I. Managers vs.

Millennials:
The Future of Leadership Within the World of Business

Andrew Coatsworth - 1227562

Management Analysis Paper
Team 1
Winter 2015

Management Analysis

March 12, 2015

Page 1 of 17

II. Table of Contents

III. Executive Summary

IV. Current Managerial Limitations

V. The Future: Long Overdue Change

A. Reality

B. Employees as Assets

C. Web of Leaders

11

VI. Conclusion

12

VII. Annotated Bibliography

13

Management Analysis

March 12, 2015

Page 2 of 17

III. Executive Summary

Todays management teams are faced with two difficult tasks. Not only must they
maintain high levels of success in an increasingly competitive business world, they must also
cater to the needs of a new generation entering the workforce: the millennials. These issues can
be broken down into three main areas; the millennial stereotype, the limitations of traditional
hierarchical management structures and the work-life imbalance plaguing the workforce.
Millennials are commonly labeled as lazy, entitled and disloyal. Baby Boomer managers
struggle to work with this new employee demographic and company productivity falls as a
result. Adding to the problem, companies relying upon top down leadership are failing to
maximize worker productivity. Rather than developing an environment to foster innovation, this
business structure evokes a defensive response from employees who may not be meeting a
managers expectations. Finally, as professions become more demanding, the work-life balance
suffers. Studies have shown that the millennial generation is less willing than the Baby Boomers
to sacrifice their social lives. Managers must begin to reconcile these issues in order to ensure
the overall success of their organizations.
The New York City Fire Department emphasizes a leadership standard with its men and
women. The first in, last out mindset provides guidance during the incredibly stressful everyday
operations of the FDNY. Business managers can implement first in, last out into their
management strategy in order to gain the trust of their people and begin to tackle the previously
discussed issues. In addition to the first in, last out mindset, John Salka, a retired battalion chief
in the FDNY relied on a leadership triangle in order to effectively manage his firefighters. The
triangle consists of mangers understanding the reality of their situation, treating their people as
assets and developing leaders at all levels of the organization.
By understanding the reality of their situation, managers will gain a better understanding
of their people. This will aid in the breaking down of the millennial stereotype thus helping
these younger employees prove their worth. Also, by better understanding their employees,
managers can develop a more positive work environment, thus giving their workers the tools that
they need to be successful. While it is important for managers to understand their employees, it
is equally important to understand their own strengths and weaknesses. Businesses can follow
Googles lead and provide their managers with feedback through a data driven review system
that depicts clearly to managers how they are living up to the given corporate values.
Treating employees as assets and providing them with the best possible work
environment requires managers to fully comprehend the reality of their team. In order to best
provide for their people, managers must ensure a more flexible work-life balance and develop a
work environment that fosters innovation rather than discouraging it. This will be achieved by
adding an innovation branch headed by a chief innovation officer and also allocating greater
decision making power to the employees most involved with a given project.
Finally, in order to guarantee the success of these managerial revisions, leaders must be
developed at all levels of the organization. Under these changes, managers will not have as
much power as in the traditional hierarchies. However, by trusting their people, managers will
realize an increase in overall productivity.
With the integration of the FDNYs first in, last out mindset in combination with the use
of the leadership triangle, managers will be able to achieve a higher level of engagement and
productivity from their employees. There are numerous success stories of companies following
these strategies. Its time for the business world as a whole to take notice.

