Part 1: Boomers Building a New Life Stage

There was a wonderful article in the Chicago Tribune titled, “A ‘new self’ at 86.”  Lois Weisberg resigned from her job as Chicago’s Cultural Commissioner last year and is now using her considerable creativity to reinvent her career.  For many years, Lois was the “grand dame of Chicago culture” and “one of the most influential women to serve in local government.”  And while you may not know her personally, you know her work.  She was the creative energy behind Cows on Parade along with many other wonderful cultural events in Chicago.  But when she walked out the door, “she felt that she had lost not just the job, but herself too.  Because, truthfully, her job had been her life.”

We know, transitions are difficult; especially the ones that occur as we move from full-time employment into … well, something else.  We used to call it retirement.  But with longer life expectancies and improved health, more seniors have decided that retirement doesn’t suit them anymore.  They would prefer to remain active and on the job.  Yes, the recession has certainly led them to re-think retirement dates.  But not significantly.  According to a new MetLife study they may delay by 2-3 year years.  What they (boomers) know is that they just don’t want to be employed with you anymore and they are ready to get on to a new adventure.  The motivation to remain engaged runs deep … they know that staying engaged contributes to a broader sense of “wellbeing.”

Boomers will be the first generation to fully experience this new life stage – a prolonged period (perhaps 30 years or more) of healthy, active, non-child-rearing years.  This generation is already busy re-conceptualizing these years.  Most still feel young and have a desire to stay engaged.  A recent Gallup poll asked working people about their work preferences when they hit retirement age.  Of those surveyed, 18% said they expect to continue to work full time.  Of those, 1/3 said they would do so because they wanted to.  Sixty-three percent said they would continue to work part-time; with 2/3 saying they would do so because they wanted to, not because they had to.  The AARP Public Policy Institute noted that the employment participation rate for those 65 and older has dramatically increased from 10.8% in 1985 to 17.9% in 2011.

For Boomers, this is not just an economic decision. It’ also a decision about “in what ways they can best spend their time and leverage their skills in a productive way.” But when Boomers remain engaged, there are implications for other generations.  When Boomers hang on to jobs longer, they impact the leadership pipeline, making it difficult for Gen X’ers to find opportunities to lead.  And when they take lower level jobs for which they are over-qualified, they run the risk of displacing younger Gen Y’s.

Where can they best contribute in this new life stage?   And how to do that with traditional employment processes and polices?   In what ways can organizations best engage their Boomers in a discussion about their future?  It starts with a meaningful conversation.

You Can Assess Competency by Starting at the Backs of an Audience’s Heads

I recently attended a seminar sponsored by a potential alliance partner for our firm.  The objective was to hear their   “thought leader” present their enterprise point of view on “The Implications of the Aging Workforce on Employee Engagement”.

As is the wont of air travel these days I arrived at the session late and to avoid being rude or conspicuous I slipped into the back of the room.

The presenter although polished in style, and aggressive in expressing “my point of view”, was bereft of any recent data to support their conclusions.

In point of fact their data would have been more aligned with the times if their attire had been a lime green leisure suit.

As I was settling in thinking, “well this was a brilliant idea” and wondering “can I get an earlier return flight”, I had an epiphany.

I realized many in the audience were entranced with the “facts” being put forward…..they were lacking in context and how no clue that the data was no longer even useful in the context of a) a global workforce, b) engagement levels that were declining even before the recession, c) the challenges of managing a workforce with four cohorts all of which desire different levels of support from an employer, and d) the emerging complexities of managing the digital tribes promoted by the emergence of social media.

How did I know, psychic that I am not, it was the “tell” from watching people nodding their level of interest and agreement.  MANY of the HR professionals in this particular audience were learning of the aforementioned human capital challenges for what appeared to be the first time(look for the nodding of yes and neck leaning forward)

Be reassured that there were those like me who had the glaze of boredom and were also unobtrusively looking at their watches (look for the head dropping straight down or to the left to look at the wrist).

