I’ve always hated when people called successful individuals “lucky”.  Luck has nothing to do with it, I’d argue.  Success is about hard work, talent and intelligence.  After reading Malcolm Gladwells book, Outliers, this weekend I was forced to back off that stance.  At least a little bit.

In his book, Gladwell argues (and essentially proves) that while hard work and talent are certainly a huge part of success, circumstances beyond our control often play an equally big role in our successes and failures.  One example he gives is Bill Gates.  Gates talent and work ethic are well known, but what’s not well known is the fact that he was one of the only high school students in the world to have regular access to a computer in 1968.  Would Microsoft exist today if Bill Gates wouldn’t have been able to combine his talent/work ethic with the extremely rare opportunity to work with computers in the late 1960’s?  Gladwell says no (and Gates agrees).

One of the areas of the book I found most interesting was Gladwells claim that certain generations are more set up to produce “outliers” than other generations.  For example, of the 75 richest people in the history of the world 14 of them (almost 20 percent) were born within nine years of each other (1831-1840) in the same country (USA).  Gladwell says this statistic is no coincidence.  It is a result of a generation entering the workforce during the emergence of the railroad, wallstreet and industrial manufacturing.  Had John Rockefeller and Andrew Carnegie been born a decade later or earlier, they likely would have missed the incredible opportunities presented to them in the early stages of their working careers.  

On the other side of that spectrum are those who began their working careers amidst the Great Depression.  With jobs scarce and economic opportunities rare, even the brightest minds and most talented individuals of that time were forced into poverty.

So if the generation you are born in ultimately helps determine how successful you will be, where does Gen Y fall on this spectrum?  Call me an optimist, but I believe we have an opportunity to be a generation of “outliers”. 

Here’s why:

• The economic rules are being rewritten- Like those born in the 1830’s, we are entering an economy that is going through a massive overhaul.  Energy, healthcare and Wallstreet are all embarking on huge face lifts, and in theory this will create unlimited opportunities for our generation.  While those before us will be too old to take advantage and those after us will be too young to capitalize, we are entering the work force just in time to reap the benefits of the coming changes.
• We are beginning our investing careers in a historically low market- According to Carl Richards, you set yourself up for well above average returns by beginning your investing in a down market.  While this market is a disaster for those nearing retirement, it could be a huge blessing for those of us just beginning to invest.  Assuming we don’t see an economic downturn this bad again for the next 50 or so years (which is a pretty safe assumption if history is any indication) we will come out well ahead as a result of the market we are entering.
• We had “helicopter parents”- What is seen as bad thing by many, Gladwell considers our parents extraordinary involvements in our lives growing up a huge advantage to our future.  The largest difference between the poor and the rich growing up, he argues, is the involvment of parents.  Gladwells studies show that the more involved a parent was in a childs life, the better off he fares as an adult.  If that is the case, most of us are in great shape.
• New technology is at an all-time high- With social media exploding and businesses figuring out different ways to benefit from it everyday, our generation will be called upon to both integrate these technologies into their business and continue coming up with new and better technology.

I still believe success is mostly dependant on your talent and work ethic.  But after reading outliers I’m more convinced of the role factors outside our control play in it.  I believe our generation is being put in a position of enormous opportunity.  Our talents and willingness to work will ultimately determine whether or not we take advantage of those opportunities.

What do you think?  Is our generation set up for success or failure?  Or do you not believe Gladwells assertion that our generation will ultimately help dictate how successful we will be?