Management Analysis

March 12, 2015

Page 3 of 17

IV. Current Managerial Limitations

In 2012, MTV conducted a study titled No Collar Workers to examine the millennial
generations views of the modern workforce as well as the negative traits associated with this
group. These characteristics include; impatience, a need for quick promotions and a strong
disregard for traditional office place structures. However, despite this negative view, millennials
are beginning to take a larger stake in the professions and are in turn, reshaping todays
consumer and media markets according to Nick Shore, an MTV senior vice president at MTV
involved with the study. The results of the study made it very clear that millennials are unhappy
with current management structures. Data points to an overwhelming majority of millennials
wanting to decide their own work hours (81% compared to 69% of baby boomers). Yet
millennials are concerned with more than these self-centered issues. Over 80% are searching for
a job that values creativity and 9 out of 10 find motivation to work harder if workplaces have
transparent objectives. The most telling conclusion from the study is that half of millennials
would rather have no job than a job they hate1. This is not a testament to a lazy generation.
Rather, it serves as a wake up call for management teams throughout the business world that
their current structures do not suit their employees needs. In order to capitalize on the broad
talents of the millennial generation, self-reflection must occur in three key areas; the millennial
stereotype, the impact of classical management structures on the workplace environment and the
corporate work-life balance.
The first major limitation plaguing modern management is the belief in the millennial
stereotype. Bob Moritz, the US senior chairman and senior partner at Pricewaterhouse Coopers,
views this stereotype as lazy, self absorbed, quick to realign loyalty and uncommitted2. Dan
Schawbel echoes these sentiments when he asserts that managers regularly criticize their

Management Analysis

March 12, 2015

Page 4 of 17

millennial employees as being entitled, disloyal and lazy3. These preconceived notions impede
the relationships between managers and their millennial employees. However, when given the
chance, millennials can prove that they have simply been mislabeled.
The second major issue facing management teams is a reliance upon archaic hierarchical
structures that are proving to be outdated and inefficient. Managers exercising power over
employees via fear and emotion evoke defensive responses from employees. This defensiveness
prevents employees from learning from mistakes, cripples workplace relations, impedes the
acceptance and consideration of alternate perspectives, fails to hold workers accountable and
provides no incentive to take initiative4. Rather than taking risks that could greatly benefit a
business, employees are boxed into decisions that will avoid reprimand from their boss.
Finally, corporate culture and the undying emphasis on the bottom line have developed a
work-life imbalance in which employees struggle to truly escape the workplace. A Harvard
Business Review study consisting of interviews with almost 4,000 executives over the course of 5
years paints a grim picture of the sacrifices an employee must make to succeed in the
professional world. The study provided various suggestions for incoming employees including;
defining personal success, managing technology and finding support networks in and out of the
workplace. One justified his personal success claiming, The 10 minutes I give my kids at night
is one million times greater than spending 10 minutes at work. Another manager is able to
manage connections with expansive technological resources, I will probably leave here around
4 PM to wrangle my kids, but I will be back and locked into my network and e-mails by 8 PM5.
While these executives are able to justify their sacrifices to their companies, this seemingly never
ending commitment to the workplace cannot continue. Taking these three broad issues into
account, managers and executives can begin to devise a plan for change.

Management Analysis

March 12, 2015

Page 5 of 17

V. The Future: Long Overdue Change

The New York City Fire Department is tasked with protecting the lives and property of
more than 8 million people. An employed staff of 10,000 firefighters and officers constantly
respond to life or death situations where one miniscule lapse in judgment can lead to failure.
Despite the incredibly high stakes of the work, the brave men and women of FDNY unfalteringly
face these challenges. Their willingness to sacrifice their safety for the success of their
organization begins with incredibly powerful and inspirational management. John Salka, a
retired FDNY battalion chief, describes the mindset of an FDNY leader in his book First In, Last
Out. While viewing a monument dedicated to the firefighters who lost their lives in the 9-11
terrorist attacks, a friend of Salkas asked him why so many of the names on the memorial were
those of high-ranking officers. Salka answered that this memorial perfectly captured the
leadership philosophy of FDNY: first in, last out. The officers within the organization are guided
by their love and commitment to the men and women for whom they are responsible. As Salka
writes, We dont stand behind our people, or put ourselves above them. We lead out front,
where everyone can see us. Officers lead their men into battle and then stand and fight
alongside them. And we all leave together-or we dont leave at all. Although the management
teams of the business world are not confronted with the challenge of leading their people into
burning buildings, they can implement many of the FDNY leadership tactics into corporate
culture. This process begins with Salkas leadership triangle; embracing reality, treating
employees as assets and developing leaders at all levels6. By implementing these strategies into
a companys management structure, the issues facing the corporate world as previously discussed
can be resolved.

