Teaching leadership: How to reach non-supply chain audiences
Supply chain professionals with backgrounds in engineering or business often struggle to reach nonquantitative thinkers. One way they can make their presentations more persuasive is to include "human elements."
Bruce C. Arntzen is the executive director of the supply chain management program at the Massachusetts Institute of Technology (MIT) Center for Transportation & Logistics.
New hires from top supply chain programs are often expected to be powerful change agents in their new companies. In large organizations, this task of "go make change happen" requires persuading many people of all "different stripes" to change their behavior and adopt new practices. It can range from convincing buyer-planners to give up their beloved spreadsheets and use the new enterprise resource planning (ERP) software to persuading the vice president of sales to change the incentive system to smooth out the end of month order spike. Or convincing the marketing organization to regulate the introduction of new stock-keeping units (SKUs).
Many or most of these people will be "regular" (nonquantitative) people. Perhaps they studied the arts, humanities, literature, music, history, or other fields and ended up working in planning, sales, marketing, distribution, or a dozen other jobs. By contrast, most top supply chain students were industrial engineers, supply chain majors, math majors, or business majors as undergraduates. These are quantitative/logic-based disciplines. Data is gathered. Calculations are performed. Significance is tested. Charts and graphs are created. Business cases are presented. Graduate education in supply chain management takes this even further with more sophisticated modeling tools, data-based analytics, and now artificial intelligence and machine learning. When do we get around to teaching our best and brightest how to talk to "regular people?" The answer often is: We don't.
Because we don't, our graduates have a much harder time than necessary gathering broad support for change programs. Charts, graphs, and spreadsheets by themselves won't close the deal in generating excitement around change. For many people, a well-timed emotional argument can shoot down an analysis that you spent weeks preparing.
How Humans Communicate
At the Massachusetts Institute of Technology (MIT) Supply Chain Management Program we have invented four leadership workshops to fill this gap. The workshop described here teaches quantitatively minded students how to use what we call "the human element" to connect with a large audience of regular people.
The human element is based on the fact that when humans talk to each other we do so much more than listen to the words. We watch the facial expressions and see excitement or fear or joy. We listen to the volume and intonations of the voice and hear urgency or empathy or anger. We see hand gestures and body language. When these are all in synch, such as an angry face, words, voice, and gestures, it delivers a powerful message that sticks in the mind. However, in most business documents and slide presentations, we use only charts and graphs and sterile words, disembodied from any person, face, or voice. Without a human element, much of the power of the message is forfeit.
There are two ways, however, that you can incorporate a human element into your business presentation:
1. Use photos of human faces. Human beings like to look at other human faces. The next time you go to the airport, pause in front of one of those large magazine stands and look at the covers. You will see that almost every magazine has a person's face on the cover. Humans find faces very interesting to look at.
2. Use quotes that come from a specific person. Human beings seem to process words differently and retain the statements better if they appear to be a quote coming directly from a specific person. (Please note this is just an observation from my own experiments in the classroom and professional life, I am not pretending to be a psychologist.)
The natural human behaviors of reading faces and connecting quotes to faces can be exploited when giving a speech or making a presentation to both hold the audience's attention and to get our points across more successfully. How do I know? Because I tried it.
In 2009, at the bottom of the last recession, I gave a presentation to a regional supply chain management conference on the "Recession-Readiness of Supply Chains." The talk reviewed the history of stock market crashes and the effects of recessions on supply chains, and it explained many good and bad business practices related to recessions. I was well prepared. The 50 slides included dozens of charts, graphs, statistics, tree diagrams, and text slides. The audience seemed to understand the points, applauded, and shuffled on to the next presentation.
In 2017, after eight years of recovery and fearing that the next crash was imminent, I was asked to return to the same regional conference and give the same presentation. This time however, I included the human element. I still had 50 slides, but most of the charts and graphs were removed. Instead, the key messages were delivered by people. I searched databases of images for pictures of people whose appearance and facial expressions perfectly fit the quote and message that I was assigning to them to deliver. I found pictures of people who looked like a CEO, a CFO, a vice president of purchasing, several sales people, a human resources manager, a country manager from France, an administrative assistant, and many more.
