Returning to balance in supply chains…

Every commercial enterprise and every public sector organisation has a supply chain. When the supply chain works well no one really notices, but when it’s disrupted, for whatever reason, all hell can break loose unleashing all kinds of reactions, realisations, and changed behaviours to deal with the situation. The Covid-19 pandemic and conflict in Ukraine illustrate this rather neatly. They have shown to governments, businesses, and the general public alike, that global supply chains cannot be taken for granted, are  fraught with risk, and can have dramatic economic and inflationary impact when seriously disrupted.

Global supply chains are at the heart of the functioning of the developed world, and the Chartered Institute of Purchasing and Supply highlights some of their advantages and disadvantages.  Globalisation has meant greater exposure to the risk of economic, political, and financial instabilities, health and natural disasters, and to the logistics,  communication, security, and lack of direct control risks that come with far off places. This truth is plain to see as governments and businesses, and we as individuals, deal with the ramifications of the pandemic and geo-political events. It’s unsurprising,  therefore, that much is going on in governmental and business circles to return supply chains to some better balance in order to reduce risk and improve economic resilience. As pointed out here, supply chain reshoring, where this is possible, and the establishment of multiple supply paths with overtly ‘friendly’ countries are being actively progressed to improve future business and economic continuity.  

The Badger’s harboured a feeling for some time that our reliance on complex global supply chains was a problem waiting to happen, and that some kind of ‘event’ would force some retrenchment. It seems that the pandemic and Ukraine have been the trigger  ‘event’, but if this hadn’t been so then it was probably just a matter of time before climate-change weather disasters or military belligerence between superpowers had the same effect.  There have, of course, been global supply chains for centuries – think back, for example, to the Silk Road and the Spice Route. What’s happening in the world today is not their death, but a ‘returning to balance’ that should provide a more balanced, baseline template for the future.

Decades ago, the Badger ran a project that included building hundreds of bespoke computing devices whose LCD screens were produced by just one company in Japan. All went smoothly until the Japanese company unexpectedly stopped manufacturing the screens. The ramifications took months to sort out. The subsequent review and lessons-learned report not only highlighted flaws in the Badger’s company’s approach to managing suppliers the other side of the world, but also recommended that the company’s approach to international supply chains was overhauled to ‘return to balance’ . The phrase is worth remembering and seems very pertinent to what’s happening on the world stage with global supply chains today.

What’s colourless, odourless, beneficial and toxic, and runs the world?

The Badger has a small, framed, vintage print of the Periodic Table of Elements from his school days on his desk. It’s been a constant reminder over the years that everything in our physical world is made up of elements in this table. While at his desk listening to a rather frustrating podcast featuring a climate emissions evangelist and a business leader arguing about fossil fuels, the Badger’s eye was drawn to this trusty print. Something said in the exchange between the protagonists in the podcast made the Badger mentally tune out and recall how his school chemistry teacher used to describe elements in the Periodic Table and common chemical compounds. The trigger for this was the business leader saying that ‘fossil fuels run the world economy and hence our lives and will do so for some time yet’.

It made the Badger look at the framed print on his desk, think of his school chemistry teacher, and decide that it’s not fossil fuels but something colourless, odourless, beneficial and toxic, that cannot be touched or felt and that can be produced by any country, that really runs the world and its economy today, namely software! Fossil fuels and industries that heavily use them bear the brunt for most activism on reducing global carbon emissions, whereas software, which constantly proliferates at the heart of our ever-expanding digital and ICT world, seems to have a lower profile on the ‘green’ activism scale. Notwithstanding Microsoft’s drive to be carbon negative by 2030 and the existence of the Green Software Foundation, it feels like the design, development, testing, release and use of software in every facet of life deserves much more quantitative ‘green’ attention if global digitalisation and the processing and storage of huge amounts of data isn’t to become the next generation’s emissions and resource sustainability crisis.  

Some argue that software and global digitalisation can help to cut our overall global emissions by 15% or more.  However, researchers at Lancaster University suggest not only that this might not be so, but also that while ICT has driven efficiency and productivity improvements over the years, the historical evidence shows that global  emissions have still risen relentlessly.  The devil’s always in the detail, of course, and spin and greenwashing are everywhere, but surely there’s a need for much clearer, quantitative, transparent data and public awareness about emissions  relating specifically to the design, production, and use of software – that colourless, odourless, invisible, cross-border item that runs the world?

The Badger’s school chemistry teacher knew nothing about software, but they were inspiring, articulate, a creative describer of matters of importance, and a stickler for quantitative assessment. They would have applied the same approach for assessing the production and use emissions of software as if it was an element in the Periodic Table…and, perhaps, so should we.

