pressing reset: the future pulse of sourcing€¦ · costs in a sustainable manner achieving a...

1 © Copyright 2020 Spire Executive Limited

Pressing Reset: The Future Pulse of SourcingInsights delivered by experts in Global Trade, Economics, Retail, Mental Toughness, Sourcing and Talent.

Spire Executive White Paper


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Table of contents

Reflecting on the backdrop with Spire Executive ................................................................................................3

Executive Survey Findings ...................................................................................................................................................... 4

7 questions answered by you focused on facing the future.

What the Retail?!? Q&A with Rick Helfenbein ......................................................................................................8

Rick now consults with industry and governmental bodies as well as organisations on the retail landscape in the United States. He recently finished his role with the American Apparel and Footwear Association as CEO and President, before working with the AAFA he worked for Luen Thai in various leadership positions.

Talking Trade Truths, Q&A with Patrick Low ......................................................................................................11

Patrick Low is an expert on international trade policy and was formerly Chief Economist at the World Trade Organisation.

Finding Fashion’s Future - Four big picture ideas with Kate Padget Koh .........................................................14

Kate Padget-Koh is the Founder at Fashionable Futures, a consultancy for apparel and footwear brands as they look to navigate into the future. She formerly held leadership roles with PVH, Li & Fung and Puma.

Realising Resilience in Rough Times, A framework for immediacy with Paul Lyons .......................................17

Paul Lyons is the Managing Partner at Mental Toughness Partners, an advisory and consultancy specialised in the field of mental toughness. He works with business leaders to build mental toughness for themselves and their teams and organisations. He formerly held CEO roles in the Recruitment and Executive Search industry.

Transitioning Talent Toward Tomorrow with Richard Donne ..................................................................................... 19

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Executive summary

Reflecting on the backdrop with Spire ExecutiveIn these choppy waters, or for better words unforgiving seas we find ourselves questioning how Spire Executive can bring value to our networks and customers in global sourcing, retail and supply chain organisations. Leaders across the industry have seen unprecedented supply is-sues and have had this followed almost immediately by a global demand crisis, the resilience of supply chains, re-tailers and the people who lead them through this time is being tested like we have never seen before.

We often read the words “this too shall pass” postered across social media from many peers in the talent indus-try. We too are optimistic that airplanes in huge number will fly the skies again, that premier league stadiums will be filled deafening noise and the infamous South Stand at the Hong Kong Rugby Sevens will be as charismatic as ever come the month of October. It is clear for everyone that we will emerge changed and with these changes will come more opportunities and challenges.

We have collaborated with several experts across Global Sourcing, Trade Economics, Mental Toughness and Sus-tainability to paint a picture of what this world might look like following this challenging phase in our lives. Spire’s

network is our value and our hope is that by pulling to-gether the voices of many experts across relevant fields we can deliver insights that benefit all of you.

With many of you stepping up at this time we feel com-pelled to do the same, in our own small way. We hope that this whitepaper can reach those who’ve had their careers directly affected by this crisis, if you know anyone in the industry that is going through a challenging time in be-tween roles please have them reach us and we will wel-come them with open arms. It is more important than ever that those who are searching right now have a place to share their voices, in tenuous times like these the chal-lenges will be as difficult as ever for those who aren’t ac-tively employed.

Thank you to all of you for participating in the following survey and for taking the time to be involved in the crea-tion of this Whitepaper. Hopefully we will soon emerge from this period of pain into a world plentiful in opportu-nity and promise.

Richard & Eric

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Industry Reset Survey

Resetting the Sourcing Industry Survey”

HypothesisWe collected responses from a global audience across the Apparel, Footwear and Retail Sourcing Industries. Over 70% of our responses are from executives based in Asia holding regional leadership or global leadership positions with sourcing organisations. 10% of our respondents are global supply chain leaders or chief sourcing officers and another 10% come from Offshore hub leadership positions. The remaining 10% of responses came from Human Resources or Talent Acquisition roles within sourcing and supply chain organisations.”

Question #1

What opportunities do you see in your business process(es) as a result of this challenging phase?

Findings:

A majority of responses fell into three buckets. Technology, People & Processes and Supply Chain. More responses were weighted towards supply chain process opportunities and enhancements, a large sum of the respondents are all look-ing to move faster, increase transparency and to reduce complexity.


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Question #2

Which functions will you strengthen, add, change or remove to help with strategic plans?

