A focus on mobility: interview with Rosabeth Moss Kanter
All the talk about potholes and creaky bridges is getting us nowhere, says Rosabeth Moss Kanter. To kickstart the infrastructure debate, we should be talking about mobility and the economic opportunity it makes possible.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
The state of the nation's transportation infrastructure, the need for greater investment, and how to pay for it are frequent topics of discussion among logistics and supply chain professionals. But it's not a topic likely to gain a lot of public attention until a bridge collapses or, as happened in Boston last winter, public transit comes to a halt.
Rosabeth Moss Kanter, one of the nation's leading thinkers on leadership and innovation, hopes to change that. In her new book, Move: Putting America's Infrastructure Back in the Lead, Kanter seeks to draw attention to the urgency of fixing our infrastructure and kickstart the national discussion. She also offers a fresh approach to drumming up public support for infrastructure investment: frame the debate not around fixing roads and bridges or dredging ports, but around mobility and economic opportunity. We can get there, she argues, by using the technology we already have to create "smart" transportation and infrastructure. Among other benefits, she writes, "reinventing transportation and infrastructure has the potential to save lives, cut costs, add convenience by easing congestion, reduce pollution and mitigate climate change, and create future growth opportunities that generate new jobs."
Kanter, a professor at Harvard Business School as well as chair and director of Harvard's Advanced Leadership Initiative, has been named one of the 50 most powerful women in the world by The Times of London, among many accolades. She is the author or co-author of 19 books.
She recently spoke to Editorial Director Peter Bradley about her new book.
Q: What led you to write about infrastructure?
A: It is a very, very important national agenda item that doesn't get as much attention from the public as it should. I am part of a project at Harvard Business School on U.S. competitiveness, recognizing that we are a global economy. We began digging into what are seen as the strengths and weaknesses of America, and one of the big areas of concern was education, K through 12 education. But next in terms of concern level was logistics and infrastructure. ... So I said, "All right, I'll just convene a summit to see what business leaders, government leaders, advocates, and activists have to say." The summit was highly successful because many of those leaders had not been at the same table together in the same conversation. They, too, felt that the general public didn't understand the magnitude of the problems in America, that something that was once an area of strength has been deteriorating badly.
Right after the summit, with the encouragement of the participants, I decided to write a book, which became Move. I want it to be helpful to people in industry, but I also want infrastructure to be on the agenda for the presidential candidates because the situation is urgent. I am known for my work on leadership, and I finally decided that although there are a lot of technical dimensions to the problem, the real key to change is leadership.
Q: What response has the book received so far?
A: Well, the response that I have seen is very, very positive. I have had some great reviews of the book itself. I had the chance on my book tour to speak on national radio and television, including an appearance with Jon Stewart on "The Daily Show." I'm still getting requests. So there is tremendous interest in the topic, and that gives me hope that we can get a public dialogue going. It's a topic that affects people every day on their commute to work. Yet people don't feel there is anything (being done). I hear a lot of frustration.
I also get a lot of mail, e-mail, in response to the national media attention. Invariably, I get e-mails of two kinds. One is people talking about their own frustrations in their local communities, projects that are not yet finished, goods that move too slowly, roads that aren't repaired, the problems with an airport. They vary in what they think the solutions are because at the moment, there is somewhat limited trust in the public sector. Then I get a second kind of e-mail, where people write me about their innovations. They have a new road surface material that can be put in faster. They have a new bridge inspection device that can spot weaknesses faster and before there's a need for really big repairs. I hear from people who are working on new forms of personal transportation using rail, pods that can run along rail lines when they're not being used. I see there is a lot of imagination in this country. We need to use that imagination to deal with the frustrations.
Q: It does seem, though, that we only pay attention to infrastructure when something goes terribly wrong. How do we get a consistent sense of urgency?
A: Well, if that's a sense of urgency as in, "My gosh, the pain is so bad we can't stand it any longer," I'm not sure. I mean, we would need a lot of bridges collapsing at once. You can't scare people into change. There is a flurry of reports and then it goes away. Something else takes the front page.
What you need is people, leaders with a big enough vision that they can convince people that the benefits are worth some of the immediate costs. That if they pay a little bit more to use roads, whether it's in the gas tax or in the form of a toll or a vehicle-miles-traveled fee, they're going to get enormous benefits—not just relief from frustration, but real benefits in being able to get to work, being more productive, finding jobs, moving goods more expeditiously, saving lives, being greener, avoiding the health consequences of breathing bad air, and seeing economic growth in areas that right now can't attract business. Those are benefits that people can see. So you need leaders who can sketch out that vision, show the connections across modes of transportation. In your industry, trucks and rail play together very well these days. The biggest increase in traffic is in the intermodal arena.