The Metaverse; What matters most will be trust…

There’s always a technological development lauded as the ‘next big thing’ that will change our lives forever, after huge financial expenditure, of course. One such is the metaverse which, according to Gartner, will not reach the ‘mature’ phase of its evolution  before 2030. The Badger admits to having an objective scepticism about the metaverse, ostensibly because ‘next big things’ often fail to meet their hype in anything like the forecast timescales. Development of the software, systems, and platforms for the metaverse is, of course, progressing apace, but that’s rather different to it ultimately being embraced by the masses because it provides tangible benefits to their lives.

During a social meeting recently, a tech-savvy millennial asked the Badger to answer  the following three questions about the metaverse using the simplest possible terms:  What is it? Will it happen? What about it will matter most to the average member of the public? An academic treatise can be written for each answer, but the Badger kept his answers, below, as simple as possible.

What is it? To borrow from Deloitte, the metaverse is, in the simplest of terms, the internet but in 3D, with facilities that provide users an immersive, 3D, virtual experience when engaging with virtual environments or other users. It’s a 3D virtual world within which virtual incarnations of a user can interact with simulated environments and other people for social or work purposes without being physically present.

Will it happen? Eventually…perhaps. Aspects of metaverse technology have developed in online gaming over the last 25 years, and Microsoft, for example, has implemented avatars and meetings in virtual reality into Teams. However, that’s still a very long way from a coherent metaverse that changes everyone’s life, especially when the legal, regulatory, data security, and privacy issues  with it are much more profound than with the internet and online world that we currently know.   

What about it will matter most to the average member of the public? Trust. If the lessons from rampant online evolution over the last 25 years are not learned, then the same mistakes will be replicated and amplified in the metaverse. Today we are generally more careful with our personal data and privacy, and more conscious of online security, rampant mis/disinformation, abuse, commercialisation, and the weaponization of information. If trust is not the starting position for the metaverse from the outset, then it will be just another ‘next big thing’ that irritates rather than benefits our lives.

The Badger told the millennial that others have different answers to these questions. They just nodded and said ‘It will be dominated by those who want to manipulate or control us. If I don’t trust it, I’m not going to participate’. If this view is widespread amongst millennials, then the metaverse may stall. Time will tell.

Innovation, USPs, and the herd instinct…

Have you ever listened to leaders talking in person, or via video or teleconference, about innovation, unique selling points (USPs) that make the company stand out from the crowd, and slogans to be used to grab the attention of potential customers? The answer is  ‘probably’, a word used to great effect in Carlsberg advertising campaigns  that trace their roots back to 1973. The Badger’s sat through many such talks over the years, but one more than twenty-five years ago generated a memorable insight that’s still relevant today.

At a senior staff gathering in a London hotel conference centre, the Group Chief Executive gave a lengthy presentation that announced and justified the company’s move beyond its software, systems development, and systems  integration roots into outsourcing and offshoring services. The presentation not only boasted about this being innovation, but also it conveyed new USPs. Many present were, like the Badger, experienced, delivery-centric people who felt the assertion that this was innovation was highly dubious, and that the new USPs were aspirational and not underpinned by any reality. The audience understood the IT market was changing, but they reacted badly to the claim this move was innovation because competitors were already way-ahead, and it felt like the company was just following the herd rather than playing to its true strengths.

In the hotel bar afterwards, a subsidiary executive provided some wise words of insight when tackled informally about the presentation. They pointed out that although the business world worships innovation as necessary for survival and growth, the reality is that true innovation is rare and it’s imitation that is the endemic driver. They used examples of the new products and approaches emerging across the IT industry at the time to illustrate that these were born out of imitation and not innovation. The executive also highlighted that since the herd mentality is a feature of human behaviour, no one should ever be surprised that companies follow the herd and assert USPs that are primarily just slogans to differentiate in business conversations with potential clients. The bigger a company, the executive asserted, the more the slogan is influenced by spin and market trends, and the more tenuous the link with raw capability. This has coloured the Badger’s calibration of company sales and marketing messaging ever since, and the executive’s innovation, USP and herd mentality insight still resonates in today’s world in which we are bombarded with information relentlessly, and organisations do everything they can to grab, keep, and capitalise on our attention. So, just remember that if something claims to be an innovation today, then be sceptical because imitation is endemic and true innovation is scarce. Similarly, always explore any asserted USP to see if it passes the ‘unique’ test amongst industry peers, because it’s the herd instinct rather than uniqueness that dominates the world of business.