Question #3

What 3 skills do your teams and leaders need to better develop in order to better face adversity?

Findings:

95% of respondents answered the questions focused on “strengthening” or adding. The other 5% not displayed answered responses around staffing reductions in order to achieve faster moving workflows within or-ganisations. Some respondents from over-seas saw the need to empower their Asian supply chain offices with more decision mak-ing given due to the close proximity with supply bases.

Findings:

We grouped our responses into 4 categories, mental toughness, leadership & engage-ment, management approach and role com-petencies. Resilience as a skill was seen as the largest gap from our respondents in the mental toughness category. Communication and collaboration skills have been tested in this current environment, respondents be-lieve that this current time has revealed these skills as weak spots. The management approach category revealed the room for im-provement in the agility of teams and lead-ers.



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Question #4

How optimistic are you about a recovery in the first 6 months following this challenging time?

Findings:

Leaders are optimistic that we will experience a fast recovery and consumer demand will pick up after we see through this challenging phase. At the time this survey was conducted the US and Europe were deep into a “lockdown” state. 25% of participants are expecting a tough period of recovery in the first 6 months.

Question # 5

How optimistic are you about a recovery in the first 12 months following this challenging time?

Findings:

Almost 80% of participants see the industry recovering in the space of a year. In the 6-12 months following participants are expecting to have a clearer picture of the future and the ensuing recovery. Uncertainty is higher in the 6-12 months of recovery than the 0-6 month time frame, suggesting there is a high amount of ambiguity surrounding the industry’s future.

Very OptimisticOptimisticUnsurePessimisticVery Pessimistic44%

34%

20%

Very OptimisticOptimisticUnsurePessimisticVery Pessimistic

16%

62%

20%


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Vendor mix and collaboration Almost 50% of our respondents see the opportunity for

greater collaboration with theirs vendors and/or a reposi-

tioned vendor strategy. Leaders will look to create a

better balanced supplier portfolio, right country/right prod-

uct /right supplier. Respondents are looking to balance

their risk with more diversification across production coun-

tries.

There was an emphasis on further enhancing relationships

with vendors and developing stronger relationships deeper

down the supply chain with tier 2 suppliers.

Business operationsThe need to be leaner and “trim the fat” was mentioned by

16% of respondents. Leaders want to right size and cut

costs in a sustainable manner achieving a faster moving

and more productive organisation / workflows.

13% of respondents see an opportunity to build more in-

fluence across organisations from the supply chain. Placing

more emphasis on better business continuity planning for the future and providing more stability at present in order to rebound quickly with the ensuing recovery.

Commercial13% of respondents pointed at solutions addressing pain points that have occurred as a result of this situation. Re-ducing inventory levels, increasing demand planning capa-bilities, the use of A.I. sales data analysis, rationalising dis-tribution channels and developing clear digital go to market strategies. Creating leaner supply chains and better captur-ing consumer demand is a clear area of attention for lead-ers across the industry.

Technology:Over 7% of our respondents placed priorities on digital in-vestment to enhance business communication as well as continuity. Opportunities are seen in digitising the supply chain, the push for an increase in virtual sampling and the improvement of performance metrics across the supply chain.

YesNo14%

86%

Question #6

Do you think the industry will improve its ability to collaborate in the future as a result of this situ-ation?

Findings:

A large majority of participants see an improved ability for the industry to collaborate following this challenging time. Through this period. formal and informal networks have been set up across “competitors” to share insights and develop responses to this unprecedented phase. A stronger base for collaboration could exist following this time.

Question #7

What is the biggest opportunity that you see in your role or organisation emerging from this?


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Spire Executive: The landscape of trade and sourcing has changed dramatically in the last weeks and months. It’s hard to predict how this pandemic will pan out but we need to try and look forward. What are your thoughts on where the retail of fashion, footwear and accessories will head towards?

Rick Helfenbein: Sourcing for the fashion industry is like living in an ecosystem, where all the component parts feed off each other. As the system became more sophisti-cated over time, it expanded beyond its roots, like tenta-cles for an octopus. Sadly, for the outlying countries in-volved (Bangladesh, Myanmar, Cambodia), the coronavirus has severely damaged the industry’s tentacles and these will likely retreat back to the centre as it’s the most intact area for a quicker re-start. China will definitely emerge as the big winner for the USA market during the in-itial stages of recovery, followed by Vietnam.

Q&A with Rick Helfenbein

What the Retail ?!?

