Leadership transitions can define a company’s future trajectory in the fast-paced and interconnected world of transportation, logistics, and supply chain management. Without a well-structured succession plan, businesses face operational disruption, loss of institutional knowledge, and rushed hiring decisions that fail to align with strategic objectives. The stakes are even higher for supply chain roles, where precision and reliability hinge on effective leadership. Uncertainty at the top heightens employee anxiety, increases turnover, and erodes customer trust and investor confidence. A proactive approach to succession planning safeguards continuity, ensures organizational stability, and positions companies for sustained growth in an ever-evolving market.
Avoiding “Accidental” Managers
An inadequate succession plan can become costly and lead to promoting managers who aren’t truly ready for leadership. Across industries, a growing leadership gap often leads to weak leadership and dissatisfied, disengaged employees. One UK-based study found that 82% of managers are “accidental” managers — that is, they were promoted based on technical skills, not their ability to manage people. Another study from Gallup suggested that only about 10% of people genuinely possess the skills to be great managers and that companies tend to make poor hiring decisions approximately 82% of the time.
Those less-than-ideal leadership hires can have profound ripple effects in a fast-moving and fast-growing field like logistics and transportation. It also coincides with a generational shift. According to the Bureau of Labor Statistics, approximately 45% of the “transportation and warehousing” field is over the age of 45. With experienced leaders retiring, fewer young people entering the field, and technological advances in automation, AI, and digital supply chains, it’s a convergence of factors that require a rethinking of leadership.
Today’s logistics industry needs agile leaders who have the technical knowledge to tackle global supply chains and the people-leadership skills to successfully manage equally complex workforces. To find these leaders, companies need both an external hiring strategy and a reliable blueprint for identifying and developing an internal talent pipeline.
Identifying Internal Potential vs. Attracting External Talent
Robust succession planning requires a careful consideration of both internal and external talent sources.
When evaluating internal talent, traits like problem-solving abilities, adaptability, strategic thinking, self-awareness, and collaboration tend to be priorities. These traits alone aren’t enough, though. For specialized roles in logistics and transportation leadership, creating a formal leadership development program can give your organization an edge, offering a place you can recommend and funnel promising talent. This could include formal training programs, cross-functional exposure, mentorship, and leadership coaching. Don’t just focus on a small group; build a culture of leadership readiness organization-wide by encouraging proactive problem-solving, accountability, and continuous learning at every level.
Promoting internally can build your organization’s reputation as somewhere top talent can learn and grow for the long term, improving your employer brand. There may, however, be instances when it’s better to seek external talent, such as:
- Specialized skill gaps that can’t be developed quickly in-house.
- Fresh perspectives on digital transformation and global operations.
- Leadership culture shifts requiring external expertise.
Consider how you present your employee value proposition to attract top logistics and supply chain leaders. In addition to competitive compensation and benefits, highlight innovation and growth opportunities, which tend to be high priorities for transformative talent. Partnering with specialized executive search firms, like GESG, can also give your team a significant advantage in attracting niche industry talent.
Creating a Sustainable Succession Plan
The unique demands of each company and each role mean that there is no one-size-fits-all template for succession planning in logistics and transportation. As you develop a succession plan, some considerations to keep in mind:
- Determine which roles to prioritize in the succession plan.
- Evaluate the impact and relative risk of each position.
- Develop a clear set of selection criteria and key competencies.
- Regularly review and update leadership pipelines.
- Leverage data analytics to identify leadership potential.
- Consider using digital learning platforms for executive skills development.
- Look to partnerships with top colleges and universities for leadership training pipelines early on.
- Build mentorship and networking opportunities (virtual and/or in-person).
- Develop and measure distinct KPIs for leadership development and retention.
Throughout the process, look for opportunities to set up knowledge transfer processes alongside evaluations of current skills. This might look like mentoring programs between current leaders and prospective successors, formalized knowledge documentation, in-depth case studies, or other options. The key is to ensure that core institutional knowledge can be effectively passed down from one “generation” of leadership to the next.
Consider these Two Possibilities.
One: a supply chain leader leaves the organization, taking valuable relationships, unwritten knowledge, and a hard-earned understanding of what makes their team function optimally. No one is prepared to fill the void, leaving the company to scramble for leadership. The disruption not only discourages employees but also impacts customers, and damage control is required.
Two: a supply chain leader is ready to move on, but their organization has been planning for this. Personnel are already in place to manage the transition smoothly and ensure operations continue. The gaps close quickly, and the loss is all but invisible to the outside world.
That second scenario is what proactive succession planning gets you: a competitive edge and smooth transitions. If you’re preparing for a leadership transition – now or in the future – talk to GESG to learn more about how our network and approach can help you secure the talent you need for long-term success.