Theme: Leadership: Values and Ethics

Leading a Millennial workforce down an ethical and compliant path. Plain sailing or painful?

Jennie VickersZeopardLawBox 128333 Remuera Auckland New Zealand Email:jennie@zeopard.com

Full Abstract:There are 100 million Millennials in the USA alone. Sadly, the report card on the way organisations across the globe have been treating their Millennial graduates, over the last couple of years, has contained a broad mixture of successes, failures and “must try harder’s”. The cost to the organisations and individuals of rapid staff turnover or dissatisfied people, does not need too much analysis to reach a conclusion that we need to take a long hard look at the way we lead, treat, manage and develop our younger workers.

Too often the chat in the hallways of power is focused on the shortcomings, lack of focus and commitment, and unreliability of the Gen Xs, Gen Ys/Millennials, but we hear little soul-searching as to whether leaders need to revisit the way they lead and do things, rather than attempting to herd our young along the old, tried and trusted, Appian Way. Sadly, this conversation is being held across the world, and organisations are constantly counting the cost of getting it wrong.

The Millennials or as coined by MTV, the ‘innovation generation” is just that and they are, and will be, critical to the success and growth of organisations as they come out of recession. However, if the innovation generation is not nurtured and satisfied they will walk, taking their innovative mindsets with them. Organisations across the world cannot afford this to happen just as their economies recover.

Having found a way to nurture this generation’s spirit of innovation their organisations then face the challenge of ensuring that the rule breaking innovative spirit does not “rule them all”. This problem of a generational mis-match between leaders and innovative followers becomes more acute when we look at the risk of regulatory intervention and prosecution that all organisations daily manage. Can a culture of innovation and a culture of compliance co-exist?

Values based compliance, in preference to rules and dictates has many supporters however, if organisations are already failing in their leadership of Millennials by a clash of values, styles and communication methods, are they also failing in fully explaining and landing their compliance requirements? Is compliance the victim of the innovation generation’s drive for success or will innovation (and the Millennials) be the victim of a risk managing and compliant culture? Conversely, might the Millennial philosophy to work and business actually signal the end of the constant stream of “Blawpers” (legal bloopers) which are a regular feature of our media and which make a mockery of business risk management and compliance programmes?

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Drawing on the presenter’s 25 years experience as an innovator, as an outspoken advocate of changing the legal compliance conversation and as a Mentor to Millennial graduates, together with research and organisational experience from around the globe, this presentation examines the new generations in our work force, presents different perspectives on their mindsets and explores opportunities for changing the conversation in our organisations to simultaneously achieve a happy workforce, innovation and compliance.

Author’s BiographyJennie Vickers Director, ZeopardLaw, has lived and worked in UK, Australia and New Zealand.

Qualifying as a Solicitor in London with the World-renowned firm of Slaughter and May Jennie has held a number of roles in major law firms and within global corporates. Her specialities include compliance and risk management, energy sector law, intellectual property and innovation law and commercial business law.

In addition to her law degree, Jennie also has a Masters of Management and a Graduate Diploma of Business Administration from the University of Auckland. In addition, unusually for someone with her background, Jennie is the senior Mind Mapping instructor in New Zealand for Tony Buzan, inventor of Mind Mapping and has 3 years as a Mentor of Thought Leaders Global. Jennie brings a unique combination of skills and experience to business. She “gets” how innovators think, she employs only Millennials and she understands how to connect with rule breakers, to keep business safe from regulators.

Jennie splits her time between running ZeopardLaw and as COE (Chief of Everything) of Zeopard Think, a consultancy providing advice on risk management and compliance, nurturing thought leading thinking in business and using social media for executive positioning.

Presentation ExperienceJennie is an experienced professional speaker and has presented at numerous conferences including the opening keynote at the 2009 Goodfellow Symposium, Thought Leadership Conferences in Sydney in 2009 and 2010, the New Zealand and Australian Arboriculture Associations Conferences and the World Quality Congress in 2006 and is a regular speaker and writer on legal, thinking and business topics.

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BackgroundIn the role of Vice-President of the Auckland District Law Society in 2009, it became clear that there were a large number of young lawyers who were without training contracts or in jobs that they were hating. Their plight did not improve in 2010 and in late 2011 a study was commenced to look at this generation to understand what was going wrong for them and what could be done.

