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The single biggest disruptor shaking up the way businesses around the world operate, think, react, communicate and plan for the future could be lying on your couch right now.
Forget tech for a moment. Forget social media and predictive analytics and digital. Consider this: In South Africa 27% of the population comprises what we term millennials (those aged 34 and younger). A massive 37% of the population comprises centennials, those born after 1995, so your early 20-somethings. With 64% of South Africans in this age bracket, these two groups represent the greatest disruptor of the future. So it’s here where the current crop of senior managers, chief executives and chief financial officers – the Generation Xers (aged 34-48) or Baby Boomers (aged 49-67) – need to be looking to ensure future-fit organisations replete with up-to-date ways of thinking, agile working methods and cultures which embrace the global tomorrow.
Here in South Africa the likes of market research institute GfK and Old Mutual have rolled out research into these young adults, in an effort to understand their behaviours both as consumers and future leaders. Globally, institutes like the Pew Research Centre and professional services firms like PwC have produced presentations, insights and surveys aimed at understanding how these individuals are reshaping the future world of work.
They all agree on one thing: millennials and centennials are a game-changing generation. They have the potential to alter the way we work and live. They wear tech like a second skin, they are socially minded, environmentally focused and – unlike previous generations – they put their money where their mouths are when it comes to work-life balance.
As PwC put it in their Millennials at Work: Reshaping the Workplace report: “Millennials tend to be uncomfortable with rigid corporate structures and turned off by information siloes. They expect rapid progression, a varied and interesting career and constant feedback. In other words, millennials want a management style and corporate culture that is markedly different from anything that has gone before – one that meets their needs.”
But what does this future world of work actually look like? And how can older generations even hope to craft a culture which appeals to this dynamic new generation?
Invite them in
In recent years the likes of Deloitte, UN-Habitat, Dell, the London Metropolitan Archives and even South Africa-based branding movement Brand Africa have tried to tackle the problem by establishing youth advisory panels to help them understand how organisations must change. I expect to see more companies following suit as progressive leaders look for any advantage they can in a world that is changing rapidly and profoundly before our eyes.
Regrettably few of these examples stem from Africa. This makes little sense. On a continent with such a notable youth dividend, it is imperative to explore the impact of digital acceleration and the crafting of future-fit organisations through the eyes of the youth.
With about 60% of Africans under the age of 25, according to United Nations data, really embracing young talent in terms of building strategy, building products and ensuring market responsiveness is vital if organisations are serious about responding to changing consumer needs. And yet the majority of companies choose to pigeonhole these youngsters, rather than embracing them into the world of business. Rather than listening to what they have to say.
The youth advisory board concept is one way to mirror back to older leaders the insights from youngsters in their 20s, 30s and even early 40s. These digital natives are closer to the market, they understand customers better, they are more attuned to trends and, by listening to them, companies can begin to challenge traditional, but outdated ways. It’s a practical solution to a complex evolution which is flummoxing many companies, from seasoned multinationals to regional heavyweights.
Right now the world is going through a period of accelerated change, which is creating anxiety in most sectors. Because of the far-reaching implications, leaders in all sectors are being pushed to really examine how digital and exponential rates of change are starting to impact their organisations. But the difficulty is how, practically, to meet the challenge.
No company is immune; just ask the likes of ExxonMobil, BP and Royal Dutch Shell and Citigroup whose Fortune 500 status has been overtaken in recent years by agile, digitally focused companies like Apple, Alphabet, Microsoft, Amazon and Facebook.
We are starting to see the pervasive influence of technology companies and digital in every facet of society. We are beginning to see the impact of robotics and mobilisation devices, of cognification and the utilisation of data and artificial intelligence. All these innovations, all these new concepts and technological advances are Millennial friendly.
They are the new reality of business and they require organisations capable of responding to these shifts in order to remain relevant not in 50 years, but in the next five years.
One way to understand these shifts is via youth advisory boards, which bring together talented and skilled individuals capable of helping companies remain agile, responsive and relevant. Together with the establishment of these boards, each and every business should currently be asking themselves: Why are we in business?
This means knowing who your end users are and who your customers are. It means abandoning the archaic mindset of pushing products down and just expecting customers to adopt them. It means developing deeper awareness, understanding and appreciation of the context of why your organisation is in business.
What does customer friendly really mean?
Today it’s imperative that a company walks the journey with its clients by understanding that their worlds are moving faster because of access to technology, access to data and access to information. Being customer friendly requires using technology wisely to facilitate intimacy and to put the end user at the centre of strategy.
Do we have the ability to act?
It’s all well and good to shift strategic focus to the customer, but the key is to take these insights and proactively adapt accordingly. Companies are often building strategy based on short 12- or 18-month cycles measured in terms of profit, loss and margins, but the challenge with this approach is that companies then fail to see the horizon.
Being able to proactively adapt lies in questioning your reason for existing, questioning how the landscape is changing, being mindful of demographic shifts, regional implications and technological disruptors, and then being able to act in the face of new opportunities.
Are we willing to shake things up?
Experimenting with changing business models, products and new ways of doing business is essential. This is closely linked to building critical capabilities while actively introspecting and seeking out opportunities in the market.
How do we really feel about technology?
One of the biggest challenges facing organisations navigating this disruptive world is leadership. Organisations are being led by individuals who are not digital natives and who sit in meetings and boardrooms and talk about Blockchain but who can’t use their car GPS. Ours is a word of wi-fi capability, machine learning and artificial intelligence. If you don’t play with the tools of technology you cannot fully embrace it in your business. Effective leaders cannot live like digital nomads at home and then talk technology in the boardroom, they need to bring those worlds together if they have any chance of fully understanding their customers and their motivations.
This last point highlights the importance of youth advisory boards. To succeed in this new and exciting world requires embracing the collective talent housed within your organisation; not just the C-suite. Nobody has all the answers, not the chief executive , the executive team, the consultants, or the board.
Organisations must effervesce with enthusiasm and ideas and be fleet-footed enough to act on these swiftly. This means dismantling existing hierarchies in terms of strategy, decision-making, structure and market responsiveness.
Technology has given us the tools, but wielding them requires young blood, fresh ideas and a new approach to how we do business. The millennials and centennials are knocking; it’s crucial that we let them in. The future of business depends on them.
• Abdullah Verachia, is a global strategist and is in the faculty at the Gordon Institute of Business Science