The torture ended eventually and insincere as I am I was gracious in my thanks and compliments…..yet I was struck by a line from Michael Douglas in the American President (don’t go there), “serious problems require serious people to create serious solutions”.

Like a lot of Consultants I have been on the platform and candidly live in dread fear that my audience is in possession of more relevant or timely data than I therefore making my effort pedestrian.  It is the intellectual curiosity of the audience I rely upon to keep me honest.

My conclusion from this unscientific polling technique is that those of us in leadership positions, particularly in Human Resources have to have higher standards for what constitutes “thought leadership”.   The alternative is we will be treated to a steady stream of presentations by those who really have nothing to contribute in pushing us to address some very serious issues.

Contingent by Choice: Understanding and Leveraging the New Workforce

Organizations will need to broaden their thinking and apply innovative strategies to attract the talent they need.  One of the talent pools organizations will need to learn how to tap more effectively is the growing pool of virtual talent labeled “contingent.” A 2009 Manpower, Inc. survey on the “Role of Contingent Workers” found that 34% of the 41,000 employers in 35 countries surveyed viewed contingent workers to be a key to the execution of their organizational strategy.  Not only is it strategically important, but the size of the contingent workforce is expected to grow.  Adecco in their 2010 white paper on the “Lessons of the Great Recession” highlighted that the contingent workforce is expected to grow three to four times the rate of traditional workforces, and is expected to eventually make up about 25% of the global workforce.  And according to a recent report from the BLS, contingents are expected to make up 40% of the U.S. workforce by 2019.

 As Daniel Pink pointed out in Free Agent Nation, contingent work has evolved into a deliberately chosen non-traditional employment arrangement.  Contingents may want to acquire new skills, experience different types of work environments, or build resumes using a broad spectrum of assignments.  They may want balance in their work and professional lives. Experienced workers may want positions that have a specific endpoint because they prefer to work only part or the year or a limited number of years in a particular project based assignment.  Younger workers may be using contingency to build a skill portfolio or pursue a personal passion.  The new reality is that contingent work has become a free-form career strategy that stems from an individual’s desire for flexibility, autonomy, and freedom.  Supported by new advances in technology knowledge workers, in particular, see contingency as “Plan A” NOT “Plan B.”     

 To take full advantage of this emerging cadre of workers, employers will need to change the common perception of contingent workers as being less important, less skilled, or less committed than “permanent” employees.  More importantly, they must abandon the idea that contingent workers are simply an economic play to handle temporary swings in employment. Contingent workers bring unique experiences, fresh thinking, and new approaches to problem-solving. Furthermore, research shows that contingents tend to be more satisfied and engaged with the work they do than full-time employees.  Independents recognize that completing the project on time in a successful manner is the key to gaining future assignments. 

 Indeed, organizations will need to change their fundamental mindset about talent to be successful in the future.  As John Boudreau points out in Retooling HR, “the idea that employment is the primary way organizations and their contributions interact is so instinctive that it many blind organizations to an alternative form of engagement.”  The role of contingency in organizations is still being defined and their importance being assessed, but as the numbers grow, employers stand to benefit if they include contingent workers as a permanent part of their overall talent strategy.

The Emerging Role in Human Capital

During our research for the book Talent Readiness-The Future is Now, our findings indicated that those in the CSuite want to see a fundamental change in how the most senior leaders are developed at the enterprise level.

 

What became abundantly clear during our research was that the current model for the HR function where Talent Management is at least 2 if not 3 levels down from the CSuite and with enterprise wide role architecture is suboptimal. 

 

This has led the Discussion Partner consultants to the conclusion that the current organization model in Human Resources impairs innovation, accountability, and sustainability for Leadership Effectiveness at the highest level of an organization.

 

To have a dedicated HR function for the most senior levels of an organization is not new.  General Electric and many other organizations have dedicated resources for the “Top 200”.  Essentially this approach focuses mostly on the high potentials possibly to the exclusion of B players, in critical roles or assigned mission essential projects.

