The transportation and logistics (T&L) industry is going through rapid changes in the face of globalization, digitization, and the emergence of new and innovative service offerings leading to entirely new business models. Margin pressures and increasing commoditization, technological advancements, demographic flows, geopolitical shifts and economic changes, and a host of other major risk drivers all are contributing to dialogues in boardrooms and executive offices. Most significantly, executives are asking if they have the right leadership talent in light of the challenges they face.
From our conversations with the board members and CEOs in the transportation and logistics industry, the following five issues and their implications on leadership talent have emerged as top of mind for the executives:
- Creating a solutions-based business
- Navigating the digital transformation
- Identifying next-generation leaders
- Capitalizing on an expanding world
- Building a best-in-class board
We hope this executive briefing document will serve as a discussion starter for thinking through how to attract and retain the right leadership talent in the face of these challenges.
Creating a Solutions-Based Business
- The transportation and logistics (T&L) industry traditionally has been driven by an emphasis on operational excellence, process improvements and a focus on cost minimization.
- Margin pressures and increasing commoditization of services are creating a need to transform the business from a set of standard transactions to a flexible array of solutions-based offerings.
Navigating the Digital Transformation
- Long before Big Data became a trend, managing massive volumes of data had been part of day-to- day operations in transportation and logistics.
- However, T&L companies need to be prepared to invest in digital capabilities that will transform their business rather than incrementally improving their heritage of data-driven management.
Identifying Next-Generation Leaders
- Companies that fully comprehend the challenges ahead in the transportation and logistics industry know there is a shortage of talent with the skills and competencies needed for the future.
- Securing the talent necessary for tomorrow’s business requires next-generation recruiting and strategic development of high-potential executives.
Capitalizing on an Expanding World
- Demographic flows, geopolitical shifts and economic changes have an immense impact on transportation and logistics, but the industry is not uniformly prepared to navigate the opportunities and threats of growing cities and emerging markets
- To make the most of opportunities in these non-traditional markets, companies need to get smart about the talent they place at the helm of these countries and must articulate a robust international growth strategy
Building A Best-In-Class Board
- An effective board is one that represents a rich variety of perspectives, allowing companies to develop (and execute) robust strategies while simultaneously managing risk.
- The work of the board of directors never has been more complex. Traditional issues like CEO succession and remuneration remain, while shareholder activism and digital transformation present new challenges.