The impact of Covid-19 in Energy and Utilities

Harrison Bridge has spoken to senior executives within energy and utilities to determine the impact of Covid-19.   Leaders have been faced with difficult decisions whilst under extreme time pressure and substantial uncertainties, such as not knowing what they are planning for, when it will end and what the impact will be.  The usual metrics of how you forecast future revenue do not apply.

For large organisations, they have had to complete the toughest change project in their history, mobilising an entire workforce to work from home in a couple of weeks, something that would normally take many businesses 18 months.  Lee De Souza explains the current reality for energy and utility companies.

B2B Suppliers face significant demand destruction whilst B2C Suppliers face backlash for chasing bad debt

Energy suppliers both B2B and B2C are facing a battle for their very existence due to a lack of sales, increased debt and decreased hedging consumption all whilst they try to maintain business as usual with a reduced staffing level.  In addition, government, regulators, consumer groups and the media are encouraging customers to ask for payment breaks whilst at the same time, suppliers do not qualify for business relief or loans.  Added to the challenge of debt collection, energy suppliers need to be seen to do the right thing morally and socially for the customer, eve when they may not be able to recover their losses.

The biggest outlay for suppliers is the power and gas they trade.  The vast sums involved mean running an energy supply business can get out of control very quickly.  As one executive from a new entrant supply business explained, ‘How do you make a profit when your customers do not pay?’

Covid-19 has underlined the importance of digital transformation within utilities.   Some energy suppliers who are over reliant on field sales have seen their field sales channel effectively die over night as they are no longer able to knock on doors due to the pandemic.

Expect increased M & A as energy consultants seek to take advantage of struggling competitors

The TPI (third party intermediary market) appear to be relatively resilient and does not have the high overhead that energy suppliers have. For those that are cash rich, they are seeing this as an opportunity for further acquisitions or to hire the best staff from competitors.  For those that do not have such deep pockets, the drop in revenue and income forecast is a scary reality if the tide does not turn soon.

Some energy consultants have continued to win new clients but for most, of greater importance is client retention and whether their customer base will still be here in 3 – 6 months (particularly SME customers).

Utility infrastructure and clean tech

In the utility’s infrastructure market, the water still needs to flow, and energy still needs to be provided.  Developments such as solar and wind farms still need to be built but may take 3 – 6 months to move forward.  Capital projects are still progressing but depending on the impact of Covid-19 and how long the lockdown lasts, the worry is that these will slow down.  For some of the big energy infrastructure companies, few deals are coming off but Covid-19 has meant that clients are looking at forward asset investments that won’t result in revenue right now but if they can close these deals, may provide revenue in the future.

For demand side response companies, if clients are not producing energy, there is not the load that can be sold to National Grid.   Cash is not so much of an issue for several clean tech companies, but they are using the investment gained from funding rounds to plug cashflow instead of growth.  The reality is that if you are not able to work on a client’s site, you cannot deliver the programme of work outlined.  Engineering design consultants that have had a back log of design work may be able to ride this out unaffected if onsite construction starts soon.

Those organisations that can provide services like data analytics which can be managed remotely are focusing more on this type of work but remain affected with nearly every business furloughing their staff.

Sustainability and the end user

For the end user in energy, Covid-19 is really testing their values on whether they put sustainability before profit.   There are those organisations where sustainability is intertwined with their strategy and they will see it through but there are those who are still paying ‘lip service’ to carbon net zero and do not see sustainability as economically viable.    What will be the public and private sectors response to climate change and what will be their urgency to focus on this?

The current and future impact of the furlough scheme

There is a concern by some that the worst effects of Covid-19 will not be known until the end of the furlough scheme. Some businesses will use the scheme as an opportunity to get rid of underperforming staff or will need to make wholesale redundancies.

The impact on those employees that have been furloughed has been mixed. For some, they are enjoying the time off to look after their family whereas others feel less certain about the financial stability of their employer, which is making them look elsewhere.

