Decoding Generational Differences and Managing Other People Risks
2010 SIMFA Annual Conference
Today’s Presenters: Anne C. Weisberg & Timothy Lupfer
Anne Weisberg is a Director in the Deloitte US firms’ Talent organization and a specialist in the
field of gender and generational diversity, inclusion and work/life integration. Most recently, Anne
co-authored the best-selling book, Mass Career Customization: Aligning the Workplace with
Today’s Nontraditional Workforce (HBS Press, 2007), and helped lead the internal
implementation of MCC, a signature initiative of Deloitte’s Talent agenda. She served on the
National Advisory Commission to Workplace Flexibility 2010, a national campaign to promote
flexibility as the new normal of the 21st century workplace. She is also a co-author of Paths to
Power: Advancing Women in Government, and serves on the Board of the Forte Foundation, a
consortium of companies and top business schools whose mission it is to inspire women to
careers in business.
Timothy Lupfer is a Director in Deloitte Consulting LLP, in the Organization & Talent service
line within the Human Capital practice. For the past seven years, beginning with
Sarbanes-Oxley implementations, he has helped clients establish and maintain a
comprehensive compliance program, develop and deliver compliance and ethics training, and
“bake in” desired new behaviors for ethics and compliance into their organizational culture.
His clients have included numerous financial institutions, major Technology/Media
corporations, the United Nations, the City of New York, federal agencies, healthcare clients,
and manufacturing companies. An example of his client work is the development of executive
compliance training for a major financial firm to meet the urgent demands of a federal
regulator. Tim has also delivered “live” ethics training to over one thousand executives and
senior managers of a major bank. That successful course was converted to an e-learning
version that has reached thousands of employees worldwide.
Tim is a graduate of the United States Military Academy (West Point) and of Oxford University,
where he was a Rhodes Scholar. He is married wit h two children and one granddaughter.
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Ms. Weisberg received her Bachelor of Science Phi Beta Kappa from the University of
California, Berkeley and her Juris Doctor cum laude from Harvard Law School. She and her
husband live in Manhattan and have five children between them.
Agenda
• Introductions and Objective
• The People Side of Risk
• The Generations in the Workplace
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• Making Values “Stick”
Our Objective with You Today
To help all managers effectively translate the key values of their organization and industry to
a diverse workforce, so that the values can influence behavior to promote business success.
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We will focus our discussion on the differences between generations, but the approach is
also applicable in workforces with different nationalities and cultures.
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The People Side of Risk
Today’s Reality: One Person Can Cause Significant Harm
Today, organizations and reputations
are much more vulnerable to sudden
disruptions from either bad judgment
or malicious behavior, or both.
Viral Spreading of Information
Instant communications across the
globe
Reputations can be affected quickly,
and from many different sources
Risk from
Individual
Behavior
Complexity requires more people to
exercise sound judgment
The market demands speed, which also
devolves responsibility for decisions and
actions to lower levels
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Decentralized Responsibilities
How Can One Person or a Small Group Inflict Damage?
The examples are numerous…
ƒ Various companies during the scandals of the early 2000s
ƒ Jerome Kerviel of SocGen
ƒ Nick Leeson of Barings Bank
ƒ Recent disasters (oil spills, product recalls, supply chain issues, Board and leadership
behavior, etc.)
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The reality is that out interconnected (or “hyper-connected”) world
magnifies and multiplies the risks of either incompetence (bad judgment)
or malicious behavior by any employee or business partner
– anywhere around the world.
How do we get ourselves all on the same page?
Good News and Bad News
The good news is that most cultures have very consistent values. The bad news is
that we all tend to select the specific people to whom we apply our values.
ƒ As humans, we appear to share a set of core values, such as a sense of justice, care for
the helpless, charity, the importance of work, etc.
ƒ We also tend, however, to categorize other people into groups. This can lead to a very
uneven application of our values, depending upon the group with whom we interact.
The really bad news is that, according to recent research with fMRIs, a
small percentage of adults do not possess a working conscience; in
other words, there is a small toxic percentage (maybe 4%or 5% of the
adult population) who possess no sense of obligation to others.
Therefore, every large organization must operate knowing that a small
number of its members will always operate selfishly, irrespective of the
values, leadership, and culture of the organization.
The good news is that the vast majority of people, worldwide, actually
want to “do the right thing.” How do we move this majority as one?
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ƒ The basic question is “Whom can I trust?” The answer is that we should be able to trust
the person who holds the same values that we hold.
What is Culture, and Why Should We Care?
Norms
Culture
ƒ What are norms?: Norms are the consistent
patterns of behavior, the (often unwritten)
rules that guide how people do basic tasks.
All groups and sub-groups establish a set of
norms. Think about such behaviors as “how
to tell the boss bad news,” or “who really
decides these kinds of issues.”
ƒ Organizational Culture: The underlying
beliefs and assumptions that determine how
things actually get done.
