You Can’t Argue With The Numbers

A number of years ago, I was invited to a leadership summit. Leaders in policy, higher education, and non-profit worlds primarily attended this summit. It was hosted by senior leaders; viewed as people of distinction in our state.

I found myself profoundly disappointed by the perspective and attitudes of the senior leaders. They shared:

• “We want to retire (or otherwise transition) but we can’t find anyone to fill our shoes.”
• “The younger generation isn’t stepping up to take responsibility.”

I looked around at the younger (Boomer and Gen X) leaders present. Most of us were in executive positions. Most of us served on multiple boards. Many of us had created new businesses, programs or services, or brought dying businesses back from the dead.

I pushed back then; and will push back now. Here’s why I reject those two perspectives:

Basic Demographics

There aren’t as many people in the younger generations. There is a demographic tool, called a Population Pyramid, which provides a quick visual of any population. The classic population pyramid looks like the Eiffel Tower, with lots of children and young people at the bottom. As the population grows older, the pyramid thins (due to deaths) and eventually comes to a point.

For those of us living in the US, the pyramid looks more like a fat Seattle Space Needle. There are more people in their 60s than any younger generation. This means two things:

• There are more leadership positions in the US than ever before.
• There are fewer available people to fill these positions than ever before.

Leadership Pipelines Haven’t Been Built

For decades, Baby Boomers have created institutions and leadership positions that made room for all the aspiring Boomer leaders to have a place. Because Boomers are healthier and living longer than any previous generation, they aren’t retiring as fast. Additionally, it’s a generation that’s resisted the idea of ‘getting old.’ As a result, there’s been a strong tendency to avoid things like retirement planning and succession planning.

The truth is: the leadership burden that my generation (and younger generations) is being asked to carry is greater, per capita, than any generation previous. In a way, it’s similar (although, not quite as dramatic) to what happens in a country that has experienced prolonged warfare and lost a significant portion of its population. There are more leadership needs, and not as many people to carry them.

The Gap

The Leadership Gap is simple. We are experiencing the first ‘storm surge’ of a need for new senior leaders in our country; as the first wave of Boomers is stepping into retirement. There is a greater need for more leaders than ever before. However, this need creates tension due to the strong tendency amongst current senior leaders to avoid building and filling their leadership pipelines. This is true in the business world, the non-profit and public sectors. Great need + Low supply = Gap. However, it’s also an opportunity.

Opportunities

Rethink Retirement: Retirement, as we know it today, is an industrial-age relic. While I believe Boomers need to begin stepping aside, I don’t believe they should be “put out to pasture.” This is a great time for Boomer leaders to reinvent themselves as contributing elders, rather than consuming elders. I expect there will be far more Boomers eventually stepping into consulting roles, board roles, and other roles that provide guidance and input, but not direct leadership. Will Boomers be willing to re-envision their next 20 years as ones of contribution? Or consumption?

Rethink Leadership: This has already begun. Many, in my generation and younger generations, have already stopped waiting for leadership positions to open and have, instead, created new businesses and non-profits. There is a much higher tolerance for the risks of entrepreneurialism and, despite what some people moan about, a much lower demand for a monolithic employer to take care of it all. The gap will probably be felt most in the public sector where age and inactivity are most rewarded; and, therefore, transfer of leadership will be the longest delayed.

Rethink Service: My generation is being required to provide more leadership per capita than at any other time in modern history. This is due to being sandwiched between two larger generations. We will need to embrace serving the needs of those older than us, as well as those younger than us. Gen X will thrive, in accordance with our ability to embrace service to other generations.

Rethink Structure: Our organizational institutions and structures were built with more people in mind. It’s like a suit that was designed to fit a much larger frame. America is leaning-out (figuratively speaking) and forward-thinking institutions will begin finding ways to tailor their organizations to demographic reality.

Rethink Succession: Organizations must be mindful of succession planning. In other words, we should never assume that the current leader will always occupy that role. Given there is a smaller, younger, and a less experienced pool of leaders to draw from, we’ll want to start planning towards succession sooner, rather than later.

What do you think?

Boomer Leaders: What are your frustrations or challenges as you consider transition?

Younger Leaders: What are the leadership needs of your organizations or communities? What are you doing to meet those needs?