Indeed, respondents ranked the top supply chain challenge as the willingness to change/breaking old habits/relationships, which is invariably a leadership, management or communication issue. It would appear, though, that it is less about the willingness to change but rather the identified and articulated need to do so.
Furthermore, seven out of the top ten ranked supply chain challenges related to people. Historically, physical and functional aspects of the supply chain such as road infrastructure, inventory levels or warehousing and distribution were seen as challenges in the supply chain. This shift in perception of the supply chain highlights the vital role people play in executing the business strategy.
So how can business leaders tackle their 'people' challenges?
It is important to recognise that the return on investment in state of the art facilities, infrastructure and sophisticated systems will not be fully realised if management and staff are not aligned to the vision, purpose and strategy of the organisation.
Also, they need to understand the strategies and tactics required to achieve their objectives and to have the relevant skills and capabilities to leverage the tools and opportunities at hand. The softer skills of communication, collaboration and employee engagement are becoming powerful competitive weapons for the future.
Without a doubt change is hard and the greatest obstacle is to change people. Leaders are required to create the context and environment for change to effect change properly. This challenge relates directly back to having the ability to anticipate and manage change effectively.
