120323 eco12 holistic business strategy for the …...holistic business strategy for the energy...

1

International Management and Executive Search Consultants

allocate

Holistic Business Strategy for the Energy Turnaround

- Transformation by realigned Resource Allocation -

Dr. Jörg Fabri Managing Partner allocate international GmbH

Berlin, March 23, 2012

2 120323_ECO12_Presentation Holistic Approach for the Energy Turnaround © allocate 2012

Challenges drives by the changing market and regulatory environment

Drastic changes ahead in the German energy sector – creating new challenges and transformation needs for utilities

The traditional approach of value creation by „Megawatt Growth“ does not work any longer – new paradigm arising which will change the market structure and competition fundamentally

Challenges Projection of Energy Consumption in Germany,

2008-50 •  Decreasing electricity and gas sales,

„stranded assets“ and utilization pressure •  High investment requirements for the grid in

order to integrate renewable energy sources to the supply of distant consumers

•  Regulation puts pressure on grid profitability and supports distributed generation

•  Own generation of electricity through combined power & heat installations in residential homes (micro generation )

•  New services are offered and increasing importance of „intermediates“ -  Electro mobility attracts new competitors to

enter new regional areas -  Electricity mass storage / virtual power

plants / direct marketing of renewables

Source: Leitstudie BMU, Basisscenario 2010A


Present and future German electricity system

Fundamental paradigm shift in German power industry – the sector will require much more “intelligency” to manage rising complexity

Future paradigm Present paradigm

One way / inefficient / polluting

Source: IEA,dena

Smart / efficient / “green”

•  Bidirectional energy and communication flow •  Storage and decentralise production, mainly RE •  Customer is “pro-sumer” •  Electric cars for transport and storage •  Energy service provider business models

•  One-way energy flow, no communication •  Central production, no storage, few RE •  Customer is “con-sumer” •  No smart grid / meters •  Limited variety of business models

RE Renewable Energy sources


The Smart & Sustainable approach

A sustainable new business strategy in the energy-/ utility sector has to include several essential mega trends simultaneously

Implication on strategy and resource allocation in the energy-/ utility sector – transformation needs incorporate much more than energy resources alone!

1 Bit, Atoms, Neurons, Genes Source: DSW,OECD, Monitor, WWF, allocate research

Future solution have to be…

„Green“ = sustainable

Mega trends

Urbanisation/ Demography/

Developing countries

BANG1 Technologies

Social and Value Changes

Energy/ Climate Change

•  Monetization of women´s work

•  Different ways of social interaction

•  Anytime Anywhere Communication

•  Human Enhancement

•  Increased pressure on productivity

•  Western values loose influence

•  Entities outside governmental structures

rise in importance and impact

•  Efficient energy use, phase-out of

carbon based sources

„Smart“ = intelligent


Transformation by re-allocation of resources

Capacities

Capital

HR

Materials/ Energy

•  Allocation of the right persons to the right positions •  Releasing the full potential of all employees

•  Identification/ implementation of investment opportunities •  Optimizing capital structure and working capital

•  Value and KPI driven integrated programme management •  Optimized capacity& asset mgt. (WFM1),SCM2),process mgt.)

•  Sustainable & environmentally acceptable raw material use •  Efficient use of materials (e.g. Overall impact, closed loops)

1) Workforce Management 2) Supply Chain Management

Resources

Com

preh

ensi

ve s

trat

egic

app

roac

h

Creating a specific master plan to utilize, develop and synchronize all resources towards maximum effectiveness to drive the transformation of energy-/ utility companies

An integrated master plan for the transformation of the energy sector is required - driven by a re-allocation of all critical resources


Key value driver: optimized allocation and management of energy resources

Allocation of Energy resources & enhanced energy efficiency: “Making more with less”

Energy-/ Materials

Capital

Capacities

HR

• Efficiency as business • Virtual power plants including households

• Optimization of generation portfolio

• Multiple sourcing strategies

• Trading strategies

• Access to attractive renewable sites

• CO2 balance

Optimized resource allocation of . . .

