Change is everywhere – how do you come out unscathed?

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The Importance of Communication in Energy Sector TransformationThe Importance of Communication in Energy Sector Transformation As the UK energy sector braces for significant changes under a potential Labor government, organizations face the challenge of transforming their operations. To ensure the success of these transformation programs, effective communication is crucial. Challenges in Transformation Despite the necessity of transformation, large-scale programs often encounter challenges, with a 70% failure rate. This is often attributed to poor communication, leading to misunderstandings and skepticism among stakeholders. Steps to Ensure Effective Communication To overcome these challenges, energy companies can follow these five steps: * Vision and Leadership: Establish a clear vision and appoint trusted leaders to communicate the rationale for change. * Understanding: Involve stakeholders at all levels in the planning process to foster understanding and alignment. * Advocacy: Engage champions within the organization to advocate for transformation and spread positive sentiment. * Supporting the Message: Reinforce the transformation message through ongoing communication and creative campaigns. * Adapt or Die: Be flexible and adaptable, incorporating stakeholder feedback and accommodating external factors into the program. Conclusion Successfully transforming the energy sector depends on effective stakeholder communication. By following these steps, organizations can turn skeptics into believers, build momentum, and ensure the lasting impact of their transformation programs.

Change is nothing new for the energy sector, but with the general election in full swing and a Labor victory looking more likely by the day, some of the most significant changes in decades could soon come into effect.

Labour’s recently launched manifesto promises to make Britain a “clean energy superpower”. And with the announcement of Great British Energy, the Party wants to transform the UK energy sector by making strategic investments in vital projects, mature green technologies and ‘new’ technologies – such as tidal energy.

In addition to a host of other changes on the horizon, an industry-wide evolution could also be on the horizon.

All this means that organizations in the energy sector are on the verge of a major transformation to adapt to a new reality. Correctly communicating transformation to both internal and external stakeholders is crucial for success. But how can organizations use engagement to ensure transformation programs have lasting impact?

The risks of transformation

While they may be necessary for energy companies over the next twelve months, large-scale transformation programs are difficult and fraught with failure. According to McKinsey research, 70% of transformation initiatives fail. But why?

The problem often lies with communication. Reasons for change are often misunderstood by stakeholders, with skeptics failing to engage with the newly transformed business. It underlines how effective messaging, and making sure people hear that message, can be the difference between success and failure.

Turning skeptics into believers

So how can energy companies prepare for the big changes ahead without stumbling over the communications hurdle? How can they achieve acceptance, consensus and buy-in from key stakeholders?

At Copper, we recently addressed these questions in our report Skeptics turn into believers. In it, we identified the five steps companies need to follow to ensure communications don’t get in the way of a company’s transformation initiatives:

1) Vision and leadership
Having a clear vision and a leader to follow is essential. Trusted vocal and visionary leaders within the organization are best placed to communicate the ‘why’ around a transformation program, such as why change is happening in the first place and what it will achieve.

In our report, a social and behavioral sciences technical director at AtkinsRéalis reminds us of the essential role that communicating the ‘why’ plays in successful transformation:

“Basing communication and messaging about a change program on assumptions can lead to failure, as people can adopt entrenched positions against change. Taking the time to listen to people’s needs, wants, fears, values and aspirations from the start is fundamental to sustaining change over the long term.”

2) Understanding
Once your leaders have set a vision, make sure the path to change is strengthened at all levels. Transformation programs must be built on strong foundations.

Stakeholders must be highly involved and involved early in the planning of any initiative: from senior management to junior employees, from customers to business partners. It ensures that everyone understands from day one the direction the company should move in, and that everyone is convinced to move in the same direction.

3) Advocacy
Engaging champions within the broader organization is critical because they can act as authentic advocates for the transformation initiative if given the space to make their case for it. Not only this, but it also helps broaden the argument for change by effectively integrating a wide range of perspectives.

Once they play a role in creating the initiative, advocates can become your loudest spokespeople. They can communicate the changes organically to their colleagues, spreading positive sentiment throughout the company, while also appearing in town halls, company-wide emails, social content and blog posts.

4) Supporting your message
A common mistake that leads to failure of transformation programs is that once they are launched, success is seen as inevitable. This is not the case; they need to be reinforced through regular communication and creative campaigns, otherwise the changes may not be lasting.

And the proof is in the pudding: for our report, a global communications and engagement leader at a multinational management consultancy told us: “A lack of structured communication is one of the biggest risks we see. An initial announcement generates interest, but without an ongoing communication campaign, a change plan will have little to no impact.”

Particularly in an industry like energy, where changes in a company’s work are often systemic in nature and focused on the incredibly long term, it is critical that companies understand how to keep momentum and advocacy high in the over years, not months.

5) Adapt or die
In addition to constant communication, it is critical that senior managers give the program space to evolve in line with stakeholder feedback. Transformation programs must be flexible to accommodate both new feedback and external factors such as changes in government policy, while continuously assessing performance and adjusting where necessary.

In industries like energy, many employees will question the need for change and provide useful insights behind that skepticism. Understanding these concerns and – where useful to the transformation program – using suggestions to improve the program will be critical to a project’s aforementioned momentum.

Conclusion

Change is never easy. However, it is likely that the success of energy companies in the coming decade will be measured by their ability to transform themselves to meet changing government and societal priorities.

In the coming months, pioneers responding to major regulatory and policy changes are likely to reap the rewards, while others struggle to keep up. Communicating this transformation and involving stakeholders will in many cases be a make or break matter. It will determine who leads the way as we enter an exciting new era for energy production in Britain, and who is left behind.

Read our full report for more information Skeptics turn into believers.