The word change has almost become synonymous with the energy sector in recent years, as the global shift in focus towards renewables and the incredible rise in demand continues to challenge industry leaders.
So, it’s no wonder that there are many more change management projects being undertaken – and many more change management projects failing spectacularly, as their pioneers neglect to focus on the basics: building trust, capability, and alignment.
Hugely ambitious emission reduction targets, an ever-shifting geopolitical scene, and an energy consumption rise of 55% in 25 years (according to the BBC) mean the need for chance has been urgent.
New processes and new technologies, both out in the oilfields and in the energy project management offices, are undoubtedly needed – but it is the people working in the industry who will ultimately carry the industry through the required changes.
A people-led approach is crucial, especially because we know it’s a human tendency to seek consistency – meaning changes like job function, new tech, or the risk of redundancy are naturally likely to be met with resistance. Which is why leaders must put teams at the heart of every change management process, with two-way communication, a collaborative solution-seeking approach, frequent employee engagement, and a willingness to listen to those out there with their boots on the ground.
Heads of businesses often say ‘our people are our greatest asset’, so that must be put into practice by treating them as such: tapping into their wealth of collective knowledge to unveil fresh ideas, and ensuring their involvement in and understanding of change project.
University of Illinois researchers found that small groups consistently outperformed even the best and brightest individuals when it came to problem solving, showing how effective communication and engagement helps leaders come up with better solutions to challenges; not only this, but having a valued contribution at work leads to higher wellbeing levels, which in turn leads to higher productivity (up to 20% according to academics at the University of Warwick).
Many energy companies reach out to an external expert for support with change management, and while there are immense time pressures involved with these projects, it’s important to find a provider who is not only skilled but also aligns with the organisation’s values – essentially, they also need to have a people-centric approach, focusing on wellbeing above all else.
Equally important is the willingness of that expert to empower companies to eventually take ownership of future projects internally. Developing in-house capability negates the need for a revolving door of change management professionals, which might ultimately be bad news for those providers who do their job so well they’re no longer needed, but puts the energy company in a much stronger position going forward.
When they said that only two things in life were inevitable, it should really have been three. Because we can’t escape change, no matter how much humans desire consistency. Those working within the energy sector might feel change is being ‘done’ to them – because they’re unable to avoid challenges like the extreme additional demand for energy – but that’s exactly why leaders need to empower their people to take back a bit of control.
Because while individuals can’t stop these issues from happening, they can absolutely have a say in how their company responds to external pressures. They can most certainly put forward valuable ideas. And they’re more likely to respond positively if they’re involved right from the onset of a change project. Change might be inevitable, but choosing to put people at the heart of your response to those changes is a choice every energy leader can, and should, be making.
