key: cord-0060678-8jyopqjx authors: Wolfe, Jennifer C. title: The Future of Work and Societal Shifts date: 2020-08-30 journal: Disruption in the Boardroom DOI: 10.1007/978-1-4842-6159-0_5 sha: 73777e7226f0c2aac96d776269e01545c92b138c doc_id: 60678 cord_uid: 8jyopqjx The sharing economy, Millennials, Gen Z, and robots in the workforce are all just a few of the headline-grabbing signals about the future of work and how society is changing. In this chapter, I’ll explore some of the big trends to watch and offer suggestions to consider as you contemplate the future of your workforce from the boardroom. You can also consider these trends as it impacts your customer base. Most of today's board members are squarely in the Baby Boomer category, with a few from Gen X and a rare few from the Millennial category. Pew Research regularly provides updates on generational data. According to their 2019 reports, there are approximately 85 million Millennials and 80 million Gen Z in the United States. Boomers are numbered at about 77 million and Gen X, the smallest of the living generation, tops off at about 64 million. This means that the younger two generations far outnumber the older two in the workforce and as consumers, even as life span is increased. In the boardroom, directors must be looking ahead to how they will serve their future customers and how they will manage a changing workforce. While much of this is context for making other decisions, the board's role is increasingly important when it comes to company culture and long-term thinking about work trends. These future work trends can impact investment decisions in office space, capital improvements, technology, and human resources. First, since Millennials and Gen Z make up a majority of the workforce and are set to become tomorrow's leaders, we'll take a look at how they impact the workforce. The Millennial approach to work and life has shaped the last ten years in a social media culture. Many studies have generalized how they view and approach work, which can be helpful in making assumptions for decision making. Like any generalization, not everyone fits the rule, but provides guidance in understanding the future of work. They don't live to work; they work to live and care much more about travel and experiences than accumulating things. They don't care much about the corner office and would much prefer to work in groups (whether in person or virtually), collaborate and feel like what they are doing is contributing to something bigger than themselves. Companies have responded by creating more shared workspaces and building more collaborative teams than decades ago. Additionally, important perks like flexibility with scheduling, the ability to work remotely, and providing food and fun at work have become hallmarks of companies needing to attract a large number of this younger generation. They have often been dubbed the entitlement generation brought about by "concierge" style of parenting that took care of everything for them and, at times, sheltered them from negative comments. Millennials have parents who are either Baby Boomers (many of whom waited until later to have children) and Gen Xers (who shifted toward getting married and having children at a younger age). Which group their parents fell into can often shape their approach to life. This generation is also more demanding about what they need to consider when working somewhere and that has given them more power than prior generations in negotiating what they will or will not accept. They are less loyal, though some could argue, so are most corporations today. Millennials will move on to new opportunities and are constantly curating a version of themselves. They came of age around the time of the 2008 financial crisis. Despite the fact that the economy has grown year after year since then (up until the 2020 Coronavirus Pandemic), they have a dystopian belief that the economy is bad and can't be trusted. Social media shaped their self-opinion often with unattainable goals about health, wellness, appearance, and fun. But many are beginning to cut that social media cord as they move into the stage of life where they begin to have families and other priorities amid concerns about privacy in the wake of artificial intelligence, biometrics, and facial recognition. Millennials are emerging now as leaders in corporations, as well as in elected government positions. Unlike prior generations, they actually tell each other how much they make and give suggestions on how to negotiate for what they want -very much more of the "sharing" culture than prior generations. Expect to see changes in how they manage others and what they expect of companies to keep them, particularly if they are talented. Expect to see Millennials demand more of corporations when it comes to environmental and social issues (see Chapter 6). Also expect them to demand more in the way of flexibility and the ability to work remotely. Many of them have been saddled with student debt and are just now achieving some sense of financial independence and path toward their future. Accordingly, they are flocking out of big cities to find more affordable living and will expect corporations to facilitate that move. Generation Z Generation Z was born after 1998 and into the early 2000s. They are now in high school, college, and just beginning to enter the workforce. This generation came of age with smart phones and access to the Internet as a part of daily life. They have been trained about dangers of social media and cyberbullying since kindergarten. Much of the research on this generation has identified that generally speaking, they are seeking a more authentic life than Millennials, they are not a Facebook generation. They are not loyal. They will flock to the next social media platform quickly and abandon old ones. They use social media primarily to stay connected with friends, though, like millennials are suffering a lack of one-one social interaction. They watch YouTube