Carly Fields finds that more weight should be given to the psyches of port chief executives in troubled times
The financial dire strait that has our poor container ports in a headlock has been studied from every imaginable angle to find some way to predict the end of the depressed throughput gloom. But little has been said on the practical and emotional affect on port bosses. However, it is the responses of these top dogs that will make or break a port or terminal as the industry starts to climb out of the quagmire.
One plucky researcher, Dr Kevin Nourse has delved into the psyches of port chief executives in these depressed times and the findings make interesting reading. The crisis has challenged the making of well-considered and timely decisions for port chief executives, as they realise the highly visible nature of their role among demanding stakeholders; the potential for significant loss to their organisations including downsizing their workforce; the demands of customers who are experiencing highly emotional reactions to the threats created by the crisis; and the need to develop strategic responses in dynamic and rapidly changing business conditions where even the notable economic experts cannot predict the future.
The study, based on anonymous interviews with 15 port directors from the US, Canada, and the Caribbean, reveals that the sudden nature of the decline presented its own challenge, especially in light of relatively recent predictions of continued double-digit growth for the maritime industry.
One chief executive says: "I think this is really a brand new for the industry as a whole…we've come to these meetings for 30 years and talked about how much growth we're going to see in cargo." Another suggests that one of the unique attributes of the crisis is the lack of perspective about how bad the downturn will be to the point that even experts are unable to predict what is ahead. He adds: "We don't know yet if it's going to be a tsunami or a big wave or…we know we're going to get hit, but [we don't know] how bad…even the economist cannot tell us three months ahead of what's happening."
Some of the port chief executives interviewed have managed to find a silver lining in the form of time to re-evaluate business priorities and an opportunity to strengthen employee loyalty. One port director says: "As a port director and as a citizen [this economic crisis] is going to make us rethink a lot of our choices in our daily lives and in our professional and business lives. And a correction isn't bad." Another adds: "It has provided me an opportunity to sort of bring the pendulum back a little bit in what we're doing. We're not going to back off any of the environmental goals, but recognise that we need flexibility in lease negotiations…It's an opportunity to help the board understand we have to focus on our competitiveness."
The importance of having a plan and sticking to it has also been highlighted by the study. "We've been sort of re-constituting ourselves for the last couple of years through each budget cycle looking at where has the business shifted? Where do I need more resources? Where could I begin? That will continue for the future. It becomes a lot more important now," says one chief executive, while another adds: "We're able to pull that out [our 20-year strategic vision/plan] there and say we've got a plan here. We're not going to let this little blip affect the next 20 years."
But while a focus on the future is welcomed, some interviewees have begun to question past decisions. One questions: "That [environmental program] really hurt us at this economic downturn. It's affecting us competitively. We can't backtrack on it now so what is the best thing to do?"
Continued investment in tools and facilities is another area that the interviewed executives share a strong belief in. At least two ports confirmed they are actively adding to their facilities during the crisis, while others have continued funding equipment. Another is even considering new business opportunities. All are acutely aware of the prospect of being 'left behind' if they cut investment in equipment and facilities.
In undertaking the study, the report's author Dr Nourse uncovered the presence of emotional intelligence among the study's participants, and several appeared to recognise the need to maintain an even demeanour throughout the crisis and avoid the temptation to be overly reactive based on emotional reactions to the unfolding crisis.
"As a result, they were better able to make well-considered strategic choices and consider a greater range of options in how to respond organisationally to the crisis," says Dr Nourse. "Some participants noted the importance of reframing the crisis as an opportunity and emphasising the positive attributes of the situation. Participants also demonstrated emotional intelligence in helping manage the emotions of stakeholders by communicating openly and honestly.
"In addition, the ability of leaders in this study to remain emotionally intelligent through the crisis can be linked to their state of hopefulness. Research has suggested a relationship between a leader's state of hope and their own sense of resiliency as well as the resilience of their followers. In essence, hope is contagious and transmitted through words and actions."
Dr Nourse also found that port chief executives play an important role in driving innovation by shattering denial and reinforcing a compelling vision.
"Numerous participants talked of having to deliver information to their employees and commissioners about the harsh realities of the crisis and the potential implications of the downturn for their port. These actions played an important role in breaking the denial of managers and staff about the seriousness of the situation and the necessity for all staff to play a role in reducing expenses or identifying new revenue opportunities.
"As the findings in the study suggest, crises often trigger a shattering of previously unexamined assumptions about an organisation and its future. Thus, leaders can choose to use crises as an opportunity to shatter untested assumptions about what is and is not possible in reducing expenses or increasing revenue - and therefore unleash creativity and innovation."
Dr Kevin Nourse is an executive coach, organization development consultant, and facilitator with nearly 20 years of progressive experience in both for--‐profit and non--‐ profit organizations. Dr Nourse can be contacted at +1 202 462 6252 or knourse@leapadvocates.com.
