Posted on March 25, 2012 by Tom Casey
As we all recover from a holiday weekend and bemoan the excesses of extreme socialization, the thoughts of many now are focusing on the “New Year.”
A tradition many executives have is to make their “resolution list.” The promises they make to themselves to be adhered to “absolutely.”
I was with a CEO recently who was showing me his list. I noted that it was dated 1999 and with multiple write over…when the obvious question was asked, the response was “still haven’t finished.”
As the intensity of the global recession recedes, and a collective cautious breath is taken in the hopes that the worst may be over, DPC thought it would be helpful to do a quick “Pulse Survey” of CEO’s regarding their commercial resolutions for 2012.
We had over 20 responses and there are emerging trends the top 5 of which are herein listed.
- Understand Social Media - Many CEO’s acknowledge they do not understand nor appreciate this phenomenon. This lack of awareness prompted expressions ranging from, “it makes me feel out of touch” to “old.”
- Increase External Awareness – Many CEO’s have felt that during the recession they were “too heads down,” and “unaware of what’s new.” One CEO stated regarding external trends “unless it was on CNBC I missed it.” The desire to end the information hibernation was expressed.
- Global Mindset – The refrain communicated most was “It is hard to keep track of the dynamics.” There were specific references to the Euro crisis by domestic CEO’s and the “political crisis” in the US by rest of world executives. The objective of those sampled was to “understand better” to be “less reactive.”
- Accountability – CEOs indicated that “shared accountability” has suffered during the recession due to “competitiveness” and “paranoia.” One CEO stated the desire “I want to put a stop to the mentality of ‘for someone to win, someone has to lose.’”
- Pace – This observation was DPC’s biggest surprise. The focus on pace of life and work, and the desire for more balance were credited to the “new worker.” “They have the right idea1” A number of CEOs communicated that the need for enterprise flexibility in dealing with Succession and Continuity Planning is “high on the list.”
Our expectation is that the 2012 list will not be the 2022 list!
The above list is symptomatic of the reflection we have seen in our clients during the year promoting the mentality of “not only do I need to do things well, I need to think about life beyond my office” as well as “a different way of working inside.”
On behalf of Discussion Partner Collaborative and our Affiliates, our best wishes for a prosperous 2012!
Filed under: Demographics, Generations, Global Labor Market, Leadership Development, Talent 2.0, talent practices, US Labor Market | Leave a Comment »
Posted on March 25, 2012 by Tom Casey
As Executives who are focused on Enterprise Growth and Differentiated Sustainability, ask yourself the following questions:
- How can the Enterprise replenish its leadership population if it’s Succession Plan is based upon incorrect assumptions?
- How can an Enterprise exploit the talents of, and secure the institutional memory from, Boomers if Human Capital programs are not tailored to balance their unique situations in the context strategic intents?
- How can an executive maximize their contribution if as they approach retirement they are distracted by the reality that they are bereft of a comprehensive a personal non-financial Transition plan?
The exercise is likely to promote, appropriately, significant concerns?
The two most recent editions of the Harvard Business Review are wake up calls for managers in respect to the emerging challenges in addressing the aspirations of the Baby Boomer age “cohort”.
Several data points contained in the articles are consistent with recent Discussion Partner Collaborative research and client experience:
- 50% of Fortune 500 Board Members are dissatisfied with the their companies Succession Planning process
- Succession Planning is an insular process usually achieving a level of “seriousness” approximately 18 months before transition
- The rules are being broken in respect to the age of Board Members whereas in 1987 only 3% were age 60, now 30% are 64 or above indicative of both the shifting demographics and enterprise desire for the preservation of institutional memory
- The median tenure of a Fortune 500 CEO is 3.5 years some roles such as CIO’s even less reinforcing the need for disciplined Succession Planning scenario’s
As reinforcement, DPC research conducted in the Third Quarter of 2011 encompassing 150 Global CEO’s and over 2,000 Executives over the age of 55 concluded the following:
- Succession Plans, if they exist at all assume, without executive consultation, that all will retire at age 65!
- The reality is that Executives have a “range” from “62 to I don’t know but later than 65”
- Over 90% of the Executives in our study would prefer to have a gradual “phase down in time commitment” beginning at age 62 and ending at 66
- Over 80% of the Executives indicated that the existing Human Capital practices did not allow for a “phase down”
- Over 50% of CEO’s stated that they would embrace a phase down strategy if “I could keep a key Executive longer” while an additional 9% stated…..”not sure but should be explored”
- Over 70% of Executives stipulated that the comprehensiveness of their Transition Planning was predominantly if not exclusively Financial
Our research, led us to a working hypothesis focused on the integration of Enterprise and Human Asset Sustainability. We refer to as Human Asset Sustainability.