It isn’t all doom and gloom

Leadership:  We have seen great examples of leadership despite leaders having to making extremely difficult decisions through uncertainty.  Those that have got it right have communicated quickly, openly, transparently and with empathy.  This honesty about the challenges ahead has built trust and loyalty.

Zoom fun:  To maintain morale, businesses have been hosting weekly virtual pub lockdown challenges amongst staff involving singing, dancing and playing musical instruments, providing a welcome distraction from the anxiety of the pandemic.

A renewable energy recovery?  According to the International Renewable Energy Agency,  renewable energy could power an economic recovery from Covid-19 by spurring global GDP gains of almost (£80tn) between now and 2050.  The report goes on to say that accelerating investment could also lead to the number of jobs quadrupling over the next 30 years to 42m.

Agile working: People are working well from home and can tackle the big issues.   The way organisations have had to adapt and deliver goes to show that ‘transformational’ and ‘operational’ work streams that normally take years to complete, can be achieved rapidly if an organisation truly believes it has to happen.

Harrison Bridge outlook

Whilst many of our clients have been impacted and roles put on hold, a number of our clients are still hiring.  More than ever, organisations need the right senior talent to lead their business through uncertainty.

A new era is fast approaching and therefore requires new thinking and ways of working  because the old way of working no longer applies.  What is paramount is that we continue the positive change to adapt and thrive for the future.  When ‘normality’ returns, those businesses that insist on returning to office working five days a week, will lose key staff as workers question the wasted time, money and effort.

This article was written by Lee De Souza, Managing Director of Harrison Bridge, executive recruitment experts in energy and utilities. Lee has been the director of three recruitment companies and has recruited entire board and executive teams for energy suppliers, energy consultants and clean tech companies in the UK as well as recruiting globally.

To discuss your hiring needs, please contact  lee.desouza@harrisonbridge.com

 

The 6 key challenges faced by senior leaders in energy and utilities

Harrison Bridge has sought the views of its senior network in energy and utilities to determine what the main challenges are for the year ahead.  Regardless of the organisation type or size, the challenges were many and varied.  The political and regulatory landscape provides little certainty and making a profit is extremely challenging due to cost and competition pressures. This means that a new skill set of talent is required to navigate the challenges ahead.  Lee De Souza explains.

1. RECRUITMENT AND RETENTION

27% of senior leaders reported challenges related to hiring, developing, retaining or upskilling talent.   For one renewable energy business that has a multi-billion turnover, recruiting the best talent is their number one priority after safety.  Talent and diversity in talent is made more difficult in certain areas such as commodity trading as the talent pool appears to be getting smaller.   The current landscape requires individuals to address complex technical and commercial challenges, with few possessing the relevant  required expertise in these areas. Given the current uncertain climate  and market,  finding people with an open and strategic mindset who can think beyond the short term and find practical solutions seems also to be in short supply.

There are several energy supply businesses that that have drastically reduced their headcount or are likely to do so in the future.  Keeping employees motivated in an uncertain market when redundancies have been made, or are going to be made is proving difficult.  One would think that there would be an oversupply of talent in the market, but the skill set that is required for the new world is not easily found.

Some organisations are struggling to retain generation Z whose mindset is to go ‘elsewhere’ if they are not given the opportunities they seek for progression as quickly as they would like.  What is clear is that there is much to learn in both directions across different generations and harnessing the knowledge of younger generations could be key for businesses to plug the gap, particularly in relation to technology.

2. POLITICAL AND REGULATORY LANDSCAPE

The uncertainties that remain concerning a post Brexit UK does little to steady the utilities market.   However, with  a Tory government in situ, some of the outcomes in terms of policy are more certain, particularly versus the Labour manifesto which proposed nationalisation of many companies.