 

Our point of view is there needs to be a more generous interpretation of this effort, one that requires a new title, reporting relationship, role architecture, and competency.

 

Our model for consideration aligns in the following way.

 

Title	Chief Leadership Effectiveness Officer (CLEO)
Reporting Relationship(s)	Direct Line-Board of Directors Dotted Line-CEO
Role Architecture	Succession Planning Top 3 Levels Recruitment/Replenishment  Top 3 Levels Development Strategy Top 3 Levels Executive Compensation Strategy and Administration Top 3 Levels Workforce/Continuity Planning Enterprise Wide Thought Leadership Facilitated Access-Board, CEO and CEO Direct Reports(facilitate access to thought leaders for education/edification purposes
Desired Competencies	1. Strategic Planning Expertise 2. Executive Coaching/Facilitation Experience 3. Leadership Assessment Orientation(not necessarily Practitioner) 4. Working Knowledge of Executive Compensation Strategy and Programs 5. Thought Leadership Credentials(writing, academia, other)

 

 

 

One could reasonable assert the following two viewpoints:

1. These Positions Exist in HR Already-True….but our point of view as to focus the importance of this effort it should be out of HR for practical reasons
2. The credentials of this role exist: but among various incumbents-True again….but our point is that having this body of expertise and outlook resident in one senior position optimizes effectiveness

 

The hypothesis of the Discussion Partner consultancy is the time to debate the upgrading of heretofore sub processes into one role is timely.

 

Relationships Matter

For those of us in Professional Services it is no mystery our success is driven by the quality of our relationships.  If they are strong, our service offerings are more likely to be purchased.  For those in the employment marketplace it is also self evident that if during one’s career,  quality relationships were engendered, they are of invaluable assistance in securing the “next” position.

Relationships crave categorization for “marketing purposes.” 

1. A List - They know you the best, and appear to be in the best position to be of assistance
2. B List - They know you and may be in a position to be of assistance
3. C List - They know you, and you are uncertain as to their level of desire, or position to be of assistance

Logic would say, you really don’t spend much time on your C List.  Yet a funny thing happened to me on both my consulting and personal journeys over the last year.

For context, how I leverage my C List is quarterly send an article, link, or a simple Checking In note “How are you doing?”

Three years ago in the process of setting up Discussion Partner Collaborative, I had occasion to spend time in Peru, which had been a target market of mine in a previous consultancy.  I had not seen my “clients” for over a decade… clearly they were on my C List yet as I had stayed in touch, I sought them out, and secured a number of them as foundational clients for the new enterprise.

Yet this is not my point… the weird part is a former client from 16 years past, with whom the extent of my interaction for years was Check in Notes of “How is it going,” prompted a one-word response of nothing more than “Fine,” recently became my wife.

I am sure there is an interesting moral in the above… you can draw your own conclusions… but mine is… without this protracted effort maitining C List relationships, I would still be single!

CEO Lessons Learned 3 – Dude: Where is my Money?

Tammy Erickson (tammyerickson.com) has written a number of books regarding the generational differentiators and in so doing has sensitized many to the difference in aspirations among the 4 cohorts in the Global workforce(Traditionalists, Baby Boomers, Generation X and Generation Y).

Generation Y or the Millennial group is and will be a managerial challenge for quite some time.  To those of us in the Boomer cohort effectively acting as mentors and managers of this group, it is exhausting. They ask the Question “Why?” incessantly and take unction when they are not consulted by the C-suite in respect to enterprise strategy.

At the risk of being pedestrian…. let’s follow the money….

There are emerging 3 truisms with respect to Total Rewards:

1. Don’t hire anyone at my peer level, give them more money, and expect I won’t find out!
2. Pay me at a level that is commensurate with my performance and self assessment of same…
3. Forget the stock that will vest in 5 years……I won’t be here…

Einstein’s definition of insanity – “continuing to do the same things while anticipating a different result” – applies to many of the Total Rewards approaches in force globally.

