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.

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.

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…  

The power of techies talking to clients…

Those who work in the technical, development, and delivery aspects of the IT industry are highly skilled, productive people often with a STEM-subject background. While some have natural ‘sales’ personalities and attributes, most prefer to focus on their project tasks rather than spend a lot of time interacting with clients. When they do, however, interact with clients, being on the alert for potential new business leads is often not high in their consciousness during their interaction. The Badger fitted this bill  early in his IT career, until a senior client visited the large software and systems integration project he was working.

The Badger’s company bosses arranged for the client and their entourage to spend a whole day with the project. The Badger grumbled because his teams were under schedule pressure but the grumbling, of course, fell on deaf ears and the visit went ahead with the client’s entourage meeting the software, systems, and test teams throughout the day. The visit ended with a client feedback session involving the Badger’s bosses and others from within the project. The senior client was rewardingly positive and asked the Badger’s bosses the following:    

‘Your techies and delivery people are impressive and  ooze knowledge, skill, and commitment. Talking to them has emphasised that your company not only has strength in depth but was also the right choice for this project. However, why do we only see people with account, business development, or sales titles when we want to discuss some of our wider business pains? If we saw and more routinely interacted with those from your engine room, then you would probably win more work from us’.

This opened the Badger’s eyes to the latent power of techies talking to clients and the under-use of the company’s engine-room community in identifying potential leads for new business. The number of staff in this community was much greater than those in formal sales, business development, and account management roles, and so it seemed obvious that more engagement between client and company technical and delivery staff  would benefit relationships and growth for the company. It also struck the Badger that talking to clients was good for the personal and career development of even the most introvert techie. The client’s words also highlighted that engine-room staff are not only the cornerstone of a company’s reputation, but also a powerful force that can influence a company’s ability to generate new business opportunities.

Ever since this feedback session the Badger has encouraged techies to recognise the power of talking with clients and to be attuned to identifying potential leads for additional business. Today wise companies encourage this dynamic routinely, because if they don’t then their competitors will be reaping the benefit of stronger relationships and better business growth.

Listening, selective hearing…and hidden motives

Decent leaders and managers know that listening is important to keeping their team engaged, spotting problems, picking up on trends, and gaining the insights and information needed for success. Listening skills featured in many of the training courses the Badger attended throughout his IT career, and the maxim ‘you have two ears and one mouth, and you should use them in that ratio because you learn more when you listen than when you talk’ has served him well over the years. The best bosses have listening as a core capability, but it cannot be assumed that every boss or person in a position of influence or power hears the key points in what they are told. Why? Because they’re human and often have ‘selective hearing’ and hidden motives.

Early in his career, the Badger’s boss asked him to covertly assess a dysfunctional, over-running project. Whatever the Badger reported back would, apparently, help the boss make difficult decisions on what next steps were in the company’s best overall interest. In the subsequent one-to-one meeting to convey the findings, the Badger summarised  the project’s status and articulated three key recommendations. The boss listened closely, seemed appreciative, and said the input would be considered overnight and factored into their decision making. They asked to meet with the Badger again the following afternoon.

This follow-up meeting proved memorable. The boss seemed to have a completely different recollection of the previous day’s meeting! They gave the Badger a hard time, and the atmosphere became very tense when the boss claimed the Badger hadn’t made any recommendations the previous day! Horrified, the Badger briefly wondered if his boss was right,  but quickly decided otherwise. The boss took a telephone call which ended the meeting prematurely. On returning to his desk, the Badger concluded that his boss either hadn’t really been listening in the first meeting or was prone to ‘selective hearing’.

Travelling home that evening, the Badger thought – uncharitably  – that his boss had lost his marbles, was not quite the full shilling, or had become one sandwich short of a picnic. The next day, however, provided an answer – the Badger’s boss announced they were leaving the company! The boss knew they were departing all along, which made the problematic project someone else’s problem. Their hidden motive in dealings with the Badger was to simply to go through the motions of  quasi-business as usual dynamics in order to heighten the surprise and impact of their imminent departure announcement.

The Badger learned an important lesson. In one-on-one meetings, the person you are talking to may have good listening skills, but always assume they will have some ‘selective hearing’ and a hidden motive. Appreciating this helps you to prepare and manage a discussion to get the outcome you want.

An independent review and temporary traffic lights…

Driving home after a meeting with the leader of a modest-sized business, the Badger joined a slow-moving traffic queue on a semi-rural road. In the distance, he could see that temporary traffic lights letting through just two or three cars at a time were the reason for the queue. As vehicles inched forward, the Badger’s thoughts wandered back to the meeting that he’d just left. The business leader, an unusual character, was struggling with delays and spiralling costs on a long running project, and with getting his project staff to change their long-standing, comfortable, ‘it’s too difficult’ ways of working. The leader wanted to find a way of overcoming this challenge without completely destroying their good personal relationship with their staff.

At the start of the meeting the leader’s demeanour was initially one of quiet desperation, but this changed to one of relief and enthusiasm as the discussion progressed. The Badger suggested getting an experienced, independent outsider to review the project and produce a report that recommended actions to be taken. This provoked some fruity language signalling that there was no desire to pay someone who’d swallowed an MBA handbook to author a report that told them what they already knew! Undeterred, the Badger persevered and pointed out that a review and report by the right independent person would provide the objective, dispassionate, and tangible ammunition in black and white to force the changes needed to reduce cost. After all, this is a common method in major businesses, public sector organisations, and government departments. The leader had a ‘light-bulb moment’. They realised that a written report would be a useful vehicle for deflecting the ‘blame’ for changes more towards the independent reviewer than themselves!

