Youth, Risk and the Virtual Realm

High risks can reap high rewards, but they can also end in costly failure. So should employers welcome or shun risk-takers? Research has shown that Generation Y has a seemingly high risk profile. For example, Beck & Wade (2006) observe that online game-players are strongly encouraged to take risks, with trial and error seen the best strategy for success. They also argue that risk aversion accrues with age, following an increasing number of unpleasant experiences following failure.

So does this make Generation Y a liability to employers? While the evidence suggests that this population is naive around risk in the real world, it is important to observe Generation Y’s approach to risk-taking. An oft-used strategy for success, game-players mitigate risk by ensuring a transparent flow of information through the team and distribute responsibility amongst the other players according to their skill sets.

This demonstrates that, in order to succeed as a team, online game-players must take individual accountability for their actions and the risks they take. This implies a level of understanding, perhaps by even the youngest players, of responsibility distribution as an effective risk management strategy.

Indeed, the virtual world is not the same as the physical realm, in which Generation Y may not have the experience of older generations, but their risk-facing attitude combined with a strategic understanding of risk mitigation learned from online games could reap big rewards for businesses too.

Jerry Maguire

You might imagine that Y Generation feel so ‘entitled’ to access this online world, that they are just doing it to be noticed, maybe even that because the rules have changed and multi-million pound businesses are being created through online worlds that they are just trying to make a fast ‘buck’ – chasing the cash. To an extent, you’d be right (e.g. the million dollar web page).

Thankfully/ sadly it’s not that simple. Generation Y like the generations before them, recognise the need for work, and one Gen Y isnt necessarily as technology crazed as the next Gen Y (in fact, some of my friends are leaving online networking sites like facebook because they dont want all their details online). Nonetheless they want to work for inspirational leaders. Leaders who teach, trust and give ownership.
In the film Jerry Maguire (Tom Cruise) – famed for its ‘Show me the Money’ clip – there is a parallel story line to the one between Jerry and his Sports Stars. It’s between 'Jerry' and 'Dorothy Boyd' (one of the financial clerks (played by Renée Zellweger). Jerry and Dorothy leave to set up another firm after Jerry gets fired. Later in the film Dorothy explains why she left with Jerry:


Dorothy: The truth? I care about the job. But mostly, I just want to be inspired. That memo you
wrote... that inspired me. I'm here because of that memo. I love that memo.


Zellweger is drawn to Cruise because of a vision that he has for how business should be done. The challenge is delivering the vision, and together they do.

When Baby Boomer CEOs cast their vision, their challenge is similar – to align all the Generations behind that vision and to deliver, together. After their (2 week, 2 year or 5 year) training programmes Y Gens will pick teams/ bosses/ colleagues on the basis of ‘reputation’. Experience, you see, is everything for this Generation, and they are somewhat 'knowing' (or in Boomer language, impulsive).



Experiences are shared.



Online.



These also become very real, virtual, truths and leave a trail to the company. If Boomers are concerned about the amount of detail that their children (Generation Y) are leaving on online sites and to whom they are giving out their email addresses and mobile numbers, perhaps they should also be concerned about what this generation says about their company as well. Afterall, Generation Y is required for the succession of the business and has a huge influence on the recruitment of their peers into the workforce). What would be the response to this question:



Who had the biggest influence on your desire to join our company:


(a) Our corporate website

(b) The recommendation of the company by your friends



A thought to ponder: What could be the combined effect of a CEO or MD working in partnership with a generation that can spread (good) news across all of their network? As the CEO of a telecoms business or service provider are you harnessing the potential of the Y Generation in your business?

Virtually, anything is possible

So who’s actually in ‘there’? A quick look at the Second Life map (powered by Google, notably) through a programme called ‘Slurl’ revealed some interesting facts: CNN has set up a news station to report on events in Second Life! Sun Microsystems has bought land for (seemingly, at the moment, 'just') advertising and Coca Cola launched a campaign (‘Virtual Thirst’) in 2007, through a viral You Tube format (of course!) to design vending machines to be used inside Second Life.
Coke set the online community the challenge of building a vending machine that could vend the ‘essence’ of Coke – the Coke experience (refreshment, joy, unity and experience). The contest challenged individuals to submit concepts for new world vending machines, an appliance that could vend virtual experiences. Coke assembled a virtual avatar board of advisors (metaphysical, real, people of course control these virtual characters) and worked with a marketing firm ‘Crayon’ and ‘Millions of Us’. Throughout the process, submissions were made through YouTube, MySpace and VirtualThirst.com. The winning concept ‘Lucky Puzzle Bottle’ by Ann Marie May (see 'You Tube' for the video) , was a concept that meant avatars had to ‘solve’ puzzle bottles in return for a coke experience ranging from ‘virtual snowball fights’ to ‘giant bubble rides’. The virtual contest was Coke’s first interaction with the virtual world – it was an opportunity for them to learn about virtual worlds. (Oh, and by the way, for anyone who enjoys Second Life it raised a huge amount of brand awareness for Coca Cola as well).
Coca Cola also (indirectly) sponsored a music concert in Second Life. The ‘early adopters’ of these new online worlds are there for extended periods of time – multiple hours. These companies, that are subconciously communicating their brand inside these virtual worlds, have an individual’s attention for a considerably longer amount of time than is possible in the real, fragmented, media world we are used to. Think, for how long does anyone really look at a billboard?
So what else, is it just about brand awareness? No. One London creative agency ‘Rivers Run Red’ has taken to creating ‘immersive workspaces’ online. Rivers Run Red (RRR) boasts these virtual opportunities to communicate with each other all around the globe cuts down on carbon footprint, air fares, and time. Moreover, clients can see their work in progress: through modelling avatars in the online space they can quickly see how designs are working out. So, it would seem reasonable to assume that their clients would be only the one’s on the leading edge of online and web technology (Google, Microsoft, Apple...?) Not so, it is Boots (No. 7); Penguin Publishing; and the charity Bernardos that show up in their online portfolio.

