Leadership in supply chain risk management

Board Press Release (26)

Whether we are considering safety, security or sustainability, a common, vital theme is the important role of leadership in delivering desirable and consistent outcomes. There are many descriptions of leadership as a practical skill, but in essence, leadership is the ability of an individual, a group, or an organization to influence, or guide (lead) other individuals, teams, or entire organisations towards a common desirable outcome or culture. 

Influencing behaviour

As a practical skill, leadership can be a challenge to categorically define, given that it is a constant process, encompassing myriad circumstances. Typically, of course, it will be necessary for an organisation to lead on multiple concurrent work streams, including safety, security and sustainability performance as well as to meet financial targets, ensuring that the business remains compliant and profitable. 

We often consider the importance of behaviour at the top of an organisation, and that what front-line personnel see, and experience will influence their own behaviours in the workplace. For many organisations, several leaders will be required to ensure that the wider business outcomes are achieved across a range of disciplines. A successful leader could be described as an individual with the ability to understand other’s motivations and encourage their dedicated participation, meeting both their individual needs but always focused on achieving the desired outcomes for the organisation. 

Leadership is not a short-term or interim strategy, not something that is achieved and then sidelined. Successful leadership is a long-term strategy for any organisation, a constant and consistent approach that provides both certainty and stability to the workforce, positively impacting performance.

Successful leadership is a long-term strategy for any organisation

The concept of culture

Developing a strong culture around themes such as safety, security and sustainability is something that many organisations aspire to. TT highlighted the importance of an organisations culture in an earlier edition of TT Talk here.

The article highlighted that the first steps towards developing a strong culture were to secure strong leadership commitment. Leaders must visibly demonstrate their dedication to the cause, communicate expectations clearly, and allocate resources to support related initiatives. Leaders should actively participate in related programs, set measurable goals, and hold themselves accountable for outcomes.

Leadership must be by example, seen to be ‘walking the walk’ and not just ‘talking the talk’. The whole organisation should feel that doing the right thing is the only way to work, and this must be led and empowered from the very top. Where the leadership team is seen to take organisational outcomes seriously and be accessible where appropriate, then the entire workforce will follow suit.

Good leadership

Themes around good leadership are often subtle in nature and social related, recognising that there is no one size fits all solution. Individuals, teams and organisations are dynamic, constantly responding to a host of challenges and therefore a successful leadership team needs to be agile and adaptable in their approach. Good leadership is not something that happens by accident, it requires the same level of time and resource that are demanded of other business-wide strategies.

From a personnel perspective, responding positively to leadership is aided by certainty and stability.  Fundamentally, knowing what to expect and what is expected of you are critical elements to continued successful outcomes. The outcomes themselves can be an important aspect to consider and monitor. Is the leadership strategy delivering positive outcomes, how do outcomes track when compared to historic performance and importantly how are outcomes communicated to personnel.

Clear and transparent communication should not be underestimated. Where outcomes are less desirable, ensuring that a positive approach is taken to raising awareness across the organisation is of importance, encouraging individuals to take responsibility and respond accordingly. Where outcomes are positive, effective communication can assist in developing organisational morale, driving greater levels of motivation to continue supporting the desired business activities. Individuals should feel secure in their respective role, clearly understanding the impact that they have to the whole. This will result in greater levels of personal accountability, inclusion, commitment and role satisfaction.  

Equal recognition of success and failure is an important factor to consider from a leadership perspective. Celebrating success and recognising achievement are critical motivational levers, to ensure continuous improvement however, transparency about less desirable outcomes is an equally important factor.

Equal recognition of success and failure is an important factor to consider from a leadership perspective

Future strategy

Effective leadership will enable a business to achieve positive performance outcomes, however there are likely to be additional less-tangible benefits. Having a clearly defined strategy and consistently achieving desired outcomes will afford opportunity to focus on future direction and growth. Related to future strategy, the leadership team will be able to approach innovation and change management positively as personnel will be more receptive to change. Critically, due consideration and resource can be dedicated to the development of the next generation of leaders in the business.

Summary

Nurturing good and effective leadership does not stop with the person at the very top of the company organogram. For effective leadership, the aims and direction of all leaders and managers, from the boardroom to the workforce facing team leaders should be aligned and consistent to help foster the desired culture.

Effective leadership is not something that can be implemented quickly, nor is it a one-time focused exercise that is achieved and then placed to one side. Effective leadership is a multi-faceted long-term strategy that impacts every aspect of a business. In the context of safety, security and sustainability, performance is typically enhanced when those in leadership positions demonstrate a clear commitment to achieving set targets, empowering personnel to deliver desired outcomes.

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Mike Yarwood

TT Club

Date01/10/2024