CEOs Need to Become Supply Chain Experts: A New Era of Business Resilience
Harvard Business Review recently published an insightful article titled To BuildResilience, CEOs Need to Become Supply-Chain Experts, highlighting a crucial shift in the business landscape. The article, authored by J. Yo-Jud Cheng andDwaipayan Roy, argues that the traditional expectation of CEOs to merely be aware of and engage with supply chain functions is no longer sufficient.
The article presents a compelling case for CEOs to become supply chain experts themselves, citing the recent global disruptions such as the COVID-19 pandemic, the Russia-Ukraine war, and the Panama Canal crisis. These events have underscored the vulnerability ofglobal supply chains and the need for proactive leadership in navigating such challenges.
The authors draw on a detailed analysis of S&P 500 CEO career trajectories and financial performance metrics, revealing a correlation between CEOs with prior experience inhigh-level supply chain management roles and companies with more resilient supply chains. This finding suggests that a deep understanding of supply chain dynamics is becoming increasingly critical for effective leadership and navigating unforeseen disruptions.
The article also highlights the growing number of CEOs who have ascended to the top after holding senior positions in supply chain management. This trend reflects a recognition within the business world of the strategic importance of supply chain expertise.
This article serves as a timely wake-up call for CEOs and business leaders. It emphasizes the need to prioritize supply chain resilience and to cultivate a deeper understanding of the complexities involved. The article suggests that CEOs whoembrace this shift and develop the necessary expertise will be better equipped to navigate the challenges of the future and build more resilient businesses.
In conclusion, this article provides valuable insights for business leaders and highlights the evolving role of CEOs in the face of global uncertainty. The authors effectively demonstrate the growing importance of supply chain expertiseand its direct impact on business resilience.
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