Opinion: Get Ready for the Future

By Tom McLeod

Chief Executive Officer

McLeod Software

This Opinion piece appears in the April 29 print edition of Transport Topics. Click here to subscribe today.

The future can be a scary place. Right now in the trucking and transportation industry, we face some daunting challenges as we look ahead. For starters, we live in a time of economic uncertainty. Political realities have created a climate of confrontation, and the result is that our nation’s leaders have not managed to chart a clear path to sustained economic growth.

Our industry also must adjust to major changes in government regulations. Here again, uncertainty makes matters worse. We know that changes are coming, but it’s still not clear precisely when they will go into effect, nor do we know exactly what the changes will be.

A third challenge that more and more companies are experiencing is the need to embrace a new business model. Shippers are asking transportation companies to handle a wider range of freight, and in response, transportation companies are expanding their capabilities. This diversification of the standard business model has become a vital strategy for survival and growth. If you don’t find a way to accommodate the needs of your customers, one of your competitors will.

If the bad news is that the future is scary, the good news is that it’s also an opportunity. These industry issues affect everyone, and the companies that can respond to the challenges will move ahead of the competition.

Difficult times weed out some of the less adaptable players. It turns out that you don’t have to be perfect to succeed. You just need to be better than the guy down the street — and maybe he’s not as smart as you are.

Every company must find its own way to success, but these three strategies will help ensure that you are well-prepared for the challenges before us right now:

1. Look at your people. Companies never excel without talented people in charge. Take a good look at the people you have running the company. Make sure you have strong people in every key position. The recent upheaval in our economy has left us with many talented people in search of good jobs. If you don’t have the people in place that you need, there’s a good chance that you can find them right now. That’s the first step. The second step is to ensure that all employees have the training needed to do their jobs well. Even highly talented people need to be trained on the processes and technology being used.

2. Look at your process discipline. Companies that have clearly defined, repeatable and consistent processes are always a step ahead of those that have failed to systematize their business work. When processes are repeatable and consistent, the workplace becomes a calmer place, even a bit boring, because you’re not constantly in a crisis situation. You’re not putting out fires, because of the 4 Ps: rePeatable Processes Prevent Problems. And that gives you time to go after new opportunities.

3. Look at your ability to measure and manage. Business performance must be measured in multiple ways so you can tell what is working and what isn’t. You and your people also have to get information in time to make better decisions. Monitor key performance indicators on a daily, weekly and monthly basis. In many cases, you’ll also want to follow KPIs in real time, because you want to deliver information to people while there’s still time to react.

Above all else, it’s essential that the company’s leaders paint a picture of where the business is going. There must be a clear vision of the business goal, and that’s the picture that everyone needs to have in mind. If people see the goal clearly, they’ll be much more willing to make the changes necessary to getting there.

In contrast, if you try to enact change without communicating the vision well, then the only thing people can see is their surroundings, which become less comfortable as the changes occur. Most of us get used to our day-to-day existence, and we don’t react well to disruption, but if we can see that the disruptions are leading to a new situation that has benefits, then we get on board with the project. Give people a clear picture of where the business is heading, and they’ll work to make it a reality because they can see the end result.

None of us can predict the future with certainty, but we can use our intelligence to prepare for the most likely outcomes. Although our industry is facing several difficult tests today, the challenges bring opportunities to those who are willing to make the necessary changes. It’s time to get ready for the future. It’s going to be an exciting place, and it’s where we’re all headed.

McLeod Software, Birmingham, Ala., is a provider of transportation, brokerage and document management systems for the truckload, less-than-truckload, freight brokerage, third-party logistics and shipper markets.