Key challenge is to turn bidirectional information flows into profits

ENERNOC, USA

• Two demand response business models -  Enernoc pay users

(Demand smart) -  Customer pays Enernoc

(all other products) • 280 m USD turnover, • 45 m USD Op.Cash flow • 10.000 sites under management

• 6,300 DR MWs under management

• Market size of app 20 bn USD

Examples M

utua

l opt

imiz

atio

n


Value creating new business model for utilities: „allocation manager“ for much more complex energy supply & demand patterns Elements of future energy supply & demand and business model for utilities

Value creation by managing the drastically enhanced complexity in matching new electricity generation structures with changing demand profiles in an economically optimized way

Volatile generation based on renewables

Controllable generation based on renewables

Controllable generation based on fossil energy

Consumers

Innovative energy storage

(Inter-)regional balancing

Utility of the future


Key value driver: optimized allocation and management of capital resources

Allocation of Capital: Profitable investments in most promising segments of the future energy business

Energy/ Materials

Capital

Capacities

HR

• Investment control -  Different ROE along the

value chain of renewable energy development projects

• Cash Flow optimization

-  NWC

-  Extraordinary long investment cycle of grid business

Increasing cash availability and making most of limited capital resources

Iberdrola

• 45% of CAPEX in 2010 invested in Renewable energy businesses ( to compare: EON 13%/RWE 5%)

• 15% of EBIT coming from renewable lines of businesses( to compare: EON 2%/RWE <1%)

Examples M

utua

l opt

imiz

atio

n



Renewables in European Utilities, 2010/11

Renewables are already today becoming an essential profit generators for energy-/ utility companies

CAPEX in renewable energy [in % of total ]

EBIT and Revenues with renewable energy [in % of total ]

Range 1% to 14% Revenue share still small

Over proportional contribution to profits

9

Source: Company reports

Range 5% to 45% Over proportional CAPEX in renewable energy

German utilities now speeding up

5%

21%

13%

15%

35%

45%

0% 10% 20% 30% 40% 50%

RWE

Vattenfall

EON

ENEL

Dong

Iberdrola

1%

2%

2%

3%

5%

7%

1%

2%

12%

9%

12%

14%

0% 10% 20% 30% 40% 50%

RWE

Vattenfall

EON

ENEL

Dong

Iberdrola

%EBIT

%Sales

Factor 2 bis 6


Key value driver: optimized allocation and management of capacity resources

Allocation of Capacities: Operational excellence provides the financial stability in times of paradigm change

Energy/ Materials

Capital

Capacities

HR

• Operational excellence • Supply chain management

• Workforce management • Asset management

• Overhead optimization • Business development / FuE

Utilizing existing capacity resources in a more efficient way with more focus on new opportunities

Stadtwerke München

• EBIT margin 22% in 2010 versus average municipal utility 8,4%)

• Strategy to supply Munich in 2025 by 100% with energy from own renewable sources

• Strong RE portfolio -  solar in Spain

(Andasol 3), -  On- and off-shore wind

• Gas upstream activities in Norway

• Focus on “Fernwärme” • Multi utility approach

Example M

utua

l opt

imiz

atio

n



Example Centrica

New opportunity: With shrinking electricity consumption utilities need to enhance the customer value with new approaches

„Penetration“ of utility customers with innovative products and services – even clearly beyond the „direct“ supply of energy

Example customer value enhancement concept

??

Financial services

Gas

Electricity

Metering

Energy services incl. Installation,

repair, maintenance

Efficieny products Isolation

Energyshare - Electro mobility

Solar installations Thermal -

PV -

Prod

ucts

and

Ser

vice

s

Customer value

Compensation of decreasing electricity consumption by enhanced customer value

Revenue/ margin per customer

Time

Electricity consumption per customer

Continuous lauch of new products

and services

Impact of energy efficiency measures

•  Portfolio of products which fit to each other and where the utility has sufficient credibility

• Cross Selling

?


Key value driver: optimized allocation and management of HR resources

Allocation of Human Resources: Only availability of sufficient new competences will make the energy transformation happen

Energy/ Materials

Capital

Capacities

HR

• New paradigm requires upgrade of qualification profiles in the future, shift from power- to IT-skills and competences

• New skill set for renewables eg upstream competence in “siting”, authorization and project management ( often in foreign countries)

Key challenge is to identify and train sufficient staff with new skills which so far were not represented in energy-/ utility companies

Large Offshore venture

• Significant overrun of project budget and time

• Bottlenecks in assembly ships

• Lack of skilled employees to manage offshore projects

• Huge competition between players to attract the best people

Example M

utua

l opt

imiz

atio

n



HR assessment/ placement

Major strategic changes – like in German energy – require a review a review of the future skill requirements for specific functions

