Six Things Every Credit Union Should Be Doing to Turn Their Workspace into a Competitive Advantage: Article Two: It’s About Your People: Understanding Your Most Valuable Asset

Article One: Defining the Workspace

by Michael Downs, Momentum, Inc.

Over the last 100 years, the design and application of workspace has unquestionably evolved and changed, along with a U.S. economy that has transitioned to one that is predominately knowledge based rather than manufacturing based.  In addition, we have seen open workspaces and interactive shop floors evolve into a sea of poorly lit cubicles and closed offices.  Only recently are we experiencing a movement back toward a more open work environment, teeming with collaborative spaces, infused with color, natural lighting and quality workstations.  The most influential factor driving these changes is the workforce.  Not simply because salaries represent an average of more than 70% of a facilities’ life cycle cost (see Figure 1), but because for the first time in history, four generations of people are working side-by-side.  As such, a Credit Union’s success will be due in part to how well it understands and supports the needs and preferences of the different ages and life situations of the employers’ most valuable asset: their people.

In our previous article, we described the General Services Administration’s (GSA) definition of a workplace where Work Strategies + Culture + Space = Workplace.  An essential element in balancing the equation is a culture that reflects the Credit Union’s core values and goals and one that leverages the various skills, motivations and knowledge of its employees.  In this article we have detailed some of the dynamics and work styles of today’s workforce, and we offer some suggestions for using workplace design to foster more effective collaboration and communication between the different generations.

Generations at Work
One key to determining how a Credit Union should best foster a work culture that successfully bridges generational diversity and work styles is a strong grasp on the dynamics of each generation. In their book “Generations at work: Managing the Clash of Veterans, Boomers, Xers and Nexters in Your Workplace”, Zemke, Raines, and Filipczak (2000), define four modern U.S. generations:

• Veterans (b. 1920-1942)
• Baby Boomers (b. 1943-1960)
• Generation X (b. 1961-1979)
• Millennials (b.1980-2000)

The generations can characteristically be defined through the influences, technologies, and values outlined in the following tables.

The Growing Importance of Millennials
Not only is our workforce now made up of four different generations, but within it, there is a shift toward a larger composition of Millennials.  As the future leaders and decision-makers for Credit Unions, their preferences, motivations, and work styles need to be a significant consideration in developing workplace strategies.

The impact Millennials will have on workplace strategies is considerable and long term.  As Annika Hylmö of The Insight Generation states, “They are a unique workforce that is a great asset to companies that want to be around for the long run”.  Hylmö also adds, “They are a tremendous resource to organizations that want to stay relevant to their customer base. When treated with understanding, support and acceptance of their integral values, the Millennials can be the bridge to the next generation in business.”

The Millennials add to the workforce a natural ability to work in teams, to work virtually, and to work and think creatively. They are very efficient at gathering information online and innately understand how to maximize the potential of technology. In addition to technical aptitude, Millennials are very good at bringing people together and embracing community and diversity. According to Hylmö, “They have a very open mentality when it comes to inclusion and are able to easily interact with others across cultural and age differences”.

Given all of these dynamics, Credit Unions should work to develop workspace strategies that not only support the composition of today’s workforce, but that can also adapt to the future needs of the growing number of Millennials.  By creating environments that invite employees to collaborate, share information, and learn from one another, Credit Unions will put themselves in position to better maximize the strengths of this important demographic.

Generational Challenges
According to The New Dictionary of Cultural Identity (Hirsch, Kett, & Trefil, 2002), “generation gap” refers to “the differences in customs, attitudes, and beliefs between any two generations, but especially between youths and adults”. Apart from misinterpretations that stem strictly from age differences, Weston (2006) attributes generational misunderstandings to two significant changes that occurred in this country over the past 60 years.

The first is a transformation in the way we work. In many organizations, the hierarchy has become flatter so many more employees are involved in decision-making. We see this in our own organizational structure at Momentum, where the collaborative process routinely brings together team members from four generations. The old paradigm of the oldest generation always at the top and the youngest in entry-level positions has evolved. Employees now interact more as peers and work toward project based goals, as individual reward has given way to team-based rewards.

Secondly, the change from the industrial era to the age of information has “flipped generational relationships” (Weston, 2006), resulting in the younger employees no longer feeling dependent on the older generations for their expertise. Now a Millennial employee with expertise in Information Technology might be training a Baby Boomer CEO in the context of social media.

Compounding these challenges is our basic human nature of feeling affinity with people in our age group.  In research performed by Steelcase, a leading office furniture manufacturer, workers are inclined to identify best with and have the most admiration for colleagues of their same age.

Leveraging Generational Differences
There exists plenty of research indicating that workplace design can have a direct link to employee behavior and job satisfaction, and it is important in achieving strategic business objectives.  In addition to the overwhelming empirical evidence that workplace design impacts employee satisfaction, it makes sense for Credit Unions to address workforce dynamics for several other reasons.

Despite the various cultural challenges we outlined above, our experience with the Credit Union workforce has shown us that generational differences can actually be used to strengthen the culture and overall effectiveness of an organization.  It is about finding common ground in the areas where each group has priorities and addressing them through workplace strategy and design.  Three such areas are meaningful work, collaboration, and learning. While the generations might have different points of view on what is meaningful, how they like to collaborate, and the kind of learning they seek, they tend to agree on the importance of these three areas.