videos of other people doing fun things like play video games. They believe they could learn almost anything from online videos. They don't want anything that doesn't have value to them -this will change the way they are marketed to as consumers. They don't want to be saddled with college debt, and many are seeking less risky pathways forward. They have grown up with school shooting drills and are now numb to the tragedy of school shootings. They are fearful that the environment has been ruined and could be irreparable. In the aftermath of the 2020 Coronavirus Pandemic, they will approach life cautiously with social distancing becoming a potential new normal in the years ahead. It will impact how they plan for the life they want to have in the future. They also tend to be more of the rule follower than the Millennials. Much like Baby Boomers were the radicals, challenging societal rules in the 1960s, and Gen Xers then followed the rules put before them in the 1990s, Gen Z do not seem to be as disruptive of a force as the Millennials, but time will tell as they move into full adulthood in the 2020s. While they are less risky in tackling life experiences like driving, drinking alcohol, and dating, they are more optimistic about the concept of starting your own business or approaching work in a nontraditional approach. Gen Z grew up in a time of mobility and multiple realities and social networks and are true digital natives. They like a sense of community; they are realistic and are not as self-identifying as Millennials. They will value uniqueness and ethics above luxury or status like their Gen Xer parents did. They will think in terms of subscriptions and "time" and want things that are unlimited. This generation will be more motivated by security but will prefer to work alone vs. in communal settings like the Millennials. After the 2020 Coronavirus Pandemic, they will think about work differently. They will be prepared to work remotely and in collaboration via technology. They will be better at multitasking because they grew up doing it with smart devices. Companies may have to adjust to this generation working much more like their Gen Xer parents than the Millennials in between. It will create issues for leaders in Human Resources as Millennials become their bosses. Like the Millennials, they will expect the workforce to conform to their needs. They are also more financially prepared than their millennial counterparts. Many are skipping costly education and preparing for a career directly from high school. They didn't experience the 2008 crash and recession that followed so they have a different outlook and approach. The 2020 Coronavirus Pandemic and economic fallout will, however, impact their view on investing in college and instill a preparedness mindset. Most of them won't take on debt in the same way their millennial counterparts did, which could help them be more financially prepared for their future and, in many ways, better off financially in the decades ahead. It could lead to starting families at a younger age than the millennials did, much like Gen Xers. Gen Z will be important to the future of the workforce because they may be the first generation to truly work side by side robots and will have to consider a career path that is different than the generations before them. They are also the first generation who will have no memory whatsoever of life before the Internet or smart phones. As board directors, it is important to understand what motivates these generations and what will need to be built into the culture of the organization. A few key takeaways to consider in attracting and retaining talent from Millennials and Gen Z: • Show the company cares about people, employees, customers, the environment -they want to feel connected to something more meaningful. • Provide flexibility. They will be accountable if you show them how, but want flexibility to live their life, not get to the corner office. • Make work fun, create the ability to interact, and collaborate. • Help them understand the mission of the company and why their work is important to fulfilling it. • Give Gen Z a secure path to the future. • Be willing to adapt to Millennials' demands if they are accountable for their work. • If you have not already, start developing a solid exit strategy for Baby Boomers. Gen Xers need a chance to lead and pass on what they can to your organization with millennials already on their heels. • Tap into the leadership and structure of Gen Xers to help through this transition while giving them a successful exit in the next ten years. • Invest in tools and technology to allow for more remote work with accountability. • Look for opportunities to incorporate charitable giving, community participation, and a sense of doing something that makes a difference as part of their work experience. • Identify talent and be willing to adjust the work schedule and methods to meet their needs. • Invest in education and skill building to build upon raw talent and ability vs. expecting them to come to you with it. Provide more training and career building. • Invest in mental health support services to help them through difficult times. • Consider providing many of the "services" that they need at a reduced cost (i.e., hair and beauty care, health and wellness, dog care, childcare, grocery, concierge-style services, travel and vacation planning, etc.). • Create opportunities for senior executives to engage with younger workers in a town hall-like setting that allows for questions and a sense of accountability while also creating community. Help them see how their role fits into the larger strategy. Robots have and will continue to enter the workforce in the next decade. Artificial intelligence will also help shape decision making and expedite processes that were once done by humans. Robots will create efficiencies and the ability to work long hours without breaks. Automation has been in place in manufacturing for a long time, and we will