COVER STORY THE FUTURE OF LEADER SHIP · 50 Millennial leaders (responsible for managing staff) and...

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This article examines the personal and work traits of Millen nials, as well as their leadership styles and values. The characteristics outlined here will influence the culture, processes, and values of business in the near future—just as the Baby Boomers (defined as those born between 1946 and 1964) had tremendous impact on the culture of work from the 1970s through today. From November 2011 through May 2012, the consulting firm The Learning Café (thelearningcafe.net) interviewed 50 Millennial leaders (responsible for managing staff) and emerg ing leaders in the electrical distribution industry about their views on leadership and organizational life. The oldest person included in the research was 35 years old and the youngest was 22. These subjects fit the model of the new, high-value workforce—well educated, high expecta- tions, and a willingness to “walk, not whine,” that is, move to a new job rather than remain dissatisfied with their cur- rent position. As the oldest Millennials mature in age and manage- ment experience, our workplaces will start to reflect their generation’s styles and values. Therefore, in the inter- view subjects were asked to predict, “What will make your generation of leaders different from previous generations of leaders?” This article is based on their responses. The subjects interviewed for the research held job titles that included vice president, electrical construction; director of commercial sales; director of marketing; director of sales; district sales manager; western region sales manager; sales manager; purchasing manager; branch manager; opera- tions manager; manager, inside sales; supervisor, ship- ping/receiving; supervisor, warehouse; energy consultant; sales engineer; proj ect manager; and manager, sales devel- opment. There were also positions held in purchasing, marketing, public relations, sales, operations, finance, accounting, and engineering. THE GENERATION DEFINED There are 75 million members of the youngest generation in today’s workforce, all raised during the most child-cen- tric time in U.S. history. Millennials (defined as those born be tween 1977 and 1998) display a great deal of self-confi- dence, and at times may appear cocky to other generations, perhaps because of the shower of attention and high expectations they received from their parents. Ongoing research by The Learning Café shows that Mil len nials perform best with some structure, especially younger Millennials who are newer to the workplace. Sometimes coached by their parents, this generation does not see the value of paying their dues before they get a promotion or move ahead in their organization. They do not value job title and position as highly as older genera- tions do and show less reverence for a position that’s sim- ply based on experience. Rather, they respect knowledge, learning, and results. Members of the Millennial generation look for a relation- ship with their boss. They want their managers to be coaches, mentors, and even friends. They prefer to spend time with 52 the ELECTRICAL DISTRIBUTOR • Jul. 12 www.TedMag.com COVER STORY THE FUTURE OF LEADERSHIP BY 2014, HALF OF ALL EMPLOYEES in the world will be those born after 1980. That 50% will include many supervisors and managers—more, in fact, than one might expect: The Millennial generation is assuming leadership roles earlier than any generation in the United States to date. And cur- rent young managers indicate that their leader- ship style is quite different from what the work- place has grown accustomed to. A look at today’s millennial managers and how they lead. By Diane Thielfoldt

Transcript of COVER STORY THE FUTURE OF LEADER SHIP · 50 Millennial leaders (responsible for managing staff) and...

Page 1: COVER STORY THE FUTURE OF LEADER SHIP · 50 Millennial leaders (responsible for managing staff) and emerging leaders in the electrical distribution industry about their views on leadership

This article examines the personal and work traits ofMillen nials, as well as their leadership styles and values.The characteristics outlined here will influence the culture,processes, and values of business in the near future—justas the Baby Boomers (defined as those born between 1946and 1964) had tremendous impact on the culture of workfrom the 1970s through today.

From November 2011 through May 2012, the consultingfirm The Learning Café (thelearningcafe.net) interviewed 50 Millennial leaders (responsible for managing staff) andemerg ing leaders in the electrical distribution industryabout their views on leadership and organizational life. Theoldest person included in the research was 35 years old andthe youngest was 22. These subjects fit the model of thenew, high-value workforce—well educated, high expecta-tions, and a willingness to “walk, not whine,” that is, moveto a new job rather than remain dissatisfied with their cur-rent position.

