Leadership Lessons: Jon Hancock, CEO of Sedex

Welcome to Leadership Lessons, where we profile executives from the supply chain industry. In this edition, we're joined by Jon Hancock, CEO of Sedex, a technology company with a focus on supply chain sustainability. Jon shares his insights on balancing work and life, the challenges he faces as CEO, and his commitment to driving positive change through sustainable practices.

Supply Chain 24/7: Thanks for joining us. What motivated you to pursue a career in the supply chain industry?

Jon Hancock: I was motivated by a combination of three powerful factors: the potential to use technology for a good purpose, the challenge of navigating and optimizing a highly complex supply chain environment, and the desire to have a positive impact on the world. Leveraging technology in the supply chain sector allows for streamlined operations, improved transparency, and enhanced efficiency, fostering ethical practices and sustainability. This use of technology not only optimizes business processes but also ensures fair treatment of workers and responsible sourcing.

SC247: How do you maintain a work-life balance in such a demanding role?

JH: Each morning, I walk my dogs, a practice that not only exercises them but also provides me with precious time to clear my mind and connect with nature. Nutrition also plays a key role in my well-being. I focus on wholesome foods and limit caffeine and sugar to sustain my energy and clarity for decision-making.

Spending time with family is another top priority. I regularly schedule dinners, outings, and vacations to strengthen relationships and create meaningful memories. I also try to disconnect from technology to remain present and reduce stress, whether it’s for an entire tech-free Sunday or an hour each evening. These breaks help me reset and maintain a healthier relationship with tech.

SC247: What emerging trends do you see shaping the industry in the next few years?

JH: Several trends that are already well-known will continue to shape our industry and our customers’ operational landscapes. These include:

• Macro global environment and ongoing disruptions: Businesses face challenges in both their national operations and their sourcing networks due to ongoing global tensions, supply chain shocks, and a tough economic climate. Rising tensions between major powers, trade wars, and the lingering effects of the pandemic have exposed vulnerabilities in long-established supply chains, prompting companies to re-evaluate their reliance on single-source suppliers, particularly those located in politically sensitive regions. The diversification strategy involves exploring alternative sourcing options, decisions to nearshore production closer to home markets, and building in redundancies to mitigate risks. Despite increased costs and operational challenges, it is seen as a necessary step to ensure resilience and adaptability.
• Legislative requirements: Regulatory demands will continue to evolve and will likely become more stringent, focusing on transparency, ethical sourcing and sustainable practices. Companies that can effectively navigate these legislative changes will gain a competitive edge, and building ever-deeper visibility into their supply chains is a crucial factor in this.
• High volumes of data: Many of our customers, and the supply chain industry generally, are grappling with increasingly high volumes of data. Managing and deriving meaningful insights from this data is a critical challenge. Organizations that leverage advanced data analytics to interpret and utilize this information will be better positioned to optimize their supply chains for sustainability, resilience and operational efficiency.
• AI and automation: AI and automation will be pivotal in managing complex supply chains. By integrating AI with bottom-up data, companies can streamline processes, predict trends, and make data-driven decisions. This will be especially crucial as new entrants without historical data attempt to compete in the market. Our extensive data history and growing AI capabilities will enable us to provide superior insights and solutions.
• Improving customer experience: It will be essential for Sedex to make our customers' lives easier by providing clear, actionable insights into their supply chains. As companies seek to enhance their supply chain operations, offering user-friendly platforms and comprehensive support will become increasingly important. Our commitment to improving the Sedex Platform experience, supporting legislative compliance, and simplifying risk assessments will be key differentiators.
• Intensifying competition for skilled workers: Attracting and retaining skilled employees will be a growing challenge. Companies will need to prioritize employee engagement and retention by offering competitive salaries, flexible work arrangements, professional development opportunities, and positive company culture. Businesses that successfully address these factors will be better equipped to attract and retain top talent.

SC247: What solutions is your company putting in place to be on top of those emerging trends?