Author description: Rick now consults with industry and gov-ernmental bodies as well as or-ganisations on the retail land-scape in the United States. He recently finished his role with the American Apparel and Footwear Association as CEO and President, before working with the AAFA he worked for Luen Thai in various leadership positions.



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SE: Huge cancellations in orders have dominated indus-try headlines, what can leaders do from here to ensure that the apparel supply chain survives in high risk coun-tries like Bangladesh so that majority labour forces don’t fall into poverty?

RH: Order cancellations targeted towards countries like Bangladesh, Cambodia, and Myanmar will potentially gen-erate humanitarian consequences, especially if force ma-jeure is exercised. Companies that prided themselves on their social compliance will be called to the carpet by fu-ture generations of their customers (if they acted inappro-priately). Many have already backed off some of their initial (hasty) decisions. The problems created by cancellations will exist for months (if not years) and it will take assis-tance from groups like the UN, the G20, and other global bodies (like the ICC) to help provide assistance for coun-tries that were harmed.

SE: Do you think with the Lockdown in the US headquar-ter offices have realised the value and importance of strong teams of decision makers in manufacturing hubs?

RH: US headquarters have reacted well to the lockdowns and people have gotten used to working at home. It is more likely that high overheads from central offices will be encouraged by the decentralization and that – going for-ward – more and more people in the USA will work re-motely. Unlikely there will be much change in terms of moving more control to manufacturing hubs.

SE: How are leaders across Apparel & Footwear collabo-rating and connecting to get through this challenging scenario?

RH: Being “locked down” has spawned more time for reading, writing, zooming, and phone calls. There is more industry collaboration than before. Everyone is in the same boat….common topics: Where are we & Where are we headed are discussed…..

SE: What else do you think leaders across the industry can do to soften the blow and bounce back quickly?

RH: Right now, the two key words for everyone are “pre-

serve cash.” We don’t yet know how long this will last and liquidity is key to survival. Those with the most cash will make it.

SE: Can sourcing offices join forces for common good and look deeper into supply chain collaboration?

RH: In our industry, some sourcing offices might collaborate, most don’t. The problem is that the core essence of what we source (in terms of design) is proprietary - that’s what makes products distinct and marketable. While some offices may point to a country as a good place to manufacture, they usually won’t name their factories.

SE: Will organisations that have large amounts of buying power take their role in social compliance and commu-nity support more seriously in their production coun-tries?

RH: When this pandemic subsides, customers may en-courage each company to conduct a forensic internal analysis as to how they fared with their own social compli-ance programs. They may need to self-evaluate if compli-ance was a marketing tool, or if it is was carried out for real (when the going got tough). Who cancelled orders without thinking about downstream consequences? Who took sal-ary cuts? Who maintained benefits as best they could for their employees? Who really cared and who didn’t live up to the principles that they had established?

SE: How can companies deal with the hidden cost of shipment, returns, and mountains of waste in packaging and energy/warehouse footprint?

RH: One of the biggest problems with the movement to e-commerce is the EXTREME cost of handling returns. The problem has a two-fold dimension. As the industry has struggled to adapt to the millennial consumer, the cus-tomer modus operandi was to buy four items and return three. While this may be generational, it’s not practical. Returns have to be refurbished and restocked - and that drives the overall cost up. Likely, when the dust settles, “on-line” will evolve to be 25% to 40% of the overall brick & mortar business. It’s hard to say where the trade-off is,



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between efficiency of a pick-pack distribution centre with hands-on selling in a physical retail store.

SE: What will America’s retail landscape look like 12 months after this crisis?

RH: Unfortunately, America will likely enter into a period of hastened decline of retail stores. There will be a significant increase in the number of announced door closures and also an increase of bankruptcies. If a retailer was weak be-fore coronavirus, they are weaker now. Bankruptcies may actually help some companies but will force others to liq-uidate. America will learn to do live with less stores, less malls, and different opportunities. People won’t go naked, but their shopping patterns for all things related to cloth-

ing will definitely be entering a new phase. We will learn and we will adjust.

SE: Where do you envision opportunities for organisa-tions and leaders?

RH: When retail opens up again, there will be many new employment opportunities for those that can grasp change management. People who try to resurrect what they had will likely fail. Nothing will be the same for the foreseeable future. Forward thinkers, those who can de-velop scale for a new tomorrow will be the ones that sur-vive and thrive.

You can connect with Rick on

https://www.linkedin.com/in/rick-helfenbein-17200711/


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Spire Executive: What’s happening in the world today Patrick? What macroeconomic signals are out there?

