Editorial comment
Businesses are required to adapt constantly, but there are perhaps few industries currently undergoing such seismic changes as the global energy sector.
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Against a backdrop of a worldwide sustainability focus and inter-governmental targets for carbon emission reduction, there is also an extraordinary demand for energy, and regulatory requirements around clean technologies are ever evolving.
By 2030, The World Energy Outlook predicts there will be almost 10 times as many electric cars on the world’s roads, renewable energy will account for 50% of electricity share globally (up from 30% in 2023), and offshore wind projects will be attracting three times the level of investment as new fossil-fired power plants.
So, it’s only natural that business leaders are focused on exactly how they are going to meet these demands: planning and implementing ambitious projects such as grid upgrades, renewable integrations, and decarbonisation efforts.
But for these projects to truly succeed, it’s not solely about ensuring the right technology is in place; according to the International Energy Agency, there are 67 million people working in the global energy sector and all of them need to be on board when it comes to the immense changes their businesses are undergoing, or we will simply never achieve the targets needed to keep on powering the world. That’s why change management is so essential when business leaders are approaching today’s global energy challenges. Put simply, the people who design, implement, and manage all of this new technology are the difference between success and failure.
Visionary strategies are just the start of the process; companies also need to ensure that the day-to-day operations work efficiently and effectively, that diverse teams are aligned, that resistance is mitigated, and that a shared purpose is embedded throughout every team – otherwise, there’s a real disconnect between the plans being put in place and the ability of the sector to implement them effectively. Change management experts are the bridge between idea and implementation, and their input helps C-suite executives ensure they retain a positive company culture despite any pressure.
While there is huge importance attached to achieving global targets and ensuring demands are met, ultimately every company needs to ensure it remains profitable and justifies spending based on return on investment (ROI). This is never more true than when large scale investment is required in order to complete the sorts of projects energy companies are undertaking.
Finding between £60 – £120 million to build an onshore wind farm is no small feat, so it needs to be assured that the money isn’t going down the drain and will deliver an ROI as swiftly as possible.
To achieve the required ROI, specialists in change management set out to speed up the adoption of new processes, to increase utilisation, and to ensure teams have the skills and knowledge needed to complete projects proficiently – reducing errors and other inefficiencies which can result from a lack of understanding or training.
If people are willing to adapt, innovate, and embrace new ways of working – and if they understand what is being asked and why the changes have been implemented – then a project is much more likely to succeed and the ROI materialise.
Implementing such ambitious projects without carefully considering the ‘people’ element and expecting that team to deliver results and cross the finish line first is essentially a hopeless dream. By contrast, putting together a comprehensive training programme is the equivalent of implementing a change management strategy, and provides a much higher chance of winning.
At a time when stakes are so high globally, and the timelines for achieving targets are so tight, it’s never been more important to be able to guide people through the changes they’re facing. The global energy sector is evolving so quickly that transformational success is vital, and delays must be avoided.
The ability to guide people through change can and does result in a much higher chance of a healthy ROI, a completed project, and a challenge triumphantly navigated. Ignoring people in favour of a 100% focus on the technology behind the project really could spell disaster, hampering the global efforts to meet rising energy demands and clean technology targets – and potentially even risking the very survival of businesses within the sector.