 The lessons learned by many of our clients is that unless the Total Rewards strategy is sensitive to the aspirations of this cohort, and then Compensation will be de-motivational, and controversial.

Coaching for Peru

(The following is a recent interview of Tom Casey by the Peru American Chamber of Commerce on the topic of Coaching for Peru.)

 Tom Casey is an expert in the development of organizational transformation strategies for rapidly growing multinational or transitioning corporations. He has consulted in over 20 countries and virtually every economic sector. Moreover, he is the founder and Managing Principal of Discussion Partner Collaborative, an Executive Advisory firm with over 200 consultants in 19 locations.

 While on one of his many visits to Peru, he shared with us his point of view on how much our country has changed during the last few years, as well as the positive impact its economic boom has had on its professional management level. From his experience in Latin America, he applauds the good performance standards from Peruvian high executives, as he has personally worked with many of them, from sectors as diverse as banking, services, manufacturing, and construction. Although he tries not to compare directly, probably because of the evident different contexts, he cannot help but indicate that  Peru has much going  for it in comparison to other countries in South America like Venezuela where he has lived and worked. Truth be told, AMCHAM has to agree that for any American interested in international affairs (this probably goes for anybody from outside this region for that matter), Latin America is a perfect example of opportunities, tensions and extremes.  Tom indicated for him and his U.S. colleagues that after working in Latin America everywhere else seems boring!

Nevertheless, it comes clear to Tom what advantages Peru has in order to be regarded as a successful economic and business model for emerging countries. First of all, he points out that Peru enjoys the right strategy and vision to develop and prosper, thanks to highly skilled managers continuing to reach decision-making positions. A lot of Peruvians have correctly invested in themselves during the past couple of decades; evidence of this is the appropriate leadership style that Peru has adopted to improve both its international image, as much as the “system’s” image to common folk in most parts of the country.  Tom ventured that since 1994 when he first began consulting in Peru there has been tremendous change in how leaders position themselves to compete globally

Of course, one cannot talk about Peru without mentioning its tremendous potential with regards to its raw materials and acute financial services, as well as its wonderful tourist attractions, ancient history and renowned cuisine. Peru’s sheer size is a plus, both geographically and demographically: unlike many other emerging economies, Peru has the right population density, growth and age segmentation, in other words, we have the right amount of eligible young work force. What is more, and thanks to the economic sprint, the earnings potential vis-à-vis our country size has greatly improved (not to mention our per capita consumption figures have started to attract important investments, as more and more companies open offices as they see Peru is good business).

Notwithstanding, it is not all cheers and glory for us, as we do face many challenges with regards to our top executive human capital. Despite all the improvements, Tom does sense Peruvians have to work on a number of managerial skills. For instance, he has seen good project management skills, but they could certainly be better; and a person’s performance may not always be duly recognized, nor bad performance sanctioned. Women’s talent is not fully exploited, as seen on the percentage of those with university and advanced  degrees (one of the lowest in the region). Last but not least (and most countries in the region can relate to this), the never-ending accountability issue (the lack of a Spanish word for it does not help either)…which may also explain our unpunctuality.

Tom stated that the biggest change he has observed is his enthusiasm whereby managers are now aggressively challenging their strategies, business models, subordinates, and themselves to ensure that our tremendous opportunities are exploited. 

When asked for suggestions for Peruvian managers, Tom had a number of them: “Think globally as Peru is clearly a player in the regional and world economy; continue to assertively develop talent inclusive of expanding opportunities for female executives; reinforce the need for managers to hold themselves accountable for achieving expectations; and finally to reinforce motivation, by differentiating the reward strategies allocating the monies to those who have performed the best.”

You Are Turning 60… So What?

I turned 60 a few days ago… beyond the overtures of family and friends and the celebratory activities of my loved one, I tried to pretend it was just another day.  Of course I did this at 40 and 50 as well… just as unsuccessfully!