see this emerge into areas like transportation, health care, construction, agriculture, food preparation, military, mining, utilities, education, and others. After the 2020 Coronavirus Pandemic, robotic-driven health care will be an imperative. As robots are not infected with human viruses, they could save health-care lives on the front lines by administering tests and providing care while reserving human health care for more strategic functions. A key issue and opportunity for the future of the workforce will be humans needed to code, repair, and manage (yes, manage) or oversee the robots and technology. As addressed in Chapter 3, robots will be flawed because they are built by flawed humans. Bias will exist. Sensors will misread information. It will be essential for all robotics to have human oversight and human override capability -this means human "safety" personnel. In this regard, much of the robotics and automation will be augmenting instead of replacing human functions. It will expedite what we can get done, but human oversight will still be required. We've already seen Amazon struggle with bias in its AI-driven recruitment tools. The data sets input favored men, so the outputs favored men. This was not intentional but was the outcome. Likewise, we've seen problems with robotics and automation like Tesla or Uber self-driven cars crashing when human drivers failed to course correct. This will become a bigger and bigger issue as more robotics are introduced into facets of work. The role of Human Resources leaders will need to integrate with a new role of robotics and automation, beyond existing information technology. Additionally, cybersecurity over robotics will be heightened. The risk if a powerful robot is hacked could be significant if it is driving a truck, flying a plane, constructing a tall building, all of which could be turned into weapons and result in serious injuries and death. Likewise, a hacked robot nurse or doctor could dispense the wrong medication. Or, if you were a fan of the Terminator movies, a robot could try to destroy all humans. Science fiction is nearly a reality. The need for future workforces to factor in oversight functions and manual overrides and contingency plans will become central to managing risk. You can't keep piling it on to cybersecurity; this will become a separate function in the future. Consider the new facets of human work around artificial intelligence and robotics. Figure 5 -2 illustrates the many issues intersecting with managing artificial intelligence and robotics in the workforce. Each component will be a role within the future workforce to avoid harmful unintended consequences. As much as some jobs will be replaced or augmented, new roles will be formed. Many Millennials are saddled with student loan debt. Gen Z is questioning the return on investment of how they acquire the skills they need. Most young people could learn a lot of what they need via online learning, which they adapted to during the 2020 Coronavirus Pandemic. And, the reality is, today's university graduates are often educated, but not properly skilled or trained for the jobs of the day. As the needs of companies change, companies may have to more actively participate in how young people are educated and trained to be prepared for the workforce they need. Most companies have always had orientation and training programs, but this may be taken a step further in the decade ahead. Savvy companies are looking at how to partner with universities in creating more "practical" programs. together and get straight to work for his company. Some of the more practical college majors seeing a surge include construction management, agricultural engineering, food science, engineering (software, industrial, mechanical, chemical), management information systems, data or statistician, and others. After the 2020 Coronavirus Pandemic, many college-bound students are taking a gap year when facing online university experiences vs. in-person learning. Will they ultimately return to school or pursue other lines of education? Will they opt for less expensive online degrees while working and saving for their future? Will it have a long-lasting impact on traditional universities? Many companies in need of data scientists, software engineers, solutions architects, product management, audit, and compliance could start to form programs on their corporate campuses to train and educate the students into their way of working to build their workforce of the future. According to Bloomberg Next, only 35% of employers believe new recruits are well prepared with both technical skills and soft, relationship building, skills. As demand-driven learning grows, partnering or investing to provide education for these in demand skills will grow for corporations. We see companies like KPMG building out state-of-the-art learning centers with hotel and resortlike amenities and campuses where they will provide training and education for their young recruits, as well as value-added education for clients. This style of education works well for Millennials and Gen Z and can be tailored to KPMG needs of the future before launching young people out into the workforce. It can also be used for continuing education as individuals move through their careers. Many companies are bypassing universities and going straight to high schools or technical colleges. Musk says when interviewing people to come work at Tesla, he's looking for their ability to solve problems not an Ivy League degree. He asks them to explain how they solved a problem to ensure they aren't taking credit for work someone else performed. A few ideas to consider from your boardroom as you contemplate the future of your workforce and skill building: • Design training facilities for future generations. Dedicated training centers may help reduce labor costs by picking up talented students looking for an alternate path to a traditional university degree. This not only allows you to train your workforce