The world is changing at an alarming rate which is forcing businesses to change if they hope to survive. Servant leaders need to be aware of the trends, keep ahead of changes in their industry, and apply foresight to their long term planning. Studies have shown that not only is this beneficial, but absolutely necessary to the growth and survival of organizations. Rohrbeck and Kum (2018), in their longitudinal study on corporate foresight and its impact on firm performance, discovered that when businesses apply corporate foresight, they become future prepared. Their study discovered that future prepared firms outperform others in 33% increased profitability and 200% growth.The success of these firms was a direct result of how they addressed disruptive change in the environment, became more resilient and engaged more long- term transformational strategies (pg. 114).
As servant leaders, how are we to ensure that we lead our organizations with corporate foresight so that we are prepared? Jarocci (2015) proposes seven strategies we can incorporate into our practice. The first is to diversify intentionally, by having a variety of perspectives represented in our organizations. They will help us to see things in a different way. Secondly, we should listen deeply and keep our ears peeled for information about the future, new trends, and repeated occurrences. Thirdly, we should read widely, and from sources not always connected with our industries. Many times trends are connected. Fourthly, we should think systematically and foresee the consequences of our actions so that we drive the future, not just respond to it. Fifth, practice prediction by regularly making predictions and testing them against reality. Sixth, our networks are key sources of information, so we should be continually making new connections in different fields. Finally, technology is the area that seems to change the fastest. We need to keep on top of staying technologically ahead.
Canada Post is one organization that has been significantly affected by digitization. In 2016 the Government of Canada assigned a task force to provide fact-based analysis, ideas and considerations for recommendations for being financially sustainable in a rapidly changing digital world. With the increase of digital communication, envelope delivery was down drastically and Canada Post was facing annual operating deficits close to $1 billion by 2020 . It’s advertising sector also was in decline due to receiver rejection due to environmental preferences of users. The rise of E-commerce had increased Canada Post’s parcel division, but it, too, faced challenges with it’s infrastructure and inability to maintain the same services as large international couriers and the private sector (Government of Canada, 2016).
Through gathering data, analyzing practices of other corporations, and garnering feedback from Canadians, Canada Post came up with a five point action plan. This included moving towards community mailboxes, Introducing tiered postage pricing, and strengthening the retail network. They also streamlined operations to increase efficiency and addressed the cost of labour through attrition and collective bargaining (Government of Canada, 2016). They also became more digitally mobile by introducing an app through which customers can track their packaging, look up postal codes, locate post offices, find out rates for letters and packages, manage their bills, and buy cards and postcards with custom images (Begin, n.d.). Their expected positive results of these changes are to stabilize their postage service and increase revenues.
In analyzing Canada Post’s actions, I can see several elements of applied servant leadership foresight. They were very strong in thinking systematically, gathering factual data, and making decisions based on that information. They also intentionally listened, by gathering input from their customers, Canadians, to find out what they were looking for in a postal service. They also broadened their perspective by considering how other companies both nationally and internationally faced the same challenges.
I think they should have digitized their infrastructure, company systems, and public engagement far sooner and more deeply than they did. They conducted research into this issue in 2016. However, by that point E-commerce had such far reaching implications that Canada Post had already seen great losses. They should have done some strategic foresight planning twenty years ago. I think it will take them some time to do some innovative thinking around new programs and services that will take them into the next generation.
I wonder what other digital services Canada Post could offer and how they could diversify even further? Are there other branches they could open that haven’t been thought of yet?
References:
Begin, D. (n.d.) Tool of the week: Canada post staying relevant through technology. Thornley Fallis. Retrieved from: https://thornleyfallis.com/tool-of-the-week-canada-post-staying-relevant-through-technology/
Government of Canada. (2016). Canada post in the digital age: Discussion paper. Retrieved from: https://www.tpsgc-pwgsc.gc.ca/examendepostescanada-canadapostreview/rapport-report/consult-eng.html#a1
Jarocci, J. (2015, October 5). Servant leadership – 7 ways to cultivate foresight. [web log comment]. Retrieved from: https://serveleadnow.com/servant-leadership-7-ways-cultivate-foresight/
Rohrbeck, R., Kum, M. (2018). Corporate foresight and its impact on firm performance: A longitudinal analysis. Technical Forecasting and Social Change. (129)105-116. doi: https://doi.org/10.1016/j.techfore.2017.12.013.