But 60 is different.   Despite the philosophy… that it is the new 40… my bones and mirror image would suggest otherwise, but that is only the distractions! The question is what do I and my co-ageists do with our next decade… I have to admit that I have many new “spam friends” who want me to stay active with vitamins and REALLY active with Viagra.  There are also those who want to help me plan for retirement which based on these overtures is only a couple of hours away… but really now what!

To make it to 6o for me is a gift… based on the early passings of  family members and my personal experiences it is a true blessing.

I plan on living to at least 90 so as I embark on the next “third” it is nice to do so surrounded by people who care for me.  Most importantly it is important to do so with the knowledge that this will be my best time!  The time where I will make the most contribution to my clients, colleagues, discipline, friends, family, and loved ones.

Tammy Erickson a prolific writer on demographics has asserted that this is a period where those between 55 to 65 will be the fastest-growing segment of the US workforce.  Her hypothesis has been and remains that the contributions and experimentation of the Boomer generation are  going to be a glorious work in progress.

 As I write this opus the Who, whose founding members are even older than I, are performing at the Super Bowl.  Age is not about time, it is attitude and contribution.

 For those of you who share the philosophy that the best time is always what comes next, the 60′s will be a terrific experience!  For those of you who don’t embrace this philosophy…better pay attention…you will get where we are some day!

Beware of Executive Coaches

In the spirit of truth in advertising the notification of “Beware of Dog” should also apply to Executive Coaching.

 The domain of Executive is growing rapidly for 2 incongruent reasons. Foremost it has been well researched and documented that the use of external coaches is the most impactful leadership development vehicle.  Secondly, with the displacement of so many executives, there has been a proliferation those who now carry the career title of Executive Coach.

 The more cynical of us remember the late 90’s when a displaced executive was going to “start a dot.com.” That aspiration has now been supplanted by well-intentioned but unprepared advisors whom are now “coaches.”

 It is doubtful one would feel comfortable being represented by a lawyer who hadn’t been to law school, or treated by a doctor who didn’t attend medical school…essentially the baseline criteria.  So why should any executive feel more sanguine being advised by someone just because they are now a “coach?”

 The above is further complicated by the “industry” lacking any regulatory oversight. 

 This dilemma prompted Discussion Partners to do a Pulse Survey of our relationships reformatting the standard question, “to be an effective leader, what skills do you need to possess,” to “to be impactful what are the top 5 critical skills needed by an Executive Coach.” 

Top 5 Responses

1. Strong Business Fundamentals – There is a need to be clear.  Many coaches focus on advising on strategy and operations as well there are those who focus on leadership effectiveness.  The response had more to do with the third area in that even when advising on the quality of a leadership bench, or correcting some less then attractive behaviors there is a need for the coach to know enough about business to be credible with their client.
2. Sensei Tendencies – The ability of the coach to weave in “war stories” or “lessons learned” from the coaches experience.  At Discussion Partners we refer to this as Illustration Advisory an intervention whereby we can share an example.  There is of course the need to resist the temptation pontificate “when I was a young manager”. 
3. Willingness to Confront – The desire to avoid offending to preserve economic security can be taken too far in a relationship.  There can be diplomatic ways to articulate “what the hell were you thinking”? 
4. Intellectual Curiosity – This attribute surprised those of us at DPC, and therefore shame on us!  It is only  logical that a client is entitled to expect that their advisor is staying current.  Although the John Boudreaus, Noel Tichys, David Ulrichs, Jim Collins’s and Michael Porters are in a class by themselves, the reputation of the coach can be enhanced if they share insights from others, and their own documented point of view. 
5. Willingness to Admit Failure – Staying in a bad marriage is counterproductive if not counterintuitive.  The same logic applies to a coaching relationship.  If it isn’t working the coach should be the initiator of the relationship separation.  Anything less is suboptimal for the client and candidly an unfair position for an enterprise sponsor. 