ƒ What establishes an organization’s
Culture? : Culture is established both from
top-down and bottom-up forces. Warning to
ambitious leaders – culture cannot simply be
decreed from above.
ƒ Norms and Culture: Norms are the building
blocks of culture. In order to change a culture,
we must know the existing norms. If we want
to change a culture, we must either align with
existing norms or change them. If we want
values to influence behavior (becoming part of
the culture), we must determine which critical
norms must change, in order to reinforce the
values.
ƒ Culture is what exists in the organization:
You may have a set of values that you think
are crucial to the organization’s success, but
simply proclaiming them does NOT guarantee
their influence on behavior.
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ƒ But norms may differ based on
generations, so let’s take a look…
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The Generations in the Workplace
Generational Differences – Use Caution!
Generation
Key events
Common Characteristics
Baby
Boomers
•The Cold War
•Assassination of JFK
•Vietnam War and protests
•Civil Rights movement
•Women joining the
workforce in large
numbers
•“We’re so special” – sense of entitlement
•Huge impact on society, due to size – the “pig in
the python”
•Target of marketers
•Cultural change agents
•Challenge authority
•Assumption of increasing prosperity, so not
prudent savers
Generation X
•Malaise of the 1970s
•Oil Crises
•New technology, esp.
video games
•Explosion of global travel
•Low birth rate generation – the Baby Bust, so
lives in shadow of the Baby Boom
•Cynical, post modern
•Highly educated
•Doesn’t challenge leaders – they ignore them
Generation Y
(the
Millennials)
•Economic boom of the
1980s and 1990s
•The collapse of
Communism
•9/11
•Culturally liberal, non-judgmental
•Boomerangs – many living at home
•Extended adolescence – not an adult until 30
•Peer oriented
•Tech savvy
•Assumed rapid advancement in business, until
2008 crash
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A number of observers have described how the events of childhood and early adulthood have influenced
each generation. As we will discuss, these generalizations must be used with some caution.
But all the generations also have a lot in common.
They share a hunger for learning, purpose, deep connections – and flexibility.
Gen-X
Baby Boomers
Gen-Y
Respected
9 Recognized
9 Remembered
9
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9
Coached
9
Consulted
9
Connected
Decoding Generational Differences FINAL.pptx
They want to be:
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Generations move through the workforce in waves
But the Baby Boomers will continue to dominate
Older age groups are expected to grow 5 times faster than the growth
of the labor force
Numeric Change in Labor Force by Age, Projected 2004 - 2014
(in thousands)
7,616
4,548
3,689
1,769
15-24
-2,815
25-34
45-54
35-44
Sources: U.S. Bureau of Labor
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55-64
65+
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Women are half the workforce across generations.
For both Gen X and Y, women college graduates outnumber men.
Veterinary
Pharmacy
Law
Medical
MBA
Dentistry
Women comprise:
¾Nearly 60% of
college students
¾50% of
workforce
¾Gen X is the first
where women
college graduates
outnumber men.
Source: New York Times, U.S. Department of Education; and U.S. Department of Labor
15
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% Share of Professionals Degrees Awarded To Women
Family structures have been changing...
Gen X was 4-5 times more likely to experience divorce growing up than
Baby Boomers. 3 out of 4 Gen Y’ers are being raised by working mothers.
Changing family structure, 1950-2008
2.2%
12.7%
20.4%
25.5%
63.4%
1950
2008
Sources: Catalyst and Bureau of Labor
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Male single
parents
Female
single
parents
42.5%
Other
families
17.0%
Dual-worker
families
Traditional
Families
with husband as
sole breadwinner
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1.8%
3.5%
10.8%
Generations X and Y are more likely to put family first.
“We recognize that changes in work structures come with an economic cost, and we
are willing to be paid less in exchange for a better working life.”
- Stanford Law students Andrew Canter and Craig Segall
Generation Y
Baby Boomers
13%
22%
41%
50%
Work-Centric
Family-Centric
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Dual-Centric
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37%
37%
Satisfaction at work has shrunk across generations.
Percentage satisfied with their job.
55.7
Under 25
35.7
60.2
25-34
47.2
60.9
35-44
43.4
60.9
45-54
46.8
59.3
55-64
1987
2009
Conference Board, “I Can’t Get No Satisfaction at Work (2010)
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45.6
But Gen X and Y are most at risk for leaving.
Respondents by generation: Do you have plans to look for new employment?
I expect to stay with my current employer
I plan to begin looking for new employment
within the next 12 months
I am currently seeking new employment
I have been actively looking for new
employment during the past 12 months
I plan to look for new employment after the
recession ends
Don’t know
0
20
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40
60
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Veterans
Baby Boomers
Generation X
Generation Y
Total respondents
Gen X and Y are re-defining loyalty.
“My father was a loyal corporate soldier who worked at the same company for 32 years.
But my generation is more interested in opportunities for fast growth ...”
- Gen Xer
“We’re looking to be loyal if someone will be loyal to us but we don’t believe business is
set up that way.”