Patrick Low: Countries are being hit sequentially by Covid-19 but it’s going to reach all corners of the globe if it has not yet done so. Already the macroeconomic conse-quences of the virus are significantly worse than the 2009 financial crisis, which we dubbed the Great Recession. We call the economic collapse of the 1930s the Great Depres-sion. Time will tell what today’s coronavirus-induced crisis will come to be called. The somewhat unusual and far more demanding challenge of today’s crisis is that it con-stitutes a double whammy -- hitting both supply and de-mand simultaneously. The supply shock arises from lock-downs and physical distancing designed to control the rate and extent of infection. This closes production lines, roils supply chains and distribution networks, so shrinking both output and trade. The demand shock also results from the far-reaching measures needed to control infec-

Author description: Patrick was formerly the Chief Economist at the WTO where he was responsible for economic research and statistics. He has also taught on international trade at the Graduate Institute of International and Development Studies in Geneva and at the Uni-versity of Hong Kong. He has also worked at a Hong Kong based think tank and continues to write on trade issues and consult for vari-ous governments and international organisations.

Q&A with Patrick Low

Talking Trade Tact



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tion. The public at large has dramatically reduced the range and level of their consumption baskets. Businesses too are not bolstering demand in the normal way.

SE: How long will a global recovery take after we come out the other side of the tunnel?

PL: While much attention early on in the crisis was on con-tainment, attention in many countries is shifting now to questions surrounding roll-out, that is, when to relax lock-down and distancing and allow the economy to get going again. The fear is that if this is done too soon, success in flattening the curve will be reversed by a resurgence of in-fections. This has arguably already occurred in some places. The trade-off, then, is between the costs of freez-ing economic activity and controlling the health conse-quences of the virus. The longer the economy is locked down, with massive populations of unemployed workers and potentially fatal threats to millions of enterprises globally, the harder it will be to usher in economic recov-ery. But relaxing restrictions too soon will result in bigger health challenges and higher mortality rates. So as to the question of when light will emerge at the end of the tunnel no authoritative answer can be given. It could be months, it could be more.

SE: What economic measures should governments be focusing on?

PL: Most government are pointing policy in the right direc-tion, within the differing constraints that they all face. Monetary and fiscal policies are at the centre of the ac-tion. On the monetary side, most governments have mini-mal or non-existent space to stimulate economic activity by reducing interest rates. This is because they did not raise interest rates significantly in the decade following the 2009 crisis. They relied instead on quantitative easing -- a means of pumping liquidity into the economy through buying up securities and keeping the bond market afloat. Many governments are deploying schemes to give credit to businesses, large and small, as well as providing money to individuals and families who are unable to go to work and in need of support. Governments will continue to generate debt at levels rarely if ever seen in many econo-mies, although much of this debt will never be repaid.

There is obviously a limit to the level of public debt that a nation can bear, but for many the limit has yet to be tested. On the fiscal side, some governments are deferring tax liabilities and/or lowering tax rates. The efficacy of these measures will be essential for restarting the econ-omy when health constraints lessen.

SE: What steps do you think governments need to take to boost trade after we come out of our global lock down?

PL: Governments face challenges on multiple fronts. On the economic side, trade is important because it is subject to specific policy instruments such as tariffs, embargoes and subsidies. Restrictions on trade can be mutually de-structive for those countries applying them, particularly where this disrupts supply chains and induces govern-ment to make do with a reduced capacity to address health challenges. Restrictions also raise prices at a time when easy low-cost availability is paramount. At the same time, countries are naturally reluctant to export health-re-lated products that in are in short supply within their own jurisdictions. The only way out of this bind is through close international cooperation based on mutual trust -- attrib-utes that are sadly lacking in many quarters at present. If cooperation falters on trade today, it will be much harder to pick up the pieces tomorrow. A breakdown in interna-tional economic relations in the thick of the Covid-19 crisis could take a long time to repair, imposing unnecessary hardship on all strata of society.

SE: Will we return to the same level of globalisation?

