For the youths of today, the concept of success has a very different meaning compared to that of previous generations. While for baby boomers it is linked to economic success, for the younger generations it is instead a concept increasingly tied to a person’s wellbeing and equilibrium. It is a radical change, one which must be taken into account.
Nowadays, a leader must know how to communicate with more generations, with young people who are more sensitive to the big social and environmental issues of today, and their not-so-young counterparts, who bring a wealth of experience, know-how and skill to managing particularly complex situations. Finding a balance between the different demands and sensitivities becomes a determining factor, not only for fostering a fruitful collaboration in achieving short- and medium-term business goals, but also for planning a gradual and smooth leadership transition.
Taking Italy as an example, the average age of CEOs in the financial sector is 60 years old, five years higher than the European average. This discrepancy has tangible consequences on the national, and subsequently, international, economy. According to the Bain & Company report with Key2people, this discrepancy entails a cost which, for Italy, is around 1/2% of the GDP.
Youthful leadership, as well as bringing fresh ideas and innovation, has a quantifiable value between 20 and 40 billion euros. This estimate clearly shows that investing in the younger generations and providing them with the necessary opportunities and resources to reach their full potential has a tangible impact. More experienced leadership can contaminate young people, since their time as students they are taught by example; they are shown concrete evidence of what it means to succeed in business, but also fundamental values for ethical and responsible leadership are transferred.
However, despite the economic and social importance of youthful and dynamic leadership, an interesting thought arises: what if young people are giving up on becoming leaders? This scenario raises a series of questions on young people’s aspirations and prospects in the world of work. Understanding why it might be preferable to be a follower instead of a leader in a less “success-centric” culture might offer new insights and contribute towards redefining the traditional concepts of leadership and success. In my opinion, and from my constant contact with young people, it is a symptom of a deep cultural change that we are experiencing.
Youths are surrounded by an environment characterized by the speed of change and the complexity of global challenges. Their expectations and priorities differ significantly from those of previous generations. They seek out debate, comparison and have a much more integrated and multidimensional view of work and life. This new perspective requires a more flexible and inclusive approach from organizations and more senior leaders. The next generation must be encouraged to learn, question and test themselves as soon as possible, so that they may pick up the leadership baton with confidence and awareness.
Investing in the younger generations within finance is not only a matter of continuity and sustainability, but also of fostering a more inclusive culture in this sector that is geared toward the future. The transition toward new approaches can and should be fast, as fast as the trends that go hand in hand with society today: the aging population and rapid technological evolution, for example. Trends that require agile and innovative leadership, able to adapt to changes and welcome new opportunities that arise.
Andrea Mennillo
Founder and Managing Director, International Development Advisory
Chairman Fordham University London Centre Advisory Board
Chairman Riviera Airport