Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
It's getting somewhat unsettling. One can be having a perfectly wonderful time in either a business or social situation, when it somehow comes out that he or she is a consultant, or is "in consulting." Things tend to get quiet, in an ominous way. Mothers gather their daughters to their skirts; little boys peek out from behind their fathers' jackets. Business peers draw back—recoil might be too strong a word—and suddenly become distinctly less friendly.
We are guessing that an on-the-spot poll would put consultants somewhere below pedophiles, but still slightly ahead of members of Congress. Not easy to accept. One of us has been a professional management consultant for over 40 years; the other, nearly a neophyte, a mere 30.
We came of age believing that consulting was (and is) a noble calling, something to aspire to be good enough to do, an appellation we needed to continually strive to live up to.
So, what has happened to turn "consultant" and "consulting" into words that don't carry the weight and command the respect they once did? What do they mean today? And are there new words that have taken their place?
EVERYBODY'S A CONSULTANT
For openers, a nation of people who don't remotely do consulting have adopted the name. We have sales consultants for everything from used cars to discount electronics. Other sales people have become, say, material handling consultants or supply chain execution systems consultants, depending on what product or service is being sold. The practice is only a little short of the kind of language manipulation that has given us sanitary engineers emptying the wastebaskets on the night shift.
Then, there are the legendary abuses of teams of information technology design and implementation specialists; their employers call them consultants, and eventually they come to believe that they are. But they are technicians, performing tasks. Never mind that busloads of them, at hourly rates that look like consulting fees, are apparently needed to be able to flip the switch and turn on enterprise-changing software. Oh, yes. Logistics service providers (LSPs or 3PLs) also have teams of consultants to recommend supply chain solutions.
Finally, we have experienced a parade of honorable and well-meaning people who have found themselves unemployed and have called themselves "consultants" while doing odd jobs during their job searches. Most often, they have no idea of how to structure consulting relationships—and projects—or how to price themselves or their projects. They typically don't have the network of resources to bring appropriate experience to bear on the several pieces of a multifaceted business challenge.
Whatever the cause or causes, "consultant" and "consulting" are, it seems, terms to be avoided in polite society.
BRANDING AND POSITIONING
A working partner recently confessed to considering taking "consulting" out of the company name and off the website, based on apparently shifting perceptions of and degrees of acceptance and respect for consultants and consulting. She is not alone and may be late to the game.
An eventually world-changing readjustment might have begun in 2000 with Andersen Consulting's adoption of the Accenture name, and their creation of a new brand. The rest of us laughed at the time, but we aren't laughing now. Already split from the mother ship, a totally disengaged Accenture escaped any damage or fallout from Arthur Andersen's total collapse in the wake of the Enron affair.
Later, another global services behemoth, KPMG, rebranded its consulting unit as Bearing Point, which we still do not understand the meaning of. But it doesn't say "consulting." Coopers & Lybrand, then PwC, retained "consulting" in the name of its affiliated business services units. E&Y divested, and its consultants became part of the international giant CapGemini.
Deloitte Consulting, alone of the Big Four, continues using the apparently tainted term, but a recent consultants' listing is headed only "Deloitte." PwC and KPMG are back in the consulting business, with both using the "advisory" appellation as a substitute.
WHERE WE COME OUT ON THE QUESTION
Neither of us uses "consulting" in our organizations' names. Maybe that's the practical course for now. And maybe the tide will turn after "advisory" falls into disrepute someday.
However, we are not going to stop proudly announcing that we are consultants. Hey, it's what we are, have been, and are going to continue to be. We're not ready to reposition ourselves as coaches, cheerleaders, masters of innovation, chief fun creators, supply chain evangelists, or anything else that dodges the fundamental truth of what our professional lives are about.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.