JH: To address the emerging trends shaping the industry, Sedex is implementing several forward-thinking solutions to stay ahead of the curve, capitalize on these developments, and help our customers to do the same:

• Modernizing the technology stack: We’ve been upgrading our technology infrastructure to incorporate new ways of delivering insights to customers. By leveraging advanced data analysis and AI-powered tools, we can sift through massive volumes of data to provide actionable insights. This modernization not only enhances our platform’s efficiency but also enables us to offer more precise and valuable information to our customers.
• Sustainability and ESG focus: We are developing a comprehensive ESG framework to measure and report our own environmental and social impact. This includes setting ambitious targets for reducing carbon emissions, minimizing waste, and sourcing sustainably. Transparency in our ESG performance is also a priority, as we openly communicate our progress to stakeholders, including investors, customers, and employees.
• Customer experience enhancement: We have made significant upgrades to our platform to improve the customer experience, including user interface improvements, compliance with legal requirements, and simplification of risk assessments. Given our presence in 180 countries, our system uptime and reliability are critical and these enhancements make it easier for our clients to use our platform, gain focused insights, and make informed decisions about what they need to improve in their supply chains.
• Supply chain depth: Site-level visibility is built into our methodology and is a key feature of the SMETA assessment, enabling customers to understand conditions on the ground at individual supplier locations. This expertise, combined with our advanced data analytics capabilities to assess these detailed insights at speed and scale, positions us as a trusted partner for businesses seeking to understand their supply chains in greater depth.
• Strategic partnerships and ecosystem development: We are strengthening our ecosystem by forming strategic partnerships in areas such as environmental sustainability and supply chain management. These collaborations enable us to bridge gaps in our ESG efforts and offer comprehensive solutions that address various aspects of supply chain management.
• Talent acquisition and retention: We are investing in collaboration tools and technologies that support our workforce, including video conferencing, project management software, and virtual whiteboards. We are fostering a robust remote work culture that emphasizes trust, communication, and teamwork.

SC247: How do you ensure that your solutions meet the evolving needs of your clients?

JH: To ensure our solutions consistently meet our customers' evolving needs, we employ several key strategies, including active listening, feedback loops, and agile development.

• Regular customer surveys: We conduct frequent surveys to gather feedback on our products, services, and overall customer experience. These surveys help us identify areas for improvement and understand emerging needs. By regularly engaging with our customers in this way, we stay attuned to their evolving requirements and can adapt our offerings accordingly.
• Strong Community program: Our Strong Community program allows both peers and non-peers to engage with each other, learn from different perspectives and share their experiences. This Community environment also facilitates connections between customers from diverse regions and industries who may not otherwise encounter each other.
• Collaboration and consultation on product development: We create consultation groups with customers to ensure we’re building our solutions in line with their needs.
• Open communication channels: Our customers share their feedback, suggestions, and concerns through various platforms, including email, account management teams, social media, and dedicated customer support portals.
• Agile development approach: Sedex has adopted an agile development methodology that emphasizes flexibility, collaboration, and rapid iteration. Our standard product management process includes touchpoints with over 100 clients for each product we build, ensuring that customer input is a critical part of our development cycle.
• Culture of continuous improvement: We constantly evaluate and enhance our solutions based on customer feedback and data insights.
• Client engagement and education: We proactively engage with our clients through workshops, webinars and an extensive e-learning platform that covers industry and sustainability best practices, new technologies, and how our solutions can help them achieve their goals.
• Data-driven insights: We leverage data analytics to gain deep insights into customer behavior and needs.

SC247: What strategies do you use to manage and motivate your team?

JH: Motivating a team is a nuanced, multi-faceted process. Over the years, I’ve honed several strategies to ensure our diverse team remains engaged, inspired, and productive. Fostering a positive work environment by promoting a healthy work-life balance, and encouraging employees to take time off to recharge not only helps prevent burnout but also builds a supportive environment where employees feel valued and cared for.