As the oldest Millennials mature in age and manage-ment experience, our workplaces will start to reflect theirgeneration’s styles and values. Therefore, in the inter-view subjects were asked to predict, “What will make yourgeneration of leaders different from previous generations

of leaders?” This article is based on their responses.The subjects interviewed for the research held job titles

that included vice president, electrical construction; directorof commercial sales; director of marketing; director of sales;district sales manager; western region sales manager; salesmanager; purchasing manager; branch manager; opera-tions manager; manager, inside sales; supervisor, ship-ping/receiving; supervisor, warehouse; energy consultant;sales engineer; proj ect manager; and manager, sales devel-opment. There were also positions held in purchasing,marketing, public relations, sales, operations, finance,accounting, and engineering.

THE GENERATION DEFINEDThere are 75 million members of the youngest generationin today’s workforce, all raised during the most child-cen-tric time in U.S. history. Millennials (defined as those bornbe tween 1977 and 1998) display a great deal of self-confi-dence, and at times may appear cocky to other generations,perhaps because of the shower of attention and highexpectations they received from their parents.

Ongoing research by The Learning Café shows thatMil len nials perform best with some structure, especiallyyounger Millennials who are newer to the workplace.Sometimes coached by their parents, this generation doesnot see the value of paying their dues before they get apromotion or move ahead in their organization. They donot value job title and position as highly as older genera-tions do and show less reverence for a position that’s sim-ply based on experience. Rather, they respect knowledge,learning, and results.

Members of the Millennial generation look for a relation-ship with their boss. They want their managers to be coaches,mentors, and even friends. They prefer to spend time with

52 the ELECTRICAL DISTRIBUTOR • Jul. 12 www.TedMag.com

COVER STORY

THE FUTURE OF

LEADERSHIP

BY 2014, HALF OF ALL EMPLOYEES in the world willbe those born after 1980. That 50% will includemany supervisors and managers—more, in fact,than one might expect: The Millennial generationis assuming leadership roles earlier than anygeneration in the United States to date. And cur-rent young managers indicate that their leader-ship style is quite different from what the work-place has grown accustomed to.

A look at today’s millennial managers and how they lead.

By Diane Thielfoldt

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their direct supervisor and have plenty of interaction; theywant to seek advice and, perhaps most importantly, get feed-back on their performance. This does not typically mesh withGeneration X’s (de fined as those born between 1965 and1976) love of independence and a hands-off work style. If aMillennial is lacking these manager-employee relationships,he or she is likely to seek a new position that provides thatconnection.

Although members of older generations may hold negativeopinions of some traits and work habits of Millen nials, the factis that this is a hard-working, productive generation of work-ers and leaders, and they bring many essential skills and in -sights to their organizations. “We are hungry, we are readyand willing to work, we are ambitious, and we want to makechange,” said one interview subject.

MILLENNIAL LEADERS: WHO ARE THEY?The Millennial interview subjects self-defined the strengths,values, and other traits that differentiate them as a generationof leaders. The eight strongest characteristics mentioned were:

1. Technically savvy. This generation is, understandably,extremely literate in and comfortable with technology and itsexpanding communication channels. The constant new devel-opments and upgrades in systems and tools have always beenpart of Millennials’ lives. Their effortless use of technology ispart of how these leaders are changing the way business isconducted, according to interview subjects. Technology is abuilding block to new and better in-house processes (this gen-eration is undaunted at the prospect of implementing newcomputer systems or order entry systems) and transformingday-to-day work, as Millennial leaders rely on smart phonesand other tools that allow them to be available 24/7.

“The better our technology, the more efficient we becomeas leaders,” said one interviewee. They expect to use technol -ogy to receive or find information quickly—such as informa-tion about a prospective customer, the amount of money acom petitor is devoting to online advertising, or a new product—and to use those same tools to solve problems.

2. Adaptable and open to change. Millennial leaders are“pioneers of change,” according to one subject. They view the“old way” their organizations have operated as a good startingpoint, but will not hesitate to adapt practices to new models inorder to improve. More open to change than older genera-tions, these workers are accustomed to adapting rapidly andwill take their teams, departments, and organizations alongwith them.