Speaking truth to power in a commercial organisation…

The Badger was reminded of the dangers of speaking truth to those in power while talking to a friend at a social event recently. While sharing stories of the ying and yang of company life, his friend mentioned that they had been quietly tapped on the shoulder to say that they were at risk of redundancy. The Badger’s friend, with many years of loyal service, explained that their relationship with their boss had deteriorated, and that their boss was manipulating their exit because they had been consistently and relentlessly telling them the truth about project difficulties and necessary corrective actions. The boss, apparently, didn’t want to accept the truth, the difficulties were getting worse, and the Badger’s friend’s level of frustration suggested that both individuals had come to the end of their tethers!

Speaking truth to power is fraught with danger and to minimise its risks requires not only having an objective understanding of the personality and priorities of the person holding the power, but also good awareness of organisational politics, culture, and other factors. Without this, someone speaking truth to power might not foresee or prepare for the personal consequences of possible retaliation. These points were made to the Badger by his own boss many years ago during a coaching session. Their advice has influenced the way the Badger has spoken truth to power ever since.

One crucial piece of advice was that when speaking your truth, you must fully understand that you are either challenging something the person with power is responsible for, or their view or opinion of a situation or circumstance. It is thus essential to focus on the issue rather than on criticising the person or others. It is also essential, before you speak, to think through not only the possible retaliations and negative consequences for yourself, but also your gameplan should these materialise. If you don’t embrace these points then you may be ignored, your frustration will fester,  and you will be both flummoxed and unprepared should someone, for example from HR, tap you on the shoulder because you’re ‘a problem’. The Badger’s boss commented that anyone speaking truth to power must themselves partake in the gamesmanship that is inherent in the functioning of any sizeable commercial organisation.

Good leaders and managers, of course, want open communication and to hear truths spoken by peers and subordinates. Indeed, many cultivate dispassionate, objective, and dependable trusted advisors who tell them the truth. The least effective, on the other hand, only hear what they want to hear and are dismissive of truths from others. Unfortunately, the Badger’s friend had not foreseen the dangers of speaking truth to leaders. They have, however, learned to think before speaking, to always consider the potential personal consequences beforehand, and to have a pre-prepared game plan to look after your interests if you get a tap on the shoulder. Speaking truth to power requires gamesmanship…

Setting the bar too high…

In his school days, the Badger was in the school field athletics team because he was good at javelin, long jump, and – rather surprisingly for someone of average height – the high jump. It was, according to the team coach, the Badger’s natural technique rather than any specific physicality that underpinned why he was good at these events. The coach, a resolute athlete who demanded the same dedication from others, had two favourite phrases to encourage team members to train hard and do better. The first was ‘technique is the difference between reliable success and reliable failure’. The second, used especially for the high jumpers, was ‘you don’t jump high unless you set the bar high’. Little did the schoolboy Badger know that he would regularly hear leaders and managers utter this one throughout his working life!

The Badger’s often heard executives say ‘you don’t jump high unless you set the bar high’ when setting an expected, imperative outcome that is challenging, and when trying to persuade their audience that the challenge is tough, but the outcome is within reach. These last few words, however, are crucial because if an audience don’t sense that the outcome is within reach then they will nod sagely, consider argument futile, and only work half-heartedly towards the objective. If that happens then the road ahead will almost certainly be full of disappointment, blame, low morale, problems, and financial under-performance.

For many leaders and senior staff in sizeable organisations, attending an annual gathering at which executives set out the key priorities and targets for the coming year is routine. The Badger’s attended many such events over the years, and whilst fundamentally there’s nothing wrong in using ‘you don’t jump high unless you set the bar high’ to set ambitious targets, two observations crystallise from the experience. The first is that if the audience sense the challenging target is reachable then they will embrace it, fully align their support and activities, and executives will hold onto their jobs. The second is that if the audience feels the bar has been set so high that you need binoculars to see it, then they will pay lip-service to the challenge, gossip about the credibility of executives, worry about the enterprise’s viability, and speculate about whose heads will roll when outcomes are not met.

The point is simply this. If you are the leader in a company, project, programme, or service, then don’t lose touch with reality or your people. If  you set the bar way too high, then you will have an unhappy workforce, people will leave, output and quality will decline, financial forecasts will not be met, and your credibility as a leader will be damaged. The best leaders stay grounded in reality, make good judgements that balance competing soft and hard priorities, set the bar within reach, and communicate honestly and inspiringly. Those that don’t ultimately suffer the consequences.