Our Conclusions are that to be achieved, Human Asset Sustainability, must embody the following Principles:
- Succession Planning cannot be realistic unless those whom are deemed “inclusions” (executives and those in key roles) are consulted in respect to their contemplated retirement timing “without prejudice”, in other words they can change their minds
- The principle of flexibility is a Succession Planning “must have” to maximize leverage and create the most options for the enterprise, executive, and potential replacements
- Human Capital processes must embrace the concept of Phase Down and other manifestations of flexibility to optimize Human Asset Sustainability
- There is a disciplined approach for Institutional Memory preservation leveraging the stated desire of Generation X and Millenials to be mentored by Boomers therefore becoming the repository of their knowledge
- Transition planning support is highly desired and should be provided to key executives and those in critical roles beginning at age 58…..provided the above Principles are embraced!
There is no question that those of us in the Human Capital domain, whether we are researchers, consultants, or practitioners, need to challenge our assumptions and be more innovative if we are to influence vs. be influenced by, the rapidly shifting demographics.
We see four major assumptions that require a “re-think:”
- There is a “set age” when people plan to retire
- Organizations to be effective require full-time commitment
- Executives have a well-thought-out Transition plan
- Human Capital programs currently possess the flexibility to meet the challenges of the Baby Boomer age cohort
The truth that is self-evident is that Enterprise Sustainability will be disenfranchised if Human Asset Sustainability is not an embedded strategic priority.
Filed under: Demographics, Generations, Global Labor Market, Talent 2.0, US Labor Market | Leave a Comment »
Posted on March 25, 2012 by Tom Casey
As Baby Boomers contemplate retirement there is the inevitable question being contemplated: “What do I do next?”
A recent CNBC segment referred to 2012 retirement planning as the “no huddle offense.” Essentially there is a need to accelerate not only the economic preparation for retirement: but also the determinants as to how one would spend their time.
Tammy Erickson’s books on Shifting Demographics forcefully remind us that traditional perspectives regarding retirement are outmoded. In point of fact Boomers are likely to remain active by engaging in multiple activities.
A recent Pulse Survey of over 2000 executives conducted by Discussion Partner Collaborative posed 2 questions. “How far evolved are your retirement plans” and “how will you spend your retirement time?”
The overall answer on preparation was of concern as it indicated that while there had been some time spent “thinking” there was an absence of “planning.”
The top 4 answers on “time commitment” were as follows:
- Generate income through part time employment
- Spend time with the family
- Focus on physical well-being primarily by playing golf
- Seek Board opportunities
The focus while clear was not supported by disciplined thinking regarding the “how” other than playing sufficient “golf” in the pursuit of lowering ones handicap.
This was particularly true regarding affiliation as a Board member. The survey participants while clear on what they could offer as a Board member were less clear as to how to go about securing positions.
The good news is that Boards are valuing the talents of Boomers as an example the October 2011 edition of HBR suggests the rules are being broken in respect to the age of Board Members whereas in 1987 only 3% were age 60, now 30% are 64 or above indicative of both the shifting demographics and enterprise desire for the preservation of institutional memory.
However, for those whom have never been a Board member, it is not analogous to a Field of Dreams “if they know I am available they will come”!
Based upon our experience we would recommend for both NGO and/or Commercial Board opportunities the following steps:
- Proactive networking with all in your “Rolodex”
- Establishment of relationships with entities which match Board needs with aspirants capabilities
- Explore Social Networking sites on NGO’s with the “assumption” that a need exists for advisory support
- Play a lot of Golf while you are securing the opportunityJ!
Filed under: Demographics, Generations, Global Labor Market, Leadership Development, Talent 2.0, talent practices | Leave a Comment »
Posted on March 25, 2012 by Tom Casey
One pundit stated recently that blogs are “drivel with punctuation.”
As many blogs are written by consultants it is often our sector that struggles with making salient points in a compelling way.
The rule of thumb is to make your points as if they were “sound bytes”.
In the recent past there has been an intersection of Discussion Partner research with a phenomenon that lends itself to these iterations.
During a recent survey of over 2000 senior executives regarding level of non-financial planning in advance of retirement:
Over 70% of the executives indicated they have some overall ideas: but lack a concrete plan.
When DPC research indicates an interesting finding we test it with selected clients.
Suffice it to say that the findings were supported by the input from clients replete with anecdotes:
- “One executive did not realize he was retired…he kept coming to work to socialize”
- “An executive told me that the implementation of his plans only took him to 10:30 AM every day”
- “One executive became a serial board member to the point he forgot which meeting he was attending”
- “The concentration on lowering his golf handicap led him to AA”
- “His wife got so sick of feeding him she boycotted the kitchen”
- “Her husband was pleasantly surprised to realize how in shape she could be in post retirement and joined a gym himself”
- “The female executive became much more aware of her husbands fascination with Big Screen TV’s”
When we met with executives whom were still working we identified three escalating levels of sentiment when dealing with retired colleagues:
- Poor Guy-I hope he finds something meaningful
- I don’t have time-seeing the guy repeatedly is now a distraction
- Self-Awareness-uttering the words “it could be me”
Now that I have your attention another sound byte from the research-82% stipulated that if they neared retirement without a disciplined plan, their engagement level would go down and their distraction level would go up.
Punctuation aside, the intent of this blog is straightforward, whether you are the executive or enterprise you should assiduously avoid the mantra “it could be X”!
Filed under: Demographics, Generations, Leadership Development, Talent 2.0, talent practices | Leave a Comment »