Another main challenge in the eyes of energy and water suppliers is the breadth of regulation, the pace of change and the rise of principles-based regulation. This is a good thing in terms of treating the customer fairly but makes it more difficult to interpret and therefore more onerous on people.

What is the definition of treating a customer fairly and a more affordable payment arrangement?  Whilst technology can automate processes, principles-based regulation requires a different skill set to manage this ambiguity.

3. COMPETITION AND COST PRESSURES

Margins are being squeezed with competition coming from many different types of providers which makes it difficult for businesses to grow sustainably. For energy suppliers, they are competing with third party intermediaries, price comparison sites, alternative providers of energy products and services and oil and gas majors.  Who “owns the customer” in an Electric Vehicle world?  Is it the electricity company or the petrol company of old?   Providers of clean technology need a much deeper relationship with the customer or the technology companies who control the devices.   Investment choices for large energy services companies is critical when the cost pressure from their supply business is so big.

Several businesses have or are about to divest their energy supply businesses.   For those that have acquired businesses, integration and leverage will be key as well as having the right people and skillsets for the future.

4. TRANSFORMATION

Managing costs whilst driving growth at the same time as trying to implement transformation is no easy task.  This is representative of many large energy services businesses who need to do more with less.  I.T is still a key challenge with one of the main difficulties being the transition from legacy systems and processes to new technology with improved efficiency and lower costs that can broaden the customer offering  via digital propositions.

Given that many organisations have multiple external and internal challenges, staying true to strategic objectives in the face of ‘quick wins’ is often forgotten.  This is often down to a lack of focus and chasing too many things at any given time both for small and large organisations.

5. THE CHALLENGES FOR SME SIZED BUSINESSES AND TPIs

A common theme amongst SME sized businesses is cashflow. There are many opportunities to take advantage of, but being able to invest in them requires capital.  In addition, selecting the best opportunity to focus on to deliver the most beneficial impact is made more difficult with market uncertainty.  For those going through funding rounds, this activity is all consuming and the lengthy process means that everything is often put on hold until they have been concluded. Partnering with the wrong investor has many pitfalls.

Many new suppliers are almost completely reliant on third party intermediaries (TPIs) who have grabbed a major share of the market for energy supply.  For suppliers, ensuring they work with TPIs that treat the customer fairly is of utmost importance.   Both the TPI and the supplier want “ownership” of the customer, but will that continue?   From the TPI perspective, they now have a large choice of suppliers they can represent.  Some TPIs struggle to influence the larger suppliers to use new technology, even when the business benefit is clear whereas smaller suppliers appear more agile and open to change.

6. ENERGY SOLUTIONS AND CLEAN TECHNOLOGY

It is felt that the end user is taking more time to take decisions for very larger users of energy.  Purchasing decisions for energy efficiency and clean technology is taking much longer and becomes a CapEx investment decision rather than a revenue one.   The energy user is far more knowledgeable about energy use than in the past and this results in greater due diligence and scrutiny of service level agreements.

The cleantech space is not an easy market with regulatory uncertainty and a challenge to make a profit on projects.  The economics are very challenging and who pays to make it work remains the key issue, which is why many are not just relying on the UK market.

It is felt by some energy professionals that UK consumers are slower to adopt technology in comparison to other international markets which makes market penetration hard.   For those larger energy organisations that have been slower to transition to new energy solutions and new technology, they need to be wary of smaller providers that have been quicker to react and may be more customer focused in some cases.

This article was written by Lee De Souza, Managing Director of Harrison Bridge, executive recruitment experts in energy and utilities. Lee has been the director of three recruitment companies and has recruited entire board and executive teams for energy suppliers, energy consultants and clean tech companies in the UK as well as recruiting globally.

To discuss your hiring needs, please contact  lee.desouza@harrisonbridge.com

 

Customer Service Director required for an innovative energy supplier

Customer Service Director required for an innovative energy supplier
interim or fixed term contract
12month+

Our client is a forward thinking and financially stable energy supplier currently outperforming the market. Due to growth, they require an experienced energy executive to add bench strength to their senior management team and provide insight and expertise to improve and enhance their customer service operations. This senior position covers multiple-sites and has responsibility for over 300 staff.

