Today, leading across generations requires a different outlook, and leaders must look through a different lens when they lead. 
I’m Generation X (1961-1980), and the early part of my career was firmly embedded around my pay and bonus, my annual review, and my weaknesses. Because I was indoctrinated into the world of business and leadership through this filter, it would be easy to become my default mode in how I lead today, and this may be the same for other leaders from other generations.
But this would be a BIG mistake.
Why?
Because the pathway to unlocking people’s potential has changed.
Today, individuals are wired, motivated and driven by different needs and wants. Understanding what motivates and drives them is critical to attracting, developing, retaining and inspiring people to do their best work.
The old way of thinking versus the new way of thinking
Classic economics (the old way of thinking) comes from the point of view of capitalism and a labour-based theory of value. In contrast, behavioural economics (the new way of thinking) considers people as human beings subject to emotion and impulsivity and influenced by their environments and circumstances.
Leaders must act as coaches, and as the talent hunt heats up, individuals have more choices than ever about who they work for and who they want to lead them.
Today, people are more committed to meaningful work than ever before. Our role as leaders is to connect them to the organisation’s mission, purpose, and vision—not just the paycheck. A compelling vision infuses work with purpose and meaning.
I have no doubt you’ve heard the story of President John F. Kennedy visiting NASA HQ. During that visit, he was led on a tour of Cape Canaveral, where he greeted each person he passed and asked them what they did.
The first man responded without enthusiasm: “I’m earning a living, Mr. President.” The second man said, “I clear away the garbage, Mr. President.” However, a third man smiled and replied, “Mr. President, I’m helping to put a man on the moon.”
Individuals want to add value, coming into work daily feeling like they are making a difference.
Classic economics focuses on the role an individual is undertaking today. The shift in thinking from a behavioural economics perspective looks beyond today to the future and considers long-term career development.
Individuals are looking for career progression and diversity, and leaders must consider opportunities for exposure to different functions or locations within the business.
The average graduate today will have 15 – 20 different roles throughout their working life, which doesn’t necessarily mean working for different companies.
If your business is a revolving door of people in and people out, this will cost you time, resources, cash, and missed opportunities. Hiring and retaining the right people can catapult your business forward, while losing people, especially talent, will set you back five steps in realising your goals and ambitions.
A leader’s role is to facilitate and build capability, identify and build strengths, and support individuals with their weaknesses in a coaching capacity.
Arming your people with the mindset (attitude, determination, will), skill set (technical or soft skills) and toolset (tools to do their job) that will unlock their potential, deliver excellence within their role and fuel their inner self-worth will ignite their self-motivation and confidence.
The role of the leader is becoming more about how you performance lead (My coach) and not performance manage (My manager).
The annual review should be the most straightforward performance conversation all year.
Why?
Because you’ve had several micro-conversations all year about performance.
The open, ongoing two-way dialogue, which provides in-the-moment feedback, recognition, and praise, is significantly more potent than storing past examples only to share with the individual one month, 3 months or even 6 months after the event.
Individuals are hungry for regular feedback, development, reassurance that they are doing the right thing, and contribution to the mission and purpose (link here to the #1 mission and purpose). Be sure you’re meeting this need.
Are you catching people doing it right, or are you catching people doing it wrong?
Set the working environment up so that people play to their strengths, do their best work, and are supported by people who can help them with their weaknesses. I once heard the saying, ‘Don’t aim for perfection and miss good along the way’.
The shift here is to be genuinely interested in your people beyond the office’s four walls and learn about their partners, families, and hobbies. What are their personal goals, and how is working for you helping them achieve them?
The moment we create the bridge in their mind – the link between their personal and business goals – self-motivation kicks in.
Leadership is practised not so much in words as in attitude and actions. Are you leading your people how they want to be led?
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