The Journey to World-Class HR Executive Advisory Program Executive Briefing – Managing a Multi-Generational Workforce Presented to: The Hackett Group

The Journey to World-Class

HR Executive Advisory Program

Executive Briefing – Managing a Multi-Generational Workforce

Presented to:

The Hackett Group

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HR Executive Advisory Program© 2007 The Hackett Group. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.

Statement of Confidentiality and Usage Restrictions

This document contains trade secrets and other information that is company sensitive, proprietary, and confidential, the disclosure of which would provide a competitive advantage to others. As a result, the reproduction, copying, or redistribution of this document or the contents contained herein, in whole or in part, for any purpose is strictly prohibited without the prior written consent of The Hackett Group.

Copyright © 2007 The Hackett Group, World-Class Defined. All rights reserved.

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Agenda

Four Generations At Work A look at What Makes a Workplace

Enriching Seven Key Principles for Creating an

Enriching Workplace

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Meet Four Generations At Work

Traditionalists – Born during of before WWII

Baby Boomers– Born in the mid 40’s to early 60’s

Generation X– Born early 60’s to early 80’s

Millenials– Born in the early 80’s to 2000

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The “Traditionalists”

AKA “The Greatest Generation Value security Strong Sense of patriotism “Where were you when the atom

bomb was dropped?” No nonsense performers

Generational Characteristics Workplace Implications

Trust for authority • Well-suited to hierarchical, top-down organizations

Rule makers/structured • Defined and live by the current management practices/policies

Team players • Prefer long tenure with a single company

• Identify career “as” company (e.g., “I’m an IBM salesman”)

Materialistic • Accustomed to a financially-based “compensation” package

Belief in government • Expect that social security and other government systems provide a significant portion of retirement security

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The “Baby Boomers”

AKA “The Greatest Generation Make Love Not War” Vietnam War – Anti-authority “Where were you when you

heard JFK had been shot?” Flatten the hierarchy

Generational Characteristics

Workplace Implications

Idealistic • Always searching for the company “vision” and expect to believe in the company’s mission

• Career defined in terms of a life mission (“I’m bringing technology to the people”)

Anti-authoritarian • Demand participative management

Rule breakers • The authors of “Reengineering” and many other attempts to restructure the corporation

Self-reliant/individualistic • Value individual recognition and success • Competitive• Expect merit-based systems

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Generation “X”

AKA - The Lost Generation Anti-corporate “Where were you when the

space shuttle Challenger exploded?”

Free Agent Nation

Generational Characteristics Workplace Implications

Independence • Career belongs to individual, not company• Expect to be treated individually

Commitment to life-work balance • Demand flexible schedules• Want sociable workplaces• Where I live > where I work

Technological proficiency • Demand up-to-date technology• Manage their own information,

communication

Accustomed to being marketed to • Want frequent feedback• Want to be heard

Success is measured in social rather than pure economic terms

• Value knowledge and skill building, not tenure

• Belonging to corporate community• Connecting with a mentor

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The “Millenials”

AKA - Gen Y; Nexters, Echo Boomers Renewed sense of social consciousness “Where were you when the Twin Towers were attacked?” Ultra-programmed, hard working, high expectations, high touch Diversity as the way of life Technology as the way of life Multi-tasking as the way of life Teams as the way of life Inclusion in decisions as a way of life

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Older Workers Seem Happier With Their Jobs Than Younger Workers

*Source: Harris Interactive, 7,718 U.S. adults age 18 and older who are employed at least 30 hours a week, June 2005

Younger Workers

Older Workers

Satisfied with their jobs 55% 68%

Have job burnout

47% 28%Derive personal pride

from their jobs 37% 59%Care about the fate of the organizations

they work for 47% 64%

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Younger workers

(Under 35)

Male mid-career

(35-45)

Female mid-career

(35-45)

Experienced (Over 45)

1. High salary 1. High salary 1. Healthy work/life balance

1. Healthy work/life balance


2. Opportunities to lead and influence

others

2. High salary 2. High salary


others

3. Sense of achievement

3. Widen your horizons

3. Steady and secure employment





5. Widen your horizons /Develop

and use your technical skills


5. Steady and secure employment


others

Most Desired Changes in Jobs: One Key Difference Stands Out

*Source: Ci Redesigning Work Global Survey of 1448 Knowledge Workers, Career Innovation Company, 2005

Source: www.cimanifesto.com

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How are Intergenerational Differences Positively Impacting the Workplace?

*Source: “Managing Generations in the Workforce”, Pre-Conference Survey.

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How are Intergenerational Differences Negatively Impacting the Workplace?


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Agenda



Enriching Workplace

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Next generations workplaces are places to realize human potential – not just make money

They employ practices that ignite the passion and unleash the talent of their workers

As a results they deliver high fulfillment AND high performance

What’s A Next Generation Workplace?