The role holder will also lead a project to gather data, interpret the data and implement actions taking the workforce on a journey that results in business improvement and efficiencies. This is a great opportunity to take an already good business and enhance their performance through the empowerment of people and business improvement.

Suitable candidates will have the following experience:

– Senior operations and customer service experience managing a similar sized operation
– Experience of B2B energy retail
– Experience of working with SME customers (including micro businesses)
– A strong people centric leader and manager able to coach, mentor and upskill staff.
– Possesses a flexible leadership style and an ability to empowers others
– Possesses change and transformation experience
– M & A integration (highly desirable)
– Ability to translate strategic objectives into operational KPIs at ground level
– Senior stakeholder management and ability to network and partner to get things done
– A resilient leader able to work at pace
– Business improvement experience

To be considered for this opportunity, please send your CV to lee.desouza@harrisonbridge.com

NEW ROLE: General Manager | Utility Consultant | 100K+ Package | East Midlands

Established in 2009, Our client is a fast growing Utility Consultant with a large portfolio (40k) of B2B customers predominantly focused on the SME market.   They are an independent broker mainly focused on providing competitive energy rates and are able to offer a choice of all major suppliers as well as a number of new entrants.

With a turnover of £10m and 50 staff, they are now looking to hire a General Manager to support the Managing Director in growing and diversifying their business.

Much of their growth has been through the traditional telesales route however, opportunities exist to develop an online channel, offer new services to their existing customer base and continue to acquire new customers across SME, mid-market and larger industrial & commercial customers.

The first six months of the business will see you work closely with the Managing Director developing the sales strategy whilst managing the day to day running of the business. This is a fantastic opportunity to take a well performing and highly profitable business that has scope to grow even further.

The Managing Director is an approachable, hands-on leader who will be highly supportive and open to challenge as he looks to take their business to the next level.  Shares will be offered to the role holder upon hitting agreed targets.

Ideal candidates will be:

  • A dynamic sales leader with experience of managing other functional heads
  • Proven track record of sales growth in a contact centre / telesales environment (preferably B2B)
  • Held budgetary responsibility in excess of £1m+
  • Able to develop and implement a sales strategy
  • Able to get the best out of people to drive performance
  • Preferably experience of developing business via online channels
  • Ideally worked in a corporate as well as an SME environment or worked in different functional roles.
  • Accustomed to dealing with management information, KPI’s and commission structures
  • Own/introduce/maintain processes and procedures within the sales department

Package

  • A base salary upwards of £60,000+
  • Car allowance
  • OTE £100K+
  • Shares offered on reaching agreed targets
  • 28 days holiday

To apply please send your CV to lee.desouza@harrisonbridge.com

How to recruit in a VUCA environment

In this VUCA (Volatile, Uncertain, Complex, Ambigious) environment, attracting the right talent is more important than ever but how do you find the right people in a challenging landscape?Lee De Souza, Managing Director of Harrison Bridge recommends the following:

Consider talent in and out of your industry

Hiring outside of an industry has been pioneered by executive search firms such as ours for years.  This opens a much broader talent pool with which to choose from and often ‘leftfield’ candidates can offer a wider breadth of experience as well as offer insight from other industries.

Agree on what the key competencies of the role are that are required

You might need to hire a Programme Director for a novel technology project that has never been done before.  In this situation, asking candidates about their experience of programme managing similar technology projects with undefined project milestones will give you a much better idea of doing something similar for your organisation.

Is the culture of your organisation fit for purpose or does it need to change?

Recruiting leaders that have experience of cultural / corporate change will go a long way to supporting organisational goals.

