Labour’s recently launched manifesto promises to make the UK a “clean energy superpower”. And with the announcement of Great British Energy, the Party is looking to reshape Britain’s energy sector by making strategic investments in essential projects, mature green technologies, and “new” technologies – such as tidal power.
Along with a raft of other changes on the horizon, a sector-wide evolution could be on the cards.
All of this means organisations in the energy space are on the cusp of a major transformation to adapt to a new reality. Correctly communicating transformation to both internal and external stakeholders is crucial to success. But how can organisations draw on engagement to ensure transformation programmes deliver lasting impact?
The risks of transformation
Although they may be imperative for energy companies in the coming 12 months, large-scale transformation programmes are difficult and fraught with failure. According to research from McKinsey, 70% of transformation initiatives fail. But why?
The issue, frequently, lies with communication. Reasons for change are often misunderstood by stakeholders, with sceptics failing to buy into the newly transformed company. It underlines how effective messaging, and making sure people hear that messaging, can be the difference between success and failure.
Turning sceptics into believers
So, how can energy companies prepare for the major changes ahead, without stumbling at the communications hurdle? How can they secure acceptance, consensus and buy-in from key stakeholders?
At Copper, we recently dived into these questions in our report Turning Sceptics into Believers. In it, we’ve 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 key. Trusted vocal and visionary leaders within the organisation are best placed to communicate the “whys” around a transformation programme, such as why there is change in the first place, and what will be achieved from it.
In our report, a social and behavioural science technical director at AtkinsRéalis reminds us of the essential role communicating the “why” plays in successful transformation:
“Basing communications and messaging about a change programme on assumptions can lead to failure, as people may start to take entrenched positions against change. Taking the time at the outset to listen to people’s needs, wants, fears, values and aspirations is fundamental to sustaining long-term change.”
2) Understanding
Once a vision has been articulated by your leaders, ensure the path to change is reinforced at all levels – transformation programmes must be built on strong foundations.
Stakeholders need to be highly engaged and involved early in the process of planning any initiative: from senior management to junior staff, from customers to business partners. It ensures everyone, from Day One, understands the direction the company needs to move in, and are bought into moving in the same direction.
3) Advocacy
Involving champions within the wider organisation is key, as they can act as authentic advocates for the transformation initiative when given the space to make their case for it. Not only this, but it helps broaden the argument for change by effectively incorporating a wide range of perspectives.
Once they have played a role in the creation of the initiative, advocates can become your loudest spokespeople. They can organically communicate the changes to their colleagues, spreading positive sentiment throughout the company, while also appearing in town halls, company-wide emails, social content and blog posts.
4) Sustaining your message
A common error which leads to failure in transformation programmes is that once they are launched, success is seen as inevitable. This is not the case – they need to be reinforced by regular communications and creative campaigns, otherwise changes may not last.
And the proof is in the pudding: for our report, one global comms and engagement lead at a multinational management consultancy told us “a lack of structured communications is one of the biggest risks we see. An initial announcement sparks interest, but, without an ongoing communications campaign, a change plan will have little to no impact.”
Especially in a sector such as energy, where changes to a business’ work are often systemic and incredibly long-term in focus, it’s imperative companies understand how they can keep momentum and advocacy high over the course of years, not months.
5) Adapt or die
Alongside constant communication, it is crucial for senior managers to give the programme space to evolve in line with feedback from stakeholders. Transformation programmes must be flexible to accommodate new feedback as well as external factors such as changes to government policy, while constantly assessing performance and fine-tuning where necessary.
In sectors such as energy, many employees may question the need for change, and provide useful insights behind that scepticism. Understanding these concerns and – where helpful to the transformation programme – utilising suggestions to improve the programme will be critical to the aforementioned momentum of a project.
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 match changing government and societal priorities.
Over the next several months, first movers reacting to major regulatory and policy changes will likely reap rewards as other struggle to keep up. Communicating this transformation and bringing stakeholders on board will, in many cases, be make or break. It will define who strides ahead as we enter an exciting new era for energy production in the UK, and who gets left behind.
To find out more, read our full report Turning Sceptics into Believers.
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