Baby Boomers are still by and large in charge, and that may not always be a positive thing for the business. Leadership inherently involves risk, but how much risk are we willing to take on as we near the “end zone” of our careers? When you foresee the need to cash in your “chips,” it seems natural to not push as many of them out toward the line marked “increasing risk.” We simply don’t have as much time as we used to in order to recoup from any losses accruing from decisions that didn’t pan out. It is perfectly natural to reduce one’s risk appetite the closer one gets to retirement.
Therein lies an opportunity. If you have a competitor that is in the reduced-risk stage of their company’s life cycle, you have an opportunity to surge ahead by taking on calculated risks to garner additional market share, become more efficient, move into new markets, or acquire the competition. In short, you have a competitive edge by doing the things that you, as a leader, should be doing. You are also more likely to attract skilled, motivated professionals who want to join you on your way to increased successes.
Folks who have seen an ITR presentation are familiar with our long-term outlook. They have seen us refer to “demographics” as a Depression Driver. The above is one of several reasons why demographics have the dubious distinction of making it onto the Depression Driver list.