Next Generation Next Destination

SUCCESSION AND PARTNER TRANSITIONING PLANNING: A COMPELLING ISSUE FOR OUR TIMES

"Demographics are our destiny," reinvention is the new retirement," "win the talent wars" and be "the employer of choice."  Recognizing the challenges and opportunities, Practice Development Counsel's *Next Generation, Next Destination* program was developed by Phyllis Weiss Haserot and Richard T. McDermott in 2005 to achieve advance transitioning planning to benefit both senior partners and the professional growth of younger partners as well as their firms overall.

Welcome!!! Visit and subscribe to this blog for continuing insights on how to do it right and make your organization a better, more profitable and more successful workplace for all the generations of workers and clients. Please offer your comments and contribute to the discussion.

GETTING BUY-IN AND LOYALTY FOR THE INSTITUTION

Drew Gilpin Faust, Harvard's president was the interview subject of the New York Times "Corner Office" column (Nov. 1, 2009) discussing her approach to leadership. What I took from her remarks, though coming from her experience in academia, was some advice for generating buy-in to an organization's overall success by practice group and business unit leaders.

Gilpin pointed out that one of the key reasons for leader communication frequently and repeatedly is so people will not feel a sense of mystery or suspect what a leader is up to. She said that by reaching out and listening, the leader not only can understand how others see the world, but also by having them feel listened to, they are more likely to 

MORE ON GEN X LEADERSHIP GAP AND RETENTION DISCONNECTS

I have written frequently before about a looming Generation X leadership gap. Still another survey indicates that employers and employees are not on the same page about talent management and retention.

Research by Deloitte Consulting in a survey report released in August 2009, "Keeping Your Team Intact: A Special Report of Talent Retention"  finds that Gen X employees have the highest intention to leave their current jobs of the three most prevalent generations in the workplace after the recession is over. Those saying they are likely to stay: 37% of Gen Xers surveyed; 44% of Gen Yers; and 50% of Boomers. Yet only 9% of employers think Gen Xers are likely to leave when the recession ends. From the time they entered the workplace, Gen Xers typically had more of a freelance mentality than other generations, so their intention is not surprising.

The reasons for intended leaving also differ between employees and management expectations. Employers ranked "excessive workload" as the #2 barrier to retaining employees, but it was only ranked 10th by employees. The latter's chief factor for shifting employers was lack of job security. They ranked "lack of trust in leadership" as the 6th most important reason for leaving, but employers ranked it considerably lower. Gen Xers typically have lower trust in leadership and authority than other generations.

Gen Xers ranked "additional bonuses or financial incentives" as the most effective retention tactic (48%), while only 37% of corporate leaders saw it as the highest priority. Only 40% of Boomers ranked bonuses and financial incentives as the most effective tactic.

These findings again raise the red flag of a potential leadership deficit among the next generation to step into the Boomer leaders' shoes as they eventually leave the workplace. Gen X is a much smaller generation than either the Boomers or Gen Y/Millennials; many Gen Xers have a considerably smaller appetite for taking on the heavy, time-consuming responsibilities the Boomers were willing - even eager - to shoulder.

The potential gap has been masked by the recession. But as we come out of it, the urgency of planning for and training Gen X leaders will become increasingly apparent and urgent. Those firms that neglect this and take a short-term view will likely come up short in desired talent and needed leadership. It's time now to seriously examine how to keep an prepare those best able to lead the workforce of the future.

Phyllis Weiss Haserot   www.pdcounsel.com

BOOMER-GEN Y BUSINESS LINK: CLOSING THE DIVIDE FOR PROFIT

Despite the so-called Boomer-Gen Y gap, there is much evidence of natural similarities and synergies. This  belief is backed up by a recent survey by Knowledge Networks for the Center for Work-Life Policy. Laura Sherbin, an economist with the Center said the two generations work together well because they both want autonomy and flexibility.

As reported in "Finding a Guide for Online Networking" by Elizabeth Pope in the New York Times (October 15, 2009), the survey of 1,5 95 people indicated that 40% of older adults had asked their younger colleagues for help with text messaging, iTunes, and social networking. In fact, there is a distinct phenomenon developing for the web-savvy to help their elder colleagues or even strangers build second careers online. Since over 40% of Generation Y participates in online social media, according to the research, they sometimes pick up and refer job leads they come across online to their elders.

The Times article relates some examples of young people helping Boomers and Traditionalists start businesses online. One Boomer interviewed got help from people in their 20s and 30s that she met through her local Chamber of Commerce and BNI International. They even gave her advice on managing clients and setting fees.

What's great about this generosity of the Gen Yers is their eagerness to share information with not only their peers, but anyone who is interested in and appreciates their help. That's got to be an optimistic sign for the future of work. I love it! Let's all, as individuals and organizations, capitalize on this cross-generational collaboration, reverse and mutual mentoring.

Please share examples of this phenomenon whether personally experienced (other than with children) or observed in the workplace.