Building a strong team culture is another cornerstone of our strategy. We organize regular team-building activities that foster camaraderie and professional growth through training and development opportunities. This helps our employees feel more connected to our mission and are empowered to reach their full potential. Leading by example is an integral part of my approach.

A crucial aspect of leadership is the ability to articulate a compelling vision. As the 'chief storyteller,' I make sure I communicate our vision, mission, and values to our teams. Repetition and consistency are key; I reinforce our goals and the path we need to take to achieve them.

SC247: What advice would you give to aspiring leaders in your field?

JH: I would encourage aspiring leaders to incorporate these principles into their leadership styles:

• Stay informed and curious: Read widely, ask questions, and challenge the status quo.
• Trust your instincts and use data: Balance your intuition with data-driven insights to make well-rounded decisions.
• Build emotional connections: Prioritize relationships and create a supportive, trust-based environment.
• Commit to continuous growth: Embrace every opportunity to learn and evolve, both personally and professionally.

SC247: What's your vision for the company in the next five years?

JH: My vision is centered around sustained growth, innovation, and making a positive impact on both our industry and society.

We plan to expand our reach by strengthening our presence in existing markets and exploring new geographies, aiming to become a global leader in making global supply chains more socially and environmentally sustainable. To achieve this vision, we plan to make further significant investments in research and development, ensuring we remain at the forefront of technological advancements.

Sedex currently reaches almost 30 million workers at our customers’ sites across supply regions globally. We measure our impact in part by the number of workplace improvements achieved annually as a result of our solutions and our customers’ efforts - in 2023, this was more than 185,000 individual changes made by identifying issues and opportunities through the SMETA on-site assessment. Each one of these represents a genuine improvement for workers, from health and safety to site employment practices. Our focus on delivering exceptional financial performance for our stakeholders, particularly in the B2B environment targeting Fortune 500 companies, will drive our strategy forward.

SC247: What are the key metrics you focus on to measure success?

JH: We track both financial and non-financial metrics to gain a comprehensive understanding of our company’s performance. These include:

• Cash flow: We closely monitor our cash flow to ensure we have the necessary resources to invest in innovation, expansion, and continuous improvement.
• Customer satisfaction: We use surveys, feedback mechanisms, and the Net Promoter Score (NPS) to assess how well we meet or exceed customer expectations.
• Employee engagement: We track metrics such as employee satisfaction, turnover rates, and feedback through regular surveys. High levels of employee engagement translate to better performance, creativity, and retention, ultimately contributing to our overall success.
• Scale and reach in supply chains: Our customer numbers are an important indicator of our success, demonstrating how far Sedex reaches into global supply chains. The greater our reach, the more visibility we can offer our customers in their supply chains. Sedex now serves 85,000 customers in 180 countries, which includes over 104,000 individual supply chain sites, and almost 30 million workers (based on peak season worker numbers). This is an absolutely incredible scale.
• Closed non-compliances: Non-compliances with local laws and the ETI Base Code identified and resolved through SMETA audits represent improvements in working conditions, responsible sourcing and site management practices. In 2023, over 185,000 non-compliances were resolved across supply chain sites around the world.

SC247: Can you share a success story where your solution significantly benefited a client?

JH: One of our standout success stories is our Radar Risk Assessment Tool, which leverages hundreds of data points from independent sources to evaluate risks in 14 key areas, including labor rights, health and safety, and environmental management. Radar provides risk scores for different countries and industries, enabling companies to identify high-risk areas and prioritize their efforts to address them. It also offers risk scores for individual sites within a supply chain, allowing for targeted risk mitigation measures. In this way, it provides both efficient initial global assessment and site-specific insights that can be analyzed in aggregate at scale.

