My generation

One of the most important keys to success in any service industry is the ability to quickly evaluate other people and connect effectively with them.

In fact, in an increasingly commoditised world where competitors are essentially selling the same products and services in the same way through similar channels at the same price to the same customers, the key to competitive advantage is found less in what a firm sells and more in who the firm is and how it does business. In this environment, the ability to connect is critical to ongoing success.

The ability to connect is directly related to an understanding of other people. This understanding is influenced by many factors, including culture, gender, education, lifestage and socio-economics. One factor, however, is almost always ignored, yet is one of the most important in predicting underlying values and attitudes: generation.

Toolbox

Generational theory is another tool in the segmentation, or profiling, toolbox.

Simply stated, the era in which a person was born in affects the development of their world view. In the past century, people in different countries and communities have been exposed to the same defining global events and forces, and people of a similar age can be shown to share certain underlying values, regardless of their birth country or community.

Here is a series of global-defining moments: On 21 December 1988, the UK was shocked by a terrorist attack with the downing of Pan Am Flight 103 over Lockerbie, in an apparent retaliation to the 3 July downing of an Iranian passenger jet by an American warship. In July 1988, Mikhail Gorbachev abandoned the Brezhnev Doctrine and abandoned the concept of the Iron Curtain. In the early months of 1989, students led a Chinese revolution, culminating in May and June's iconic Tiananmen Square protests. On 9 November that same year, the Berlin wall came down. On 20 December 1989, America invaded Panama, and on Christmas Day, Romanian dictator Nicolae Ceau¸sescu was shot after a trial and Eastern Europe continued to open. On 11 February 1990, Nelson Mandela was released after 27 years in jail and his African National Congress and the Communist Party were unbanned in South Africa.

Everyone in the world was amazed at the changes evident in these few tumultuous months. But the young people of that time had these events imprinted onto their value systems, and were defined by them. Similar key moments and global forces have shaped other generations in the past century. Understanding these defining eras helps us understand the underlying value systems they helped to produce in these generations.

n Silent Generation (born 1920 - 1945). While not the oldest living generation, this is the oldest one likely to be economically active or in the workplace. They were influenced in their youth by the Great Depression and World War II. They believed that they should "get a good job in a big company and stay there".To this day, they are conservative, formal, hard-working and structured, preferring rules, order and hierarchies. They have a "waste not, want not" mentality and hate getting into debt. Their idea of progress is slow, incremental advancement, while minimising risk.

n Baby Boomers (1946 - late 1960s). This is the postwar generation, the sex, drugs and rock 'n' roll set, who grew up during a time of grand visions. The idealistic visions of politicians, of those fighting for freedom or of those putting a man on the moon, all served to energise a generation of young people who were simultaneously being culturally and socially revolutionised. Their parents told them that they would have "all the things we never had".

Boomers are concerned about participation in the workplace, motivated by vision, mission and strategy, and care about creating a fair and level playing field. They are quick to form committees and paperwork. They love conspicuous consumption and have created more wealth - and accumulated more debt - than any other generation. The highlight of this era was 1968/69, with riots in London, Paris and other European countries, Vietnam, the moon landing, the assassinations of Robert Kennedy and Martin Luther King Jr, and Woodstock.

n Generation X (1970s - 1980s). Generation X grew up as "latchkey kids", children of divorce, experiencing an era of crises in which it was clear the adults didn't know what was going on. As they entered the workforce, they realised the system would not provide for them, and that "the only person who can look after me is me".

Generation X needs options and flexibility. They dislike close supervision, preferring freedom and an output-driven workplace. They love change so much they actually need it. Generation X strives for balance in their lives. They work to have a life, rather than living to work as the Boomers did.

n Millennial Generation (1990s - 2000s). Today's children and teenagers are living in an age of unprecedented diversity and exposure to other cultures. They are the chief technology officers of their homes, sociable, optimistic, environmentally aware, collaborative, influential and achievement-oriented. It is too early to see the full effect of global-defining events such as 9/11, 7/7, and global warming, but it is likely these young people will be driven and focused in their desire to change the world. n

Dr Graeme Codrington is the founder of global consultants TomorrowToday

Next month: a look at how understanding generations can provide a better service experience by tapping into expectations and the values that drive attitudes and behaviour.