3. Flexible. As with their Generation X counterparts, Mil -len nial leaders are task oriented rather than time oriented;they measure productivity by the work completed rather thanhours spent at the office. Flexible office hours, telecommuting,and more mo bile offices will replace the already dwindlingstatus quo of spending the hours of 8 a.m. to 5 p.m. sitting inthe office. How ever, this does not mean that Millennials workconstantly.

They have a strong desire for balance in their work and

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One of the frustrations thatGeneration X managers andtheir older counterparts of -ten express is the Millen ni -als’ constant need for hand-holding: Without clearly,seemi ngly meticulously, de fined details on how to at tack their work—and thecriteria upon which theirsub sequent evaluations willbe based—they tend to getlost.

“The No. 1 mistake com-panies can make is to notprovide training or to throwan employee in with the sink-or-swim attitude,” said MollyEpstein, associate profes-sor in the Prac tice of Man -age ment Com munication,Goizueta Busi ness School,Emory Univer sity, in Atlanta.“Creat ing an ambiguous sit-uation without direction andwithout clear evaluation cri-teria makes the Millennialvery uncomfortable.”

This, she added, is ourfault: Since they were chil-dren, the Millennials’ envi-ronment was one of clearlydefined and detailed struc-ture. Remember all thosecar pools organized for soccer matches? Hockeygames? Piano les sons?Ballet? And all of the coach-ing and trophies and partici-pation badges that wentwith? It’s not surprising thatthis generation’s need forhandholding—or, to put itmore positively, feedback—

exists. They’ve re ceived this level of attention alltheir lives.

What’s encouragingabout this is that while theymay demand a lot of atten-tion, Millennials are alsoadept at being part of alarger group.

“The biggest thing wesee from this generation isthat they have a very uniqueway to work in teams,” ob -served Jennifer Bleil, learn-ing and development spe-cialist at Van Meter Inc.,headquartered in CedarRap ids, Iowa. “They don’tthink of it as teamwork—it’sjust how they work. It is sointegrated into their every-day life that it’s not some-thing that we have to talkabout.” Millennials, she said,reach out to others natu -rally and are willing to shareideas: “Those are thingsthat have been integratedinto their education andwork style from the get-go.”

At the same time, how-ever, the extracurricularactivities they en joyed dur-ing their childhoods havecreated a de sire for contin-ual praise.

“Their culture was al -ways one of recognition and reward,” Epstein said.Climb into the minivan andhead back to that soccerfield where everyone re -ceived a trophy even if theteam didn’t win a single

Mastering the MillennialsWhat you can offer the industry’s future leaders—and what they can bring to you.

COVER STORY

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personal lives and demand appropriate personal time as wellas their well-deserved vacations. For example, a Millen nialleader will work from home in the evenings and over theweekend so that he can take a Tuesday off to see his child’sbaseball game. Millennials know how to work efficientlythrough remote-office technologies but will not become theworkaholics that Baby Boomers have.

4. Educated and education oriented. One intervieweedubbed education “the cornerstone of our success.” Millen -nials place great emphasis on college degrees and continuingeducation. They are comfortable with learning new thingsand are eager to be challenged and intellectually stimulated.Amassing knowledge—whether on the job, with mentors, in the classroom, or completely independently—is a strongmotivator for this group.

5. Fast-moving. One interview subject called Millennialsthe “right-now generation” because of its lightning pace attackling everything. Admittedly impatient, Millennial leadersvalue action and want to accomplish tasks quickly. This ties inwith their competitive spirit and goal-oriented drive, and alsowith their desire for immediate rewards. “We have never hadto wait for anything. So why should we wait to become lead-ers?” said one interview subject. “We won’t. And we are be -coming leaders earlier than those before us.”

This fast pace extends to communication preferences. Mil -lennial leaders demand information be delivered clearly andconcisely: They want an outline of goals, objectives, strat egies,and the direction in which the organization is headed. Theyre quest constant updates from their team and want to knowthe mean ing and purpose of every mission that they are in -volved with. Today’s technology suits these needs; Millen nialsrely on the speed of texting, social media, email, and videoconferencing.