- Gen Yer
Average person holds 12 jobs in their lifetime
Time
4
6
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8
9
1
0
1
1
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1
Why Caution is Recommended with Generations
The Cohort Effect
ƒ Each generation is strongly influenced by its place in the demographic cycle of our society, and by the
key events of its youth and early stages of adulthood.
ƒ Research indicates that the key influences of these early years have an effect on that person’s
behavior for the rest of his or her life - why soft drinks are sold in high school, and why Boomers still
listen to Rock and Roll.
But, there is also the basic effect of the Life Cycle on any generation
ƒ While many things can be imprinted in the early years, there are also cycles of life, so individuals
change with ageing.
ƒ Example – Boomers have become the “establishment” – OMG!
ƒ Always consider that a new experience in the basic life cycle may introduce new norms to guide
behavior – getting the first job out of college, having children, etc.
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So, how do we introduce core values that can “stick” to any generation (or to any nationality)?
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Making Values Stick - Reducing the People Side of Risk
Defining the Values
In order to impart values to influence behavior, first, understand the purpose of a
specific effort. Let’s assume that our company must embark on one of these types of
changes:
ƒ A basic operational effort, such as cost reduction
ƒ A new regulatory requirement, such as more thorough documentation of personal
holdings of key executives
ƒ An effort to correct a troubling trend, such as too many high potential women leaving the
company
Dissect the effort, to define the key elements to communicate;
ƒ Clearly define both the tactical, or immediate, requirement (reduce expenses, a change in
a regulation, or the need to reverse a bad trend),
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ƒ And the underlying purpose (the business case for reducing expenses, the ethical
purpose behind a new regulation, or what the trend will mean for the future). This is the
“value” that you are trying to convey.
Translating the Values
In order for the desired behavior or change to be occur, we cannot assume that the
effort will succeed on its own merits. Our focus in our discussion today is on
generational differences, but these ideas can apply to different nationalities or
cultures as well. The “secret sauce” of effective translation is putting the purpose of
the effort in a context that the target group will understand and support.
ƒ For Generation Y, for example, remember that they are very influenced by peers. Calling
a group of them together to examine potential objections could be time well spent.
ƒ Having members of the target group identified as “listening posts” to provide you with
feedback on “how it’s going” is also a good idea. Get ideas on how to “sell” the effort more
effectively. Get feedback early and often.
ƒ Integrate the specific campaign into bigger and broader efforts. The development of new
skills appeals to both Gen X and Gen Y. The civic mindedness of Gen Y is seen in their
enthusiasm for “green” initiatives.
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ƒ From talking with the target groups, understand which of their collective experiences
relate to what you are tying to accomplish. Remember that your collective experience
may be “history” to others, and that the study of history is not high on the list of activities
of Gen Y…
Enforcing the Values
This is the difficult part. First, we must always assume that someone is not going to
“get it,” so we must always have a contingency plan for responding to failures to
comply. Second, we must not see instances of failure to comply as de facto proof of
failure of the effort. As human beings, we seem to possess an almost infinite ability
to interpret things differently. It requires a lot of effort to get everyone on the same
page…
ƒ Fairness is one of the most common human values, so make sure your listening posts
give you feedback on how fair an enforcement action is perceived by different target
groups.
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The tough conversation
There are some occasions when members of the organization simply
have to understand that a few things are “non-negotiable.” This is a
sledgehammer that should not be used often, but there are instances
when it MUST be used. Leaders must have the skill and courage to make
this case. Sometimes people must be informed, firmly, that irrespective
of generation, nationality, or culture,
“This is a requirement for working in this company.”
Conclusion
What are the key lessons?
ƒ The first requirement is an awareness of differences, in our case those of generation
ƒ But this goes well beyond simple “awareness.” To execute changes successfully within diverse
groups, extra effort is necessary.
ƒ The first, somewhat counterintuitive step is to distill the basic purpose and business case from the
desired effort or action. As in negotiations, this is the basic step of finding the common ground.
ƒ The second step is to translate the effort into a context that resonates with the target group.
ƒ The third step is to employ members of the target group as change agents and listening posts, to
provide very fast feedback.
ƒ The standard practices of effective change management, such as achieving quick wins and celebrating
success, apply throughout the effort.
ƒ Wide ownership within the target group is essential. Remember the Russian proverb: Success has
many fathers; failure is an orphan.
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ƒ Finally, the more things change, the more they stay the same…
Conclusion
“I see no hope for the future of our people if
they are dependent on the frivolous youth
of today.”
The Greek Poet Hesiod,
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8th Century BC
Thank you! Contacts for Additional Information
Anne C. Weisberg
Talent Director,
Deloitte Services LLP
212-492-4304
[email protected]
Timothy T. Lupfer
Director, Organization & Talent,
Human Capital, Deloitte Consulting LLP
212-618-4523
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[email protected]
Copyright © 2010 Deloitte Development LLC. All rights reserved.
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Copyright © 2010 Deloitte Development LLC. All rights reserved.