PL: There has been much discussion about a “new nor-mal” once the immediate pressures of managing the Covid-19 crisis are overcome. Working habits may change, with larger shares of the workforce operating from home. Social distancing may affect the way people interact, at least in the immediate aftermath of isolation. The ques-tion of how the private and public sectors interact in fu-ture will inevitably arise. Perhaps people will be more will-ing to acknowledge the pitfalls of leaving too much to the private sector when it comes to the provision of social goods and services. As far as international cooperation is concerned, there will obviously be stresses and strains,


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but the optimistic view is that these would be managed as governments came in a spirit of cooperation to mend economies and prevent a recurrence of such pandemics in the future. It would be tragic if such optimism were to look like naivete in retrospect. On the commercial front, companies will be more inclined to take risk analysis even more seriously, especially in relation to their reliance on international supply chains. But it is a matter for specula-tion how far this will go in reducing reliance on interna-tional supply chains (reshoring) or to shortening them in the longer term.

SE: [If you had to predict the future] What opportunities will arise as a result [of the current health pandemic cri-sis] and these signals?

PL: Crises always offer opportunities for those in the right place at the right time and those with the energy and im-agination to take advantage of a changed situation. Being in the right place could be about operating in an industry where supply constraints can be quickly relaxed, and de-mand is quick to pick up. On the goods side, resurgent production of basics with a low elasticity of demand would suggest relatively rapid growth in consumption. Those in luxury goods would see a slower uptake. In the case of services, there would be a similar pattern, demand for basic services without which locked-down consumers have had to make do would rise fast, while services such as entertainment and travel will take longer to recover. But regardless of the sectoral and product distinctions, the greatest rewards will go to those who adapt and inno-vate, whether in products or processes, in response to sound judgments about how patterns of behaviour and preferences might change in a post-Covid-19 world.

SE: What threats will continue to loom or arise as a re-sult? i.e. Are there threats that will derail some of these opportunities? Food shortages? Focus on necessities, not luxuries?

PL: Perhaps the biggest immediate threat is that a flat-tened infection and mortality curve of Covid-19 incidence is pushed upwards by a premature effort to restore nor-mality by relaxing physical distancing and lock-down strictures. New infections and more sickness would force a reversal of such a relaxation. In practice this is likely to be an iterative process with ups and downs, and if well managed may prolong the crisis a bit, but not by as much as an ill-considered yo-yo ride over many more months. Ultimately, a vaccine will probably be required to end the crisis altogether and establish whatever the new post-cri-sis normality proves to be.

SE: Where do you view China / US trade relations going after this Pandemic? Do you see other trade relation-ships changing?

PL: The US-China relationship is arguably as bad now as it was in the aftermath of Tiananmen Square. But there is much more to cooperate over now than there was then. The interdependency between the two powers is far more intense today than it was then. Both have more to lose by failing to cooperate. By the same token, the situation is more dangerous. There is no denying the intensity of the geopolitical rivalry underlying the relationship. Danger lurks and the pandemic has undoubtedly exacerbated tension in a range of unnecessary ways. Statesmanship is in short supply.

You can connect with Patrick on


https://www.linkedin.com/in/patrick-low-758a8132/


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Isolation, Lockdown, social distanced and quaran-tined. Four words that we never expected to see leading (likely) Google’s search rankings in 2020, four words that have brought a stop to fashion consumerism worldwide. With an endless cycle of negative press and a dramatic loss in spending power we’re all drawn into thinking about our own futures and the uncertainties that await.

This enforced break drives deep questioning into how we consume and what the future holds for the Fashion indus-try. When this crisis comes to a close and we emerge from our den’s to breath the new air that comes with spring, how will the massive machine that is fashion move for-ward? What changes will take place now more than ever?

Author description: Kate is the Founder of Fashionable Futures, an industry specialist consultancy that works with fashion brands and manufacturers to create extraordinary, sustainable futures through customised strategy and focus leveraging industry expe-rience. She has started several businesses in the industry and has held leadership roles in Product Strategy, Sourcing and Supply Chain with leading organisations including PVH, Puma and Li & Fung.

With Kate Padget-Koh

Finding Fashion’s Future, Four big picture ideas


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1. The conscious consumer:Non-essential spending has mostly grinded to a halt, with fears over income security and most asset classes drop-ping in value consumers have experienced a forced change in habits. A more enlightened consumer that can blend necessity and desire will emerge, with what pur-chases they do make they’ll take conscious decisions to ensure that where they invest their resources somehow feeds into the ecosystems around them. Through this cri-sis we’ve seen some great displays of empathy and in our recovery expect people to continue to support their com-munity and the lives of those that surround them. This will flow through to the fashion industry and purchases of clothing will take more consideration, the product and consumer connection will be heightened. Shoppers will place more weight into your “made in” labels, local to lo-cal buying will see a faster resurgence and smaller scale designers could see faster market traction. This crisis has made the oft spoken about problems of the world real and sustainability will see more tangible consumer commit-ment, product feel, brand connection and sustainability will define purchasing decisions. Brand commitments to-ward positive impact will receive greater attention and scrutiny, supply chains have a huge opportunity to in-crease their influence with buyers as a result.