but tap into a concept of loyalty that could be instilled in Gen Z before they are drowning in student debt. • Adopt the virtual approach to continuous learning. Younger generations are more open to learning through virtual education. Consider investing in the development of training skills needed by younger people. This could range from specific on the job skills to life skills about staying healthy, managing their finances, and childcareskills your workforce will need to be successful. • Consider recruiting from alternative sources, tapping directly into high schools, trade schools, and two-year degrees vs. just the traditional four-year university. Skills are what you will need in the future, not just degrees. • Partner with colleges, trade schools, or even high schools to provide training to potential recruits to start building the skill sets and creating the culture you want before onboarding future workers into your own training programs. What Skills Will Matter in the Future? New skills will be needed by everyone, including directors. Even for senior executives and board directors who are largely overseeing and providing direction for organization, they will need to learn and understand new technologies and cultural shifts to identify disruptive trends and needs of their organizations. Additional skills from the workforce will be needed to compete in the next decade and beyond. Just a few of growth areas to consider in your workforce as well as your business offerings include: • The experience society: As robots and technology take over more functions, humans will be seeking out enriching experiences. Companies that can deliver them better experiences both as a workforce and as consumers will see great opportunities and more competitive advantage. • This also means functions where humans benefit from the human contact or relationships could also become higher value: physicians and nurses, restaurants that continue to offer humans vs. robot servers, spas, health, wellness, tourism, and travel. • Managers will need to do the same to create a better experience for the workforce. How are you helping people deliver service and expertise throughout the organization? • In the aftermath of the 2020 Coronavirus Pandemic, retail, dining, and in-person experiences are shifting to a blend of high value, worth going out to be in person and convenience factor, curbside pickup, or delivery. Balancing this blend and delivering highvalue experiences for in-person activity will become a new business model. • Creativity and innovation: Automated robots and tech driven by AI will do a lot of things, but it will not replace human creativity and innovation. Those who can think differently and strategically and push boundaries or help others to do this will continue to have value. Opportunities for creative thinking will increase as the reliance on automation and algorithms for mundane tasks increases. But it will require more focus and ability to harness that creative thinking. Companies may need to build out labs or spaces that foster creativity to tap into something that so far only humans can provide. • Sales as a profession: Every company needs sales. And while algorithms and data crunching can help to monetize many things at a faster pace, most companies will still require some level of human relationship building to sell products and services either to consumers or businesses. While staple goods may not require cashiers in the future, higher-end products and services and certainly businessto-business services will still need a human touch. Relationships will become more valued in an automated society and those who possess the skill to build relationships will become the higher-value employees of the future. Many of the younger generations have not been taught how to communicate effectively off of technology. This will become a sought-after skill in the future. Much of this will stem from the ability to communicate and control your emotions, show empathy, and connect with others. • Continuous learning: There is no question the ability to learn will be important. It's really that simple, adapt that way of thinking or become extinct. The ability to create education in a virtual environment will become a soughtafter skill set. Understanding new technologies and their implications, both practical and theoretical, will be required by all. Virtual learning capabilities done on your time table will become a sought-after asset. Designing these programs will grow as a job function in the future. • Judgment, ethics, and decision making: Also, important will be those who have the ability to make sound decisions based upon weighing facts from multiple viewpoints. The ability to gather and synthesize information and articulate a rational point of view will be in demand, particularly in the aftermath of "fake news," "deep fakes," and one-sided information permeating our culture. Machines will crank data based upon algorithms and deep learning capabilities, but humans will offer counsel to interpret it. Expect to see professional services grow that offer this very "human" ability to make decisions beyond programmed logic and algorithms. This area is where the "professions" or postgraduate education may become important. Lawyers and PhDs may become increasingly important in the roles that require sage counsel and wisdom through critical, compassionate, human, and balanced thinking. • Human Resources and human capital: Human Resources will become central to a company's success. As the blend between automated work and human work becomes real, the need to effectively create a culture in an organization with clear strategy will increase. As millennials and Gen Z care far more about the culture of an organization than Boomers or Gen Xers, this will become a competitive differential for talented humans. The ability to lead, provide psychological support, and tap into the right skills of humans supported with the right tools will become an important strategic