6. Willing to improve. One reason that Millennial lead-ers have risen so fast is their ease at self-improvement. Theyhave made an effort to understand and personalize their leadership styles to improve their contributions to the orga -nization. The aforementioned confidence in themselves, ap -preciation of learning, and ability to self-reflect all feed intothis. “We don’t want anything handed to us,” stated one sub-ject. “We want to prove ourselves and earn our leadershippositions.”

7. Inclusive and environmentally conscious. Because of the times in which they grew up, Millennials prefer a diver-sified workplace and are generally accepting of differences inethnicity, race, sexual orientation, and personal opinion. Theyalso share a concern for the environment and the future of thecountry and favor “socially responsible leadership.”

8. Authority challenging. Interview subjects stressed thatwhile they respect individuals in positions of authority, theyare not hesitant to present a differing opinion, share an idea,or make a suggestion to superiors. In other words, they arecomfortable in challenging or questioning authority. Millen -nials see the business world as a level playing field, wherethey have rights to participate, rather than sit on the sidelines

game. “We have been talk-ing about that for 10 years,but it’s still very valid in thatour Millennial employeesexpect recognition regard-less of performance,” shenoted. “They will still begood performers even ifthey don’t win ‘Employee of the Year,’ but they wantsome form of feedback ontheir contribution to theorganization.”

For employers, this may require some modifi-cations to the standard per-formance review process,because for feedback-hungry Millennials, an an-nual review is not enough.

“It’s important for organi-zations to build in opportuni-ties for feedback,” Epsteinsaid, such as at the end ofevery engagement or theconclusion of every sale.“The good news is that Mil -lennials are very achieve-ment oriented. If we givethem specifics about howthey will be evaluated, theywill work very hard towardthose goals.”

Bruce Tulgan is thefounder of the New Haven,Connecticut-based Rain -maker Thinking (rainmakerthinking.com) and author ofa number of books, includ-ing Not Everyone Gets aTrophy: How to ManageGeneration Y. While he de -clares that Millennials canbe high-maintenance em -ployees, he does not be -lieve that they should behanded a prize just forshowing up. To Tulgan,“thank you,” “re ward,” and

“praise” programs, as wellas turning the recruitingprocess into one long salespitch, is out of touch withreality.

“I tell employers thatwhat [Millennials] need isnot always the same aswhat they want,” he said.“The problem is that givingthem what they need isharder than simply handingthem what they want.” This,he noted, calls for strongleadership: “Man ag ers mustnever undermine their ownauthority, pretend that thejob is go ing to be more funthan it is, suggest that atask is within the discretionof an employee if it isn’t,gloss over de tails, let prob-lems slide, or offer re wardsand praise for performancethat is not worthy of thoseaccolades.”

And, if praise and re -wards are what they trulyde sire, spell out how thiscan be achieved: If youwant A, you have to do B.“The critical element when itcomes to rewarding [Millen -nials] is letting them knowthat re wards are tied to con -crete actions within theirown di rect control,” he said.

Surprising to some isMillennials’ apparent disre-gard for hierarchy. “The old boundaries betweenyounger employees andolder employees and thechain of command simplylooks different today,” Ep -stein said. If, for example, a Millennial in a junior posi-tion has what he or shefeels is a great business

COVER STORY

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and revere author ity. They are also intolerant of corruptionand are keen to become whistleblowers if they discover some-thing untoward in their organization. “Our confidence andability to not be intimidated may not be well received,” notedone Millennial.

LEADERSHIP STYLES AND VALUESThe interview subjects were also asked about how they leadtheir teams and how they view and nurture their own leader-ship. Their responses covered seven aspects of their style:

1. Working as a team. “Mygeneration of leaders lovesteamwork and is willing tospend more time building rela-tionships with our teams,” sum-marized one interview subject.They share a willingness to col-laborate, network, and motivateone another. This results in amore democratic version of lead-ership; Millennials are shiftingthe norm from top-down leader-ship to participative manage-ment. They are focused on teambuilding and collaboration andencourage open communicationin the work environment. Mil -len nial managers will admit thatthey may not know everythingand are willing to ask for help.