Management Analysis

March 12, 2015

Page 6 of 17

A. Reality
The first requirement for a restructuring of managerial systems is for executives to
uncover the reality of their organizations. This begins with a period of self-reflection for leaders
within the company. In order for the leaders to govern effectively, they must understand who
they are and how they lead their people. Salka emphasizes the importance of leaders uncovering
their emotional triggers that cause unreasonable reactions. These triggers override our more or
less rational selves thus hindering proper managerial tactics and decisions6. After addressing
these triggers, managers can discover the strengths and weaknesses of their people.
As previously discussed, managers are plagued by a millennial stereotype of laziness,
entitlement and disloyalty. For many managers, these characteristics are emotional triggers. By
managing these irrational responses, managers can begin to work with and truly understand Gen
Y employees. Moritz describes the millennial stereotype as a misconception. Rather than being
lazy and self absorbed, millennials are simply more aware of the ill effects of stress and place
more value in non-network interests and activities2. Pricewaterhouse Coopers has responded to
these misconceptions by educating Baby Boomer executives on how to better understand the
younger employees. Schawbel echoes Moritzs ideas when he alleges that millennial personal
accountability is mislabeled as entitlement and laziness results from unclear workplace
expectations. A Bentley University report found that 84% of millennials value making a positive
difference in the world more than professional recognition. Another study conducted by Rutgers
University reports that nearly half of millennial students are working to help finance their
education. Furthermore, only 12% of managers conduct quarterly employee reviews with
another 20% failing to give annual reviews3. These statistics suggest that there is more to the
story than a lazy, self-encompassed and disloyal generation. Through self-reflection, managers

Management Analysis

March 12, 2015

Page 7 of 17

will confirm Moritz and Schawbels claims. According to Salka, Without leadership, an
organization is just a loosely connected group of people operating without a unifying focus or
coordinating mission, pursuing different goals, flailing in a hundred sometimes contradictory
directions.6 By rejecting the millennial stereotype and discovering the workers personal
strengths and weaknesses, managers will find the unifying focus of their organization.
Additionally, firms can follow in Googles footsteps by implementing a forward thinking
managerial evaluation system. Googles Oxygen gives employees a chance to provide feedback
to managers on their ability to fulfill eight key behaviors including: coaching ability, interest in
personal success, communication and transparent vision and strategy. Through a data driven
system, managers are rated on their ability to act upon these values. While initial results can be
shocking to many managers, Oxygen provides feedback that team leaders can act upon in order
to better suit the needs of their employees7. This process of self-reflection, personnel discovery
and evaluation will enable managers to improve the leadership and productivity within their firm.
B. Employees as Assets
Numerous studies have provided statistics suggesting that traditional management
structures and the millennial generation do not mix. However, by rejecting the millennial
stereotype, managers can treat their employees as value producing assets and provide them with
the ideal environment for success. To initiate this managerial shift, employees and managers
must build relationships rooted in trust. According to Salka, managers earn the trust of their
employees through communication, transparency and most importantly, consistency. These
relationships then allow for employees to provide input to management without the fear of
rejection. Before making strategic decisions, Salka would gather information from his people
realizing that they are the ones most involved on the front lines. Then before making a final

