Procurement & Supply Chain Leaders: Sustaining relationships in a virtual world

Last week we were once again joined for our virtual roundtable by global CPO’s and CSCO’s who shared experiences and learnings from this time of crisis.

We are beginning to emerge from our eighth week of lockdown in the UK, even longer for some in Europe, whilst Singapore is back in a second lockdown. Organisations have adapted to the challenge of establishing social distancing in manufacturing and frontline environments and embraced remote working for those who can. What is clear is that as operational challenges stabilise, organisations and their leaders are now looking at their inherent ways of working and the skills needed to lead teams remotely over a sustained period of enforced social distancing and travel restrictions. We are in the “pre new normal” period we referred to a few weeks ago and there is a sense of “zoom fatigue” setting in with some. Whilst we see the signs of some of the lock down measures being eased, it is clear that we will continue to remain working remotely for some time to come.

There are several conversations taking place over the future of the workplace and the purpose of our offices when we are able move around freely after COVID-19; however an increasing challenge for many is the continued leadership and motivation of teams, how to integrate and onboard new colleagues, and build trust with people and suppliers they’ve never met in person and won't for some time. We are trading off past relationships and for the foreseeable future we will need to learn how to maintain and build new ones entirely virtually.

Working practices

As operational efficiencies are emerging, businesses are reviewing their established supply chains and making changes to ensure production or service remains resilient. For many, onshoring or nearshoring of their supplier base is a topic under review. COVID-19 is a clear catalyst in the re-evaluation of these strategies with a forensic approach to visibility and risk management through all the tiers of the supply chain. For some, the deteriorating relationship between the US and China had already raised questions whether suppliers should be sought in countries which may not face such strict trade restrictions in the future. For others, logistical issues (particularly through ports) are another reason to review their supplier base.

Increased confidence in a flexible working hours model has meant some organisations with outsourced contact centres are now considering nearshoring this service as flexible shift patterns and employees working from home will ensure they can cope with peak demand call times.

The recruitment and onboarding of new colleagues was also discussed. Technology has enabled the hiring process to continue and prospective candidates have had greater exposure to multiple stakeholders as part of the interview process to aid decision making.

Working environment

Many organisations were forced overnight to move to remote working, and this has quashed previous objections around productivity and the ability for organisations to remain connected. As we look to the future, many businesses are reviewing their property portfolio and its usage. Nearly all agreed that for task-based work, offices were not required, and supported the notion of a more ‘hot desking’ approach with an increase in meeting rooms or areas for group discussions, ensuring that people maximising their time and purpose of being collectively together when we are allowed to meet freely again.

In many manufacturing environments, an increase in productivity has led them to re-evaluate what roles remain critical and which do not, raising questions as to which roles will remain longer term. For some it has accelerated investment in automation and digital solutions.

Nearly all agreed that questions have been raised on the long-term effectiveness of business travel, suggesting that the time, cost and environmental benefits of virtual meetings outweigh those of a face to face meeting.

Yet if remote working is now the new working environment, questions were asked as to what measures or legislation may be introduced by governments to ensure ‘home offices’ were tenable long-term. Employers will still have a duty of care towards their employees to ensure they have the most appropriate home set up.

Required leadership skills

Leaders need a high EQ to ensure they are managing their teams based on trust to deliver outputs rather than actual presence. The ability to recognise potential physical and mental health issues in a remote environment is vital. Agility, pragmatism and the capacity to be creative is now critical. Empathy, authenticity and the ability to motivate and lead teams remotely over a sustained period is what is needed now more than ever. Good leaders in the office remain good leaders remotely. The new world requires leaders to act quickly, whilst juggling uncertainty. Whilst structure and organisation has its place, those who are excelling are able to make logical decisions swiftly without the perfect information, and communicate them clearly.

Relationship management with suppliers is equally important as with our teams. Whilst technology has in many instances improved the ability to speak to suppliers at short notice, many agreed that it was inferior to more personal relationships with the most critical ones. In times of crisis, those stronger, more personal relationships are the most important and recreating this on an entirely virtual footing may prove difficult. A remote relationship is not a solution, more an additional channel.

This has expanded leaders’ views on the location of their teams in the future. Many now feel that teams could be built outside corporate headquarters, particularly in locations with a traditionally higher cost base.

As we become more accustomed to remote working, the conversation has shifted from operational crisis management to future behaviours and business models. In many environments, be it a physical or remote office, leadership skills remain critical to steer us through the crisis and drive change for the future. Businesses are now looking at their organisations and assessing what skills, behaviours and leadership traits are required for the “new normal” future that awaits.

Hosted by:

Lucy Harding, Odgers Berndtson London

Alasdair Spink, Odgers Berndtson Singapore

Oliver Dick, Odgers Berndtson London

Richard Guest, Berwick Partners Leeds

Tom Graham, Berwick Partners London