That study led to 3 articles, which were published in NZLawyer Magazine. The study and the production of the articles revealed a number of findings which included:

the issues being faced by Millennial lawyers were common across the whole workforce both in New Zealand and overseas;

the global recession had caused a slowdown in job turnover but with no corresponding increases in employee satisfaction;

legal compliance training was increasingly being delivered online with less classroom interaction and discussion; and

most importantly, that innovation by Millennials was not obvious or apparent in organisations of any size.

An extension to the original study has widened the net to look at the issue of whether Millennials generally are naturally innovative and/or naturally rule breaking and if too much focus on legal compliance could cause a further decline in the inclination of Millennials to innovate in organisations.

While not an academic study, a background including a research based Masters of Management, required a hybrid between a business and academic approach.

Who are the Millennials?

Also known as Generation Y, the Net Generation or Generation Innovation. Millennials are generally those born between 1982 and 2004. There are disparities in defining each generation and whilst it must be acknowledged that the boundaries are rather fluid, for the purpose of discussing the general trends of the Millennials, the table Figure 1 shows the boundaries used, for consistency. This table shows the Millennials as now being between the ages of 8 and 30.

Figure 1

In their influential work on generations (Millennials Go To College 2003), Neil Howe and William Strauss characterise the Millennials as optimistic, special, sheltered, confident, team-orientated, conventional and pressured. Born into a time when attitudes towards children began to shift, the Millennials were highly anticipated and valued, born to committed and protective parents. The Millennials encountered a childhood of youth-specific experiences dedicated to their needs. Distinct from their predecessors Generation X, Howe and Strauss claim that the Millennial generation are harder workers, likening them to the great G.I Generation who are described as high-achieving, team-playing and civic-minded.

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Neil Howe (In Harnessing the Power of the Millennials 2005) suggests that a new set of education strategies are needed to work best for this generation who have a completely new outlook on education, family, risk, career and politics. Growing up in a era that values personal merit and individual accomplishment more than ever before, in order to succeed, the Millennial generation have a value system that encourages good behaviour, rule-following and high-achievement.

It is important to note that there has been a proliferation of comment and research suggesting common personality or attitude traits for Millennials. It is always dangerous to assume that a group will think and behave alike just because born in a common era. The work of Howe and Strauss is underpinned by an understanding of the global trends and events occurring during their formative years and those of their parents. Having said this, the term Millennials provided a useful classification during the study.

The term Millennial was coined by Howe and Strauss specifically because young people they interviewed objected to be treated as if they were Gen X clones.

The alternative term “Innovation Generation’ seems to be referring to the creators, entrepreneurs and innovators who are dramatically reshaping some spheres of the USA including, cultural, commercial and civic spheres. It does not seem to refer to Millennials in large organisations but to those who have gone off to set up businesses on their own.

While not liking the use of stereotypes, one “trait” which is more consistently referred to and enforced in the definitions is the idea that this generation genuinely cares about the World. The world forces, which influenced their parents and them during their formative years, point to a group that actually understands what sustainability means, that values authenticity and hates fake intent or fake values.

What is Legal Compliance?In this study legal compliance refers to all public laws, regulations and other requirements of the relevant legal system. Focused particularly on compliance relevant to business and government.

Laws have proliferated over the last 2 decades as society (Baby Boomers for example) clamoured for more rules to fill the gaps previously covered by common sense and values. Millennials are coming into a workforce burdened with more rules than ever before and more opportunities to get into trouble.

Literature Review

The literature review included consideration of information from a wide range of sources. These included academic journals, published books, blogs, discussion forums and print media. It was important to consider as wide a range of sources as possible, because of the nature of the topic, in the context of a study, which was focused on identifying practical solutions, ideas and steps for use in business.

The literature of greatest note included the following:1. The Center for Creative Leadership surveyed more than 13,000 participants across a range of

businesses, not for profits and government, using online surveying. Writing in Strategy+Business Magazine researcher Jennifer Deal discussed some of the surveys findings. The findings revealed 5 key myths about Millennials, which are wrongly and unfairly influencing thinking about Millennials in organisations. The most pertinent myths to this study are that Millennials do not want to be told what to do and that they lack organisational loyalty.

