Bozeman has a proving curve at C.H. Robinson

The collection of David Bozeman as the brand new CEO of C.H. Robinson Worldwide Inc. got here as a surprise to most individuals. It can have come as a surprise to some on the corporate’s 11-person board as well. Typically, a news release announcing such a move will specify if the board’s decision was unanimous. That didn’t occur here.

Going into last week, the consensus was that former UPS Inc. (NYSE: UPS) COO Jim Barber, who sits on Robinson’s (NASDAQ: CHRW) board, was the odds-on favorite for the job. That a choice had not been made led some to consider that Barber’s IT chops weren’t what the Robinson board was searching for.

Bozeman, who starts June 26, lacks C-level experience, an element that concerned Ken Hoexter, an analyst at Bank of America Securities. For a “company in transition” like Robinson, which has struggled in recent quarters, especially at its freight forwarding unit, a “longer learning curve of a C-level position could possibly be an overhang on turnaround timing,” Hoexter wrote prior to the announcement.

One other query will likely be whether Bozeman has the skill sets similar to in freight forwarding, ocean freight and third-party logistics required for such a demanding job. With none C-level experience, Bozeman has never needed to discover and execute strategies to show around an organization.

Bozeman joins Robinson from Ford Motor Co., (NYSE: F) where he spent lower than a 12 months as vp of its customer support division. He also spent five years as vp of transportation services at Amazon.com Inc., (NASDAQ: AMZN) where he built the e-commerce giant’s middle-mile delivery network, in addition to lengthy stints at Caterpillar Inc. (NYSE: CAT) and Harley-Davidson Co. (NYSE: HOG).

He can be an outsider, a incontrovertible fact that can have weighed in his favor.

Bascome Majors, an analyst at Susquehanna International Group, was a more sanguine observer. “Today, Dave lacks name recognition with most transport investors,” which might need explained the steep dive shares took on Monday, he wrote. “That said, we predict only a transparent ‘slash and burn’ hire would have driven a short-term pop, and Mr. Bozeman’s resume doesn’t fit that narrative (on paper no less than).

“Longer-term, his skill set of managing global teams at customer-focused organizations, including at Amazon’s complex transportation & supply chain operation, could help Dave earn the trust of CHRW’s employees and investors, like one other former Ford executive (Joe Hinrichs) is doing today at CSX (NYSE: CSX).”

Brittain Ladd, a longtime logistics executive, was cautiously optimistic in regards to the move. “I’m amazed at how many individuals have reached out to me to query the collection of David. Loads of people don’t understand that a VP of transportation at Amazon has an amazing amount of responsibility, definitely more responsibility than the common VP of transportation. David is credited with driving lots of changes at Amazon and he was highly respected. 

“David could be successful within the role so long as he surrounds himself with the most effective executives he can hire from Amazon, DB Schenker, DSV and positively Amazon. David has to own the role of CEO. I consider he can have no selection but to terminate board members [and] to herald board members who want the corporate to grow and take risks,” Ladd said.

The outspoken Ladd said Robinson under Bozeman “should absolutely go after an acquisition of DSV or at a minimum, acquire Uber Freight.”

As well as, Bozeman should contact Capgemini Invent, Deloitte or the Boston Consulting Group and have them conduct an independent review of Robinson’s operations and technology; determine future technology needs and optimal organizational structure; discover acquisition opportunities and which parts of the business to divest if any; and design the optimal go-forward strategy for the corporate, Ladd said.

“If Bozeman doesn’t do that, he will likely be in a situation where C.H. Robinson executives will do their best to guard their pet projects and fiefdoms. Bozeman needs an independent assessment of the corporate and a method that he can drive using a team he can trust,” he said.