2. Pitching in for success.Millennial leaders don’t simplyfocus on their “piece of the pie.”As team players, they want tolend their skills and ideas to helpmake the organization success-ful. They are trying to harnesstechnology, adaptability, andresourcefulness to meet chal-lenges, all while navigating arap idly changing business cli-mate. They know their strengthsand will work smarter ratherthan harder to succeed.

3. Valuing mentors. It’sunderstandable that Millennialleaders want mentoring. Theyare relatively new to manage-ment and need guidance, butthey also value learning and pre-fer coaching and working as ateam. Working with a mentorwho is a veteran manager fulfillsmany of these preferences andcan also bring fresh insights to

these confident newcomers: “Our success will come only if webuild our careers around the values and fundamentals theprior generations exhibited…. We must use mentors whenmaking decisions—get their valuable insight,” said one inter-view subject. Baby Boomer managers who will eventually passthe torch make excellent mentors for this generation, and theknowledge transfer that occurs is icing on the cake.

4. Ensuring training for employees. Just as the Millennialleaders value education for themselves, they want it for theiremployees, not only in the form of training, but also in an on -

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Organization report card

How does your organiz

ation rate on appealing

to its Millennial leaders

? Use

the report card below t

o provoke conversation

and spark dialogue. C

ircle the

grade you would assign

for each area.

Our organization em

braces technology an

d relies on it to run o

ur business.

A B C D F

Our organization, de

partments, and managers c

hange before they h

ave to.

A B C D F

Flexible work schedul

es are part of the cu

lture.

A B C D F

There is support for l

eaders who live bala

nced lives.

A B C D F

We encourage risk ta

king.

A B C D F

We value speaking up

and speaking out.

A B C D F

Information flows freely and

equally here.

A B C D F

We are open to nont

raditional, talented j

ob candidates.

A B C D F

Diversity and inclusio

n are more than buzzwords

here.

A B C D F

Decision making is in

clusive rather than re

served for upper management.

A B C D F

We encourage collab

oration and teamwork.

A B C D F

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COVER STORY

going learning environment. When assigning a task or proj -ect, they make sure to provide an explanation of how and whythings are done. “We need to understand how things fit intothe bigger picture in order to fully understand a concept,” saidone subject. Millennial leaders will communicate to employ-ees how their role will help the organization be successful.

One of their leadership goals is to provide a solid founda-tion for employees to grow; this will also help teams stay cur-rent with emerging markets and global and domestic econo -mies. In addition to new outside information, Millennial lead-ers work to transfer knowledge from veteran employees to anew generation of employees.

5. Taking risks. Millennial leaders are not afraid to takerisks. It is part of their competitive nature to reach higher, forthe sake of improving the organization as well as to provethemselves. Their inherent confidence lends them certaintythat they can succeed; this combined with the young leaders’desire to prove themselves makes this generation willing totake risks. And, unlike some older generations, they don’t feelthe need to question the risk, agonize over it, or dissect it—they simply move forward.

6. Receiving recognition. Because Millennials as a gener-ation are results driven, they expect immediate gratificationfor their hard efforts. They are motivated by unique rewardsand are apt to use similar rewards to motivate their teammembers. When asked what kept them satisfied, motivated,or productive, those surveyed identified the following:

• Challenging, stimulating, varied work: 59%• Growth, learning, and development: 52% • Enjoyable work environment: 49%• Pay: 43%• Healthy work-life balance/flexibility: 41% • Appreciation (nonmonetary) recognition: 30%• Making a difference/contribution: 27%• Good boss: 22%• Treated with dignity and respect: 15%• Autonomy, ability to innovate/create: 14%• Benefits: 14%• Good communication: 13%• Company/industry reputation: 4%7. Adding fun to the mix. Of course, managers of all ages

love fun. But Millennial leaders expect a mix of fun and work.They work hard but value some lightness in the workplacesuch as social interaction, special events and lunches, and lessformality. They bring this value to the teams they manage,though added fun should not be confused with lack of moti-vation or professionalism.

