Results Count ... everything else is conversation.: Reverse mentoring enables execs to tap millennial minds

How companies can use digital natives to build tomorrow's strategy

Image Credit: Ambro

The tradition of "seniority" still holds true in most companies. Most members of the C-Suite are "mature". Unless the company is a startup, it would be extremely rare to find a C-Suiter or board member that is a millennial. Yet, the biggest wave coming in terms of employees and purchase power is the millennial generation. Millennials are the first generation of "digital natives". So, how can company leaders and boards innovate and prepare strategies for this unique demographic? Some companies are experimenting with "reverse mentoring" of pairing a millennial with a C-Suite leader or board member.

Why this is important: The old saying that "you are what you were when" applies to Boomers and Gen Xers in the C-Suite today. In order to innovate beyond their traditional paradigms, leaders need a fresh perspective from the digital natives.

Challenge of the C-Suite – Stuck in generational time and experience

Let's face it, most executives today are "older". The experience required to be an executive comes with earning the right through many experiences and job positions. While there are certainly exceptions, members of the C-Suite are mostly from the "Baby Boomer" generation or a "Gen Xer" (born between the years 1965 and 1980).

So, what's the big deal about generations? Generations live in a common timeframe and share similar experiences. These experiences shape values, behaviors and expectations. Much has already been written about Boomers and Gen Xers, so I'll not cover the details here. But, there are some important traits and generational experiences shared by these generations as it relates to retail, and C-Suite perceptions today:

Bricks and mortar stores were the place and definition of retail
Marketing media were the big 3: TV, print and radio
There was no ecommerce, or few purchased online
People shopped for promotions on "trusted" brands
Jobs lead to careers in an industry or field of expertise

Yes, the C-Suite leaders have adapted to technology, email and ecommerce. However, by virtue of their generational experience, current C-Suite leaders were not "digital natives" growing up with smartphones as their portal for everything, including retail.

Millennials – The generation of digital natives changing paradigms

The millennial generation is the next age cohort following the Xers. Demographers generally assign define this group with birthdates between 1980 and 2004. They are the generation that crossed into the new millennium. The millennials have had some very different life experiences and circumstances, which have in turn greatly influenced their views of life and work. Again, I will not comment on all of the research available, but here are some key millennial generational factors:

Millennials have experienced a very tough economy
It is much more challenging for them to find a job and start a career
The world is a more connected place with many forms media, especially social
Millennials literally grew up in an age where everything is digital:
- Music was all digital and iPods were the norm
- Photography and video were all digital and shared instantly
- Smartphones are the mobile portal and connection of choice

Image Credit: Nenetus

The list could go on and on. The challenge for employers and retailers is figuring out what makes millennials "tick". They tend to be less brand loyal, place more value in social causes, and more likely to change jobs in order to balance work/life. And, they openly share all this with friends online, through social media, messaging, etc.

The Millennial challenges for the C–Suite, Retail … and Parents

I'm sure that the parents of every new generation had the challenge of adjusting to "raising" and coping with the next one. The Boomer parents had to cope with Xers new "hippie" values and tastes for music from the Beatles, and waves of rock bands.

Youth have always pushed boundaries. Millennials are no different in that regard. However, their unique values and lifestyles are already greatly impacting business, especially retail. According to Brookings, here's what to expect:

Millennials will comprise more than one in three of adult Americans by 2020
Millennials will make up as much as 75% of the U.S. workforce by 2025
89% of millennials expressed a stronger likelihood that they would buy from companies that supported solutions to specific social issues
Millennials account for more than $1 trillion in U.S. consumer spending
87.5% of Millennials disagreed with the statement that "money is the best measure of success," compared to about 78% of the total population
64% of Millennials would rather make $40,000/year at a job they love than $100,000/year at a job they think is boring

Many retail executives are still stuck in the rut of defining omnichannel as running stores and having a website. Yet, the millennial stats and behaviors clearly show that digital natives that are "always on" and see shopping as a seamless experience.

Innovation through Reverse Mentoring

Without the experience of growing up "digital', and a mobile device a fingertip away, it's challenging for many business leaders to grasp the significance of media like Pinterest, Instagram or using WhatsApp instead of email. The fundamental challenge for retailers today is that C-Suite still defines shopping as a purchase event. For millennials, shopping is continuous experience, and a purchase is a process not an event.

So, how can C-Suite leaders think outside of the box to develop strategies for today's millennial employees and shoppers? The Drum reports that Nestlé in Germany has embraced "reversed mentoring" with digital natives helping to educate C-Level executives. If companies like Nestlé expect to expand business online and sell through retailers like Amazon, they need to rapidly gain new perspectives to "face the future" of a millennial driven world. Reverse mentoring not only gets executives up to speed quickly on digital strategies, it creates a forum and value connection for millennials doing the mentoring.

Walking a mile in their shoes creates opportunities with challenges

How many CEOs do you know that want to be mentored by a 28 year old digital native. CMOs and Execs of marketing agencies study millennials ad infinitum, but few want to be schooled by millennials. And let's also be clear, millennials are typically not the shy retiring types when it comes to what they know and value. Their boldness certainly could create awkward moments in a boardroom!

The C-Suite experience has traditionally been a top down mentoring process. Clearly, it will take some work and innovation to establish parameters that work for both the execs and the young mentors. Most importantly, the process will also need executive sponsorship like that displayed by Nestlé's chief executive in Germany.

While reverse mentoring maybe "uncomfortable", the risks of not walking in millennial shoes is growing exponentially. By 2025, millennials will be 75% of the workforce! They will be the critical customer segment who votes by purchase on which retailers live or die.

Mr. CEO if you are not ready for reverse mentoring, I highly recommend that you take a millennial to lunch, at least once a month.

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