The energy industry is in the midst of significant changes with a record amount of capital flowing into establishing new energy sources and transforming the grid’s infrastructure. The Biden-Harris administration’s Federal-State Modern Grid Deployment Initiative is the latest effort to accelerate grid modernization. With the demand for electricity forecasted to triple by 2050, ambitious de-carbonization efforts in progress, and the continued impact of climate change on weather increasing, utilities are faced with the need to transform how they generate electricity and deliver it and engage with their stakeholders.

Transformation of this scale requires a deliberate approach that can tap into the energy of employees across the organization rather than relying on only a few individuals. Organizations that can create more engagement and leadership from their employees will be best suited to take advantage of the opportunities presented by new legislation and the shifting energy landscape. To accelerate programs that drive growth, reduce costs and achieve sustainability targets, leaders will need to do the following:

Build a committed, engaged workforce:
In uncertain and fast-changing contexts, making good decisions and fast progress requires a workforce that is aligned and engaged. Leaders can build commitment in the organization by clarifying the “why” behind necessary changes. Helping employees at all levels of the organization understand why changes in the ways of working are necessary, why these changes are required now and what benefits will be achieved through these changes allows them to identify how they can participate and contribute to the various initiatives.

Utilities have experienced the value of this aligned and focused engagement in their storm responses, during which groups of employees are able to collaborate and coordinate with speed because the “why” is clear and the skills are well practiced. Leaders can create more of this empowered action by ensuring that employees have clarity on the organizational direction by explicitly articulating the opportunities in front of them and by investing in their employee’s leadership and change skills.

Remove barriers to change:
Organizational systems are not designed for change – “that’s how we have always done it” is an implicit mindset for most of our management routines. Encouraging innovation and adaptability requires challenging things, even those that are working, to find ways to make them better. This requires leaders to encourage experimentation, reward good failures and make it easier for employees to act on new ideas. As an example, policies that require layers and layers of approvals can unnecessarily slow down project development. Periodically reassessing these policies to ensure that they are limited to the high-risk, regulatory or legal concerns and not operational concerns (which can be better handled through a principle, not policy-based approach) is one way to remove barriers. Systems, processes and ways of working can all inhibit action if they are not aligned with the behaviors desired in the organization. For example, if innovation and agility are not recognized and rewarded in hiring and performance systems, it is not a behavior that employees will embrace. If the reporting and documenting requirements for even small changes are too detailed, individuals will be reluctant to try new things. If budget accuracy is the primary focus, stretch targets and new ideas are unlikely to be the norm. Leaders can accelerate progress by assessing and evolving systems and processes that are creating barriers to the desired ways of working.

Maintain forward movement:
Multi-year and multi-faceted transformations can lead to fatigue if individuals don’t feel that they are making an impact. Celebrating success along the way and ensuring clear tangible wins are being communicated across the organization will help build momentum for sustained action. This sense of momentum can be engineered by designing initiatives that rely on pilot projects, interim milestones and proof of concepts to show early impact. Momentum can also be created by stopping to celebrate successes along the way. For example, when new projects pass certain gates, when teams hit leading indicators or when experiments fail but result in new and meaningful learning. Understandably, in an environment that requires a lot of change, the desire to move on to the next challenge can be strong, but leaders must recognize that building organizational stamina for longer-term change requires pausing to celebrate short-term wins.

The energy industry is facing more opportunities and challenges than at any point in recent history. Taking advantage of these opportunities will require changes to how these companies operate. No individual leader or small group of leaders can make all the decisions required to be successful. However, a committed workforce that is empowered to act can make decisions and act on the front lines to address threats and capitalize on emerging opportunities.