2. The end of the season:All retailers now face overstock and inventory problems and when the store shutters open and the lights do turn on again they face seasonal irrelevance. How they solve this problem flows into our first point of the “conscious consumer”, the disposal and burn tactics that saw the spotlight last year will only be received with disastrous consequences.

This impending issue of a large scale effects all retailers and will ultimately question the relevancy of seasonal col-lections. With consumer consciousness heightened the sustainability of seasonal fashion will be drawn into ques-tion, in its current state it is incredibly wasteful and highly scrutinised.

This encourages us to ask the question, what will the fu-

ture wardrobe look like? Will it be filled with simpler items of higher quality, ethically sourced background, built to last? Will we dress in a much more individualistic way, as opposed to following trends of the herd? There are so many opportunities around this, but certainly we see the end of seasonal dressing and the fractious calendars that we’ve been experiencing for more than a decade now.

3. A caring supply chainThe ugliness common throughout the Apparel & Textile In-dustry only began to emerge from the shadows after trag-edy struck with the Rana Plaza collapse. Caring supply chains have been making progress but the opportunity for more collaboration and empathy still remains huge. We are currently seeing the potential tragic consequences of the fragility of human existence at scale, those who are most at risk like smaller designers, freelancers, retail staff and more significantly the factory workers face potential life-ruin. This looming issue is almost too much to wrap our heads around. Who takes care of these people? How do we create a future where this cannot happen again?

What a caring supply chain looks like

1. Operate on profound partnerships and collaboration from end to end

2. Operate with integrity, without gaps, with a full un-derstanding and transparency throughout the supply chain

3. Driving for more than margin and constant price re-ductions, bring and incentivise integrity to processes and reward having a truly caring approach through-out (brand equity improves as a result). It may mean the items cost more, but the cost to those involved and the planet is much less

4. It may mean a great drive to Local to Local

5. Brands, Retailers, Manufacturers and everybody in the ecosystem need to address the issue of competi-tion and look at how to collaborate, partner and sup-port one another to not only survive this time but to thrive in the future. There are brands with models that speak into this. Can they lead the way? The op-portunities are endless.



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4. A clean world:The environment is finally getting its vacation, whilst we are on lockdown the world has had a chance to take a breath. Organisations, environmental bodies and activists will undoubtedly use this lock down as a case study for continued preservation efforts. People will ask them-selves philosophical questions. Do we really want to re-turn to a past, where we were dealing with seemingly in-finite amounts of pollution, landfill and waste? Does this forced break give us the real wake up call to empathise and support communities with green causes at a massive scale?

Many brands who haven’t stepped into the sustainability spectrum may find that they’re too late to capitalise on the stickiness it has had with customers in recent years. Until this point in time sustainability has seemed like twice the effort for half the ROI, will our current crisis be our wakeup call? How will governments and other bodies take

more steps to enforce environmental caring goals? Will consumers now vote with their dollars? There is a huge likelihood now that a conscious consumer will emerge, tired of the endless consumption. They’ll spend their pay checks on fulfilment, finding meaning and pur-pose.

Can the entirety of the industry come together to create an extraordinary future, one which is clean, transparent and authentic. One which takes responsibility for the envi-ronment, the endless consumption of fashion and every-one involved outside of immediate stakeholders. The earth and environment must be considered a new stake-holder, as people take they must be incentivised to give back or minimise negative impact. Let’s pray for a circular world in which the industry can lift standards for both the people and planet.

You can connect with Kate on or over email [email protected]

https://www.linkedin.com/in/katepadgettkoh/


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How to manage this VUCA world through your mental toughness. COVID 19 has generated a once in a lifetime global event that is significantly affecting us all, irrespective of age, ge-ography and occupation.

The VUCA phrase was first used by the US military 30 years ago to describe the challenges they faced, namely Volatility, Uncertainty, Complexity and Ambiguity.

With breaking news around COVID 19 almost every hour of the day from every part of the globe, causing life changing circumstances, decisions and uncertain outcomes, VUCA is our current reality. As a result, many of us are feeling dis-orientated and confused and trying to make sense of it all.