For honesty's sake, I told the audience that the pictures of people and the quotes assigned to them were not real. Nevertheless, the parade of human faces and their lively quotes kept the audience enthralled the whole time. Furthermore, the business messages were very well received as evidenced by the heads nodding in agreement in the audience. At the conclusion, half of the attendees came up to the front asking questions, shaking hands, and thanking me for the presentation. It was exactly the same message as eight years earlier—except it was delivered with the human element.
People, faces, and quotes
In a slide presentation or a journal article, we cannot reproduce all of the body language, intonations, hand waving, shouts, and emotions that one sees in a real human encounter. But we can at least show a photo of the speaker's face and some gestures that reinforce the message that they are delivering. The quote backed up by the photo makes the business message much "stickier." Here are some examples of how putting a person, a facial expression, and a quote together can create a powerful message:
Before the market crash: salesman
"In this industry, we do business with a handshake. My customers are honorable people and we trust each other to honor our commitments."
After the market crash: corporate attorney:
"The customers dropped us like a rock. They cancelled all their orders and we have no contracts and no risk sharing agreements. We built product based on their forecast, and now they won't take it. We're screwed."
Another example of quotes and faces synchronized:
Before the market crash: hardware engineer:
"We take great pride in our product designs. We use the latest cutting-edge materials and components to get industry-leading performance out of our products."
After the market crash: purchasing manager:
"We let the engineers use all kinds of fancy new unique materials. Now we can't cancel orders of those materials. We are bleeding CASH for stuff we don't need."
Another example of quotes and faces synchronized:
Before the market crash: purchasing agent:
"My supplier is not a risk. Even though they're a private company, they've been around for 20 years and the owners live in my same neighborhood. Their kids play with my kids."
After the market crash: CFO:
"Purchasing never even asked about their financial situation. When they closed, we lost our only supplier. It will take us 90 days to bring on a new supplier ... if we can stay afloat that long."
The workshop
For students who have come up through the ranks of, say, industrial engineering, the idea of including pictures of people and quotes is completely foreign. All of their training has been to make your case using numbers, logic, tables, charts, and graphs. Present the evidence! We now have to teach them that this approach often fails and is sometimes counterproductive with regular people. If you only present information that looks like it came from a math book, people will tune you out entirely. And you are opening the door for an opponent who people can relate to more easily. So, we have to make our students practice multiple times using the human element in their presentations.
We use hands-on small teams to have the students practice including the human element. After an initial briefing, the students are divided into teams of four students and sent to small breakout areas. Each team is assigned one of several "causes" to promote, either for or against. Teams are given 60 minutes to create a short presentation that promotes their side of the issue using the human element in their slides. They get practice at converting their key arguments into compelling quotes. They then carefully select photos of people with facial expressions that reinforce the sentiment of the quote. Teams return to the classroom and use their presentation to sway the rest of the class to support their position. The class votes on which presentation was the most persuasive. As a teacher, it is interesting to see this technique show up later in the semester in their capstone presentations.
Supply chain graduates, engineers, and business professionals use numbers, facts, charts, and graphs to present information to each other. But to "go make change happen" in large organizations, they need to convince regular people to adopt new practices. Currently university curricula and corporate training programs fall short of teaching their rising stars to effectively lead in large mixed organizations. Including the human element in terms of people, faces, and quotes in presentations is a more effective way to connect with people and to make your arguments more powerful and memorable.
Benefits for Amazon's customers--who include marketplace retailers and logistics services customers, as well as companies who use its Amazon Web Services (AWS) platform and the e-commerce shoppers who buy goods on the website--will include generative AI (Gen AI) solutions that offer real-world value, the company said.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."