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Transport Firms, Schools Forge Closer Ties to Help Employees Advance Their Careers
This story appears in the Sept. 8 print edition of Transport Topics.
Trucking is an industry heavily infused with entrepreneurial, family-owned businesses where learning takes place on the job over time. As companies grow larger and more complex, however, the need for more formal education and training is growing, executives said.
Some trucking companies and logistics firms are forging closer ties with schools and universities in an effort to prepare students for careers in transportation, and to broaden the expertise of employees who have either worked at the same company for years or are related to its owners or top executives.
Richard Murphy Jr. is one who knows this terrain well. To broaden his employees鈥 business perspectives, Murphy requires family members seeking to work for his company to first get a college degree and gain work experience elsewhere.
鈥淚 want them to learn to work somewhere where their name is not on the building,鈥 he said.
A fourth-generation member of the family that started Murphy Transfer and Storage Co. in Minneapolis in 1904, Murphy gave up a career as a professional landscape architect to join his father鈥檚 struggling trucking company as a dispatcher in 1983. The firm collapsed a few years later, but with the help of several long-time executives at the company, Murphy was able to take what was left of the business鈥 assets 鈥 a couple of warehouses and a specialized rigging operation 鈥 and built it into Murphy Warehouse Co., which has an asset-based logistics subsidiary. The warehouse and logistics units employ about 200 people and provide warehousing and distribution, product assembly and fulfillment, regional trucking and international shipping services.
To further his business acumen, Murphy enrolled in an executive MBA program at the University of Minnesota. It was here where he discovered that his background as a designer gave him an edge over some of the more seasoned executives in the program.
鈥淚n business, people tend to work in silos,鈥 Murphy said. 鈥淚 came through the design world where you learn to think outside the box. Architects are trained to solve problems, but the challenge is not simply going from A to B. It鈥檚 going from A to C, D, E and F to get to B. It鈥檚 a whole different way of thinking.鈥
Murphy, who still serves as an adjunct professor of landscape architecture at the university and lectures at other schools on supply chain logistics, said he wants to inspire that same outside-the-box thinking with his employees, most of whom have never worked anywhere else and where there is very little turnover.
鈥淣o one here wants to leave, and that鈥檚 good,鈥 Murphy said. 鈥淪o how do I get new ideas?鈥
Murphy said he hired a recent college graduate to help the company expand its social media presence, and is now looking for another young person to fill a sales support position after having poor results with older personnel.
鈥淲e send people to courses and seminars, and we support continuing education for executives because we want people to see things in the outside world,鈥 Murphy said.
Getting students ready for the outside world compelled Ruan Transportation Management Systems鈥 new CEO, Benjamin McLean, to provide transportation management software to students studying business and supply chain management at Northwestern University in Evanston, Illinois, starting this fall.
鈥淲e want to take an active role in preparing students by letting them use the same tools we use in our business,鈥 McLean said. 鈥淭his gives students a step ahead and makes them great job candidates for us and other companies.鈥
McLean, who is married to a granddaughter of John Ruan 鈥 the Des Moines, Iowa, company鈥檚 founder 鈥 earned three degrees from Northwestern: an undergraduate degree in computer engineering, a master鈥檚 in business administration and a law degree. He serves on the business advisory council for the Northwestern University Transportation Center, which is marking its 60th anniversary this year.
鈥淥ur founder was closely involved in the beginning,鈥 McLean said of John Ruan, who dropped out of college during the Great Depression, bought a truck and began delivering gravel in 1932.
After McLean graduated from college, he worked as a code writer for computer software companies and later joined the consulting firm Deloitte, where he worked with companies that needed to upgrade technologies. He then worked for several years at investment firm William Blair & Co. in Milwaukee, where he handled the sale of stock for a number of technology firms.
In 2007, McLean joined Ruan as director of information strategies, advanced to chief information officer and then become senior vice president of administration.
鈥淵ou can鈥檛 prepare for one company or one industry,鈥 McLean said. 鈥淢y goal was to learn about as many disciplines as possible. I wanted to be a part of a team. That鈥檚 what led to this position [at Ruan].鈥
McLean said the Northwestern Transportation Center does a good job of bringing together executives from all modes of transportation.
鈥淵ou get the full, broadest view of transportation problems and policies,鈥 he said.
McLean also said he has gotten involved in research projects at Northwestern, such as a new process for storing natural gas and a system to identify and track freight carriers.
Ruan ranks No. 38 on the Transport Topics list of the 100 largest U.S. and Canadian for-hire carriers.
Andrew Boyle is executive vice president and chief financial officer at Boyle Transportation in Billerica, Massachusetts. Like McLean, he is a member of Northwestern鈥檚 business advisory council and said he sees benefits in working with faculty and students.
鈥淢y graduate education was enhanced by course work in operations, marketing and transportation, and I frequently apply those principles to our business,鈥 Boyle told Transport Topics.
鈥淭he semiannual meetings give me a chance to interact not only with executives from all modes but also with very bright faculty and students who are passionate about transportation-related issues,鈥 he said. 鈥淭hey come from around the world, and I think particularly those from emerging markets understand how critical mobility 鈥 of both people and freight 鈥 is to economic growth.
鈥淭hey want to solve problems, and Northwestern provides them the right mix of engineering, business and social sciences.鈥
Despite these companies鈥 drive to broaden their employees鈥 horizons, there may be limits to what schools can do to help companies develop executive talent, said Daniel Murray, vice president of the American Transportation Research Institute.
鈥淚 don鈥檛 see a lot of universities expanding or creating vocational training programs for practitioners,鈥 Murray said. 鈥淚t鈥檚 not seen as a profitable venture.鈥
Murray said that鈥檚 because most schools are set up to do research, which is funded by government agencies and not by companies in the private sector.
Another factor, Murray said, is the attitude among some second-generation executives that trucking is no different than other business operations and that no amount of academic instruction in transportation, logistics and supply chain management can replace the knowledge and expertise built up over the years by people on the job.
鈥淎n MBA gives you business acumen, but that is not helpful in terms of maintaining commitment, loyalty and a deep appreciation for the trucking industry,鈥 Murray said.
ATRI President Rebecca Brewster noted that most company executives want the 鈥渂est of both worlds,鈥 where promising young employees can attend educational programs at schools and also participate in programs such as American Trucking Associations鈥 LEAD ATA program, in which young executives learn about key industry issues and develop leadership skills.
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