Are we speaking the same language?

Cathy A. Rodgers

In the CNBC series, The business of innovation: the human element, business thought leaders discuss ways to create an environment that encourages creativity. Jack Welch, former Chairman and CEO known for significantly increasing GE’s competitive position, opines that the way to develop a culture of innovation is to recognize and reward people who take risks. He indicates that this was an important part of the five-fold revenue increase during the time he was in command. (Welch was CEO from 1981 to 2001.) But it raises the question of whether the same approach applies today and moving forward.

Silents (born between 1922 and 1945) and baby boomers (born between 1946 and 1960) filled employee and managerial ranks throughout the last half of the 20th century. Many, particularly at GE, came out of the military with its disciplined approach to taking direction. Given that, what Welch accomplished in shifting the culture to support innovation and risk taking is quite remarkable. But is culture created from the top down still applicable in today’s organizations? To get an idea, let’s look at how two successful 21^st century companies are addressing this.

Google encourages innovation by providing employees the opportunity to spend 20% of their time on potential business ideas not necessarily related to their job. The company estimates that this “20% time” has been the genesis of more than half of its new products and services. That’s a powerful payoff for creativity. Tony Hsieh, CEO of Zappos.com an online shoe retailer, says that his company’s success has come from inspiring employees to help build the business together. They are energized by a common purpose. It appears that in both cases it is less about reward and recognition and more about what excites people, what they are passionate about creating.

Although baby boomers and some silents still fill the ranks of American organizations, there is a growing cadre of Generation Xers and Gen Ys to engage in supporting organizational goals. These are people less likely to respond to reward and recognition unless they are also truly connected to what the organization is trying to accomplish. This is not to say they don’t want bonuses and larger paychecks. They are human, after all. But they are also looking for meaning in how they spend their energy. As meaning becomes increasingly important (as evidenced by the growing interest in spiritual practices among other trends,) ensuring that your organization’s mission is one that engages employees in a way that compels actions will be critical.

To hear more about engaging Gen X and Gen Y employees in your vision, Cathy Rodgers will be talking more about the differences among the generations at her breakfast workshop conducted at the new 92^nd St Y Tribeca facility in New York on November 6, 20078.