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The findings showed that Millennials were more willing to defer to authority than either Baby Boomers or Gen Xers. While surprised at the weight of this result, they can see the opportunities for organisations that spend time explaining the context and meaning behind the rules and their requirements to comply. The second myth showed that Millennials have the same level of organizational commitment as Baby Boomers and Generation X and should not be given less attention and focus, based on a belief that they will not stay around and will be off looking for something else.

2. In 2011, PricewaterhouseCoopers (PwC) commissioned a research study and gathered data from 4,300 graduates across 75 countries. In their concluding comments on the study, PwC observed that: “Attracting the best of these millennial workers is critical to the whole of your business. Their career aspirations, attitude about work and knowledge of new technologies will define the culture of the 21st century workplace.”

3. Y Pulse is a youth market research firm. It has a panel of 90,000 13-30 year olds. Y Pulse’s report called Risky Business involved interviews with 1500 members conducted in April 2012. The results showed that the Millennial’s risky behaviour was not about rebellion but experience. Neil Howe’s original research identified Millennials as risk adverse. Their report showed this to be true for anything considered big. However, the Y Pulse research showed that the allure of mobiles was too great and they do admit to flaunting the mobile phones while driving, laws. Regarding ethics, the survey group showed high percentages of them had crossed ethical lines in school assignments and job applications but not crossed other more serious ethical lines.

4. Pearl Netley carried out a desktop review in the UK of successful SFO (Serious Fraud Office) prosecutions for white-collar crimes over the past 8 years. The findings showed an average age of those found guilty of 53 with the youngest 41. In other studies of British Millennials Pearl Netley’s conclusions were that this risk adverse group were traumatised by recession and keeping their heads down in any job they can find.

5. Shamubeel Eaqub, principle economist for the NZIER (New Zealand Institute of Economic Research) in his article Generation Why Not? suggests that certain characteristics of the Millennial generation may be useful in leading New Zealand into an era of New Industrialisation. These millennial traits are their technological knowledge as digital natives and an acceptance and embracing of diversity. In order to lead innovation and economic change, Eaqub advises that organisations must harness these traits by engaging with the Millennial generation and strategically preparing for generational and structural changes.

6. Dr Angela Higginson from Queensland has carried out recent research into serious and complex fraud against Australian commonwealth agencies. In that research conclusions included “that the middle aged middle class man [as fraudster]is an artefact of sampling” and that “for women there is both a level playing field and a glass ceiling”. Dr Higginson confirmed that in her sampling there is a good indication that people in their twenties are willing to commit some very high value frauds. This was the only literature we read with any evidence of equal culpability on the part of Millennials. The research was limited to frauds on Commonwealth of Australia organisations and not private commercial ones.

Having considered over a hundred different pieces of work in each of the stages of the study, including those of sufficient note to make the Bibliography, a number of initial conclusions. These conclusions were reached. They were then tested with some independent qualitative research.

The literature review showed:1. Myths about Millennials abound to such an extent, that unhelpful stereotyping is occurring in

business and government across the World. Developing policy on the basis of generalisations and stereotypes is not productive and potentially destructive;

2. The global recession has impacted this generation to a greater extent than any other;

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3. Developments of the education system away from the Victorian factory approach of early education systems, with its twenty first century aspiration to produce independent thinkers is not matched by evolutions in the workplace. Many work places still operate on these similar Victorian factory lines;

4. Millennials are technologically savvy in the technology that serves their lives but not necessarily in any other technology;

5. Millennial innovation seems to be occurring outside of the larger companies, in small Millennial run start ups and in social enterprises;

6. Frauds and other corporate crimes are on the increase with ever increasing sums involved. The guilty parties are seeming to be Baby Boomers and not Millennials;

7. In some circumstances and opportunities Millennials are willing to be led onto a fraudulent path;

8. Millennials are not sufficiently well versed in all the potential legal traps the Baby Boomers have set for them; and

9. The global recession has caused many Baby Boomers to stay put in their jobs and have disrupted the previous career progression expectations of the young.

Research MethodologyA qualitative study commenced in late 2011. A range of data collection methods has been used. These methods included:

semi-structured interviews with: non lawyer Millennials; legally qualified Millennials; lawyers responsible for managing and developing lawyer Millennials; and CEOs.

Crowd sourcing using a closed LinkedIn Group with 39,671 members.