From Ziggy Stardust to autonomous trains…

The Badger’s currently reading ‘How we lived then’ by Norman Longmate, a book about everyday life in Great Britain during the Second World War. It cost £1 from a charity shop and it’s a fascinating read. Written in 1971, it describes what life was really like for ordinary members of the public between 1939 and 1945. If you thought things were difficult during COVID, then think again! The Badger was attracted to the book because his parents rarely spoke about their young adult lives in the war years, and because it was written in 1971 at the start of decade of turmoil, transformation, and rich personal memories.

By the 1970s, life for young adults had changed dramatically to that in the 1940s when, for example, military or civilian war service, rationing, and music from the likes of Glen Miller or Bing Crosby provided its drumbeat. In the 1970s, life for young adults was unrestrained, independent, and full of transformations and diverse music like David Bowie’s 1972 album ‘Ziggy Stardust and the Spiders from Mars’ and many other classics of the same year. You might be wondering, at this point, how you get from 1970s books and music to autonomous trains? Well, easily as it happens, because the 1970s was also a decade of transformation for our railways and today, some 50 years later, they are undergoing transformation again driven by government infrastructure investment, huge advances in digital technology, and changing passenger dynamics following the pandemic.

In the 1970s, diesel and electric locomotives had replaced steam, electronic signalling was in its infancy, electrification was limited, ticketing meant visiting a manned ticket office at a railway station and strikes and cancelled trains were commonplace. This short 1972 film provides a simple insight to the railways and its technology of the time. As it ends, it makes a crucial point, namely that railway people were in an industry that is ‘both old and new’.

Today the railways are providing a service to passengers with powerful smartphones in their pockets, with better quality rolling stock, with self-service ticketing using machines and online facilities, and with real-time passenger information at the same time as progressing a Digital Programme deploying high-tech signalling, train control, and safety systems to increase capacity, reduce delays, and drive down costs. As this signalling piece highlights, this is a complex, difficult and slow task because the railway industry is always going to be ‘both old and new’ making transformation a perpetual process akin to re-engineering a Jumbo Jet while in flight! Nevertheless, progress towards a digital future and autonomous trains is being made.

Transformations are often constrained by workforce factors rather than technology. With train strikes imminent, it’s depressing that workforce factors still get in the way of the railway industry speedily embracing the modern, digital, increasingly autonomous, world we all inhabit. Sadly, some things don’t seem to have changed much since the 1970s.

Autonomous ships…

Smart meters, smart phones, smart televisions, smart home security cameras, smart central heating, smart lighting, and smart white goods are commonplace in today’s world. We also regularly encounter smart motorways and ever-smarter vehicles as we go about our daily lives. All of this just illustrates that no aspect of our lives is immune to the relentless advance of digital technologies. However, while most public interest and mainstream media attention tends to focus on things that either do or will have a direct personal impact on the majority of us, there are many advances underway that get much less airtime. Autonomous ships seems to be one such area.

Some months ago, while examining the forecast timeline for the mass adoption of truly autonomous (driverless) cars on public highways, the Badger came across something that triggered more personal interest in progress towards autonomous ships. It was the online dashboard of the Mayflower Autonomous Ship (MAS), a 15-metre-long research trimaran recreating the historic Mayflower voyage of 1620 from Plymouth in the UK to the USA , but with no humans on board! MAS, built by Promare and IBM, and packed with sensors, AI, and autonomous technology, has not been without problems, as you can see here. Nevertheless, it has now reached North America, all be it Halifax in Canada rather than the USA, and it’s been possible to monitor its vital signs and footage from its cameras via the online dashboard throughout the journey across the Atlantic.  

MAS’s journey will undoubtedly have added to the learning and knowledge essential for scaling up to the much larger autonomous ships of the future. Smart technology on large ships already has a lot of traction and Hyundai, for example, announced just a few days ago that it was the first to pilot a ‘large autonomous ship across the ocean. The ship was fully crewed and while much of its journey was under the control of autonomous technology, much of it was not. Realistically, the days of truly autonomous civilian shipping with no crew aboard are still some way off. As might be expected,  however,  in the military domain the development of small and large autonomous vessels for naval forces has been progressing steadily. Indeed, the USA, for example, has this year created an unmanned vessel division within its Navy, and is recognising a need to build a fleet of autonomous platforms to counter threats from other superpowers.

It’s inevitable that autonomous civilian and military ships will be a feature of life for future generations. Unlike autonomous cars and aircraft, they don’t seem to attract the same level of interest in the mainstream media and general public, which the Badger finds a little surprising given the UK is an island nation and taking a cruise holiday could one day mean travelling and living on a ship that has no crew!