Management Analysis

March 12, 2015

Page 8 of 17

decision, Salka allowed for debate to weed out any weaknesses6. Viewing employees as value
producing assets allows for managers to continue finding corporate weaknesses.
After noticing a shift in the workforce demographic, Pricewaterhouse Coopers revised its
work environment. Rather than promoting and paying larger bonuses to employees who
sacrificed their personal lives, PwC shifted human resource policy to emphasize work quality,
the work-life balance and the varied needs of employees. For example, PwC now allows
employees to accept bonuses as cash, gift cards, product packages or charitable contributions.
PwC, in response to the millennial willingness to frequently shift career paths, gives employees
the flexibility to switch roles within the company to better suit personal needs. Additionally, the
company has implemented various work programs such as Full Circle which allows employees
to step away from the company and reengage when they possible2.
Other companies are beginning to implement similar work flexibility into their corporate
culture. Unilever permits employees to choose when and where they work as long as it suits the
needs of the firm. Management is striving to cut office space and travel while increasing
productivity and evaluating employee performance rather the number of hours worked. To
guarantee the proper implementation of this strategy, managers are assessed on their support of
the flexible work environment. Instead of acting as an HR program, these changes have taken
root as a business strategy8.
In addition to accounting for flexibility, managers must create environments to maximize
worker engagement and productivity through a well-defined mission. Salka discusses this issue;
Its pretty simple: if your organizations mission is shaped by the value you bring to your
customers, then you constantly need to stay on top of what that value is, and the only way to

Management Analysis

March 12, 2015

Page 9 of 17

accomplish that is by staying as close to the customers as possible.6 However, managers must
remain involved in these environments as they climb the corporate ladder.
Chung Mong-Koo, the CEO of Hyundai, addressed this issue by implementing flatter
organizational hierarchies to foster more collaborative manager/employee interaction. Koo
identified eight aspects in need of change including; physical workplace configuration, the work
process, reward incentives, information distribution and decision allocation9. In 1998, Hyundai
found itself very close to a company shutdown. Yet under Koos leadership, the car
manufacturer has become a coherent mix of quality improvement, design and marketing that
gives Hyundai a clear advantage over its industry competitors according to Bill Holstein of
Strategy+Business10.
Hyundai management embraced fearless young designers and implemented internal
design competitions to develop an approach called fluidic sculpture. The process of developing
the new look Hyundai vehicles is a radical departure from the tactics employed by Honda and
Toyota where executives finalize designs very early on in the three to four year development
phase10. As a result of providing his people with the tools they needed to succeed and flattening
the traditional management structure, Koo was able to take a flailing company and turn it into a
true competitor to car manufacturing giants such as Toyota and Honda.
While providing employees with the tools to succeed will greatly improve productivity,
these changes will prove to be insufficient in the modern business world. As disruptive
technologies continue to enter the market, businesses must out innovate their competitors. The
final aspect of the movement away from traditional hierarchical management is the
implementation of an innovation branch headed by a chief innovation officer.

Management Analysis

March 12, 2015

Page 10 of 17

In his book, The Innovators, Walter Isaacson stresses the importance of developing an
ecosystem for innovation. An invention, . , usually comes not from an individual brainstorm
but from a collaboratively woven tapestry of creativity.11 As exemplified by Hyundai and
Isaacsons comment, innovative thinking thrives in the proper environment. Yet in order to
streamline the process, it is essential to incorporate a Chief Innovation Officer into any
management structure. The CIO will aid the development of innovative ecosystems through
areas such as creative development, supporting innovations and allocating funding for
innovation. Acting as another resource for employees, the CIO is meant to mitigate the various
threats plaguing the innovative minds within the work place12. By developing a system to
welcome innovation, companies will see higher productivity from their employees while also
protecting against the ill effects of disruptive technologies.
C. Web of Leaders
The combination of a flattened management structure, a more flexible workplace and an
increased emphasis on innovative thinking will greatly impact the level of control enjoyed by
managers. While they may not see as much power, the newfound relationships with employees
rooted in trust will allow for a network of leaders to alleviate the requirement for managers to be
involved with every decision. In his book, Leadership, James MacGregor Burns writes of the
role of the great man. This role is all the more legitimate and powerful if top leaders help
make their followers into leaders. Only by standing on their shoulders can true greatness in
leadership be achieved.13 Salka builds on Burns assertion, By developing leaders at all levels,
you amplify the effectiveness of your leadership actions and enable your messages and initiatives
to reach into every corner of the organization6. Through empowerment of employees at all
levels, they will become more engaged, accountable and focused to work towards the