A discussion was started on LinkedIn’s “Corporate Lawyer Network” LinkedIn Group. This group has 39,798 members from across the globe, including many from New Zealand. The group was asked “What skills and concepts should be covered in a good induction program for young lawyers?”. Contributions were received from more than 60 lawyers from around the globe.

The interviewees, were self-selected, on the basis of interest and availability. No attempt was made to ensure statistical balance. However, an analysis of interviewees participating in the LinkedIn crowd sourcing discussion, showed they were of variable ages and from across the globe. The New Zealand based Millennial interviewees were sourced through a range off connections and requests for comment using social media sites.

Findings The findings highlight the compliant inclination of Millennials, provided they know relevant laws exist. Organisations need to recognise that this group may benefit from less being told t what to do and more providing of context, so they can learn to identify traps for themselves.

“We have been brought up to fear the law and the consequences of making mistakes. This has made me and my friends cautious to suggest and do anything at work which may be seen as out of line”.

Another interviewee noted, “we are so connected by social media that we are becoming very aware of how easy it is for employers to discover the evidence of any indiscretions. Discovery could mean the end of a chosen career and a student loan with no prospect for repayment.”

The findings also flag the disinclination or reluctance or inability of Millennials to innovate within organisations they do not control.

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One interviewee noted “the willingness of her organisation to listen to ideas for improvement but a matching inability to change anything. Once this state of affairs is realised suggestions for innovation cease.”

Another interviewee said that when he told his part time employer that they were breaking a piece of consumer law he was screamed at and thought he might lose his job. That was incentive enough to keep quiet then and in the future.

The findings also strongly showed willingness on the part of managerial Baby Boomers to believe the myths about Millennials and to judge their actions and reactions according to their own moral compass rather than the reality of being a Millennial.

Finally the findings revealed a major disconnect between the knowledge gained at school and university and the demands and needs of organisations and professional services firms. In the case of the Millennial lawyers, their academic skills were not in dispute, but their ability to practically apply them with an innovative and problem solving mindset was too often absent. This gap was casing employers to shy away from taking younger lawyers on; hoping someone else would address their training needs.

Reflections and Recommendations

Establishing holistic training programmes for Millennials in organisations across the World is a priority if innovation is to flourish, be encouraged and be volunteered, in organisations. There are so many skills needed to succeed in business and neglecting some will not produce the type of all round leaders we need. To address this imperative two training programme designs have been developed. The first for Millennial Lawyers, the second for Millennials in organisations.

Figure 2 below shows the key components of such a holistic programme. Innovation and thinking are given as much priority as compliance and other aspects of personal development.

Figure 2. The Nurturing Innovative and Compliant Millennials Programme Overview

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Figure 2 above shows the key components of such a holistic programme. Innovation and thinking are given as much priority as compliance and other aspects of personal development.

There are 3 recommendations from this study:1. Establish a holistic training programme for all Millennials in organisations, delivering all the

life, business and social skills they need to be successful. A programme that supports their role as key players in a community and tribe will encourage them to stay and evolve not escape. Compliance training needs to be given equal weight to all the other skills they need;

2. Organisations must rethink compliance training delivery to ensure that it uses a blended learning approach incorporating e-learning, group work, experience learning, on the job training and mentoring. Organisations must also ensure that their compliance training nurtures its young tribe members ensuring they know how to keep themselves out of non-work trouble or how to fix up a problem after the event; and

3. Myths about Millennials should not be believed or assumed. Organisations should ask their Millennials what they think and want, instead.

Conclusions

The Millennials form a critical component of New Zealand and all nations’ future economic success. Their innovative spirits and skills need to be nurtured by organisations as a priority, now and in the future. Failure to do so will lead to increasing numbers of our younger minds leaving larger organisations as soon as their local or other World economies pick up.

So many Gen X’s and Baby Boomers rely on large organisations to provide them with economic and financial prosperity, they themselves cannot afford to let the exodus start. Now is the time for organisations across the World to take the innovation conversation seriously and not just pay lip service to it. There is no reason why Millennials should not stay in large organisations. There is however reason for many of them to escape from stodgy organisations which stifle innovation and protect silos.

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Organisations have the choice under their control. Organisations can decide whether they choose developing and nurturing truly innovative cultures with resulting success and plain sailing or choose a painful journey into a perfect storm.

Jennie Vickers2012

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