The Importance of Change Management in the Energy Industry

The energy industry is currently going through an unprecedented time of change and transition. New and proposed policies at both the federal and state level, such as the Clean Power Plan, are creating both opportunities and challenges for utilities, governments, and businesses. In addition, market and technology forces are pressuring utilities and regulators to rethink the current utility business model and regulatory framework – with plenty of discussions covering what has been termed “Utility 2.0”.

As utilities, governments, and businesses prepare for new opportunities and challenges, it is important to consider change management approaches and how to minimize risk and stakeholder impacts. If properly managed changes can result in a future state that delivers innovation, operational efficiencies, and enhanced societal benefits.

Change management is an approach to transitioning organizations, stakeholders, and individuals from a current business-as-usual state to a future desired (or necessary) state. Ideally, change management is proactive, collaborative, and aligns the interests and expectations of multiple stakeholders. It is only through this approach that that organizations can react as a whole and build a culture of flexibility.

Some change management strategies that are helpful during transition periods and make organizations become more adaptable include:

  1. Strategic planning: define your goals, objectives and identify the strategies and tactics that are needed to ensure a positive process. Create a timeline for the change period and identify important milestones and events. 
  2. Identification of and engagement with stakeholders: create a stakeholder registry that includes both internal, and external stakeholders that will be impacted by the change. For each stakeholder, identify their level of interest and influence in the process, and determine how often and how you should communicate with them.
  3. Defined governance and operational frameworks: determine roles and responsibilities for the change management process. Identify a champion and establish the policies, processes and procedures that will help your organization navigate through the change period. 
  4. Progress tracking and continuous improvement: identify your key performance indicators and keep track of how they are trending through the change period. Analytics are a powerful way to identify opportunities for improvement and forecast activities.
  5. Customer experience optimization: identify potential risks and events that might impact your customers and develop mitigation strategies upfront. In addition, you can identify opportunities for improving interaction with your customers, and since processes are getting redefined anyway, determine if any of them can be streamlined to provide a better customer experience.

How you manage the impact of change is a key component to realizing the planned benefits of your project. Inova Energy Group’s change management practice is based on thoughtful planning, sensitive implementation, and a well-defined methodology. Our approach combines strategy with action and delivers results that endure. This approach has been proven through significant and challenging transition efforts in both the public and private sectors.

How our team can help your organization:

  • Develop change management plans
  • Prepare communication strategies
  • Build capability through tools, training, and frameworks
  • Establish collaborative platforms
  • Design and administer Request for Proposal efforts
  • Apply Business Process Optimization to identify efficiencies improvement opportunities
  • Facilitate stakeholder engagement
  •  Provide on-the-ground operational support

Contact us to find out more at: info@inovaenergygroup.com