§  Complementation of key jobs based on new organizational set-up

§  Competence-oriented description and identification of job requirements for key positions

§  Identification of necessary replacements or new recruit-ment needs

§  Identification of current performance and possible potential of each key employee

§  Interview based estimation of strengths and qualification needs for the employees

§  Evaluation of job relevant personality traits, situational simulation of business relevant qualification

§  Implementation of a gap analysis for across all key job in the respective organization

§  Identification of a discrepancy between as-is and as-to-be qualifications

§  Development of individual training sessions preparation of required recruitment activities

Mr. B Mr. A

Mr. C Mr. D

(9%)

(15%)

(46%)

(3%)

(15%)

(12%)

Mustermann, HansMustermann, Hans Aktuelle Position

Zukünftige Position

PersonalbetreuerPersonalbetreuer Business PartnerBusiness Partner

§ Fehlende Controllingkenntnisse§ Fachtermini der betreuten Business Units§ Souveränität bei Widerständen im Gespräch§ Präsentationstechniken

§ Fehlende Controllingkenntnisse§ Fachtermini der betreuten Business Units§ Souveränität bei Widerständen im Gespräch§ Präsentationstechniken

Individuelle Beurteilung gemäß Kompetenzprofil

EntwicklungsbedarfEntwicklungsbedarf

§ Breites HR Wissen§ Analytisches Denken§ Hohe soziale Kompetenz aufgrund Persönlichkeit

(Empathie, Kundenorientierung)§ Effiziente/ erprobte Gesprächsführung

§ Breites HR Wissen§ Analytisches Denken§ Hohe soziale Kompetenz aufgrund Persönlichkeit

(Empathie, Kundenorientierung)§ Effiziente/ erprobte Gesprächsführung

StärkenStärken

Entwicklungsziele

+ -

BeispielBeispiel

§ Integrationsprogramm in die betreuten Business Units

> Allgemeine Einführung

> Teilnahme an Business Meetings

§ Integrationsprogramm in die betreuten Business Units

> Allgemeine Einführung

> Teilnahme an Business Meetings

§ Seminare> Führen kritischer Gespräche> Präsentationstechniken> Leitung von Projekten

§ Informationsaufenthalt im Bereich Controlling (1 Woche)

§ Seminare> Führen kritischer Gespräche> Präsentationstechniken> Leitung von Projekten

§ Informationsaufenthalt im Bereich Controlling (1 Woche)

Besides capability to-be description the auditing of staff is crucial in order to fill gaps

- - -

- - - -

-

- -

- - -

- - -

Titel Disziplinarisch unterstellt Personalleiter FN Personalleiter FN Ziele Ziele Bereichsleiter Personal Bereichsleiter Personal Aufgaben Aufgaben Sicherstellen einer effizienten und effektiven Personaladministr ation, Entgeltabrechnung und der Betreuungs und Beratungsleistung mit hoher Serviceorientierung Sicherstellen einer effizienten und effektiven Personaladministr ation, Entgeltabrechnung und der Betreuungs und Beratungsleistung mit hoher Serviceorientierung § Sicherstellung einer kompatiblen und standardisierten HR Systemlandschaft § Rekrutierung neuer Mitarbeiter § Einhaltung der Termin - und Budgetpl ä ne bei Personal system und IT Projekten § Beachtung aller gesetzlichen Datenschutzvorgaben § Regelm äß ige Ü berpr ü fung einer effizienten Abwicklung der standardisierbaren oder

zentral steuerbaren Personaldienstleistungen § Entgeltabrechnung aller Mitarbeiter und FK § Betreuungsleistungen f ü r alle Mitarbeiter und FK § Gestaltung/Umsetzung personeller Einzelma ß nahmen § Beratung und Unterst ü tzung der F ü hrungskr ä fte bei strategischen Entscheidungen

sowie in allen relevanten HR Themen und HR Projekten § Zielvorgaben und F ü hrung der HR Mitarbeiter § Sicherstellung einer kompatiblen und standardisierten HR Systemlandschaft § Rekrutierung neuer Mitarbeiter § Einhaltung der Termin - und Budgetpl ä ne bei Personal system und IT Projekten § Beachtung aller gesetzlichen Datenschutzvorgaben § Regel

m äß ige Ü berpr ü fung einer effizienten Abwicklung der standardisierbaren oder zentral steuerbaren Personaldienstleistungen

§ Entgeltabrechnung aller Mitarbeiter und FK § Betreuungsleistungen f ü r alle Mitarbeiter und FK § Gestaltung/Umsetzung personeller Einzelma ß nahmen § Beratung und Unterst ü tzung der F ü hrungskr ä fte bei strategischen Entscheidungen

sowie in allen relevanten HR Themen und HR Projekten § Zielvorgaben und F ü hrung der HR Mitarbeiter

Recht, Aussen-w.kontrolle, S.