Management Analysis

March 12, 2015

Page 11 of 17

organizations goals. During his time serving as CEO of General Electric, Jack Welch leaned
heavily on the companys leadership development center, since renamed after him. Rather than
focusing solely on minute business details, Welch chose to develop his people. Paired with smart
business strategy, GEs value rose 4,000 percent14. GEs immense success is a perfect example
of a firm thriving under a revised business structure. Welch put trust in his people and they lived
up to his expectations.
VI. Conclusion
Managers today find themselves in a problematic situation. Not only are they responsible
for the business success of their corporation but they must also adapt to a rapidly changing
workforce demographic and an exceptionally competitive environment. By adopting the
FDNYs strategy of first in, last out, managers can reconnect and better understand the
challenges that they must overcome. If FDNY officers can lead their men and women into a
blistering inferno, corporate managers can sell their people on a corporate objective. Its simply
a matter of realizing how to make it happen.

Management Analysis

March 12, 2015

Page 12 of 17

VII. Annotated Bibliography

1

Schawbel, Dan. "Millennials vs. Baby Boomers: Who Would You Rather Hire?" Business
Money Millennials vs Baby Boomers Who Would You Rather Hire Comments. Time,
29 Mar. 2012. Web.
In this article, Dan Schawbel summarizes the results of an MTV study titled No
Collar Workers. The data included depicts the differences in workplace values
between Baby Boomers and millennials with emphasis on the seemingly self-centered
attitude of Gen Y. However, rather than painting millennials in a negative light,
Schawbel suggests that management teams must adapt to these generational needs in
order to maximize workplace efficiency.

Moritz, Bob. "The U.S. Chairman of PwC on Keeping Millennials Engaged." Harvard
Business Review 92.11 (2014): n. pag. Print.
Published in the November 2014 issue of the Harvard Business Review, Bob Moritz
the United States Chairman of PwC, provides his input on the changing employee
dynamic. Moritz emphasizes that millennials have been mislabeled and he discusses
the changes made by PwC in order to better suit these needs. By providing more
workplace flexibility, PwC has seen an increase in worker engagement and dedication
to the firm.

Schawbel, Dan. "You're Probably Wrong About Millennials." Harvard Business Review
(2013): n. pag. Web.
Schawbel builds on the ideas he presented in the summarization of the No Collar
Workers study. He discusses how the negative traits associated with the millennial
stereotype result from managers mislabeling their employees. Schawbel supports his

Management Analysis

March 12, 2015

Page 13 of 17

claims with the results of reports conducted by Rutgers University and Bentley
University. The article concludes with the assertion that managers must understand
their millennial employees in order to groom them as future leaders.
4

Cramm, Susan. "Defensive Behavior and the Bosses That Provoke It." Strategy+business.
PwC Strategy& Inc., 12 Jan. 2015. Web.
Cramm discusses the negative consequences of workplaces driven by fear and
emotion. She provides an anecdote of an employees defensive response to his
managers hostile questioning. In order to avoid these situations, Cramm provides
managers with guidelines such as managing emotions and sharing credit with
employees.

Groysberg, Boris, and Robin Abrahams. "Manage Your Work, Manage Your Life."
Harvard Business Review 92.3 (2014): n. pag. Print.
This article from the March 2014 issue of the Harvard Business Review summarizes
the results of a study exploring the current state of the work life balance. The
executives who were interviewed provided advice in order for employees to succeed
under heightened professional requirements. However, rather than providing coping
methods, the executives simply reinforced the millennial belief that careers have
adversely impacted life outside of the office.

Salka, John. First In, Last Out. New York: Penguin Group, 2004. Print.
John Salka, a former FDNY battalion chief, provides input on leadership development.
Drawing on his experiences from one of the most demanding fire departments in the
United States, Salka offers leadership advice that can be utilized by any business firm.