Author Description: Paul Lyons is the Managing Partner at Mental Toughness Partners, an advisory and consultancy spe-cialised on mental toughness, he works with business leaders to build mental toughness for themselves and for their teams and organisations. He formerly held CEO roles in the Recruit-ment and Executive Search in-dustry.

With Paul Lyons

Realising Resilience in Rough Times, A Framework for Immediacy




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We’re searching for physical and psychological safety and a more adaptable and flexible mindset to help us prepare for the “new normal”, whatever and whenever that may be.

I like using frameworks because they help make sense of unfamiliar situations and by using the Clough and Stry-charczyk MTQ 4C’s (Control, Commitment, Challenge and Confidence) mental toughness framework, you can better understand and then effectively manage the VUCA ele-ments, achieving that sought-after safety and flexibility.

Mental Toughness is a trait comprising resilience and con-fidence which helps you achieve more structure and make consistently productive decisions and choices. It prepares you to face and adapt to any new and difficult challenges that arise.

The MTQ framework and related questions addresses VUCA in this way;

Challenge for VolatilityChallenge describes the extent to which you see chal-lenges, change, adversity and variety as opportunities not threats. It helps develop a more flexible mindset and bet-ter manage your fear of the unknown through the use of visualisation and reflection.

Ask yourself ;“How can you best prepare yourself mentally to be ready for anything”

“What’s preventing you from being the best version of your-self?”

Commitment for Uncertainty Operating in high risk and uncertain situations Commit-ment is required to remain focused on doing what it takes to achieve milestones and reach your final target without being diverted or distracted .

Ask yourself ;“What daily habits enable or destroy your ability to consist-ently make things happen?”

“What are the three essential things you must achieve to-day?”

Control for ComplexityControl over your emotions and your ability to perform in complex interdependent situations is paramount. This is achieved through increasing self-awareness, learning how to better manage stressors and using positive thinking.

Ask yourself ;“Who Are You? And what do you stand for?”

“To what extent do you feel able to control your world? 1-10”

Confidence for Ambiguity VUCA situations can be so unclear and difficult to interpret that traditional cause and effect analysis is ineffective . Solving these issues often requires Confidence in utilising your strengths and weaknesses and presenting and im-plementing your ideas to achieve a solution.

Ask yourself ;“Where does your confidence come from ?”

“What’s one thing you can do today to improve your per-sonal wellbeing ?”

So, in summary by using your mental toughness mindset you can build your psychological strength and mental flexibility to tackle the VUCA challenges that COVID -19 presents. It will pass in due course and hopefully we’ll look back with satisfaction on how we dealt with the chal-lenges we faced.

You can connect with Paul on or over email [email protected]

https://www.linkedin.com/in/paullyonsadviser


www.spirexec.comSpire Executive White Paper

“Furloughs, salary cuts, no-paid leave, retrenchment, Stood down.”

Words no one wants to be associated with in any capacity, words that have satiated every media medium since the lockdown that encapsulated the majority of mankind be-gan. The terrain of talent globally has been dealt a seismic shockwave, we’ve already seen the hearth of Bangladesh’s workforce doused in bone chilling water, 1 million apparel workers face poverty having been furloughed. Each order cancellation has dealt a vicious blow to the supply chain’s labour force and media attention is rightly pointing the spotlight on the factories of the world.

The trading, buying and production offices in Asia haven’t escaped unscathed, most if not all leaders have had to take costs out of their most expensive overhead, talent. As the interview with Rick highlighted earlier, we’re about to

Richard is the founder of Spire Executive. He has spent 7 years working with leaders in the Apparel, Footwear and Retail industries as an execu-tive search consultant.

With Richard Donne

Transitioning Talent Toward Tomorrow



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witness a massive game of survival of the fittest (richest), the impending doom that faced many retailers before this crisis has accelerated from a slow crawl to a gallop. As a result, we’re about to see a potentially huge oversupply of available talent across the industry. In the 12 months lead-ing up to Covid-19 I was continually stunned by the amount of strong individuals who were in-between role.

If JP Morgan’s economists are correct about the recession the global economy will face an ideal scenario with “V” shaped recession and recovery. An overwhelming major-ity of respondents to Spire Executive’s industry reset sur-vey believe that the industry won’t follow the same pat-terns as it did before. Leaders hiring for talent won’t be short of options and the hyper-connectedness of the in-dustry should mean that we see good people stepping quickly back into the workforce, if indeed our recovery is a fast moving one. Reverting to old talent patterns and strategies may destine businesses and teams to resume with the same actions that featured before, which partici-pants to our survey believe needed to see change.