VL


VL

Konzerndienst-leistungen CFO

C

QM, Revision, Risk-Mgmt.VGAStrategie &

ProjektberatungVSP

Kommunikation

VCC

Finanzen

CFMarketing & DistributionVM

GovernmentalRelations

VGR

Controlling Engines & Ops.

CEControlling On-site Energy & C.

COPersonal, Bil-

dung, Betr.t. D.CP

IT Solutions

CSInvestor

RelationsCIR

Vertrieb & After-Sales Reg. 2

R2

Geschäftsbereich EnginesE

Anwendungs-technik

EAVertriebssteuer. & Order Mgmt.

ESO

Defense

ED

Geschäftsbereich Onsite Energy & C.

OAnwendungstech

nik Onsite E.OAC

Vertriebssteuer. & Order Mgmt.

OSOMTU Onsite

Energy (Gas)OG

MTU OnsiteEnergy Corp.

ODMTU Onsite

Energy (Fuel)OF

Rotorion

OR

L‘Orange

OL


R3

Operations

TO

Fertigung

TFMontage, Prüf-

ständeTM

Logistik

TL

Global After-Sales

AS

Technology & Operations (CTO)

T

Entwicklung kom-merzielle Motoren

TKProduktbewäh-

rung & QMTQ

Vorserienentw. & Analytik

TS

Einkauf

TP


TKProduktbewäh-

rung & QMTQ


TS

Einkauf

TP


R1

Vorsitzender des VorstandsV



VL


VL

Konzerndienst-leistungen CFO

C

QM, Revision, Risk-Mgmt.VGAStrategie &

ProjektberatungVSP

Kommunikation

VCC

Finanzen

CFMarketing & DistributionVM

GovernmentalRelations

VGR

Controlling Engines & Ops.

CEControlling On-site Energy & C.

COPersonal, Bil-

dung, Betr.t. D.CP

IT Solutions

CSInvestor

RelationsCIR


R2

Geschäftsbereich EnginesE

Anwendungs-technik

EAVertriebssteuer. & Order Mgmt.

ESO

Defense

ED

Geschäftsbereich Onsite Energy & C.

OAnwendungstech

nik Onsite E.OAC

Vertriebssteuer. & Order Mgmt.

OSOMTU Onsite

Energy (Gas)OG

MTU OnsiteEnergy Corp.

ODMTU Onsite

Energy (Fuel)OF

Rotorion

OR

L‘Orange

OL


R3

Operations

TO

Fertigung

TFMontage, Prüf-

ständeTM

Logistik

TL

Global After-Sales

AS

Technology & Operations (CTO)

T


TKProduktbewäh-

rung & QMTQ


TS

Einkauf

TP


TKProduktbewäh-

rung & QMTQ


TS

Einkauf

TP


R1



Job description and employee requirements

As-is competence evaluation Gap analysis


Future requirements for utility company staff Management-Audit Key development topics

Deducted from the key drivers of a utility companies transformation strategy:

• New skills reg. IT, project development,..

• Enhanced customer orientation

•  Interdisciplinary working mode

• New leadership style

•  International orientation

• Result driven

•  ...

„Stars“: Maintaining, empowering, developing „Talents“: Coaching, challenging, supporting, developing „Performer“: Motivating, maintaining, improving of conditions, developing ? „Problems“: Overcoming deficits, preparing leave Plus: Tailor made supple-mentation of HR portfolio

Further Development Potential

Actual degree of fulfilment

„Talents“ „Stars“

„Performer“ (or „Working Horses“?)

