The Baby Boomer Exodus: Whats Wrong with the Standard View

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The Baby Boomer Exodus Whats Wrong with the
Standard View?

• Jim Fowler
• Director, Market Development
• Enterprise Transaction Systems, Software AG

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Pop Quiz Who is Kathleen Casey-Kirschling?

• The Former Lieutenant Governor of Maryland
• Wrong. (Kathleen Kennedy Townsend)

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Pop Quiz Who is Kathleen Casey-Kirschling?

• The Former Lieutenant Governor of Maryland
• Wrong. (Kathleen Kennedy Townsend)
• One of the worlds greatest female athletes
• Wrong. (Jackie Joyner Kersee)

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Pop Quiz Who is Kathleen Casey-Kirschling?

• The Former Lieutenant Governor of Maryland
• Wrong. (Kathleen Kennedy Townsend)
• One of the worlds greatest female athletes
• Wrong. (Jackie Joyner Kersee)
• The first of a group of 80 million Americans,
  including many of us in this room
• Correct! On October 15, 2007 Kathleen
  Casey-Kirschling became the first Baby Boomer to
  sign-up for Social Security (she was born New
  Years day, 1946, at one second past midnight).

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What is the Standard View of the Baby Boomer
Exodus?
Free at last!
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What is the Standard View of the Baby Boomer
Exodus?

• The giant Baby Boomer retirement train is coming
  down the track and heaven help us when it
  arrives!
• Our healthcare system will fail
• Social Security will dry up
• Polyester will become scarce
• Legacy systems will stop running altogether

Free at last!
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Who are the Baby Boomers?
U.S. Population
This is not a U.S. only phenomenon. Japan and
Europe are equally, if not more impacted.
Source U.S. Department of Commerce, Bureau of
the Census
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When can we expect the Exodus?
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No Factoid left unturned
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Who do you best relate to?
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Whos right?
Mr. Skills
Mr. Knowledge
Ms. Experience
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Magic Bullet 1 Let the Universities fix it

• Number of Students Seeking Degrees in Computer
  Science is in a Free Fall
• 70 decline in interest in the computer
  science-related majors between 2000 and 2005
• 17 drop in computer science graduates since 2005
• Even though women make up majority of college
  students, they account for only 28 of the
  computer science degrees granted down from 38
  in 1984
• Universities Place Too Much Significance on
  Programming Languages
• Overlooking enterprise computing skills that
  teach how to build and maintain systems that are
• Scalable
• 24/7 Reliable
• Secure
• Etc.

Source The Higher Education Research Institute
at the University of California
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Magic Bullet 2 Move the problem overseas

• Outsourcers have the same skills shortage problem
  we do
• And, its far worse for legacy skills
• Costs savings arent what they once were
• Indias software-and-services association puts
  wage inflation at 10-15 a year. Some tech
  executives say its closer to 50.
• Do you really want to outsource your domain
  knowledge?
• Often, programmers know more about business
  processes than the business people do

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Magic Bullet 3 Replace all the older systems
Ford fails to climb Everest

• Ford Launched project Everest to replace
  mainframe-based Ford Supplier Network procurement
  system with new ERP-based system. After 4 years
  and multiple problems, Everest is scrapped. Cost
  400M

Innovate eats McDonalds lunch
McDonalds - Launched project Innovate to replace
multiple custom-built applications (including
mainframe accounting systems) with global,
ERP-based platform. After a year of RD and
spiraling costs, Innovate is killed. Cost 170M
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Magic Bullet 3 Replace all the older systems

• A recent survey in the UK showed that among 50
  mid-to-large size enterprises using mainframes
• 93 still depend on the mainframe to run
  mission-critical applications
• 50 say it is too risky to migrate off mainframe
• 28 tried and failed to migrate off the mainframe
• 12 had limited success with a migration off the
  mainframe
• 8 had tried and succeeded with a migration off
  the mainframe
• Source Mainframe still reufusing to die.
  Survey, Ireland News, 2/28/07

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A Balanced Approach Determine your risk
1. Gather Demographics of Staff in Key Roles
2. Determine Future Staffing Requirements
3. Perform a Gap Analysis Projected Staff
Requirements vs. Future Staff Requirements
4. Identify At-Risk Areas (departments and
skills) Rank from Greatest to Least Amount of
Time to Hire and Train
Now, Youre Ready to Create an Action Plan
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A Balanced Approach Develop a solid mentoring
program

• Pair Seasoned Professionals with Up-and-Coming IT
  Executives
• Ensure transfer of corporate knowledge as part of
  mentoring
• Encourage Younger Workers to Volunteer and Assume
  Responsibilities
• Expose younger workers to direct training
  opportunities
• Offer Opportunities and Training to Staff
  from Other Departments
• Take advantage of the domain
  knowledge they possess
• Focus training on technical skills readily
  available through vendor
  and public training courses
• Define a Career Path for Every Employee

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A Balanced Approach Maintain ties with workers
nearing retirement

• Workers May Want to Power Down,
  but Not Check Out
• Provide Options
• Work schedules
• Jobs and responsibilities
• Workers may need benefits and would be open to
  lesser positions
• Consider Reduced-hours Forms of Employment
• Part-time, Job sharing, Phased retirement
• Recommend Retirees for Short-term/Project-based
  Work

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A Balanced Approach Partner with local colleges

• Ensure Course Curriculum Addresses Your Needs
• Provide Co-operative Education and Internship
  Opportunities
• Participate in Job Fairs
• Provide Guest Lecturers

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• FAST-FORWARD 5 YEARS

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Whats happened to our three characters?
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Software AG. Bright ideas, everywhere.