advantage to organizations large and small. • Oversight, security, compliance, and privacy: These four areas will become dominant industries in the future. Artificial intelligence and robotics will require oversight. Some companies will do this internally and others will hire out professional oversight companies. The same will be true to comply with increasing complex global regulations over technology, data, and privacy. Consumers may turn to privacy companies to help them manage their own privacy in the future. These will be booming areas for career development. • Programming and patching vulnerabilities: As everything we touch becomes connected to software and the Internet, the need for someone to oversee patching of vulnerabilities will grow. The need for programming, obviously, will also continue to grow; they will be augmented by automation. • Construction and development: To retrofit our cities, roadways, buildings, and homes to meet the future demands of new energy sources and technology, those with expertise in construction and development will be in demand. • Health care and wellness: Individuals who understand how to care for others and provide holistic health, wellness, as well as sickness care will become increasingly important. In the aftermath of the 2020 Pandemic, the need for robots to help with front-line diseases will be expanded, while humans will take on the careful role of overseeing robots and provide important human contact when needed, even if delivered through a machine. The entire industry will likely endure a complete paradigm shift in the near future so the ability to adapt and change is critical. Wellness was trending prior to the 2020 Coronavirus Pandemic. In the aftermath, self-care and attention to health and wellness will continue to be in demand from businesses and providers. Coupled with high-end experiences, expect to see hotels, spas, and salons morph into wellness centers leveraging a plethora of ways to experience self-care, pampering, and attention. • Agriculture science: The need for fresh food and water will become increasingly important around the world. Those adept at building the facilities with innovative thinking will be in high demand. • Energy, space, and engineering: The need to manage energy and navigate space will become hot areas of the future. Engineers who can help get there will also need policy and governance support to manage the myriad of complex legal issues that accompany these complex areas. Engineers will find themselves increasingly working with automation and augmented reality. • Psychological support and human coaching. Humans will long for support to become better at running their lives. With more free time, as a result of more automation in the workforce, humans will have more time to pursue hobbies or relationships; humans may need help filling those gaps in a healthy way. Savvy companies will recognize the importance of providing this support. In numerous studies, Millennials and Gen Z are found to be more depressed than Gen X or Baby Boomers at the same age. There are many possible reasons for this, ranging from increased pressure and time constraints throughout their youth, overstimulation by devices, YouTube, gaming, pop culture, social media, and fear for their future, which are all contributing factors. As robots and AI further commoditize human jobs, depression will likely increase. How do companies prepare to lead, develop, and manage the mental health of their future workforce? Fostering and facilitating means of forming real connections, feeling a part of something bigger, and contributing will be critical to leading a successful workforce in the future. Providing support psychological services may be increasingly important. Companies will need to put in place structure to help these younger generations connect with one another and engage in meaningful conversations to further their intellectual and relational capabilities. This will become essential to having a workforce that is mentally healthy and able to deliver the functions that will be needed by humans in the future. Companies may need to consider: • Psychological support and services on staff and confidentially available for all employees to reduce time away from work and improve productivity. • Psychology-based coaching for top performers to help them achieve at optimal performance. • Social events intended to provide opportunities for comradery and formation of social friendships among young people may be needed on a regular basis. They may need ice breakers or tools to help interact and engage. • Limit employee access to social media sites during the day to limit distraction and emotionally negative inputs. • Monitor social media using artificial intelligence to look for trends of harassing behavior or depression among employees to head off problems before they become too big. • Pep rally: Employees may need a pep rally of sorts to be excited about the work they are doing, the role the company has in the community, and feel a part of something bigger. • Community service: This has long been a positive way to bring the workforce together and feel like they are doing something positive -finding more community-based service projects and investing time, money, and resources may go a long way in building a solid and happier workforce of the future. • Utilize software to monitor employee emails and interactions to look for signs of depression and intervene in a productive and confidential manner. Will the Sharing Economy Last? The sharing economy and concept of earning extra money through side gigs using something you already have (your car, your home, an office space, or even a talent) created micro-entrepreneurs across generations. While the gig economy has been a great success for the individual, the company platforms providing it have not yet seen widespread profitability. For example, as of early 2020, Uber, Airbnb, and WeWork were all not profitable. Uber was losing billions per