"What came first: money, in its various forms, or people? People. The idea and concept of money precipitated from people. Therefore, demographics cause economics and economics is a symptom of demographics. If you are an economist or an accountant, I realize this can be a painful, demeaning truth. But it is a truth none-the-less. Demography is destiny, and money is a byproduct of demographics." Kenneth W. Gronbach, author, expert, and futurist in the field of Demography and Generational Marketing, doesn't hold back as he writes his hot-take of what the new business model will look like!
This guest column appears in the Heat Treat Today September 2021 Trade Show print edition. Ken typically writes for the magazine in this edition where many young heat treaters -- 40, to be exact -- are featured annually. Give it a read, and email editor@heattreattoday.com if you have an op-ed or guest column that you would like to submit to Heat Treat Today!
President/CEO
KGC Direct LLC
Hello, 40 Under 40 Class of 2021. There are big changes ahead in corporate structures large and small. And you Millennial-types are going to lead the charge. Human Resources will finally gain the dominance and importance it deserves. Remember when Human Resources was called “Personnel” and it was manned by B players who handed out insurance forms? Those days are gone. If a corporation is not led by A-players in Human Resources, it will not survive. The Chief Human Resource Officer will be the new Chief Financial Officer. You heard it here.
Ask anyone on a corporate board of directors who their key corporate C-level players are, and they will tell you: Chief Executive Officer and Chief Financial Officer, and may even include Chief Operations Officer. The brains, the money, and the day to day. But what about the Chief Marketing Officer and the Chief Human Resource Officer? Communicating with the customer and developing the talent to serve them. What a concept!
The most important question any business must ask is one of demographics: How big is my end user market and is my end user market getting bigger or smaller? How many people are in my end user market? If my end user market is expanding, then we have opportunity to grow. If my end user market is shrinking, we have a problem that must be addressed posthaste. Why? Because the volume of my business is directly linked to the size of my end user market.
This is the essence of demographics. But wait, there’s more. So, we have determined that our end user market demographics are significantly expanding, and we have an opportunity to grow our business. But this is not going to happen by itself. We will need talent, people. Who are they? Where are they? How much training will they need? How much will they cost? How long before they ramp-up? Wait, we need an expert Chief Human Resource Officer. In fact, governed by the new normal in modern protocols, if a corporation doesn’t have a Chief Marketing Officer and a Chief Human Resource Officer, they don’t even need a CEO, COO or CFO!
Let’s examine the new normal people/talent challenges the Chief Human Resource Officer will face.
- Diversity and Inclusion: Black Lives Matter. Hiring and training African Americans, Asians and Latinos. Dealing fairly with LGBT issues. Recognizing Minority majority as it becomes the norm. Managing disability issues. It’s a new ball game
- Women in Leadership: Women outnumber men in college and law school. They will lead, but they will face challenges in the male dominated C-level management culture.
- Three Generations in the Workplace: En masse post-Covid exiting by the huge Baby Boomer Generation. The diminutive middle-age Generation X management shortage. The influx of the giant Generation Y/Millennials.
Big challenges to be sure, but they are not insurmountable, and, if handled correctly, these challenges will be a springboard into the realm of incredible opportunity. Take Human Resources seriously. Very seriously. And challenge your Chief Marketing Offi cer to understand his/her future market for your business, not just the market you presently enjoy.
Bob Dylan sang that, “The times, they are a changin’. . .”. It’s truer now than ever before. Yes, change may be painful, but if you don’t change, time will pass you by. Be well, Kenneth W. Gronbach.
About the Author: Kenneth W. Gronbach is a gifted keynote speaker and nationally recognized author, expert, and futurist in the field of Demography and Generational Marketing. He makes the science of shifting demography come alive with real life examples which make it relevant to today’s culture, business climate, and economy. With nearly three decades experience in retail advertising and marketing, Ken saw the direct results of shifting demographics in his clients’ profits. Eventually, his passion for the subject changed the direction of his career, to the benefit of readers of his books and attendees of his keynotes and other presentations. Contact Ken at ken@kcgdirect.com.
