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.
Let's accept for the moment Larry the Cable Guy's definition of execution: "Get 'er done." That's clear enough and would seem a fundamental part of business management.
Yet execution is one of the least addressed issues in the literature of management and leadership. That's surprising, because here, as with most leadership issues, the example is set at the top. Whether the chief executive does a masterful job or flat out fails to execute, the template is likely to be followed all down the line.
Leaders who can consistently get organizations to execute tend to share the following traits:
They know themselves and are honest about their own strengths and weaknesses. At any level in the organization, self-assessment is a critical first step for team building. If financial analysis is not a personal strong point, it is essential that you identify and put a capable "numbers guy" on the team. (N.B.: "Guy" is a gender-neutral term.) If your writing skills are weak, add a writer. Knowing your weaknesses is important, but it is critical to also recognize your strengths in order to balance the contributions that all team members can make to the outcome, to successful execution.
They know their people and have assessed their strengths and weaknesses. Building an organization (or a team) is an inexact science, and the biggest —and most common —management mistakes involve the selection of subordinates and team members who don't pan out. While such mistakes are inevitable, the willingness to quickly correct them is essential for effective leadership and execution.
They are realistic in setting goals that are both ambitious and attainable. The late Vince Lombardi stressed the concept of "second effort," the ability of an athlete to accomplish that which appears, at first, to be impossible. In business, stretch goals require second effort for attainment. If not, they're not really stretch goals. But real stretch goals do demand the ability to move beyond a comfort zone to reach the used-to-be unattainable.
There is a mission-critical difference between establishing stretch goals and setting unrealistic objectives for the sake of appearing to continually and continuously improve. When people tumble to the fact that they are being asked to accomplish the impossible, for no good reason except the boss's career, they often quit trying. In a distribution center, for example, it is unlikely that a goal of increasing shipping volume by orders of magnitude while maintaining zero errors and reducing headcount by a double-digit percentage will be reached. The frustration of failing to meet false stretch goals will drain energy from the management organization or from a project team.
They set the example. Follow-through is achieved through leadership by example. By setting an example as a person who gets things done, those around you will recognize that modeling your behavior can enhance their opportunities for success.
Creating a framework for execution
You can start the process of effective execution by identifying and challenging old, destructive beliefs.
First, squash the idea that yours is a commodity business. Commodities have one significant thing in common —customers believe that price is the only differentiator between competitors. Many managers in the logistics service industries overemphasize pricing, based on a belief that they are selling a commodity. The best companies in most industries are those that develop and deliver "special magic," a unique service or product that cannot be duplicated by the competition. Special magic is as much a mind-set as it is a reality. When you believe that your organization can create magical results for your customers, it is possible for the magic to become reality. More important, the customer will believe in the magic.
Second, make it clear to all concerned that profits don't always follow revenues; in fact, often the opposite is true. Bigger is not always better. Fortunately, the lean movement in both manufacturing and logistics exposes opportunities to raise profit by cutting fat, rather than by growing larger. Better yet, a lean approach can help synchronize bottom-line growth with top-line growth.
Next, discourage the assumption that "our ability to grow is limited." Many years ago, nearly every company in the warehouse service business operated in a single metropolitan area. Conventional wisdom held that quality would be compromised if branch operations were established at some distance from headquarters. Today, national service providers are common, and international service firms operate —successfully —on nearly every continent. The best of the best can provide quality services of many varieties from point of manufacture in distant lands to delivery to customers' locations across North America.
Every healthy business is also a growth business, limited only by the ambition and imagination of leadership. Growth involves quality as well as quantity. If your organization cannot be the largest in its field, is there any reason why it cannot be the best?
Another point: Control is vital, but overemphasizing it can be destructive. Results are what count, and creative people frequently break the rules to get results. Discipline may be important, but the promotion of creativity on your team is even more important. Finding the balance between order and discipline, and loosening the reins on mavericks is a critical management skill.
Understanding the execution system
To succeed at execution, it's important to understand both the pitfalls and the elements of success. As for the former, common reasons for failure in execution include a lack of necessary resources, poorly defined requirements, unrealistic timetables, misunderstood risks, and inability to respond to changed circumstances. A successful execution system, on the other hand, should include the following elements: standardization of the method, activity alignment, a regular review and refinement cycle, an organized communications program, and measurement of results.
Once you've hit upon a system that works, it's important to record the methodology. If you have 12 facilities in your network and the shipping accuracy rates of three are consistently higher than those of the other nine, it is critical to identify and describe in detail precisely how processes are performed at the successful facilities. Careful documentation of successful practices will help raise the quality of all performance.
It's also important to keep in mind that time management starts at the top. Management icon Peter Drucker observed that "effective executives know where the time goes." If time management is not built into your organization, execution is unlikely to be improved. How is the time of each management or team member best used? Are some people doing things right, but not doing the right things? Effective execution is enhanced by drawing back periodically to review whether or not everybody involved has the right priorities. Re-examining priorities should be part of every performance review.
To be successful at execution, we must understand the elements of a successful execution system, as well as the reasons for failure. There are nuances in definition that might be debated; yet most of us, like U.S. Supreme Court Justice Potter Stewart on pornography, recognize effective execution when we see it.
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 U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
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.