Where have all the leaders gone? Long time passing ...
As the old guard exits the workplace, we'll need successors who know what leadership is and how to exercise it. But who will nurture that next generation of leaders?
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.
The title of this column might be sung to the tune of a Peter, Paul, and Mary hit from the days of peace and love. But the real question could—and should—be, "Where are all the leaders coming from?" Not that we are awash in leaders.
The supply chain management space has produced, or attracted, pioneering icons since the early 1960s. Some were, and are, leaders. Most were, and are, managers, practitioners, mavens, gurus, and factotums. And the trailblazers are dying off, surely and steadily.
So, what are we, as an industry, doing to create successors who can do more than drive the bus we are already riding in? The casual observer would conclude, "Not much."
WHERE DO LEADERS COME FROM?
Before we understood that leaders could be "made"—developed with tutelage and practice—they were "born." We believed that some among us were just hard-wired at birth to create, visualize, persuade, motivate, charm, empathize, and communicate—to lead by example, to embody core values, to walk the talk, and to attract followers. It took us a long time to probe what made leaders different and what made them tick. It took us a while to suspect, to research, to learn, and to codify the attributes that made them leaders.
We now know that leadership can be developed and honed, that no one has to be locked out of a leadership role by accident of birth. But that raises the question of who will nurture a next generation of both do-ers and leaders, as well as managers and administrators.
By and large, organizations do not provide specific career development designed to create leaders; they might not know why they should, and they most probably don't know how. Universities are absolutely wizard at teaching functionality, at execution levels and in integrated concepts contexts when it comes to supply chain management (and many other disciplines). They may teach management skills and administrative techniques.
Don't get me wrong; these are important. Someone has to manage inventories; someone has to ride herd on sales and operations planning (S&OP) processes; someone has to design distribution networks, or source materials, or rationalize the carrier portfolio. But to what end? To what vision and strategy that a leader has positioned as a unified objective toward which to align resources and effort? And who, where, is creating leaders, nurturing those who can conceive visions and solutions—and develop followers?
WHAT IS A LEADER?
Definitions and descriptors abound, depending on whose book you have just read. Pick an exemplar, any exemplar. Jack Welch, Rudy Giuliani, Colin Powell, Dick Cheney, Dwight Eisenhower, George Patton, Sun Tzu, Machiavelli, whatever and whomever turns you on. Absorb the wisdom of business writers: Tom Peters, Michael Porter, Guy Kawasaki, Daniel Goleman, Daniel Pink, Simon Sinek, Stephen Covey, Ken Blanchard—the list is endless, a Mobius strip of both acclaimed and self-appointed experts.
Here's what leadership comes down to, though, and it is not a slogan or a simple set of attribute labels. In essence, leaders:
Create, keep, and pursue visions
Align teams around objectives
Know their team members on both personal and professional levels
Build teams deliberately for skills, experience, and style mix
Understand, and teach others, team dynamics, roles, and stages of growth
Communicate, with forethought, in written, oral, and nonverbal modes
Maintain personal enthusiasm
Develop the skills and capabilities of those around them
Know and understand their audiences and constituencies—needs, motivators, and styles
Collaborate with peers, subordinates, and superiors
Recognize that leadership behavior is independent of job title
Reach decisions, with appropriate input, and make crisp decisions at crunch time
Manage conflict with others; mediate conflict among teams and subordinates
Solve problems, preferably in collaboration, or independently in extremis
Praise individual and team accomplishment publicly; correct performance issues privately, using consistent rigorous coaching processes
Delegate intelligently, for individual development
Establish clear accountability for all work assignments; share credit for achievement; take the heat for shortfalls
Fight to the death to eliminate the toxic "isms" that rot organizations from within: favoritism, cronyism, nepotism, sexism, racism, ageism, egotism, pessimism, and others
Act honestly, with integrity, in all matters
Live core values in all activities and interactions
Understand the principles and nuances of situational leadership, the tool kit of directing/telling, coaching/selling, supporting/participating, and delegating
Select and apply appropriate leadership styles to match the needs of specific work scenarios
Elevate situational leadership applications for results based on team maturity and stage of development
Are authentic, genuine in all their behaviors and relationships.
THE ROAD TO MARRAKECH
Is there more? Of course. There always is. But the behaviors that constitute leadership turn out to be far more complex, subtle, and interwoven than simply being the boss, or the chief task assignment shuffler, or the first mate who can order those chained below decks to row faster.
The good news? All the listed leadership attributes are teachable and learnable.
It's not enough to be born to lead; the chosen ones must still learn what leading means. It's not enough to be appointed to a position of power; power without purpose, or power without lessons in its limitations, is not sustainable power. Being surrounded by an aura of charisma is not enough; the most beautiful must still learn how to be the brightest, how to push the buttons that make the machinery work.
The bad news? It's where we began this discussion. What entity is teaching those with potential to be leaders? Where does a talented person of promise and capability go to learn what leadership is and how to exercise it? Who is Luke or Lucy Skywalker's Yoda?
While we fight other battles in the trenches of the profession—a general talent shortage, a catastrophic shortage of truck drivers, the mere trickle of analytic capability entering the field, vicious competition, and disruptive innovations—we must also find ways to create leaders who are whole and genuine. Without them, the other challenges are likely to not get solved, or might limp along, held more or less together with the intellectual equivalent of spit and baling wire, and liberal applications of duct tape.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."