So is this all play, a fad or a trend?

At least one company, River Runs Red, has a multi-million pound (Sterling) turnover and seems to be getting a positive response from its clients.

So what about some 'big names'. People that would really know about whether this can work in big business. In his 'view from the Top' interview with the FT John Chambers (CEO and Chairman of Cisco Systems) said ‘Collaboration is the next big step in terms of productivity’ (FT.com). Cisco has also been working on this since 2000.

Another world?

So, what’s all the fuss about ‘online’ and Web 2.0? What has changed? The World Wide Web (WWW) has fundamentally shifted up a gear in terms of what it can do now. Web 2.0 has changed the online experience from being ‘talked at’ to being able ‘to be in conversation’. It is perhaps this ongoing concept of interaction that is most distinctive. Web 2.0 has opened the door (for example) to Collaboration (Wikis/ Blogs), Recommendation (Tagging/ Digg’ing), Convergence (MySpace/ Second Life), Casting (Narrow/Wide/Video/Pod), and VOIP (Skype). What impact does that have on the average business in the real world? Take for example the ‘futuristic’ (but nonetheless, here today) world of Second Life [created by Linden Labs (http://lindenlab.com/)]. Just wasting time? Well, not so for Rob Hof of BusinessWeek who went ‘in-world’ and discovered a whole new parallel world with an economy that genuinely crosses over into our ‘real’ world. Hof (a Baby Boomer) found creating his avatar (Rob Cranes) very involving. He describes the ability to have a ‘...social experience. You can do almost anything… Create homes, buy islands and create a resort...” “ This is not just a business phenomenon… it’s entertainment at its root [but] there is an economy developing here…[Linden Labs] not only let people create their stuff (e.g. clothing)… they have ownership of the intellectual property they create [inworld]… they can sell it… it gives them an economic incentive to create it…” and they can turn it into real product outside ‘Second Life’, explains Hof. There is an internal online currency that is in fact exchangeable into real world money. The currency online is ‘Linden dollars’. The rate to exchange it into real dollars is roughly 300:1 (Lindens to USD). Money is exchanged back and forth through the creators ‘Linden Lab’ and Hof reports some people are taking out ‘thousands of dollars a month’. People could do this for a profession! Too far-fetched? Well, you aren’t alone – not everyone is a fan.

Next time: What about ‘real’ businesses? How is this relevant?

Love Generation

Baby Boomers have been noted for their love and involvement with Generation Y. Termed ‘Helicopter Parents’ (http://www.timesonline.co.uk/tol/life_and_style/education/article3734696.ece) Baby Boomer parents have developed a ‘love blanket’ for their children. Generation Y have grown up on praise. Every (Gen Y) child is a winner according to their parent (watch the reaction if anything is suggested to the contrary), and is taught they are able to make a difference in their own right. Gen Y grew up on compliments and validations as if it were oxygen. Any surprises, then, that they come across as a little over-confident? Enter Gen Y into the world of work… they see managers or Managing Directors about the age of their parents and expect the same acknowledgements will come. But, alas, there is money involved now. With nobody to validate their achievements – as generally they will be living away from home – and nobody to nurse their wounds if they are criticized, or to go back to their ‘teachers’ (managers/ boss) to challenge feed-back. So… they went ‘Online’. In search of likeminded individuals with whom to share their grief. Generation Y are notoriously bad at being internal processors – they externalize their feelings, and express in digital language! They talk online. No fears about sharing company information, there is no pride involved – just an expression of the injustice to them – and so within a few moments they perceive the grass to be greener somewhere else. Unfettered and disenchanted they move, to realize the same is true in ‘pastures green’ after all. But… the information is still out there – it forms a record in the online world and a reputation begins to develop. An exponential reputation. Information is published, shared, discussed, linked and noted. It becomes… like a ‘truth’. In some senses it is a truth - an ethnographic account of what happened from an individual’s point of view, just… expressed differently to the (Baby Boomer and X) generations before them.

So, what (if anything) can we learn in the middle of all this hype, subjectivity, pride and (essentially) just another point in time? Crucially, no judgment of any other Generation. Allow for individualism. I have been asked, “will Gen Y’s just become like Gen X’s and Baby Boomers eventually?” ‘If some Boomers have resignedly become the organization men and women they once mocked, others have unleashed innovative and entrepreneurial energies that in the long run may provide enough growth and opportunity for them to realize their dreams after all…’ (TIME Magazine, 1986).

So, that depends… on you (as a Baby Boomer managing X and Y’s; X-er in the middle; Y responding to Baby Boomers and X-ers).