And when peace comes, remember it will be us, the children of today, to make the world of tomorrow a better and happier place

This was the penultimate sentence of the 14-year-old Princess Elizabeth’s radio address to children of the Commonwealth on the 13th October 1940.  Many of the children listening were, like the Badger’s father, evacuees living away from their home in challenging circumstances. Now Queen and celebrating her historic Platinum Jubilee, the Badger was reminded of the truth of these words while a spectator at the London Rugby Sevens at Twickenham last Sunday.

When the Princess spoke in 1940, radio was essentially the main technology in the vast majority of UK homes. Her words to children unexpectedly resonated with the Badger during an interval as the tournament progressed in the huge, noisy, atmospheric stadium. Why? Because for many spectators it was a family occasion with lots of children present, and everyone, young and old alike, had personal devices with them providing instant connectivity to the world beyond the stadium. Seeing nearly every child using smartphones and tablets to capture and share on-field action and off-field interactions with players was a huge reminder that technology has revolutionised the lives of children since 1940. Together with the harmony between spectators of different races, colours and creeds in the stadium, the tournament provided a very positive and happy experience for the children present. It must have made a lasting impression that will influence their shaping of the better and happier world of tomorrow!

On the train home afterwards, the Badger listened to a podcast about the future evolution of society. A group of teenagers, about the same age as the 14-year-old Princess Elizabeth in 1940, sat close by staring at their smartphones and chatting with each other without lifting their eyes from their devices. The chat exposed their interests and priorities, and their aspirations to be social media influencers, and it seemed at odds with the podcast discussion and content. This made the Badger wonder if the Princess’s ‘the children of the day will make the world a better and happier place’  is still true when it’s the voices of older generations that get most mainstream airtime today.

Of course, it’s still true. In fact, the words are even more true today because the internet, social media, and powerful personal computing devices have put instant communication, influence, and content in children’s hands in a manner that did not exist in 1940. Today children are using this capability to habitually influence the evolution of the society they want much more rapidly than was possible in the past. Technology has not undermined the Princess’s sentence; it has reinforced it.

The 14-year-old Princess became a Queen now celebrating a historic Platinum Jubilee. Well done, Your Majesty, and thank you for your true public service throughout an era of huge technological, social, national, and international change. Your words to children in 1940 are timeless. Let’s hope that today’s children strive to implement them with much vigour in the years to come.

A retrenchment to globalisation…

IT offshoring to India gained momentum in the late 1990s helped by improved and lower cost telecommunications, the policies and actions of the Indian government, and a few major corporations who opened operations that tapped into the country’s huge young, lower-cost, graduate-level workforce. At the end of the 1990s the Badger was part of the due diligence team for the purchase of a small software product company in Bangalore. The purchase was a strategic investment to establish a presence in India that could ultimately grow into an offshore outsource and software development centre. Visiting India for the due diligence hammered home to the Badger that the true globalisation of  IT work was inevitable, and that India would a force to be reckoned with for outsourcing and software development.

Globalisation – the spread of products, services, and manufacturing etc, across borders producing ever stronger economic interdependence between nations – has been underway for the last two centuries driven by transportation and communication advances. The internet and digital technology, however, has accelerated it exponentially over the last 20 years, but the COVID-19 pandemic and its impact on global supply chains, for example, has highlighted that globalisation may have gone too far. It now looks inevitable that the pandemic, continued advances in digital technology and virtual connectivity, and changes to the world order due to the Russia-Ukraine conflict,  will trigger some retrenchment to globalisation as businesses and nations rebalance their risk and dependence on others.

The current level of globalisation has made us all extremely and rapidly vulnerable to events anywhere in the world. Globalisation will, of course, not disappear, but the Badger’s in no doubt that in the current decade we will see some retrenchment to address the vulnerabilities that have been exposed. A trot through the programme of events at this week’s 2022 World Economic Forum (WEF) at Davos shows that deglobalisation and the impact of ever more advancing technology permeates most of the sessions, either directly or covertly. The WEF at Davos claims to have achieved much over the past 5 decades, but most people – including the Badger – are hard pushed to name any of its achievements and consider it to be a talking shop for global elites in the world’s most expensive country. However, when those attending Davos are discussing globalisation, then you know there’s something to worry about and change is ahead!

Over the last 20 or so years, the small software company purchased in Bangalore has grown into the broader capability envisaged in its original strategic goals. Since change is perpetual, however, it is not immune to retrenching globalisation or technological advances that enable IT work to be done economically without offshoring at scale. No sector is immune to retrenching globalisation, and this decade is already unfolding to be one of huge change on all fronts. Hold onto your hats, it’s going to be a bumpy ride…