Phyllis Weiss Haserot   www.pdcounsel.com

TRANSITIONING OUT IN RECESSION TIMES

The severe recessionary economy has led to creation of a variety of working arrangements as people consider every opportunity to keep working. Some recently laid off people find project work with their former full-time employer, providing a source of income and a way to keep involved, while the employer benefits from the services without having to increase  full-time headcount.

For individuals on the older end of the spectrum it is not exactly phased retirement, but it shares some of the characteristics. The individual is no longer a partner or executive in a senior position, but in addition to performing services directly may be transferring knowledge that otherwise would have been lost to the next generation.

While this has the potential for a win-win, the transition can be tricky, especially for the individual assuming the new, usually reduced, status. Expectations need to be clarified. The working agreement probably should be reveiwed by an employment lawyer for protection and clarification. Emotional discomfort through a readjustment period can be expected. Relationships with former colleagues are likely to change and the office politics may appear different. Others may resent that they didn't get the work.

In this situation, expect to have to prove yourself and the value of your work, especially if the responsibilities are different from the former ones. You need to show you are a team player and put in extra effort. But be careful not to feel you are taken advantage of (or let that happen).

On the positive side, these phasing out or project work arrangements can provide desirable flexibility to individuals who have worked intensely for many years. They enable a person to stay gainfully employed, still engaged in work that may be challenging and personally meaningful and connected to colleagues.

Can you share experiences from your own organization?

Phyllis Weiss Haserot   www.pdcounsel.com

NEXT GENERATION SKILLS GAP: What Boomers Need to Teach Gen Y and X

The "Corner Office" column interview in the New York Times on September 20, 2009 featured Linda Hudson, president of the land and armaments groups at BAE Systems giving an important perspective on corporate culture and the deficiencies of business school education. When asked by the Times' Adam Bryant what she would like business schools to teach more of, she responded:

"Business school graduates come with a large amount of theoretical knowledge. "But they don't have a clue of what it's like from a people-skill point of view, or the coping skill perspective of learning to deal with disappointment and failure. They come in here thinking that, first of all, they're going to run the company overnight. Many of them are convinced they've never made a mistake. They're not accustomed to encountering road blocks or disappointments. We give them all the book smarts, but we don't tend to give them the other skills that go along with business."

We hear the same themes from many professions and industries - in business, law, medicine, engineering and so on. The education system is focused on data and theory rather than incorporating a healthy portion of how to communicate effectively and relate to people -  colleagues, clients, customers, suppliers. It is the latter set of skills that enables people to become leaders that others will follow and to achieve necessary change in a fast-paced world. And in that fast-paced, time pressured, billable hour-type world, few individuals in the more senior generations have financial incentives to train and mentor the new young, blood brought in supposedly to invigorate and perpetuate the organization. On the contrary, they may feel they are digging themselves an early grave.

While Generations Y and X may be extremely technologically literate, most of them don't measure up to the Boomers and Traditionalists in people skills. Through mutual mentoring each can learn from the other, but there has to be a greater value put on communication and inter-personal skills in schools to lay the foundation, and the organizations that hire the young candidates need to persuade and partner with educational institutions to make sure that happens.

Phyllis Weiss Haserot     www.pdounsel.com 

TRANSITIONING & BEHAVIORAL ECONOMICS

I attended a fascinating presentation and discussion today on how we make decisions, particularly ones that affect us financially, sponsored by Citron Cooperman CPAs. The presenters were Delia Marshall and Yvette Wynn from BNY Mellon Wealth Management. Behavioral economics is growing in interest and credibility. Related are neuroeconomics and neuro-marketing based on scientific studies of brain function which have become possible with the medical technology existing today.

Marshall spoke about the studies which are revolutionizing our thinking and proving that decision-making is more emotional than rational, governed by the biological "fight or flight" response. Most people may be biologically wired not to want to delay gratification. Brain imaging results are being integrated into advertising.

This means we have to make extra efforts to be mindful and reflective before making decisions that may go against our best interests, especially financially. Emotions can be very good things, of course. In decision-making we need to be aware of the role of emotions and what we are feeling at the time so that we can make reasoned decisions.

Among the resources Marshall recommneded to learn more on these topics are: Jason Zweig's book "Your Money & Your Brain" (Simon & Shuster 2007) and "Nudge: Improving Decisions About Health, Wealth and Happiness by Richard Thaler, and Cass Sunstein (Yale University Press 2008).

Accepting this brain science.and realizing what is going on in our brains we can choose to be purposefullyly reflective rather than reflexive at times that really matter - when it comes to retirement and transitioning planning, for example. Be aware of  ways the fear of loss of professional identity (in the "Personal Bucket") or no longer feeling as valued as before by colleagues is influencing decisions about transitioning clients to and mentoring younger colleagues.. Avoid having reflexive behavior hinder getting what is really important to you and your legacy.

Phyllis Weiss Haserot     www.pdcounsel.com

TRANSITIONING AND MULTI-GENERATIONAL TEAMS: Importance of Understanding the Big Picture

Interviewed in the New York Times Sunday Business section (9/6/09) "Corner Office" column, Ford Motor CEO Alan.R.Mulally used a story to illustrate one of his most important leadership lessons: "The more that everyone comes together on what their real purpose is, the higher order of that, the better." I think this is especially applicable for gaining and maintaining the engagement and productivity of the younger generations.

