Executive Briefings

Transportation, Logistics Industries 'Weak' in Demanding Accountability Among Employees

Accountability - the ability of people to understand what is expected of them, exercise authority, and take responsibility for delivering results - is an important dimension of organizational health. Of course, some companies are better at fostering it than others.

One sector that's conspicuously weak in this respect is travel, transportation, and logistics (TTL), comprising everything from local and long-distance public-transport businesses to leisure-travel operators and logistics service providers. While each is unique, most depend on global physical networks and on large, distributed workforces.

An analysis of McKinsey's Organizational Health Index shows that, on average, businesses in this sector score no better or worse, overall, than those in others. But they fall down in promoting accountability among their employees.

This low score is important given the capital-intensive nature of businesses that move goods and people. Travel, transportation and logistics companies are also often service providers. In the best, employees play important roles in reducing costs and increasing efficiency while creating a positive experience for customers and ensuring their safety. Without clear accountability, employees have difficulty rising to these challenges.

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One sector that's conspicuously weak in this respect is travel, transportation, and logistics (TTL), comprising everything from local and long-distance public-transport businesses to leisure-travel operators and logistics service providers. While each is unique, most depend on global physical networks and on large, distributed workforces.

An analysis of McKinsey's Organizational Health Index shows that, on average, businesses in this sector score no better or worse, overall, than those in others. But they fall down in promoting accountability among their employees.

This low score is important given the capital-intensive nature of businesses that move goods and people. Travel, transportation and logistics companies are also often service providers. In the best, employees play important roles in reducing costs and increasing efficiency while creating a positive experience for customers and ensuring their safety. Without clear accountability, employees have difficulty rising to these challenges.

Read Full Article