Enhancing Supply Chain Performance with a Positive Attitude

Logisticians, buyers, and supply chain managers have been under enormous pressure even before the Corona crisis. Challenges such as 24/7 availability, crisis management, cost optimization, and time pressure shape their daily lives. These burdens can quickly trigger a negative spiral that dampens team morale and affects business results. Studies show that a collective negative energy within a team reduces a company’s performance and innovation capacity by 20-30%.

By: Dr. oec. Katrin Oettmeier

(St. Gallen) The good news upfront: There are effective approaches that supply chain leaders can use to transform negative emotions and behaviors within the team into productive energy.

The supply chain is not just a matter of processes and technologies – the people who shape it are crucial to the success of the supply chain. Negative energy, such as frustration or cynicism, can quickly spread within the team and complicate collaboration with various internal stakeholders as well as external partners. Therefore, supply chain leaders must take active steps to lift the mood and promote productive energy. This is not only ethically right but also economically sensible.

Dynamics in Teams and Their Impact

To better understand the dynamics within teams and their impact on business success, the concept of “Organizational Energy” is helpful. Developed and empirically validated at the Institute for Leadership at the University of St. Gallen (HSG), this concept describes the collective mental, emotional, and action-oriented power that a company or team exhibits in pursuing its goals. In short: To what extent are the members of an organization engaged with their heads, hearts, and hands to achieve the common corporate goal – or not?

Organizational energy manifests itself in the intensity, speed, and endurance of work, change, and innovation processes. There are four types of organizational energy that differ in terms of intensity (high/low) and quality (positive/negative) of the prevailing energy (see figure).

Productive energy is the ideal state in which teams work engaged and focused. In supply chain jobs, where high readiness and quick responses to operational challenges such as supply shortages or demand fluctuations are crucial, this state is particularly important.

Personnel Challenges in the Supply Chain

Supply chain managers face a variety of challenges that can also affect organizational energy:

• Constant Availability: The necessity to be available around the clock quickly leads to stress and exhaustion.
• Crisis Management: Unforeseen disruptions such as supply shortages or geopolitical tensions require quick decisions under pressure.
• Cost and Time Pressure: The focus on cost reductions and fast delivery times can increase the workload.
• Technological Change: The introduction of new technologies such as AI or blockchain requires adaptability and continuous training.
• Cross-Organizational Collaboration: Projects with suppliers or customers necessitate the management of organizational energy across company boundaries.

These factors can drive supply chain teams into the so-called “acceleration trap,” where constant activity without clear direction leads to a form of “organizational burnout.” The result: a negative, corrosive atmosphere within the team. This corrosive energy manifests itself in internal conflicts, low employee satisfaction, and low engagement among team members. Instead of pulling together, individual team members pursue their own interests, which may not necessarily align with the team or corporate goals.

Without targeted management, productive energy can thus turn into corrosive or resigned energy. According to research from the University of St. Gallen, this leads to a decline in the organization’s innovation and performance capacity by about 20-30%.

Strategies for Promoting Productive Energy

To positively mobilize the forces within the team towards achieving goals, supply chain leaders can take the following measures:

1. Create a Clear Vision and Strategy
   An inspiring vision that shows how the team’s work contributes to corporate success and customer satisfaction mobilizes productive energy. For example, a logistics team could be motivated by emphasizing how their work ensures supply security – illustrated by concrete customer feedback.
2. Manage Workload and Prevent Burnout
   Leaders should balance the workload and set clear priorities to avoid overload. Regular breaks are crucial, both in the short and medium term. If teams are under constant stress for too long – for example, because one change project follows another and the daily business is also on fire – initial motivation can quickly turn into resigned inertia or even organizational burnout. Therefore, tactical and strategic planning of corporate activities should also consider that phases requiring high employee engagement are always followed by calmer phases of stabilization and continuous improvement.
3. Encourage Open Communication and Collaboration
   Regular team meetings, feedback loops, and transparent communication build trust. In cross-organizational projects, leaders should organize regular coordination with suppliers and customers to avoid misunderstandings and ensure that all parties are pulling in the same direction.
4. Celebrate Successes, Acknowledge and Reward Positive Contributions
   Even small milestones, such as optimizing a delivery process, should be celebrated to boost morale. Recognition can occur through praise, bonuses, or team events. Often, honest, individual appreciation has a greater motivational effect on employees than purely material incentives.
5. Address Conflicts and Negative Behaviors
   Corrosive energy, such as cynicism or conflicts, should be addressed early through open discussions and mediation. For example, tensions between the purchasing and logistics teams could be addressed and resolved through joint workshops. Active listening helps to give space to pent-up emotions and thus take the first step towards de-escalation.
6. Build Strong Relationships with External Partners
   Fair contracts, regular communication, and proactive conflict resolution with suppliers, customers, and service providers strengthen relationships and promote positive energy across organizational boundaries. Clear, binding goals for all partners also create alignment.
7. Utilize Data and Analytics
   Data-driven decisions, such as using predictive analytics for demand planning, can reduce uncertainties and stress. This can also positively influence the energy level within the supply chain team.

Promoting Productive Energy in Supply Chain Teams is a Central Leadership Task

Promoting productive organizational energy in supply chain teams is a central leadership task that enhances both employee satisfaction and corporate performance. Through clear visions, open communication, recognition, and targeted conflict management, leaders can transform negative dynamics into positive ones. Especially in cross-company contexts, such as collaboration with suppliers or service providers, it is important to build trust and common goals. By focusing on the human side of the supply chain, leaders can not only enhance performance but also foster an innovation-driven culture.

Dr. oec. Katrin Oettmeier is an expert in supply chain management, leadership, and coaching. She has over 15 years of professional and leadership experience in logistics, supply chain management, digitalization, operational excellence, as well as coaching and holistic health. Her career includes senior positions at Hilti AG, academic roles at the University of St. Gallen and OST Eastern Switzerland University of Applied Sciences, work as an IT and business consultant, and founding her own company EN-TARA focused on empowerment and complementary therapy. Katrin Oettmeier holds a doctorate in economics with degrees from the University of St. Gallen (HSG), Rotterdam School of Management, and the University of Mannheim.

Photos/Graphics: © OST Eastern Switzerland University of Applied Sciences