Paraphrasing the story in a nutshell: A reporter stops by a construction site and interviews three bricklayers, asking each one, "What are you doing?" The three answers he got were:  

*  "Well, I'm making a living laying these bricks."

*  "Well, I'm practicing the profession of bricklaying. I'm going to be the best bricklayer ever."....And the third one said:

*  "I'm developing a cathedral."

In Mulally's words: "  There is technical excellence and professionalism, but we all want to contribute to making a cathedral. And the more we feel that, and we know what our part in it is, the more I think you can take the team performance to a whole other level of excellence.... the higher the compelling vision that you can articulate, the more it pulls everybody in."

In most firms there is too little attention paid to painting the big picture, especially for young professionals and staff so that they understand how their often narrow slice of an engagement or function in an organization's overall purpose is essential to bringing value to a client. Understanding the importance of their role usually transforms their attitude toward their work and the people they work with. More senior professionals and executives need to bear that in mind when giving assignments and holding team meetings. This applies to everyday client work and internal projects as well as when transitioning responsibilities and clients to the next generation of leaders and managers.

Take the extra time to explain and reinforce in compelling terms the big picture and each individual's value in achieving an excellent result. It will pay off in enthusiasm, productivity and retention of talent and clients.

Please share some examples of the difference knowing and conveying the big picture has made in your experience.

Phyllis Weiss Haserot     www.pdcounsel.com

CROSS-GENERATIONAL COMMUNICATION: GEN Y AND NONVERBAL CUES

My August monthly Inter-Generational Relations e-Tip was a checklist of differences in and perceptions about communications styles among the generations. (E-mail me at pwhaserot@pdcounsel.com for a copy and/or to be put on the subscribers list.) On a related point, in a fascinating article on the "Taste" page of the Wall Street Journal (August 28, 2009) ,Mark Bauerlein makes a powerful case for the need to bridge the gap between the Gen Y/Millennial texting culture and use of what anthropologist Edward T. Hall called "the Silent Language," nonverbal cues or body language and voice tone. Mr. Bauerlein is a professor of English at Emory University.

Spending so much time with texting and e-mail as well as Facebook from a young age, Gen Y has developed less skill than previous generations reading nonverbal cues and interpreting tone of voice, pauses, etc., that can be experienced in person or on the phone. (Gen Yers use cell phones more for texting than for voice calls.) It seems the lack of nonverbal communication experience would impede interviewing skills and negotiating skills. The primarily electronic communicators are missing expressive behaviors which transmit feelings, attitudes, reactions and judgments. This is even more damaging in cross-cultural circumstances, which becomes increasingly significant in a world of global economic and political dependency.

And many Gen Yers don't realize that others, particularly other generations, do see nonverbal meaning in behavior such as checkling e-mail, etc. during meetings and not looking at a person who is talking to them because they are multi-tasking.

While it may reduce tensions for other generations to realize that this behavior is not intentionally rude, but rather is just young people acting on what they know (or don't know), the fact is the latter tend not to be well equipped for negotiations, interviewing, navigating the "political" dynamics of the workplace, or even their own job interviews.

Employers and managers need to be sensitive to teachable moments and to provide training early on in what we might term "holistic" communications skills.

Please share your thoughts and experiences.

Phyllis Weiss Haserot   www.pdcounsel.com

TRANSITIONING AND THE "CAREER BUCKET"

Periodically I like to post about surveys and other happenings from the Encore Careers blog of Civic Ventures. The latest newsletter and blog features the results of their latest survey on ageism and career opportunities for Boomers. It found some surprising things about what Boomers are and are not willing to do to make themselves attractive for new positions and some unsurprising results as well. Take a look.

Check out some other interesting items there on the psychology of midlife transitions (whatever "midlife" is), where the jobs are, and what interesting and legacy-building jobs and activities members of the Boomer generation are undertaking for reinvention, fulfillment and giving back.

Phyllis Weiss Haserot     www.pdcounsel.com

OPEN GEN X BOTTLENECKS WITH TRANSITIONING INCENTIVES TO BOOMERS

When the economy and investment portfolios rebound, a huge resurgence in the Boomer market is forecast, exciting the consumer marketers who are expecting the now saving Boomers to starting spending again big-time, including on things they had never needed before.

On the work front, Boomers who put their plans for "re-careering" on the shelf during the recession to hold on to what they have are expected to leave current positions for new career destinations. This is the essence of the Herman Trend Alert dated August 12, 2009.

For now the trick is to capitalize on Boomer knowledge and experience without alienating the bottlenecked Gen Xers. One answer is to pay Boomers still in place now to transition their valuable acquired wisdom, contacts and skills before they up and leave with these precious assets. That will prepare Gen Xers to thrive when the bottleneck opens their benefit, as it eventually will.

Will you or your competitors be the ones to invest and lock in these resources and be ready for the upswing?

Phyllis Weiss Haserot   www.pdcounsel.com