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Enrichment– Provide opportunities for growth

Appreciation– Everyone gets their fair share of reward

Harmony– Enable workers to strike a balance

Voice– Give workers a say

Membership– Build rich connections and bonds

Meaning– Link the mission with personal values and beliefs

Next Generation Workplaces Excel at Employing Six Powerful Drivers of Workforce Excellence

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2.22 (1)2.22 (1)

Workers Age <35Workers Age <35(9)(9)

2.89 (2)2.89 (2)

3.00 (3)3.00 (3)

4.00 (4)4.00 (4)

4.11 (5)4.11 (5)

4.78 (6)4.78 (6)

2.63 (2)2.63 (2)

Workers AgeWorkers Age35-44 (24)35-44 (24)

1.83 (1)1.83 (1)

3.33 (3)3.33 (3)

3.79 (5)3.79 (5)

3.38 (4)3.38 (4)

4.78 (6)4.78 (6)

2.73 (1)2.73 (1)

Workers Age 45+Workers Age 45+(33)(33)

2.82 (3)2.82 (3)

2.73 (1)2.73 (1)

3.48 (4)3.48 (4)

3.79 (5)3.79 (5)

5.27 (6)5.27 (6)

Importance of the Six Key Attributes to the Workplace Scale1 – Most Important6 – Least Important


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Enriching Workers Takes More than Just Compensating Them

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Agenda



Enriching Workplace

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Key Practice 1: Stretch And Mobility

70% of workers under 35 No barriers, no walls Job stretch, mobility,

mentoring

““My top three reasons for coming to work My top three reasons for coming to work and staying at SEI: working with smart and staying at SEI: working with smart

people, growth opportunities and people, growth opportunities and mentoring.”mentoring.”

– Andrea C. Marketing Mgr., – Andrea C. Marketing Mgr., SEI InvestmentsSEI Investments

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“Commitments” not jobs Mentoring intensive (Sponsors) Anyone can get funding and lead

projects

Key Practice 2: Mentoring

• New hires are assigned a sponsor act as advocates for them

• Sponsors commit to being knowledgeable about the activities, well being, progress, accomplishments, personal concerns and ambitions of the associate sponsored

• Each associate has at least one sponsor; some have more than one

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Nirvana for nerds Commitment to talent expressed in

IPO filing 20% of time on personal projects

Key Practice 3: Freedom and Stimulation

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Key Practice 4: Deep Immersion

Induction program on steroids - goals are not only cultural induction, bonding and skill development but to create its next generation of ideas, products and leaders

Led and run by the company’s top executives, including its CEO

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Key Practice 5:Teaching/Coaching

Deforest Middle School

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Pairs younger and older workers together

“Lost in Space” program “Trading Places” “Coq au vin versus Chicken

McNuggets”

Key Practice 6: Diversity

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Key Practice 7: Horizontal Growth Paths

“Big Pharma” Example

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A JOBA JOB – Fair day’s pay for a hard day’s work is offered; training/ development opportunities are dictated by company.

PROFESSIONPROFESSION – Work is personally rewarding; formal and informal opportunities for learning and growth are widely available.

CALLINGCALLING - Employees can pursue the work they love with full support to perform at world-class levels.

DEAD ENDDEAD END - Workers view their jobs providing little innate satisfaction or opportunity for learning and advancement.

Failing

Advanced

Basic

Next Generation

The Levels of Enrichment

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Job Attributes That Enrich Work: Importance Versus Experience


1. On-the-job learning1. On-the-job learning (.33)(.33)

Workers Age <35Workers Age <35

2. Stimulation and challenge2. Stimulation and challenge (.44)(.44)

3. Tools to do best work3. Tools to do best work (.78)(.78)

Doing Well…Doing Well…

Workers Age 35-44Workers Age 35-44



3. Personal accomplishment3. Personal accomplishment (.79)(.79)


Workers Age 45+Workers Age 45+

1. Opportunities for creativity/1. Opportunities for creativity/innovationinnovation (.51)(.51)

2. Personal accomplishment2. Personal accomplishment (.54)(.54)




4. Opportunities for creativity/4. Opportunities for creativity/innovationinnovation (1.00)(1.00)

5. Training & development5. Training & development (1.00)(1.00)

Worth a Look…Worth a Look…

4. Training & development4. Training & development (.96)(.96)


5. Tools to do best work5. Tools to do best work (.94)(.94)

6. Coaching & mentoring 6. Coaching & mentoring (.94)(.94)


7. New roles and responsibilities7. New roles and responsibilities (1.22)(1.22)

8. Coaching & mentoring 8. Coaching & mentoring (1.23)(1.23)

6. Personal accomplishment6. Personal accomplishment (1.11)(1.11)

Needs Improvement…Needs Improvement… 5. Opportunities for creativity/5. Opportunities for creativity/innovationinnovation (1.21)(1.21)

6. Coaching & mentoring 6. Coaching & mentoring (1.21)(1.21)

7. New roles and responsibilities7. New roles and responsibilities (1.25)(1.25)

8. Tools to do best work8. Tools to do best work (1.31)(1.31)

Needs Improvement…Needs Improvement…

7. Training & development7. Training & development (1.05)(1.05)

8. Personal accomplishment8. Personal accomplishment (1.12)(1.12)

Needs Improvement…Needs Improvement…

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How To Create An Enriching Workplace

Identify andAttract

Hire andInculcate

Motivate and Develop

Appraise and Reward

Build and Sustain

Look to skill pools and magnets for talent.Lead with opportunities to learn. Sell attributes of the work.

Hire for both skill and attitude.Make induction and initial work productive and meaningful.

Emphasize mentoring. Let staff earn right to choose assignments.

Measure learning as well as achievement.Link reward to achievement and learning.

Allow people to leave temporarily for learning opportunities.Make sure they are welcomed back.

InternshipsCompetency modelsBest employee profiling for skillsPeer programs

Behavioral interviewingRole playingAssessment centersWork-based inductionFast start programsJob rotation programs

Centers of ExcellenceLateral developmentExternshipsJob rotationIn-house universities Mentor programsLatest tools and technologiesHot projects

Competency and learning-based appraisalSoft landing policiesFellowshipsIn-field learning sabbaticalsFreedom to pursue external opportunities

Support for advanced educationLearning sabbaticals Learning networks

Principles

PracticesThat

Matter

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Questions or Comments?

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The Journey to World-Class HR Executive Advisory Program Executive Briefing – Managing a Multi-Generational Workforce Presented to: The Hackett Group