As the car reached the front of queue at the traffic lights, the Badger wondered why this supposed leader hadn’t thought about the merits of an independent review and report themselves. The Badger’s attention, however, quickly moved to the highway work being performed, namely the clearance of compacted leaves and vegetation from a 20-metre stretch of the paved footpath running alongside the carriageway. There were three panel vans, a trailer, one worker chatting on his phone in a van’s cab, one worker using a mini-bulldozer to scrape leaves from the footpath and put them further back on the verge,  and one worker using a portable petrol-powered leaf-blower to blow looser debris from the footpath onto the verge. It must be cheaper, the Badger mused, and healthier for the workers, more fossil-fuel efficient, and less impactful on the climate if this work was done by two men with one van, a wheelbarrow, a shovel, a rake, and a broom. The Badger smiled; an independent review of working practices is surely needed!

Describe the dynamics of today’s digital world in one word…

Would you find it easy or hard to describe the dynamics of our modern digital world in one word? Would one word immediately come to mind, or would you need time to think before deciding? Rather than decide yourself, would you prefer to converge on a word via a group discussion? What would your word be? An ex senior civil servant, in their eighties with a razor-sharp mind, asked these questions in a recent conversation. The Badger took the easy option, answered ‘don’t know’, and we moved on to other things. The questions, however, have bugged the Badger ever since, and so as Storm Eunice buffeted the windows, he settled in his study listening to a playlist of favourite music to decide his answers.

The answer for the first question was ‘it’s hard’. In fact, it took much longer than expected to decide on one word to answer the last question. The answers to the second and third questions came quick and were straightforward. They were, respectively, time to think rather than spontaneity, and deciding for himself rather than potentially succumbing to  groupthink’. The word the Badger ultimately converged on as the answer to the last question was ‘Creep’.

The word has enormous breadth. In materials technology, ‘creep’ is the movement and permanent deformation of a solid under persistent load ultimately leading to failure. Glaciers and lead on church roofs are simple illustrations of the phenomenon. ‘Scope creep’, when requirements drift away from agreed baselines due to client pressure and poor controls, is well-known to those running businesses, projects, programmes, or service delivery. This kind of ‘creep’ often leads to financial problems, commercial disputes, and serious delays. And then, of course, ‘creep’ is sometimes used to describe people who are unpleasant, untrustworthy, insincere, or are just plain odd in their habits, interests, and behaviours.

Creep’ seems a more realistic descriptor for the dynamics of our modern digital world than the word ‘change’. For example, our insatiable demand for resources and fossil fuels is producing creep deformation of aspects of our planet to the point of crisis and questions about our sustainability on it. Additionally, digital innovation and fast technological advancement represents a persistent stress on businesses, governments, and the public producing the erosive creep of personal privacy to the point where societal rupture is a risk. Similarly, the need for social media platforms to keep people engaged and active is causing the creep of fact, news, and sensible debate into just disinformation, misinformation, abuse, and entertainment fuelling growing distrust and antipathy. ‘Creep’, of course, can still be used to describe some people, and it seems particularly apt today for politicians and so-called elites!

Oh, and ‘Creep’, by the way, is a great song by Radiohead! What would your one word to describe the dynamics of today’s world be?

Meta matters and madness…

The spectacular drop in Meta’s (Facebook) share price last week has attracted much comment in the media. The drop, which shows up impressively on share price charts like the 1-year one available here, was triggered by a fall in active daily users for the first time in 18 years. It came as little surprise to the Badger who’s long thought a) that Richard Holway at TechMarketView is right in saying that Facebook’s been a toxic brand for some time, and b) that this behemoth is past its prime and way too big and arrogant for its boots!

In the world of business, of course, there’s always ups and downs, crises, and negotiations of all kinds, but when Meta threatens to shutdown Facebook and Instagram in Europe over transatlantic data transfer regulations, then it’s arrogance is plain to see especially when it’s our data that’s at the heart of the matter.  This sabre rattling  received a  ‘Life would be very good without Facebookriposte from the EU. Together with the impact of Apple’s ad-tracking change, the Cambridge Analytica scandal, the failure of its Libra crypto currency ambitions, and its risky bet on the ‘Metaverse’, it’s hardly surprising that a wobble in active daily users in core geographies triggered worry about the future and impacted the share price, especially when the company’s already a bête noire amongst the tech giants. The Badger senses that Meta’s future doesn’t look rosy unless there’s huge change.

Having had a presence on Facebook for more than a decade, changes in the way the Badger and his Facebook friends have used the platform perhaps illustrates why a drop in usage should be no surprise. A decade ago, we regularly uploaded and shared photos, registered our location when travelling, shared life events, plans, thoughts, highs and lows, interests, and funny experiences. Today, however, none of us do this. We just post something minimal very occasionally, monitor a few items of ‘followed’ content, and ignore sponsored items or adverts that the platform pushes at us. As one friend put it, ‘Facebook’s a disease we’ve learned that we have to manage to protect ourselves’. If this sentiment is widespread, then more bad news will emerge because it isn’t just younger people deserting the platform, it’s older ones reducing their usage too!

Finally, there’s a madness in society whereby Meta has the power to resist all attempts at having content and media laws that apply in the real world applied to it in the virtual world. There’s little sign of this madness soon dissipating, but at least the fall in share price is a timely warning for Meta and everyone else that no company is too big to fail. The future’s never certain, but with Meta there is a certainty. It’s unlikely to be out of the news anytime soon.