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.
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.