If we’re to reposition ourselves to succeed in our ensuing recovery, then we’ll need to reposition the way we attract and select talent. Hiring for the now is less significant than ever now that we face a rapidly changing outlook, leaders will need to hire for reasons of resilience, adaptability, in-tegrity and agility. We often assess talent on how they can help us resolve our challenges and alleviate our pain points now, but with such an uncertain future for our in-dustry and our businesses we must take a long-term view to our talent, asking ourselves if an individual can take us forward into the future that the industry may transition into.

We have the opportunity to look within and ask ourselves thought-provoking and disruptive questions about the way evaluate our talent now and how we need to evaluate talent for the future. The consumer as well as the planet are begging us for a more conscious business model, the supply chain underpins one side of that model. We need to create supply chains of the future and the talent needed to build these supply chains already exists, but or-ganisations need to redesign the inner workings of the business and to assess the distribution of power. Compe-

tition and conflict are healthy so long as we establish mu-tual goals within teams and across the organisation, at one point or another each one of us has made a decision on a career opportunity because of the vision and mission associated with that opportunity. We need to re-embrace the “work for a purpose” mindset and now organisations as well as leaders have the opportunity to run a vision re-set.

Invest and Repurpose

Teams in Asia have stepped up and will have worked through a tremendously difficult period and morale will suffer, but camaraderie will rise. Build upon this intense period of collaboration when survival instincts have seen cross functional barriers lowered and real empathy shared. The inner workings of organisations may be in a prime position to see disruptive change. Invest in the tal-ent that saw you through this period and work with talent development teams to ignite the organisation’s ability to collaborate using this camaraderie. Avoid slipping back into silos, find ways to create mutual goals and lead with purpose.

Reposition the view of talent

Large lumbering organisations and hefty headcounts may see their demise after “trimming of the fat” to survive this brutal period. Leaders are undoubtedly going to take an open view to digitizing workflows and processes that will result in less hiring, but better positioned talent. The lead-ers within sourcing organisations need to focus on brand more than ever. The opportunity to dial back from tech-nology and process intensive employee engagement to a more “one to one” and personalized approach is huge and should see sustainable results. Ensuring higher perfor-mance from teams and long tenure will be driven from empathy and autonomy.

Lead from the heart

Actions that leaders take now towards their teams and their vendors particularly if they involve life or business al-tering decisions will be forged into the memories of those affected. Decisions made in the interest of the business need to delivered from a place of compassion, this will en-


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able us to recoup from this down period in the best possi-ble manner with personal brands remaining intact.

In this period where we await recovery of consumer de-mand we have the opportunity to rethink and question our sourcing offices and the talent that drives them. We continually ask ourselves questions about the industry’s future and how the consumer will emerge from a period of hibernation. Mindsets are primed for change and leaders across the sourcing industry have the talent and vision to deliver such disruption. Look forward, help your people to see the future and connect your talent with purpose.

Closing statements and Stepping upIn these challenging times we want to be able to support people who are going through challenging career phases as well as those who might soon be facing retrenchment as a result of this period. I invite you to share our details with anyone that you know who may need someone to consult with, we will do our best to support in the follow-ing ways;

- Connecting individuals across our network

- Curriculum Vitae assessment

- Market and career advice

If you are looking for people to support you in on an in-terim basis, we’ll be happy to help connect you with indi-viduals who are in-between roles at the moment.

It goes without saying, that the support we want to pro-vide has no associated costs. Many of our contacts are stepping up right now and we also want to do what we can to create positive impact for those most affected. Reach out to Richard and Eric, anytime.

https://www.linkedin.com/in/richarddonnespirexec/[email protected]+852 9242 5537https://www.linkedin.com/in/ericsoffer-spirexec/[email protected]+852 6016 1701

About Spire ExecutiveSpire Executive is a connecter and success enabler across leadership, management and critical hiring in the Apparel, Footwear and Retail industries. Hong Kong is our home and we have a physical presence in Europe, we take on as-signments locally as well as offshore, applying a “boots on the ground” approach to engaging with talent. Our defini-tion of “a job well done” is the success of the talent that we recommend to our clients and our network, knowl-edge and guiding principles enable us to create sustaina-ble outcomes.


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