EMOTIONAL INTELLIGENCE IS A NEW STRATEGIC IMPERATIVE IN SUPPLY CHAIN MANAGEMENT

Supply chain professionals, the world over, are realising the importance and business significance of emotional intelligence as they go through their paces at work. Business leaders across the industry divide are slowly acknowledging that emotional intelligence has got a special place in the business environment. For all intents and purposes, it is slowly being regarded as a vital fixture in business configurations, especially where there is need to develop a model of collaborative thinking. Emotional intelligence has therefore become a front and centre concept for success in supply chain management. The only tragic thing about emotional intelligence is that this valuable skillset is never taught at school and or college, neither is it a regular feature on the front pages of newspapers.

As we move into the next decade, emotional intelligence will remain a subject of fervent debates in the supply chain arena, with the future age of work heavily relying on emotionally intelligent workers. Although supply chain professionals will be tempted to regard this as just one of the many recent fads, it would appear the prevailing thinking is that there is a high correlation between high emotional intelligence and success at work. According to this new thinking, instead of being held hostage by our emotions, we must use them to push the needle forward, spurring us to achieve better results. In the supply chain field, it may be even more important to possess emotional literacy which enables the understanding and appreciation of other people’s emotions with a view to developing closer working relationships.

Emotionally intelligent people recognize that when conducting business negotiations with other supply chain partners, there is need to be considerate, thoughtful and respectful. Savvy procurement personnel who are endowed with emotional intelligence take time to focus their attention on the resolution of business challenges while at the same time trying to remove emotions out of the discussions. In some cases, it is common knowledge that as negotiations for favourable terms and conditions hot up with suppliers, there is often a tendency for supply chain professionals to overly focus on personal agendas without due regard to facts. It is therefore advisable that as negotiations progress negatively or positively, it is always important to acknowledge the nuances of human emotion if progress is to be made.

Given the nature of the procurement function, there is a lot of haggling over several issues between the procurement department, user departments, contractors, suppliers and service providers. Whenever there are some disagreements or arguments over anything and everything, instead of bottling up emotions, procurement professionals are required to always find appropriate means of expressing their emotions rather than reacting in an emotional manner. Emotions are capable of ripping and tearing apart the fabric of negotiations if they are not put on mute as and when they begin to show their ugly face.

Supply chain professionals are required to conduct high-stake business negotiations with suppliers on a regular basis. However, the negotiation for favourable terms and conditions may not necessarily resonate with guarded preferred positions of suppliers. Supply chain professionals and marketing personnel often negotiate from two separate extreme positions. It is therefore advisable to refrain from adopting strong, emotional and militant positions. Procurement personnel are expected to situate their thought processes in the personal circumstances of those suppliers they negotiate with.

As business negotiation processes are conducted, the reality is that at some point some business partners can be disrespectful. In such situations, those on the negotiation table will typically default to defensive postures. Without emotional intelligence, negotiations for favourable terms and conditions can easily go off the rails. In business, as in life, our emotions have got the potential to cloud our judgements. Such unregulated moments in business negotiations can easily undo the rapport that will have been created over many years of doing business and getting it back could never come easy. Self-regulation is therefore important. Very important actually. Supply chain professionals must be good in the primal task of driving positive emotions in the right direction when conducting negotiations for favourable terms and conditions. It is said that in business negotiations, positivity begets positivity.

Procurement is a prisoner of its heritage. Procurement is hard wired to be risk averse. Procurement personnel are often accused of slowing down processes, being bureaucratic and inefficient. They are regarded as a restrictive functional area that is bent on pushing back value adding initiatives given that many of the procurement process flows are highly prescriptive. When such accusations and backbiting become a common occurrence, procurement professionals are required to use their emotional intelligence to remain calm and collected even when under siege. The nature of the job entails accommodating other people’s viewpoints with a clear understanding of subtleties of emotional situations. Failure to self-regulate will often lead to unnecessary outbursts which can often lead to resentment and passive hostility which is not good for teamwork.

Collaboration is the hallmark of a functional supply chain. It entails developing mutually beneficial relationships with key stakeholders such as suppliers and customers. There is need to possess a good head for creating mutual wins. There is need to work in concert with other important stakeholders to reach a perfect strategic synchrony. The whole essence of collaboration entails having the emotional intelligence to know that the more we make collective decisions and work together, the better for everyone. Supply chain partners are required to work together, looking towards the same finishing line. That explains why industry experts often argue that “nothing great was ever achieved without the power of emotional intelligence”. There is a serious correlation between collaboration and emotional intelligence. People with emotional intelligence collaborate easily because they recognize that the strength of individual differences is critical to making a whole.

A couple of years back, many supply chain professionals were promoted based on technical expertise. Business leaders would bend backwards to elevate those with specialized technical knowledge. However, it is increasingly becoming clear that those technical skills that are needed to climb to the top of the ladder are often at odds with those skills that are required to excel in leadership. Individuals with a seemingly endless supply of technical know-how and years of experience could struggle in leadership positions because they may lack emotional intelligence. Although it must be acknowledged that technical skills still have a huge role to play in modern commerce, as we move up the ladder, it appears the technical ingenuity is beginning to take a back seat to interpersonal skills and emotional intelligence.

