means there will be many generations at work. This is the first time in history that five generations are in the workplace together.
Globalization Is Now
The ability of more people to move around with easier access to transportation has created huge upheaval in societies. It is hard today to find a truly homogeneous national culture. Even the traditionally insular country of Japan finds itself needing to embrace immigrants from other parts of the world to fuel its economic growth.
Going back to where everyone is “just like us” is not an option. The old days are gone forever – or rather – the perception of the old days.
Humans are explorers by nature. And we're naturally cautious. Whole societies were set up to ward off onslaughts of others into their tribes. The story here is not just globalization and demographic shifts, but how easy it is for people to move around the world now – whether virtually or in person.
Societies are no longer as homogeneous as they were before, which can create tension in how work is done. This new era of globalization is a business phenomenon that is outpacing societies and outpacing companies.
Talent mobility has increased dramatically and that trend will continue. Once people get the taste of new workplace opportunities, as well as new products and services, they can never go back.
Shock and Awe
Along with change comes disruption. And with disruption comes opportunity. Jobs and companies are going away in the blink of an eye, and start-ups are appearing just as fast. How many cell phones have you had in the past five years? The pace of change is only increasing.
The author Alvin Toffler predicted this in his seminal book, Future Shock. The future that Toffler predicted in 1970 is upon us – and has been for many years. He predicted the explosion of information sharing and the disruption of the formalized workplace culture.
Despite the writings of Toffler and other futurists, most people – and most companies – have not stayed ahead of the waves of change.
We have seen through our research, discussions with leaders, best-selling authors, and many of our Fortune 500 clients that the three waves of change are causing the following six factors to emerge. These factors have everything to do with how we deliver goods and services, motivate and engage people, and build relationships to fulfill our shared need for a sense of contribution in our daily lives.
Six Factors of Change
Here are six factors transforming the workplace from the twentieth to the twenty-first century.
These factors require considerable reshaping of fundamentals in any enterprise:
● How you develop people
● How you organize work to deliver value to your customers
● What human relations practices you put into place to advance your workforce
Google, and other forward-thinking companies, have proven that emotional connections are the key to a successful twenty-first-century business. And all six of these factors require a fresh look at the human side of business.
Robots and Artificial Intelligence may demonstrate logic, but they have yet to exhibit heart and emotion (unless you are the Tin Man from The Wizard of Oz). They aren't able to display the truly unique aspects of humanness.
We may be in the midst of a digital revolution, but it's the people revolution that will determine whether we ride the waves of change or drown.
Let's look at these six factors in a bit more detail.
1. Leadership
More has been written about leadership than probably any other business topic. Search for “leadership books” on Amazon and you'll get to sort through almost 200,000 results.
Still, for some reason, we often get it wrong.
We've seen management in the financial sector ignore technology, choosing to resist computerization with the excuse of not wanting to disrupt their employees. As a result, entire departments, and companies, were wiped out.
In the end, company success boils down to leaders: what they value and how they behave.
While much was espoused about empathic leadership, the twentieth-century leadership style was, and still is, predominantly “command and control.” According to Harry Kraemer, former CEO of Baxter, and professor at Northwestern University's Kellogg School of Management, only about 20 percent of leaders practice inclusive, people-focused, and values-driven leadership.
Command and control is the default position of leaders when under intense deadlines and profit pressure. While leaders may wish to adopt a different posture, the culture invariably drives them to conform to “the way things are done around here.”
We've worked with many executives to help them change their leadership style, but when new ideas are introduced, the cultural “antibodies” drive out the change agents. The inertia is caused by other leaders in the business who don't walk the talk, and everyone knows it except them!
In the previous century, leadership referred to the C-Suite. But business leadership exists in every department and inside every person.
The twenty-first century demands a shift in leadership to be one of engagement, collaboration, and adaptability. These are also the hallmarks of organizations that can innovate.
Without leaders who can appreciate other points of view and engage with others in an authentic way, organizations will not survive. Globalization, demographic shifts, and technological advances are here to stay. Leaders today must not only accept this fact but embrace it. They must be transparent, because others will find them out – and quickly.
Leadership is the critical factor. Without a shift in our leadership mind-set and our leadership behavior, none of the following factors will be future-proofed.
2. Culture
In the late twentieth-century, the notion of corporate culture was beginning to get some traction. Leaders realized they could have the best strategy on earth, but if the organizational culture did not embrace the strategy, it was going nowhere. Strained relationships and lack of trust could effectively erode any efforts for strategic implementation, let alone innovation.
We remember talking to leaders many years ago about trust, respect, and other factors that affect culture. Very few “got it.” The prevailing view was this is “fluff” and like other soft skills, it didn't matter because it didn't contribute to the bottom line. Most leaders we spoke with said, “We don't have time for this. We are focused on shareholder value.”
When there was a deeper understanding of company