Businesses Needs To Change For The Next Generation Of Leaders

A significant number of companies today still believe that short term profit is most important to keep the shareholders happy as well as the stock market. We have become a world of wanting instant results and if that does not happen sack somebody and start again.   It is rare to see a long-term vision, share prices reflect the last quarter not what the end game is. If company results do not match expectations, then somebody must lose their job.   This has led to a goal driven environment, and as in Simon Sinek’s book ‘Leaders Eat Last’ it is described as a dopamine and endorphin fuelled environment, which has produced driven competitive workplaces, high stress, lack of job security and aggressive tactics which has led to little or no cooperation between colleagues. This does not necessarily benefit long term growth, profits, employee harmony or stability for a business. This view is not an attack on capitalism as this has significant benefits, it is a point of view from my experience of owning businesses and employing staff including Generation Z. Businesses are going to have to change with regards their employees in the very near future to ensure the long-term success of the business

The big issue for business going forward is that the next generation of leaders coming through are the Generation Z (those born after approx. 1995) who have been taught competition is wrong. They have been taught if you take part in a competition you should all receive a certificate to say you took part irrespective of where you came or if you put any effort in. They have grown up with instant gratification if you want to communicate with someone all it takes is 1 touch of a button, and so a brochure or quote can be viewed by them both whilst still talking on the phone. You can order something off the internet, and it turns up at your door the next day or even the same day. This is not an attack on Generation Z we created this environment for them. They have not learnt general face to face communication skills, they text, they do not answer a phone call but respond to a text straight away. They can now start a relationship having had no contact by just swiping right or left and within minutes they are in a relationship. They have not had to learn the skill of approaching someone new and the uncomfortable feeling of striking up a conversation.  Social media allows anybody to say anything about anybody with no repercussions, when it is done face to face you see the results and from that learn social skills such as empathy and how to treat people. 

This is not their fault; it is the environment they have grown up in, you cannot blame them.   They use social media because they want to belong, and have hundreds and thousands of friends, they struggle to understand what the difference is between a true friend you can trust and somebody miles away who has pressed the like a button on their device. They have not had what is called ‘the knocks of life’ this is an important part of life’s learning curve, which can potentially help teach them about empathy and trust etc which is needed when leading people and when dealing with other colleagues.

It takes hard work to get the things you want in life, and you sometimes fail. One of the traits of a true leader, scientists, inventor, and visionaries is to accept that failure is just a state of mind and that it is a stepping-stone towards future progress. Generation Z are being brought up in a culture where any chance of failure has been removed and are being taught that failure is a negative instead of treating it as a positive to help fuel progress.   We have created a system to ensure they never have to face the thought of failing.  The knock-on effects of this are, where are the future leaders, inventors and visionaries going to come from if they are not shown that failure can be a sign of progress.  Some of the greatest inventions have been created from failures or from what could have been deemed as a failure, as Thomas Edison said ‘I have not failed. I’ve just found 10,000 ways that don’t work’. Our young adults find this a hard concept as they are used to instant gratification and not having to wait.

Young adults tend to have opinions on most things but do not have the self-belief in their own abilities to go and live life to their full potential. The shock is how many young employees have little or no self-belief and time has to be spent making them believe in their own capabilities and that the opinions of others are not criticisms but should be taken as constructive feedback. Potentially this Generation Z have an incredible contribution to give towards future business but because of the environment they have been bought up in the hardest part is getting them to realise their true potential. 

It is going to be business that will have to show them their true potential and the contribution that they can make. Society is excellent at teaching them all the negatives of what they have not got or all the reasons why they not able succeed, you live in the wrong area, you went to the wrong school, etc instead of showing them the role models who have refused to listen to those negatives and gone on to achieve great success whether it is in business, politics or sport. People post on social media all the benefits of success but never show all the hard work and heartache that it has taken to achieve it, giving the impression that success is easily achieved.

Business will have to reinforce the positives to ensure that young adults do not give up before their lives have even started, getting them to understand that hard work, focus, time, and setbacks are all part of the journey to success and achieving their potential. This could be a big problem for business soon as the young adults coming through are not used to being in a high stress, goal driven, competitive environment where there is little or no job security. Where everybody is protecting their job and their position, they cannot opt out just because they feel uncomfortable or do not like it, sometimes it takes these feelings to get the best results.

The biggest issue of employing young adults is that they have plenty of self-confidence but little or no self-belief. As a result, it becomes difficult to have a discussion to get them to see other points of view, which is essential in a business environment for them to learn to cooperate with others. This is being fed from social media where someone can make a statement and you can either like it or you have an option of agree or disagree, to a statement but rarely is the option to put your actual point for or against.  Or the response is a personal attack but no actual thought through counter argument. Yet one of the fundamentals of the leadership of business is listening to multiple opinions and from these differing opinions create the best solution. As Buddha says, ‘Discussions are always better than arguments, because an argument is to see who is right, and a discussion is to find out what is right’. Again, this is not an attack on social media but there are downsides to it which has influences people’s attitudes towards each other and social skills, which will affect business in the near future.

So potentially there is going to be a massive culture shock with two completely differently types of cultures having to work together. In the short term it will lead to increased stress, more sick days, and general lack of co-operation within the business, poor job retention and possibly numerous disciplinary issues which makes for a toxic work environment. In the longer term there will be a lack of good leaders being created, and when Generation Z start to become senior management, they will not have the skills necessary to become a leader creating a massive impact on the future of the business. They need to be taught the significance of motivation, goals, and cooperation that senior roles require. A goal needs to be set on how to compromise and by meeting in the middle it gives a cooperative and more harmonious work environment which in the long-term benefits both employees and the business. 

It will also take outside influences such as shareholders and the stock market to look for the long term not the quick profit. These things are not insurmountable to overcome but they will take time and the sooner business start to look at their work culture in an honest and open way the sooner they can be ready for the future. If we create a new culture combining both the old and new in a harmonious work environment it will enable business to flourish improving success and innovation, as well as create the next generation of Leaders and visionaries. After all Warren Buffett has not done to badly using a long-term investment strategy. With businesses combining the best of the two cultures and harnessing their combined capabilities the possibilities for the future is truly limitless.