Change now: why evolution is the answer to disruption

During a crisis, it’s tempting to lurch back to normal as soon as humanly possible. Normal offers a sanctuary, is reassuringly familiar and presents fewer problems to solve. To that end normal also represents a status quo, a territory in which equilibrium is maintained and everything bubbles along just nicely. But it’s a false kind of reassurance, because as we know disruption is never far away.

Moreover, it is a misleading kind of comfort because, although undesirable on a large scale, chaos, disruption, and crisis are a true test of resolve, an unflinching stress test that exposes strength and weakness with merciless accuracy. To eschew that kind of lesson and retreat to safety at the first opportunity is to be a boxer that trains but never enters the ring. You never taste victory. Therefore, it’s comfort and not conflict that we should fear. After all, in a crisis there is opportunity.

It’s important as supply chain professionals to recognize that. We operate in a constantly evolving landscape in which the clock speeds are getting ever faster. Risk and disruption are ever-present in one guise or another. I’ve often said that inertia to change is the biggest danger supply chains face, and I stand by that. We need to recalibrate our attitudes towards disruption and to change in general so that we may learn and grow.

To that extent, the pandemic has shown us that adaptability is essential for survival and for prosperity too. These are challenging but exciting times. There is no doubt that continued volatility and turbulence will disrupt, and it will create uncertainty. But businesses must use this time wisely.

The pandemic has been bruising period, but we must view it as a wake-up call for the industry, a catalyst for change, a global reset, requiring businesses to transform and plan for resilience and greater flexibility. Those companies that do will have a better chance of adapting. However, the question is: can this vision become a reality? Are businesses prepared to disrupt and transform the status quo?

Bridging the gap

For me, the answers to those questions are as much about people as they are about technology and systems. Broadly speaking, the industry is sold on disruptive technology and cannot imagine a future without it. But can the same be said of its workforce? And is it reasonable to expect flexible supply chains without developing a workforce that has flexible skills to work within it? I don’t think so.

Despite that, we find ourselves in the middle of a skills shortage in the industry – even though thousands of logistics and supply chain students graduating each year. Whether that is down to poor training, substandard teaching or monolithic institutions is open to debate. My suspicion is that it’s all three.

What is not open to debate is that tomorrow’s leaders will need to have skills and abilities in areas that we do not know yet. With that in mind, it is time to implement dynamism in our teaching and training, so that we can develop adaptable and flexible people that are optimal in uncertain environments.

The starting point is to recognize that nothing is in a permanent state for long; and while we cannot expect to retrain supply chain professionals every three months we can ensure that we’re able to respond to changes by having a continuous development process in place. Our organizations must have investment and incentive schemes that reward professionals for continuous development; developing incumbent staff should be prioritized over hiring new talent (where possible); we need also to redraw the linear supply chain to put skills and professional development in there. The Digital Capabilities Model, which is mapped to the SCOR Digital Standard, provides an excellent framework for supply chain professionals in that respect.

Universities meanwhile must be held to greater account. Their culture must adapt. They need to recognize that courses and curriculums need to reflect the demand from industry, and as such the process for changing their content needs to be more fluid. Universities are slow to adapt – and so too are academics – if they remain so then there’s an argument to say that they are no longer fit for purpose. They cannot preach change, transformation, and agility if they will not practice it.

Profound change afoot

On the face of it, there’s much work to do, but there’s also a lot happening. There’s no doubt in my mind that the supply chain can have a lasting and positive impact on society and the planet. That will require serious thinking at an organizational level. There are signs that the wheels are in motion.

I’ve taught in universities for almost 20 years. The students I have now, see business and management very differently. The companies they start are much more people-centric, much more open to change and have a far more fluid organizational design. Diversity in leadership isn’t as much of a problem, which in turn brings different practices into the fold. The net result is an organizational culture that embraces crisis and volatility – using it as a refresher. They’re far more likely, in my experience, to embrace disruption and embrace crisis to rejuvenate and exploit the opportunities it brings. It’s a lesson for us all.

It’s also a vision that naturally fosters the kind of resilience and agility that are advocated to deal with unknown and hidden risks. For those not there, what’s required is a change in mindset, and to understand that not all decisions should be made on profit and loss alone. Those companies that start planning and investing in transformation today will be better prepared for the unknowns and challenges they may face in two years. Acting in two years will be too late.

To my mind, the biggest threat is ignoring the issue and not recognizing that change is both inevitable and necessary.

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