quarter, though their CEO said that is coming to an end and they will be profitable by the end of 2020. But, that was before the 2020 Coronavirus Pandemic. According to Forbes, in its initial public offering, it raised $9 billion, which means it likely isn't sustainable to continue to lose billions each quarter. Statistically, they lose 25 cents on every dollar it brings in. After the 2020 Coronavirus Pandemic, even with radical changes, profitability is likely not attainable in 2020. Airbnb lost $322 million over the first nine months of 2019. The board wanted to know why costs are growing faster than revenue when an IPO was looming on the horizon. Will people return to renting homes vs. hotels with health and sanitation standards after the pandemic? Time will tell, but these models may simply not be sustainable, or the approach may have to change for it to work into the future. These companies were innovative, creating the opportunity to earn money by providing an "on-demand" service. Consumers love it, there's no question about it. But can it be done profitably? As discussed in Chapter 1, a problem for these companies is that they scaled quickly by breaking rules. They didn't necessarily pay payroll taxes for drivers or buy taxi medallions that were required by local municipalities. They didn't charge local tourism taxes and don't comply with health ordinances for providing hotel services. If these companies have to play by the same rules as every other company, will they make it? What other solutions will appear for the gig economy workers? We know the concept works. Workers like the opportunity. Consumers like the service. But it may be subject to some changes and shifts in the future. Does it need to be integrated into companies with a cost structure for those "extra" expenses as an add-on? Can it be added on profitably? Can it be rolled out inside existing profitable companies to tap into the opportunity, but managed from the outset more effectively? Companies like Upwork help connect freelancers with companies who need their services. Angie's List, Craigslist, Etsy, and eBay all help peer-to-peer transactions. Rent the Runway gives women the chance to wear the latest designer styles without the price tag. Angie's List took 21 years to become profitable. eBay has investors worried about the future. The concept works and it may be a solution to future workforce shortages or needs. In fact, many companies find contract or temporary workers an effective solution to expanding the size of their full-time workforce when costs like payroll taxes, medical benefits, and management are added into the mix. For companies needing services like drivers or freelance writers or designers, the sharing economy is certainly a good option. And for people who want to rent a home or an outfit for a night, it's a nice service. But will the business model be able to sustain long-term losses? What happens when they have to cover costs they circumvented in the beginning? There could be good opportunities to replicate these models with sharing platforms and technology becoming easier to implement now that the road has been paved for consumers to understand how it works. Boards should consider their workforce needs and how the gig economy could benefit it in the future. Do you build something yourself, partner with an existing player, or buy up a company for the technology, or do you just watch from the sidelines to see what happens? It will all impact the overall culture and attitude toward the workforce. The American Dream 2.0 The future of work for many could be in owning their own businesses. According to Forbes, Gen Z are 55% more likely to start a business than millennials. According to Millennial Branding, a study shows that 72% of Gen Z high school students say they want to start a business. Franchising has long been a solution for those who don't feel they get a fair shake in corporations. For many women and minorities, this has been the path to becoming a self-made millionaire. Women constitute 35% of all franchise owners in the United States. Nearly half of all new franchisees are women. Small business owners know the secret. When you own your own business, you have the ability to create a vision, be a part of something bigger, and control your own destiny and schedule. These are all characteristics that fit the next generation's definition of success. Even large companies have seen the value of helping their employees start businesses. Amazon recognized its needs for more local delivery companies. So, it offered employees $10,000 to go start a company that would supply Amazon in an area of need. Expect to see more companies looking at their supply chain and considering how they might help create the regional or local supply chain they need vs. sourcing it from unpredictable vendors and new variables in global trade. Tapping into small businesses to support your organization's supply chain can boost your workforce, boost your supply chain, and tap into fresh and innovative ideas. There are also opportunities for companies to be a part of the entrepreneurship trend by supporting community incubators, partnering with entrepreneurs, and even creating franchises for important vertical components of your industry. Consider sponsoring entrepreneurial contests for businesses you need in your supply chain. Additionally, startup and emerging companies can be great sources to acquire innovative products and services vs. investing in internal research and development (R&D). Internal R&D is often plagued with a "not invented here" syndrome which limits outside-the-box thinking. This is why many companies look to entrepreneurs to fuel their innovation programs. Whether you are adding to your supply chain or searching for the next innovative trend to leverage in your company, the new American Dream is something worth supporting for a generation more open than ever before. Most local areas have an economic development center which would gladly partner