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Unpacking the Consequences of Diffused Leadership: Why No Leadership is Better than Bad Leadership

Diffused leadership can have negative consequences for organizations. No leadership may be better than bad leadership, as it
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Global Supply Chain Group - vivek BWVivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on and more information on Global Supply Chain Group is available 

Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.

Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.

Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.

Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.

More information on Vivek is available on  and more information on Global Supply Chain Group is available on

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Leadership is the backbone for any successful business transformation. It’s the glue that binds a company’s vision, mission, and values together and directs its employees towards achieving the goals of organisation. But what exactly is leadership, and why is it crucial during times of change? Leadership is the ability to inspire and motivate individuals towards a common goal by setting clear objectives and making tough choices. It involves creating a positive work environment that promotes collaboration and innovation. In times of business transformation, leadership is crucial to provide direction and reassurance to their employees. Employees may feel anxious and uncertain about the future. A strong leader can keep employees motivated and focused on the end goal.

In this blog, we’ll dive deeper into what leadership means, its importance during business transformation, and the qualities of an effective leader. We’ll explore how leadership can influence the success of a transformation and provide practical tips on how to lead effectively during times of change.

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What is leadership?

Leadership is one of the most principal factors for the success of any organization. It is the ability or a skill to influence, motivate and guide people towards achieving a set common goal. It requires a combination of traits, including vision, empathy, communication, and decision-making skills. The CEO, being the top executive of an organization, has a critical role to play in the leadership of their company. The success of the company’s business transformation largely depends on the CEO’s leadership skills. A great CEO has the power to break down organisation silos, resolve conflicts, and melt away resistance. In other words, the CEO should have the power to bring all departments and teams together to work towards a common goal. A CEO should lead by example, sets clear objectives, and makes difficult decisions when necessary is likely to achieve success in business transformation.

A CEO’s leadership style can have a noteworthy impact on the success of the organization. A CEO who is authoritarian and directive may be effective in a crisis, but may not be able to inspire long-term commitment from employees. On the other hand, a CEO who is collaborative and empowers employees to take ownership of their work can create a positive work environment that fosters creativity and innovation. The CEO’s leadership also plays a critical role in managing change within the organization. In times of change, such as during a business transformation or restructuring of the organisation, the CEO must communicate a clear vision for the future of the organization and provide the necessary direction and support to help employees navigate the transition

Role of CEO in Business transformation

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Business transformation is a crucial process that can help organizations to adapt to changing market conditions and remain competitive. Nonetheless, the success of this transformation is largely dependent on the CEO’s personal leadership. A CEO who is closely involved in the transformation process can provide the necessary direction and inputs to ensure the success of the initiative. Unfortunately, in some cases, the CEO may not be available enough to offer their knowledge to the transformation project. The internal employees may tend to gravitate towards the power centre which is the CEO. This can lead to inefficiency and ultimately derail the transformation process. Therefore, it is crucial for the CEO to stay closely involved and connected to the transformation process to avoid these pitfalls.

Another common issue that can arise during the process business transformation is the approach of starting multiple similar projects. This approach is found to be quirky and inefficient, as it can lead to confusion and waste of resources in multiple levels. Instead, a unified approach in a single program is highly recommended. This approach can ensure that all the projects are aligned with the overall transformation goal is achieved, and resources are utilized effectively as possible. A comprehensive analysis is also necessary to identify all the projects, including those responding to structural constraints. This analysis can help to ensure that all aspects of the transformation are considered, and the initiatives are designed to meet the organization’s unique needs. By taking a comprehensive approach, organizations can achieve success in business transformation and position themselves for future growth and success.


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When Satya Nadella took over in 2014, Microsoft was struggling to stay relevant in the fast-evolving technology industry. Under his leadership, Microsoft underwent a significant cultural shift, moving away from its traditional focus on software and hardware to embrace cloud computing and artificial intelligence. Nadella’s approach to leadership was centeredaround the concept of empathy, which he believed was key to understanding the needs of customers and employees alike. He encouraged his team to prioritize innovation and experimentation, even if it meant taking risks and potentially failing. This approach resulted in the successful launch of several new products and services, including the Microsoft Surface tablet , the HoloLens mixed reality headset, Microsoft teams for collaboration and Xbox Game pass for gaming industry.

Nadella’s leadership also helped to break down internal silos and promote collaboration across different departments and teams. He established a more open and inclusive culture, which encouraged employees to share ideas and feedback, and made diversity and inclusion a top priority.


The role of leadership, particularly that of the CEO, is crucial in achieving success in business transformation. A good CEO can inspire and motivate employees towards a common goal, break down silos, resolve conflicts, and manage change effectively. A CEO’s leadership style plays a critical role in creating a positive work environment that fosters collaboration, creativity, and innovation. Moreover, the CEO’s involvement in the transformation process is necessary to avoid inefficiencies and derailment of the process. A unified approach in a single program and a comprehensive analysis of all the projects are also essential for the success of the transformation process. By taking these steps, organizations can adapt to changing market conditions, remain competitive, and position themselves for future growth and success.



The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.

Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.

what did Our Reader say?

(549 rating) 1676,People
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Chief Operating Officer Graphite Energy

I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.

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CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0

When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.

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Vice-President Supply Chain Asia Pacific

I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.

Global Supply Chain Group - Jean Briac Le Dean

Jean-Briac Le Dean
Co-Founder & Agen

Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.

Global Supply Chain Group - Lorna Calder Johnson

Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive

Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.

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