The Evolution of Leadership: A Necessity for Modern Businesses
With over 60% of companies planning to change their business model by 2030, as reported by the World Economic Forum, integrating four generations—Baby Boomers, Generation X, Millennials, and Gen Z—with distinct values and motivations has become an immediate challenge for organizations in Mexico and Latin America. These generations work under completely different principles, making it essential for businesses to adapt their leadership styles.
Melhina Magaña: A Leader in Organizational Change
Melhina Magaña, co-founder of Daucon, a firm specializing in organizational behavior change, has identified a concrete model to unite these generations without compromising productivity: ARCA, a leadership framework addressing common friction points in multigenerational teams.
ARCA: A Framework for Multigenerational Leadership
Magaña emphasizes the importance of training for frustration without overprotection, explaining that this model focuses on four key aspects:
- Growth: The traditional 10-year career progression no longer works. Today, rapid, visible, and consistent growth through micropromotions, new projects, and immediate challenges is crucial.
- Affiliation: Connection matters. Younger generations stay where they feel part of a community. Companies must foster a sense of belonging through in-person meetings, active listening, and clear purpose.
ARCA is based on real data, as Daucon has worked with over 70,000 individuals across 14 countries, measuring what motivates, exhausts, or retains employees of different ages.
Generational Demographics in Mexico
According to Mexico Business News, 51.3% of Mexico’s workforce consists of millennials, while 12.7% are centennials. These generations no longer respond to hierarchical structures but prefer flexible schemes, frequent feedback, and empathetic leadership. This shift is not merely a trend; it’s an organizational survival strategy.
Magaña asserts that multigenerational leadership is not an added bonus but the foundation of future organizational structures. “Properly managed generational diversity enhances innovation, boosts profitability, and broadens connections with younger markets. However, it also demands new leadership skills: discipline that nurtures, listens without condescension, and genuine adaptability,” she states.
Preparing for a Future Where Millennials and Centennials Dominate
- Leaders must prepare to be a minority: By 2030, millennials and centennials will constitute 75% of the global workforce. “If current decision-makers fail to understand these new generations, they will lose talent, influence, and relevance,” warns Magaña.
Redefining Prestige and Belonging
One of Daucon’s most disruptive findings is that newer generations seek prestige, but not in traditional terms. Their recognition lies in being relevant within their digital communities rather than being the ‘cool boss.’ They value ethical, human, and consistent leaders.
Generational diversity is also redefining what it means to belong. For Gen X or Boomers, job relationships sufficed. For younger generations, human connection is crucial; otherwise, there’s turnover.
The Shift from Control to Trust
“Leadership is no longer about control but trust,” concludes Magaña. “ARCA serves as a valuable roadmap not only for directors and managers but also for university students preparing to enter this complex environment.”
Key Questions and Answers
- What is the main challenge for businesses today? Integrating four generations with distinct values and motivations.
- What does ARCA stand for? A leadership framework addressing common friction points in multigenerational teams.
- Why is generational diversity important for businesses? It enhances innovation, boosts profitability, and broadens connections with younger markets.
- What skills does multigenerational leadership demand? Discipline that nurtures, listens without condescension, and genuine adaptability.
- Why is it crucial for current leaders to understand newer generations? If they fail to comprehend these new generations, they risk losing talent, influence, and relevance.
