No matter what your role in the supply chain, sooner or later you're going to have to make tough calls about recruiting, hiring, or promoting your successor.
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 old order passeth." In times of old, this is the manner in which English citizens were informed that the former king had died (or been dispatched in treason) and that a successor, usually an heir, had been elevated to the throne. When a comparable event takes place in business, our first inclination is to think of issues in business continuity, of top leadership succession. But the issue is broader, deeper, and more pervasive than machinations in the C-suite.
It will happen sooner or later. You'll have done all the right things, built an "A" team, and backed it up with two-deep talent for the future. Then, the skies will open, dumping any number of things all over your desk.
It doesn't matter whether you're a line supervisor, a mid-manager, a VP with global responsibility, even a CEO. Whatever your role in the supply chain, you are going to have to make tough calls—and more than once—about recruiting, hiring, or promoting your successor (or replacing your loyal wingman).
WHERE TO BEGIN - THE OPENING SHOTS
So much to consider, and quickly. One thing we know for sure is based on the principle that people get promoted to their level of incompetence. Basically, the Peter Principle (the brainchild of USC's Laurence Peter) suggests that the best forklift driver may not be the best choice to lead an operation team, or that the best order picker is not necessarily a natural line supervisor in fulfillment. The head of sourcing and procurement is not a slam-dunk to take over full supply chain management leadership, and the North American transportation savant may not be the greatest pick to take charge of global logistics and supply chain management.
We have had this drummed into our heads for decades, but, under stress, we forget—or we feel obliged to somehow reward the folks who have worked like dogs, against all odds, to get the job done.
But we must be prepared for the likelihood that the best forklift operator will find almost any excuse to tool around the DC instead of leading, managing, and developing the staff. The world-class order picker/packer will, with little to no provocation, jump in to bail out a tough wave rather than motivate and measure the crew, or remove performance barriers and improve processes. The manager thrust into a leadership role will continue to make sure that all of the paper clips have been accounted for instead of dealing forthrightly with the essential question of why paper clips are really needed at all.
NEXT STEPS?
Or maybe all those possibilities are the right selections. What's important is not what they've done but what the new job requires—skills, experience, intelligence, people capabilities, analytic strengths, problem-solving ability, values, vision, whatever.
If the "natural" candidates don't have the goods, can they acquire what's missing? Hard skills, soft skills, contextual vision. Can you build from within, or must you go outside? Or is there a mix-and-match solution?
BEGIN AT THE BEGINNING
The core question is what is needed, whatever the position and scope of responsibilities. Skills, talents, experience—sure. But what about intrinsic personal qualities and how those can increase the odds of success?
What were the drivers of the departed's behaviors: his or her motivations, communications abilities and styles, and working and decision-making preferences? Does the replacement need these—or is a change in order to elevate unit and organizational performance?
All too often, organizations fall into the trap of selecting candidates because "they fit our culture" or because "they are just like us." This is a deadly protracted downward path. Truly mature, confident, and self-challenging organizations deliberately seek out diversity in styles, because teams of leaders that are incapable of groupthink generally develop superior programs and solutions.
This vital element is too often ignored in considering how, and with whom, to replace those individuals who are moving on or moving up. Don't be one of those looking for the comfort of the same when the different might be exactly what's called for. But also bear in mind that getting different solely for the sake of difference can lead to a crash of epic consequences.
AND THEN?
Going a step further, how important is emotional intelligence (EQ)? How good is the young prince, the king-in-waiting, at understanding the needs and styles of others?
How important is this? It affects the probability of success at every level and in every organizational function.
IS TIME ON YOUR SIDE?
Then there's the added complication of timing. Having some time to work with unties your hands a bit. Is the need yesterday, or next year? Can you provide serious training and development to elevate the baseline of essential qualities in an internal candidate? Do you have interim assignments that relate to key elements of the new position's skills and experience?
What are the risks in hoping that the rookie's strengths will outweigh the weaknesses? Does the candidate have the heart and soul needed to work like a rented mule on shoring up the gaps? And the IQ/EQ capacity? Are you willing to bet your career on a known-to-be-imperfect solution?
If there is no time, the case for finding fully qualified outside talent gets stronger. Although there still might be developmental needs—there is likely no perfect candidate—the overall fit could be much better.
AND YOUR FINAL ANSWER IS?
Even with all of today's personality assessment tools (think Myers-Briggs et al.), these mission-critical people decisions remain a bit of a crap shoot. So, you've got to be prepared to start all over when the new supervisor doesn't pan out, or the all-star global supply chain VP turns out to have a weakness for slow horses and filling inside straights.
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.