All of the generations value the opportunity to contribute to their organization, regardless of the reason, and they want to be part of an organization where something of value is happening. For some individuals, this might take on a “holistic” flavor, while for others; it is enough that the organization’s services or products are created with pride and quality. It is no secret that Credit Unions that shine light on the larger mission of their work and their commitment to core values will find a simpler path to aligning and motivating all of the generations in their workplaces.  As Lisa Phillips, COO at 3Rivers FCU put it, “It’s like the best kind of neighborhood block or cul-de-sac to grow up in, where everyone looks out for each other, learning from each other and showing each other how to take pride in what they have together.  Everyone helping their neighbors with problems or concerns that arise over the years, and looking out for the common good and care of the ‘block’ or circle of homes, families, and their community.”

A team approach to addressing issues and generating ideas is the common ground for all generations. Collaboration and learning are closely intertwined subjects, since adult learning is primarily experiential (“tacit”), and therefore the supporting collaboration and learning among the generations, is primarily a matter of creating as many ways for people to gather together, formally and otherwise.

In order to capitalize on this opportunity, the proper workplace environment must be developed, which allows for collaboration, impromptu meetings and the enhancement of personal relationships. Collaboration occurs in a multitude of places within the workplace, such as conference rooms, hallways, lobbies, office and break rooms. Who isn’t involved with conference call and WebEx discussions on a daily basis? During those calls, personal interaction certainly takes place, but the results of the meetings are only most effective, if the space in which the meeting takes place is conducive to team input and collaboration.

Reportedly, 90 percent of the knowledge in any organization is embedded and synthesized in peoples’ heads (Wah, 1999).  Undoubtedly, the demographic make-up of an organization influences how and what knowledge is transferred among its employees.  Because of these subtleties in the exchange of information, an organization should use its space in ways that enable both verbal and non-verbal cues and communication.  In other words, by designing workspaces that bring different generations together in collaborative ways, a significant amount of knowledge transfer can occur without actual verbalizing it.

Moving Forward
As we describe above, Credit Unions are facing a myriad of challenges in their efforts to find the right balance between increased productivity and cost containment.  Moreover, their most valuable asset, the workforce, is now more complex and diverse than it has ever been in modern history.  However, for those willing to embrace these challenges and address them in a strategic way, it can pay dividends for the organization, their employees, and their members.

Not only does an effective workplace support business strategies, but research clearly indicates that a physical work environment plays a significant role in attracting and retaining quality workers and ultimately has a major impact on the success of an organization.  Therefore, understanding which elements of an office environment have the most powerful effects on their organization enables a Credit Union to target their planning, design and facility management investments, and ultimately enhance performance and worker satisfaction. While certainly not a simple challenge, by appreciating and embracing the intricacies of its workforce and designing strategies around them, a Credit Union will improve all facets of its business.   As a result, the workplace truly becomes a strategic business tool.

References

• Brill, Michael, Weidemann, Sue, and the BOSTI Associates. “Disproving Widespread Myths About Workplace Design”. Jasper, IN: Kimball International. 2001.
• Brill M, Margulis S, Konar E, BOSTI (1984) Using Office Design to Increase Productivity. Vol. 1, 1984:Vol. 2, 1984. Buffalo, N.Y.: Workplace Design and Productivity.
• “The Changing Workforce: Get to Know the Millennials!” The Insight Generation article written by Pat Kramer, Writer for Hire, with Annika Hylmö
• Center for Building Performance and Diagnostics School of Architecture, Carnegie Mellon University.
• GSA Office of Governmentwide Policy. (2006). Innovative Workspaces: Benefits and Best Practices. Washington, DC: U.S. General Services Administration
• Hirsch, E. D., Kett, J.F., & Trefil, J. (Eds.) (2002). The new dictionary of cultural identity, 3rdedition. New York, NY: Houghton Mifflin.
• Kersten, D. (2002, Nov. 15). Today’s generations face new communication gaps. USA Today.
• Olson, J. “How Do We Measure the Facility’s Contribution to Business Success?” Facilities Design & Management, August 2000
• Wah, L. (1999b), “Making knowledge stick’’, Management Review, May, pp. 24-9.
• Weston, M. J. (2006). Integrating generational perspectives in nursing. The Online Journal of Issues in Nursing, 11(2).
• Workplace Index Survey on the Nature of Work in 2007. Conducted by Opinion Research Corporation (ORC) & Steelcase Corporation.
• Zemke, R., Raines, C., & Filipczak, B. (2000). Generations at work: Managing the clash of veterans, boomers, Xers and Nexters in your workplace. New York: AMA Publications.

This is the second article in the CUinsight.com six part series Six Things Every Credit Union Should Be Doing to Turn Their Workspace into a Competitive Advantage by Michael Downs, MBA, CFS and Greg Barrett, CFS. Keep an eye out for part three next Monday: A Strong Brand Starts at Home: Building Your Brand in the Workplace.

This series is co-authored by Michael Downs and Greg Barrett of Momentum, Inc.  Mr. Downs holds both a Bachelors and Masters of Business Administration, completed the ABA School of Bank Marketing at Southern Methodist University, and has more than twelve years of experience working with clients on strategic planning and marketing.  Mr. Barrett holds a Bachelors of Science in Finance and has worked with and for financial institutions for more than nineteen years.  Mr. Downs, Mr. Barrett and the Momentum team work with credit unions to facilitate strategic planning, evaluate facilities growth needs, and implement systems for ongoing measurement and benchmarking. Learn more at www.momentumbuilds.com or connect at www.twitter.com/plandesignbuild