As fate would have it, the pace of technology is moving at a frightening speed. What it therefore means is that technical kills can lose relevance in a very short space of time. As we trudge into the future, it is slowly becoming very clear that the technical skillsets that used to spell success are slowly falling short. Human resources professionals will probably tell you that technical skills will assist people in landing a job. But emotional intelligence will assist those people in retaining their jobs and excelling in leadership positions. Leadership practitioners are of the opinion that the goal of leading others effectively depends heavily on knowing yourself very well. Beyond cognitive abilities and technical knowledge, leadership competences are elevated by the level of your emotional intelligence.

Supply chain professionals in leadership positions with a high level of emotional intelligence find it very easy to connect with their own emotions as well as relating and influencing the emotions of others. They are very good at creating more connected, engaged and motivated teams. Leaders with high emotional intelligence will rely on the use of their social skills to foster rapport and trust with their subordinates. But people can only do that where they are able to control their emotions and are accountable for their own actions. The common belief among industry experts is that whenever they are looking for leadership roles, the emphasis is not on technical skills. The emphasis is on someone’s attitude and behaviour. In the extreme cases when the attitude is right but there is lack of technical skills, such skills can always be developed.

The need for emotional intelligence is now more important than ever because most companies are now competing using the same technologies which makes it very difficult to differentiate product offerings in a highly competitive business environment. It is now very difficult to separate the utility value of different products. The white spaces for expanding market share are getting smaller and smaller with companies fighting for razor thin margins. The attention span for customers is also increasingly becoming very short. Customers are increasingly becoming unforgiving for those suppliers who remain sloppy. The use of emotional intelligence could easily create a competitive edge and undeniable value to organizations. It therefore follows that the utility value created by commodities in a competitive business environment often lie in the emotional intelligence of the professionals who bring the products to the market. There is a widespread recognition that companies compete not so much through what they do but through how they do it. The ‘how’ part is now more important than ever.

Emotional intelligence is slowly gaining prominence with the realization that as people conduct their duties in whatever capacity, they will always remain human beings whether they are at work or at home. As people go about their business, there is no way they can leave painful memories or joyful memories at work or at home. In some cases, business will always remain personal. Especially where there is too much interaction with people. Work is known to be a huge part of our adult life. As a result, our emotions will always follow us wherever we go. The thin line between work and life will continue to blur as humanity will never go out of fashion. It is common knowledge that those suppliers who feel emotionally supported and appreciated as they go through challenges of delivery will always feel encouraged. The motivation towards a collaborative culture starts with the hearts and minds of the team members who constitutes the supply chain network.

Supply chain professionals must remember that how the message is delivered across to supply chain partners could easily be equally important than what is communicated. The emotions that are unconsciously revealed can make the difference on how well the message is received by the intended recipient. It is therefore a fact that human emotions are of significant importance in reaching the hearts and minds of our business partners. Emotional intelligence supports the capacity of supply chain professionals to build bridges and collaborative alliances with suppliers and service providers. It will also assist them to mend the bridges and alliances should they get damaged at some point. Supply chain professionals may be required to develop the emotional intelligence to tell suppliers what they don’t want to hear (but need to hear). But there is also another dimension to acknowledge that as you haggle in negotiations, someone’s success does not mean failure on your part. Procurement personnel must have the emotional intelligence to know that winning does not depend on someone loosing. Creating win-win situations is the cardinal rule for success. There is need to focus attention on possibilities rather than limitations.

As supply chain professionals conduct their negotiations with suppliers, it may be important to understand and appreciate when it is necessary to talk. Similarly, it is important to know when it is necessary to listen. During business negotiations, it is advisable to avoid listening with a view to reply. As procurement personnel listen with a view to reply, there is often a tendency to miss important cues because they are always thinking about what they will say next. Procurement personnel with emotional intelligence are therefore advised to listen twice as much as they speak. They must listen as much or more than they talk, take criticism well and stay calm under pressure.

Emotional intelligence goes beyond empathy and listening to others. Emotional intelligence theorists have often maintained that as people conduct tough business negotiations, suppliers may forget what you said, they may forget what you did but the same suppliers may never ever forget how you made them feel. The most important thing in business negotiations is to hear what isn’t being said. Emotional intelligence could play a major role into knowing who you are and having a clear understanding of what you are required to do to become a better version of yourself. As a supply chain professional, it is sometimes very important to see the world from the supplier’s point of view.

My closing thoughts and reflections.

When it comes to developing an efficient supply chain network that stands the test of time, developing emotional intelligence is the secret sauce. Savvy supply chain professionals understand that suppliers contribute in different ways and oftentimes the most valuable ways may not be the ones easiest to see. Having the emotional intelligence to know that is table stakes. The rules of success in procurement are still being written. For now, it may be important to define your metrics and measures of success through a customer’s point of view, not yours. But the prevailing line of thought is that to do that there is need to have emotional intelligence. Every procurement professional must be literate in this new language. For those that care to listen, the verdict is out. Emotional intelligence is here to stay and all those who care to listen will stay told and remain told.

Charles Lovemore Nyika is a Supply Chain Practitioner based in Harare. For views and comments, he can be contacted at [email protected]