 You will note that there is a presumption of a methodology and highly-attuned interactive skills!  Both are considered Threshold Attributes by the prospective client.

 Given the proliferation of those calling themselves Executive Coaches, the above is offered as a point of view to assist you in what DPC refers to as QQ (Qualification/Quality).

 

The Three Ls of Talent Readiness

By Tim Donahue

Perfecting the Talent Readiness formula for “Right People, Right Place, Right Time” involves many complexities, from shifting global demographics to the role of rapidly-evolving technology. But the business case boils down to the Three Ls – Leadership, Leverage and Legacy.

Leadership

The ever-shifting competitive landscape means that with leadership, mastery is a long-term goal. A colleague of mine once said: “As a leader, you will often be called upon to demonstrate leadership when you feel least ready to provide it.” Inevitably, all eyes and ears will turn to you, the leader, for the answer. As President Harry Truman put it, “The buck stops here.”

There is a particularly urgent link between leadership and safeguarding an organization’s future. This can mean everything from helping capable managers transition to leadership roles to shaping succession plans.

Of particular importance is Generation X, the smallest of the three predominant age groups in the U.S. workforce. The bulk of that segment – mid-30s to early 40s – is the traditional feeder pool for the leadership pipeline. Yet that same segment is the only age group that will shrink in the coming decade. The leadership pipeline may very well become a trickle.

 This demographic phenomenon is one key reason why leaders need to model effective leadership as well as extend a helping hand to show this next generation the way.

Leverage

Leadership means many things. When it comes to talent readiness, it means finding ways to increase the capabilities and impact of those who occupy spots in the org chart. If you doubt the strategic importance of leaders leveraging the abilities of those who work for them, consider the following:

•  The Adecco Group North America’s latest Workplace Insights Survey released in September 2009 showed that slightly more than three-quarters of employees surveyed were not satisfied with their career growth opportunities at their companies.
•  Recent research by Bersin Associates revealed that nearly 40% of line managers do not feel they have the training and skills to effectively manage employee performance. Yet when companies have highly effective talent management strategies, their average revenue per employees is 26% higher, Bersin’s research shows.

In short, what leaders need to do is what their people want them to do: Help them grow.

When leaders make talent development a key strategic priority – when they personally invest in developing the talent around them – they build organizational capabilities and leverage the full potential of their human capital.

This raises an important question: Do your leaders have what they need to help others grow?

Legacy

Leaders who commit to self-development as well as the growth of their people make an investment that yields a long-lasting dividend: a legacy.

Developing tomorrow’s talent is a job that must begin today. There are no quick fixes or silver bullets – no substitutes for the hard work and commitment necessary for passing knowledge and expertise from one generation of leaders to the next.

If this recession does prompt many Baby Boomers to delay their retirements, there may be a silver lining: Additional time to engage younger employees, transfer knowledge and groom successors.

To appreciate what’s at stake, consider the following:

• In an era rife with downsizing, it is sobering to consider recent research findings that 30% of companies retain knowledge poorly or not at all when workers depart
•  A June 2009 study by the Sloan Center on Aging and Work showed that since the recession, employee engagement decreased among Generation X and Y employees – yet hardly changed at all for employees in their 50s and 60s
•  In her 2008 book “Retire Retirement,” Tamara Erickson says the idealism of the Baby Boomer generation will motivate many Boomers to make a positive difference in the later chapters of their careers – which can include leaving a legacy in one’s organization

Perhaps Newsweek columnist Anna Quindlen said it best in her farewell column, “Stepping Aside,” published earlier this year. “John F. Kennedy (said) that the torch had been passed to a new generation,” Quindlen wrote. “But torches don’t really get passed very much because people love to hold on to them.”

Are your leaders holding onto their torches, or preparing to pass them? Is your next generation ready to pick up the torches?

Following the three Ls of Talent Readiness will help you do right by your leaders, your employees and ultimately your organization.