IN CONCLUSIONThe 20- and 30-something-year-old leaders in today’s elec-trical distribution industry will guide their organizations—and the industry as a whole—into the future. The traits andvalues outlined here will gradually bleed into the work stylesof employees of all ages, much as the Baby Boomers shapedthe way we’ve worked for the past 30 years. Offices, ware-

idea, that person will take itstraight to the CEO. Butonce again, this shouldn’tbe such a big surprise: Allthat time spent with sportscoaches, dance instructors,piano teachers—adults ingeneral—made Millennialsvery comfortable in teractingwith authority at a very earlyage.

“What an industry wantsto do is encourage this typeof creativity, encourage thistype of new idea generationbecause things are chang-ing so quickly—particularlytechnologically,” Epsteinexplained. “What they canbring is new ideas that helpcompete with what else isgoing on out there.”

And, because Millennialsgrew up using technology,they tend to be much moreaware of what’s out thereand what it can do for anorganization. “They are likely to see, with a greatersense of creativity, hownew or existing technolo-gies can be employed,”noted Epstein.

While technology is defi-nitely a tool that Millennialsapply to both learning andwork, Tulgan emphasizedthat there is no need forcompanies to transformanything and everything intoa video game just to keepthis generation engaged.

“Remember that Millen -nials want to learn frompeople, not just comput-ers,” he said. “If you arewilling to teach, you cansupport their desire to ac -

quire the ability to learn newthings very quickly. You cantrain them the old-fashionedway in short-term stagesthat track directly with ad -justments in their day-to-dayresponsibilities.”

Each new task becomesa proving ground, allowingMillennials to show off theirabilities and, hopefully, earnmore re sponsibility. Admit -tedly, this requires a signifi-cant, ongoing effort on thepart of those charged withtraining and management;it’s also how to help themgrow fast over a short pe -riod of time.

But is all of this trainingand management worth the investment for a gener-ation renowned for its jobhopping? For Karen Schu -macher, Van Meter’s leaderof learning and develop-ment, it’s this level of invest-ment and engagement thatserves to keep Millennialemployees around.

“I see fewer people hop-ping from job to job andleaving our company. I seethem hopping around anddefining ways on how to getmore involved in our com-pany and trying on differentroles,” she said. “Just hav-ing the conversation, under-standing where they want togo, and assisting them inseeing how they can getthere helps.” n

Carolyn Heinze is a free-lance writer and editor. Shecan be reached at [email protected].

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houses, and plants will shift toward a model that involvesteamwork, technology, a faster pace, and a learning-centeredenvironment.

As this youngest generation continues to take the helm ofbusinesses across the coun-try, we’ll see many changesin pro cesses, corporate cul-ture, climate—and yes,even the speed at which wemove ahead. It’s importantto remember that change istruly good—especially inlight of the promise andpotential shown by today’sMillen nial leaders andemerging leaders.

NOTE: From concept to completion, the research and re -porting that is referenced in this article represents a collabora-tion between Diane Thiel foldt, co-founder of The LearningCafé, and NAED’s Eastern Region Council. The Millennialpanel participants at the 2011-2012 NAED Region Confer -ences in spired us to ask the question: “How will your genera-tion of leaders lead differently?”

The Learning Café would like to thank the NAED Western,South Central, and Eastern Region distributor and associate

members that took the time to contribute to the article ornom inate a Millennial colleague to contribute.

A copy of an executive summary of this research report,including common themes and organizational implications,

can be requested by emailing NAED Region Manager BrianPeters at [email protected]. n

Thielfoldt is co-founder of The Learning Café (thelearningcafe.net),a consulting firm dedicated to helping organizations develop, en -gage, and retain the talent of every generation. An accomplishedworkshop facilitator and engaging speaker, Thielfoldt has educatedhundreds of managers on issues involving the multigenerationalworkplace. Reach her at [email protected].

AS THIS YOUNGEST GENERATION CONTINUES TO TAKE THE HELM OF BUSINESSES ACROSS THE

COUNTRY, WE’LL SEE MANY CHANGES IN PROCESSES, CORPORATE CULTURE, CLIMATE—AND YES, EVEN

THE SPEED AT WHICH WE MOVE AHEAD. IT’S IMPORTANT TO REMEMBER THAT CHANGE IS TRULY GOOD.