Management Analysis

March 12, 2015

Page 14 of 17

Salkas most inspirational point is the idea of first in, last out, an all out managerial
commitment to their people.
7

Garvin, David A. "How Google Sold Its Engineers on Management." Harvard Business
Review 91.12 (2013): n. pag. Print.
Garvins article, published in the December 2013 issue of the Harvard Business
Review, examines the complex managerial analysis composed by Google. Google, a
company with thousands of incredibly brilliant employees, experimented with finding
the most productive managerial system to maximize overall company success. This
process resulted in a diminished managerial system containing an in depth review
process to provide managers with constructive feedback.

Maitland, Alison. "Anywhere, Anytime: The Future of Employment Is Flexible."

Financial Times 25 Jan. 2012: n. pag. Print.
Maitland explores various companies experimenting with flexible work environments.
The main focus is Unilever, a company that is attempting to cut work space and travel
time. Unilever is achieving this by encouraging employees to choose their work
location and hours so long as they best suit the interests of the company.

Shea,Gregory,andCassieSolomon."ChangeManagementIsBiggerThanLeadership."
HarvardBusinessReview.N.p.,29Mar.2013.Web.
SheaandSolomonprovideanoverviewofHyundaisdramaticturnaroundledbyCEO
ChungMongKoo.Throughareevaluationofbusinessstrategy,Koodevelopeda
workplaceenvironmentthatgrantedgreaterfreedomtoemployees.Thesechanges
resultedinHyundairegainingrelevancewithintheautoindustry.

Management Analysis

March 12, 2015

Page 15 of 17

10

Holstein, William J. "Hyundai's Capabilities Play." Strategy+Business 70 (2013): n. pag.

Print.
Published in the Spring 2013 edition of strategy+business, Holstein provides in depth
analysis of Hyundais emergence as a major player within the auto industry. Included
in the analysis is a description of the tactics utilized by Hyundai CEO, Chung MongKoo in order to create an environment to foster innovation. Resulting from this
innovation in addition to other smart business strategies, Hyundai found a coherent
mix of quality improvement, design, and marketing that gives Hyundai a clear
advantage over its industry competitors.

11

Levinson,Marc."TheHardWorkofInvention."Strategy+Business78(2015):n.pag.
Print.
ThisshortarticlepublishedintheSpring2015editionofstrategy+business,outlines
WalterIsaacsonsviewsrelatingtoinnovation.AstheauthorofbiographiesofSteve
JobsandAlbertEinstein,Isaacsonhasanindepthunderstandingofthethought
processesofsomeoftheworldsgreatestinventors.Themaintakeawayisthe
requirementforaninnovativeenvironmentratherthanabrilliantmind.

12

Di Fiore, Alessandro. "A Chief Innovation Officer's Actual Responsibilities." Harvard

Business Review (2014): n. pag. Web.
Di Fiore discusses the importance of a developed innovation branch headed by a chief
innovation officer. As the business world continues to become more competitive,
companies are forced to utilize innovation to remain relevant. The CIO job title
consists of tasks including: developing employees innovative thinking and sheltering
promising projects from the threat of being killed.

Management Analysis

March 12, 2015

Page 16 of 17

13

Burns,JamesMacGregor.Leadership.NewYork:Harper&Row,1978.Print.
JamesBurns,aPulitzerPrizewinninghistorian,writesaboutthetheoryof
transformationalleadershipandtheneedforgreatleaderstocollaborateinorderto
achieveagreatergood.Burnshighlightsthevariousrequirementsthataccompany
differentleadershiprolesthatcanbeuncoveredthroughaprocessofselfreflection.
AccordingtoBurns,leadersmustconverttheirfollowersintoleadersinorderto
maximizepositiveimpact.

14

Leung, Rebecca. "Jack Welch: 'I Fell In Love'" CBSNews. CBS Interactive, 24 Mar. 2005.
Web.
Leungs article provides an overview of Jack Welchs tenure at GE. As a result of
Welchs reliance on the leadership development of his people, GE stock value rose
4,000% and held the title of most valuable company in the world. The article also
discusses the difficulties that managers face, such as employee reactions to managerial
decisions.

Management Analysis

March 12, 2015

Page 17 of 17