with corporations in growing the entrepreneurial base in the community. While it has often been in tech, it can also be in other aspects of supply chain that may become hard to source in the future. Boards should consider how they can potentially utilize startup companies, franchising or help employees start companies to fill gaps anticipated in their supply chain. As Millennials and Gen Z seek more affordable housing and closer proximity to enjoyable life experiences, there are opportunities for companies to help build out new communities and campuses in these growing areas. For those who stay in urban areas, needs will also change. Companies may need to be aware of an increasing desire to work from home as traffic and health safety become bigger issues for commuting in large urban areas. Companies should carefully consider how lifestyle demands will change in urban, suburban, and rural areas to capitalize on opportunities. In the aftermath of the 2020 Coronavirus Pandemic, many companies will also adopt more remote work options which could facilitate moves for many outside of urban hubs. It may also prompt companies to relocate big office centers outside of urban areas that can be shut down for a month or longer. Rural communities will need access to high-speed Internet, new energy sources, and ways of connecting. They may need driverless car services to cover long distances without a lot of traffic. They may become locations for building out facilities to serve localized supply chains and developing lower cost workforces. Big urban hubs will require easy access to fundamentals like housing, food, clean water, and transportation. Shared automated transportation will increase out of necessity, but likely morph to allow for long-term social distancing. The cost for cities to provide services in a social distancing era will increase, ultimately increasing the cost of living in urban areas. Suburban areas with lower costs of living will mimic the offerings of big cities with a balance between the convenience and experience offerings of major cities with the slower pace and sense of community in rural areas. In all settings, companies need to be prepared for a workforce living in diverse environments and provide for remote work. As the 2020 Coronavirus Pandemic made clear, events beyond the control of companies or even governments can suddenly impact the ability for business as usual. Providing for remote and virtual work to continue in any situation will become the new normal. This will help in reducing unnecessary travel, reduce costs, and become a bigger motivator. Process and accountability mechanisms for virtual work will become a part of work life as you need to attract talent. Working from home eliminates commuting, which for many could be up to an hour or more each way a day -that's a lot of time for exercise, family, meditation, thinking, health, and wellness -all of which we now need more than ever. The future of service workers likely involves a blend of some in-office socialization, workshopping, collaborating, and meeting combined with at-home or remote work. This will allow companies to tap into talent wherever they may live. It can also reduce costly office space by designing spaces for work that is done together, not alone. While Boomers and Gen Xers have long valued the prized corner office as a status symbol of success, future generations will value the flexibility of working remotely and pride themselves on their productivity and ability to have a better quality of life as a result. Boards, too, may look at more remote cycles to their structure to reduce travel costs and expense of meetings and increase productivity of decision making vs. sitting in person in long meetings. Tools that allow leaders and managers to hold workers accountable and facilitate productive work across locations will be worth the investment. Providing employees company devices and connections will be essential to security management. Additionally, process improvement techniques that track processes for efficiency will see a migration from the manufacturing floor into remote work environments -how can things like meetings with a lot of people be done more efficiently and how can tasks be streamlined? For example, if the purpose is primarily to present information, why not record it and verify that each essential person watches or listens to the entire session? Then allow for group chatting of questions to facilitate accountability vs. trying to manage more than ten people on a call. You don't need to know who has a hard stop at the top of the hour if it is prerecorded so you might eliminate the never ending "who's just joined?" cycle at the beginning of calls with a lot of people. Conversations can only occur with a small number of people -usually 3 or 4 maximum. Instead of spending time in mind-numbing meetings, how can a service-based workforce be turned into something more productive? I have spent years applying Six Sigma techniques to professional services to reduce costs and increase profitability -the entire service sector may see this as a future trend. Consider carefully as a board how you develop a workforce in urban, suburban, and rural areas. What types of workers can you attract from these areas? How can they support your future needs? Tone at the Top -Culture Assessments History often repeats itself. Many Baby Boomers believe they were no different than Millennials of today in demanding societal shifts and changes in the way we work and live. But as Boomers grew into adulthood, they began to value "things" and "prestige" as their driver and motivator. Millennials may follow a similar pattern, though forever plagued by social media may continue to demand a sense of meaning and want to curate a version of themselves that is shared with others as their "status symbol." Mired in the belief that the economy could collapse again and again, they will shy away from valuing things vs. experiences. Gen Xers followed the rules the Boomers