„Problems“

Based on defined future key requirements the mgt. audit provides full transparency about the current HR portfolio and development options Defining specific development routes

Without an aligned HR development approach many ambitious transformation strategies will fail – the right and highly motivated people are an essential prerequisite for success


Summary: Holistic business strategy for the energy turnaround – transformation through optimized allocation & management of resources

Transformation of energy-/utility companies requires will only succeed with an holistic integrated approach for the entire business system and all associated resources

Key elements transformation agenda

Corporate processes

Vision

Strategy

Culture

• Cooperation • Commitment • Consequence

Systems

• Planning • Steering • Controlling

Organisation

• Responsibility • Competence • Governance

Corporate Business segments

1. Business Strategy

Sustainable Profitability

2. Resource Allocation = Value Driver

Human Resources

Capital Resources

Capacity Resources

Energy/ Materials

•  Energy pricing to foster energy savings

•  Profit sharing vs. reinvesting into new RE capacity

• Changing existing vs. recruiting new managers

•  Training of employees with smart green know-how

•  Financing of huge company transformation

•  Finding strategic co-investors to share risk

•  Lean processes and Operational Excellence

•  Efficient reallocation of assets and op. capacities

•  Replacing nuclear & fossil with renewable energy

•  Saving energy vs. reducing revenues


allocate’s Partner and Competence Network

allocate’s mission - the name is the programme: focus on value creation by allocation & optimization of all essential resources

Allocation of Human Resources

•  Executive Search

• Management Diagnostics

• Compensation •  HR Strategy • Change Man-

agement •  …

Allocation of Financial Resources

• Corporate Finance

• Mergers & Acquisitions

•  Private Equity •  Asset & Wealth

Management •  …

Allocation of Capacity Resources

• Restructuring • Reorganization •  Process opti-

mization • Workforce mgt. •  Supply Chain

Management •  Sourcing/ Pur-

chasing

Allocation of

Material-/Energy

Resources

•  Energy resources

•  Energy efficiency

• Raw material efficiency

•  Sustainable products

•  …

A,

Western Europe

E/SE Europe & Russia

Middle East

UK, NL, FIN, S, F, I, E, …

UAE, KSA, KU, QA, BH, …

RUS, PL, ROM, HUN, CZ, TR, …

Technology & Engineering

Coaching & Training

Share- & Stakeholder Management

International Network with Partners

Competence Network with Partners allocate International GmbH

allocate can also implement very large projects and provide high end specialist expertise

Exclusive partner Exclusive partner Exclusive partner Exclusive partner


Overview

Beyond consulting allocate is prepared to act as entrepreneurial partner

•  Creating opportunities •  Funding /financing •  Formation of

consortia •  Programme

Management (BOOT)

•  Search of targets /buyers

•  Due diligence •  Valuation •  Post Acquisition

Management

•  Corporate Strategy •  Operational

excellence •  P&L value

improvements •  Interims-

Management

•  HR –Strategy •  Search •  Management Audits •  Compensation

Commitment for long-term entrepreneurial partnership alongside with leading edge service orientation

•  Retainer / Fixed component

•  Success Fee

•  Fixed fees •  Success fee

(where applicable)

•  Success fees •  Cost coverage/

small retainer

•  Success fees •  Cost coverage/

small retainer •  Own investment1

1 Limited investment by allocate if requested

Project development/ Investments

Transactions/ (M&A) deals

Management Consulting

Executive Search/ HR Consulting


Anton J. Setter Partner Management Consulting allocate International GmbH Plange Mühle 3 (Medienhafen) D-40221 Düsseldorf Tel.: + 49 211 137 233 21 Fax.: +49 211 137 220 87 Mobil: +49 177 8387611 E-Mail: [email protected] www.allocate.de

Dr. Jörg Fabri Managing Partner Management Consulting allocate International GmbH Plange Mühle 3 (Medienhafen) D-40221 Düsseldorf Tel.: + 49 211 137 233 21 Fax.: +49 211 137 220 87 Mobil: +49 177 340 5095 E-Mail: [email protected] www.allocate.de

Arnd Fabri Managing Partner Executive Search allocate International GmbH Plange Mühle 3 (Medienhafen) D-40221 Düsseldorf Tel.: + 49 211 137 220 88 Fax.: +49 211 137 220 87 Mobil: +49 179 204 3328 E-Mail: [email protected] www.allocate.de

Thank you for your attention – would be pleased to discuss with you!

Contact details for further discussions

120323 eco12 holistic business strategy for the …...holistic business strategy for the energy...

Documents