• Due diligence: Sedex Radar enables companies to carry out a core task of supply chain due diligence by identifying, prioritizing and addressing potential risks in their supply chains. This comprehensive risk assessment ensures that companies are aware of and can proactively manage social and environmental issues.
• Improved risk management: By enabling companies to prioritize their risk management efforts based on the most salient risks, Radar enhances the effectiveness of sustainability programs. Companies can allocate resources more efficiently and address the most critical areas of concern. This is an important feature in due diligence best practice - to use risk-based prioritization, as businesses cannot address everything, everywhere, all at once.
• Informed decision-making: Radar provides data-driven insights that help companies make informed decisions about supplier selection, auditing, and engagement. These insights are crucial for driving high standards of ethical and responsible business practices.
• Increased transparency: Radar promotes transparency in supply chains by providing stakeholders with detailed information about social and environmental risks. This transparency helps build trust with customers, investors, and other stakeholders, reinforcing the company's commitment to ethical practices.

Our 95% customer retention rate and clients' high lifetime value underscore the loyalty and trust our solutions inspire. An independent study conducted by Forrester Consulting, where they interviewed our customers, demonstrated an aggregate ROI of 375%. This remarkable ROI was achieved through reduced operational costs, enhanced customer satisfaction, and increased supply chain efficiency.

SC247: What's one book every leader should read?

JH: Leadership in Turbulent Times by Doris Kearns Goodwin. This insightful book delves into the lives of four U.S. presidents—Abraham Lincoln, Theodore Roosevelt, Franklin D. Roosevelt, and Lyndon B. Johnson—during periods of significant crisis and transformation. Each president faced unique obstacles and used different strategies to overcome them, offering diverse perspectives on leadership.

SC247: Who is your leadership role model?

JH: Indra Nooyi, the former CEO of PepsiCo. She had a clear vision, focusing on health and wellness while maintaining PepsiCo’s brand strength and profitability. One example of Nooyi's visionary leadership was her initiative to acquire Quaker Oats and Tropicana. These bold moves positioned PepsiCo as a leader in the healthier food and beverage market, diversifying its offerings and strengthening its competitive edge. Nooyi's ability to foresee market trends and adapt accordingly showcases her exceptional strategic thinking.

SC247: What’s your go-to strategy for stress management?

JH: I love walking my dogs to get fresh air, exercise and clear my mind - it’s amazing how a short walk can rejuvenate both the body and the mind. Music has a powerful ability to influence our mood and energy levels. Whether I need to relax and de-stress or get energized and motivated, I have a playlist for every situation.

Finally, unplugging from technology is crucial for maintaining my mental well-being. In our digitally connected world, it's easy to feel overwhelmed by constant notifications and the demands of being always available. I make a conscious effort to set aside time each day to disconnect from my devices, perhaps during a walk or for a few hours before going to sleep.

SC247: What do you read every day?

JH: I always start with the Wall Street Journal and The New York Times. They help me stay updated on the latest happenings and provide valuable context for decision-making. I also regularly read the Financial Times and The Times of London. The Financial Times, with its strong focus on global financial markets and economic news, is particularly valuable for understanding the broader economic landscape. The Times of London offers a UK-centric view, which is important for gaining insights into developments and trends from that region.

SC247: What’s your favorite TV show?

JH: My favorite recent TV show is Succession - I know I’m not alone there! It offers a compelling look into the dynamics of a powerful family-run media conglomerate. What I find most fascinating is the show’s intricate portrayal of leadership, power struggles, loyalty, the complexities of family business, and the cost of ambition. It’s entertaining but also raises important questions about the sacrifices necessary to achieve success.

SC247: What three people would you like to have over for a dinner party?

JH: I’d invite Winston Churchill, Bill Gates, and Steve Jobs. Here’s why:

1. Winston Churchill: I’d love to hear his firsthand accounts of wartime strategy, his thoughts on leadership under pressure, and his philosophy on resilience and perseverance.
2. Bill Gates: Having Gates at the table would provide fascinating insights into the evolution of Microsoft, technological innovation, and the future of digital transformation.
3. Steve Jobs: I’d be eager to delve into his creative process, his views on entrepreneurship, and his thoughts on maintaining a culture of innovation.