created in the workplace and mirrored Boomers' desire for luxury and things as a status symbol. Gen Z, the children of Gen Xers, likewise want to follow a path and rules to success, but value authenticity and meaning as their status symbol. The convergence of these generations in the workforce creates new demands on corporate culture to drive behavior and results. Boards need to understand the culture of the organization and what is driving and motivating top performers. Boards also need to understand the driving forces of the workforce it will need. While the board is increasingly taxed with pressing issues, every few years, it should undertake a cultural assessment of the organization and a clear reflection to define the future workforce. There are three primary ways to conduct a cultural assessment: hiring a consulting firm with their proprietary methods, hiring an academician with an anthropological approach, or conducting a self-assessment. There are many consultants that have developed a framework for culture assessment. Many of them are filled with catch phrases and buzzwords they try to coin. There are big powerhouse recruiters and the big consulting firms all offer high-priced proprietary culture assessments. There are many boutique consultants and firms that can also help evaluate culture at a more reasonable price. Depending upon the size of your organization and how broad the scope of the assessment needed, you may not need a high-priced culture assessment to understand what's actually going on, but you do need to pay attention to culture and every few years an outside assessment can give you a good refreshed look at how culture impacts your ability to meet your stakeholder goals. Hiring an outside firm to provide a culture assessment can provide valuable insights, but there are alternative approaches. Another more academically driven culture assessment that could be equally useful is an anthropological approach, which factors in the following: • Norms • What is expected Typically, a university professor will specialize in delivering this more academically driven type of cultural assessment, though caution should be given to make sure the outcomes are practical recommendations for implementation. This might be a nice alternative to the traditional "consulting"driven model and give you a fresh perspective of how the organization operates. As you approach culture assessments, alternating the types of assessments you use can provide insightful comparisons. In other words, don't use the same consultant or same methodology every time you do a culture assessment. A final option is to engage in your own self-assessment of culture as a board member. This comes from getting into the field, talking with people, and looking for a few key indicators: • Evaluate and understand how new employees at all levels are onboarded to the company. • Gauge openness within leadership. • Evaluate incentives throughout the organization -top to bottom. • Observe teams in action. • Do they respect each other, do they relate, and how do they perform cohesively? • Ask questions of random employees. • What went well or not well last year? • What were the cringeworthy moments? • What would you change if you could? • How do we learn from our mistakes? • What is holding us back? • If you could start your department over with a blank slate, what would you do? • Discuss the questions at the end of this chapter with your board and be mindful of the role of culture. A self-assessment can be informal, as simple as a few board members taking time to talk with employees, particularly those at the front line who sell your product or service. This is something you can do on a regular basis to augment and supplement a more formal study. Understanding future generations and the trends impacting the workforce on your culture will be increasingly important as the needs of all companies shift and evolve with technology and new demands. Culture is what sets the tone of the organization. If it's broken, you will need help to fix it. It can't be done internally if it's broken. Find a good advisor or consulting partner to help you assess it and course correct. It also helps you see the importance of psychology in the future of managing the workforce. If it's working, carefully nurture it and monitor incentives so you don't damage the culture that has been built. Revisit the subject at least biannually to ensure your culture and your organization are prepared for new generations of leaders and that you are cultivating the human capital you will need to survive disruption. As the way we all work morphs in the aftermath of the 2020 Coronavirus Pandemic, creating and sustaining a culture that drives toward business goals will be more important than ever. Discussion Questions for the Boardroom How do you attract and retain talent from Millennials and Gen Z? How are you cultivating leaders from younger generations and preparing them for the future? 6. Do you partner with universities or schools to help provide training? How will you meet future workforce demands for flexibility and remote work environments? Do you think the sharing economy will continue? How does it impact your company? Can you tap into entrepreneurial opportunities through incubators and accelerators? What about supporting entrepreneurship in areas that could support your local supply chain needs? How will you address mental health issues of the future? 12. Is Human Resources given enough authority to create the culture you need? How do you regularly assess the culture to know if it will sustain you into the future? 14. How are you identifying the skills matrix you will need in the future and how that is met across your organization? 15. How does the c-suite work together to create a culture that is healthy for the organization to achieve its objectives? How is your supply chain impacted by cultural shifts? Do you need a more regional or local supply chain that can be provided by younger generations?