Q: Enough to the point that the railroads have capacity issues now.
A: So now we need more terminals. But if those terminals are part of a plan for regional development that includes the rail lines and the ports, and the connections to the ports, you can tell a story that is a vision for our future. We can use technology in a smarter way, and leaders can talk about how that will make a difference. We can use technology that we have but aren't always using to prevent train derailments, speed trains up, or prevent truck crashes.
The first thing you need is a leader with a fairly comprehensive and compelling plan to present to everyday concerned Americans. You know, there are certain kinds of economic activity that are not happening because of the problems of moving goods as well as moving people. So you have to have a visionary leader who tells that big-picture story, ties it to the concerns of everyday Americans. Can I get a job? Can I get to my job? Can I get my kids to school? Will the emergency vehicles be able to reach my house in a disaster?
Then you have to start with the highest-priority projects and show progress on those projects. We need to hold whoever is handling the project—whether it's the public sector or the private sector—to high standards. We need to invest in upgrades, or we will have more lives lost, more frustrations. We are operating on borrowed time. And we're not always using all of our own technology. So it's time to get moving.
I think it requires leaders to tell that story in a compelling way. I know that state and local departments of transportation would like this, but they tend to be off to the side. It really takes presidents, governors, and mayors. And we need new models to do all of that, so my book Move is all about new models.
Q: Yet when we can't even get a highway bill renewed, where does that leadership come from?
A: The highway funding debate has now gone several rounds on Capitol Hill because Congress is way too partisan. Also, I don't know if between now and the end of October, Congress can take the time to really think through tolls, vehicle miles, and travel fees. The gas tax has run out of steam itself because it was a 1950s policy. We have now reduced our usage of fossil fuel because we have more fuel-efficient vehicles. ... I think we should continue the gas tax because a tax on fossil fuels is a good thing. In fact, I think we should raise it, but I think we should also rethink it.
We also have to get the private sector more involved because there are private sector investors who would like to invest in infrastructure. They often see it as a good long-term investment. But they don't always want to invest when there are so many political uncertainties. And you don't want to start repairing the roads only to have the project come to a halt because they're running out of money. So it all requires national leadership with the cooperation of regions. I think we could get it done, but I don't think we're going to get it done between now and the 2016 election, unfortunately.
Q: As I read your book, it struck me that you're suggesting we reframe the argument from infrastructure, which can elicit a yawn, to the whole idea of mobility.
A: Yes, mobility, which is all about moving. There are other forms of infrastructure that we should care about—water pipes, sewers, energy infrastructure—but I think the first thing we have to fix is transportation, and it is all about mobility: how we move, how we get around, how we get what we need.
Let's say we want to stay home and shop or work remotely. That also requires infrastructure. It requires physical goods getting to your doorstep somehow. Also, it requires more broadband. So we should be thinking about communications infrastructure in the same breath as transportation infrastructure. My favorite chapter title is "Smart Roads Meet the Smart Phone." The smartphone and autonomous vehicles and even the kinds of information reports that trucks are transmitting to fleet management systems ... all of these require a lot of broadband and we are not investing in that either in the U.S., so I want to see all these issues talked about together.
Q: I also want to ask you about the concept of the "quintuple wins." You went back to that over and over again in the book. How did you develop that, and how do we use that to drive the argument forward?
A: Well, thank you for picking that up because that is something the public can understand and get—that for every project, we should be evaluating it against its contributions to five different things, what I call the "quintuple wins": safety, cost efficiency, productivity, a cleaner environment, and economic development.
You take something like the Miami Port Tunnel project, which I talk about in the book. Within a year after the tunnel opened, it had already taken 80 percent of the truck traffic off the streets of downtown Miami and funneled it directly to the interstate. That has at least five wins in it. It's safer because it diverts trucks from areas where they're likely to be in collisions. It is very cost effective—the project came in under budget and it is now saving time, so that takes out a big cost. It is very efficient, boosting productivity by allowing trucks to get on the road or to the intermodal terminal a lot faster and thus, to carry more goods from the port. This is incredibly environmentally friendly—they didn't disturb the ocean floor, so that project met the environmental sustainability criteria. And it's a perfect model of how a project can promote economic growth—in this case, providing a way to take advantage of the larger ships that are going to come through the Panama Canal. It's going to make that area even more of a cargo shipping center. So that is one example of something that has five wins.
I want to hold that standard. I want to say we don't just spend money on bridges to nowhere. We do things that are going to make us healthier and safer, and make our system more efficient. We will raise productivity, make it more convenient for everybody. We will see environmental benefits and a reduction in carbon emissions, and it will create not just today's jobs in construction but also create jobs for the future.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.