Assess candidates based on their hard and soft skills

Hard skills include specific knowledge and abilities whereas soft skills focus on personality traits and attributes.  Someone can tick all the boxes for hard skills but if they lack relationship building skills in a complex, multi-stakeholder environment they will get frustrated and potentially cause damage in and out of an organisation.

Hire adaptable employees

Organisations should focus on attracting, retaining and developing adaptable people to create agile organisations rather than a ‘steady state’ mentality.

If you are behind the curve, consider hiring an interim

Interims are sensibly over-qualified and can hit the ground running. The average executive will take several months to get up to speed whereas an interim will have a track record of change and transformation where they can apply their learning and experience to your organisation.

This blog was written by Lee De Souza, the Founder and Managing Director of Harrison Bridge.
Lee has delivered over 200 recruitment searches in the UK & Internationally including volume projects and recruiting entire executive teams and board positions.

If you would like to discuss how to find the best talent for your organisation.

Contact Lee De Souza e) lee.desouza@harrisonbridge.com

How to resign and prevent a counter offer

Having helped hundreds of executives successfully resign from their current employer, I have realised it is not an easy thing to do for most. The purpose of this blog is to advise you how to prevent your current employer from making a counter offer thereby putting you in an uncomfortable position and pressurising you to stay. This allows for a more positive exit so you can look forward to working with your new employer.

Coping with self-doubt: Many people feel nervous about resigning; They go through phases of thinking whether they have made the right decision and it’s important to realise that these are just normal feelings. There is always an element of risk in making a move but if you have done your due diligence then nine times out of ten you will be fine.

The key objective is to get your business / boss to accept your resignation: It is vital that your boss accepts your resignation and that you make it clear you are not open to staying. Do tell them you have enjoyed your time working there but at the same time stress your decision to leave is final.

The right use of language: I would recommend using language like ‘This is a fantastic opportunity for me now and in the long term and I am sure you appreciate this is about what is right for me with an organisation I have always wanted to work for’.

It’s not you, it’s me: Be prepared to be asked ‘why are you leaving?’ Again, it is important that you tell them it isn’t about not enjoying working with the business or the role or working for your boss (even though this may be the case). It is about the role and company you are going to.

Stay resolute: They may well be shocked that you are leaving and sometimes bosses (regardless of their level) can react poorly. Make sure you stick to your guns and remain calm.

Discussing your exit: Plan what needs to be done before you hand in your notice. Be clear on what needs to be done before you leave and offer a handover in the coming weeks. Offering to recruit or train your successor may allow you to negotiate an earlier exit.

Counter-offers are about them not you: Counter offers come in many guises with the offer of more money, promotion, ‘big plans’ etc… These big plans rarely materialise, and the stats show that 75% of people that accept counter offers want to move on again within six months. The key question you must ask yourself is – Why are they offering to pay me what I am worth when I decide to leave?  The reason is that replacing you in terms of cost and hassle is significant. A counter offer is more about their interests than yours.

This blog was written by Lee De Souza, the Founder and Managing Director of Harrison Bridge. He has fifteen years executive search and executive interim recruitment experience across several sectors up to board level including nonexecutive appointments.
Lee has delivered over 200+ searches in the UK & Internationally including volume projects and recruiting entire executive teams.

New Role: Head of Marketing & Strategy

10 Interview Tips For Executives

1) Practice delivering your CV.  In my experience of organising thousands of interviews, the interviewer often asks the interviewee to give an overview of their CV. If you’re an executive with over 25+ years experience and have worked in ten – fifteen separate roles, you do not want to be talking about every single role as you will bore the pants of the interviewer. This overview is effectively a presentation on you!

Therefore, you need to rehearse this pitch and hit the interviewer with concise, punchy information that includes tangible evidence, facts and figures as well key achievements that relate to the job you have applied for. Keep this overview to within 10 minutes. I once remember an MD talking for an hour through his CV for an interview that was an hour long. Needless to say he didn’t get the job.

2) Understand the interview format.  Most interview questions have an element of competency about them. Therefore, most of the time you can prepare for them as the requirements are in the person and job spec. I always advise candidates to use the STAR methodology. i.e. giving a response that includes the situation you were in, the task, the action you took and the result.

3) Be concise.  Every senior role that I recruit for requires people that are strong, concise communicators. Wafflers do not go down well. Know when to stop talking (this relates to answering interview questions and talking through your CV).

4) Look at your CV from a point of weakness.  It is important that you can explain gaps or any roles that may have resulted in backward trajectory. Many executives I speak that have had 20 to 30-year careers have had a blip on their CV and it is important that this is a communicated in a positive way and how you have come back or learnt from those challenges.

In relation to lacking some of the desired skills or knowledge, it is rare that someone ticks all the requirements of a position, but you will need to think about how you can evidence your ability to learn any new skills to fulfil the role.

5) Do your due diligence on the company and the interviewers.  This is as much about being informed for the interview as well as whether you want to join the company. I was recently approached by a candidate who has joined a new company and discovered they are on the verge of administration. Make sure you know what you are letting yourself in for (good and bad).

6) Demonstrate enthusiasm throughout the interview.  I have had senior candidates who have been headhunted for a role look disinterested because they were approached for the role. When they realised it was a good opportunity, they got more interested, but the company was put off by their arrogance. Interviewers are passionate about their business and they are looking for people that share that passion. Give yourself the opportunity of turning the role down if it is not the right fit.

7) Always ask questions at the end of the interview.  Asking questions demonstrates interest in the company. If you don’t ask any, the interviewer will be inclined to think you are not interested.  Some of your questions will be answered during the process and there is nothing worse than having nothing to say at the end. I recommend having ten pre-prepared questions (but don’t ask them all and remember to check their availability for time).

8) How to handle the ‘what are your remuneration expectations?’  You don’t want to sell yourself short and you don’t want to go in too high and put them off. If asked, make sure you list your full benefits as this will influence the salary. I recommend saying something like ‘Obviously the package is important to me. My main motivations are X, Y and Z and I am sure if you think I am the right person for the job, you will offer me the right package’. This allows you to side-line the question, which is often uncomfortable to answer and allows the prospective employer to make you the offer which you can then negotiate if required. If forced for an answer, have a realistic figure in your head as well as a ‘bottom line’ figure where you will walk away if not offered.

9) Uncover any concerns the interviewer(s) might have.  Quite often, an interviewer may be inexperienced, time poor and may have not prepared for the interview. This can result in the interviewer forgetting to ask you questions pertinent to the job and you might miss out on the role through no fault of your own. Therefore, I always recommend asking at the end of the interview ‘is there anything you need me to evidence more of in relation to my ability to do this job?’. This gives you one last chance to uncover any nagging doubts they have about you.

10) Close the interview with a positive statement.  Very few people say they want the job at the end of the interview. Some candidates believe this may make them come across as desperate. I don’t. I believe it sends a positive buying signal to the interviewer and it can be the difference between you and another candidate who doesn’t close – particularly if you are a Sales Director!

Remember, interviews are a two-way process and they are as much about the interviewee as the interviewer. I always think that a candidate’s gut feel says a lot about whether the role is right or not. Does your immediate instinct make you want to jump with excitement or does it not quite feel right? Listen to what your gut tells you!

Lee De Souza is the Managing Director of Harrison Bridge, an executive talent partner that helps companies connects talent and strategy. Contact Lee De Souza at: lee.desouza@harrisonbridge.com 0121 2894293

What is Executive Search?

The UK has the second largest executive search market in the world but executive search is not widely understood. Lee De Souza of Harrison Bridge explains:

It is most commonly used for roles above £70k+

Typically, organisations will engage an executive search firm, also known as a headhunter, where the base salary is anywhere from £70,000 up to board level. It is often for business-critical roles and can be any role across any function, sector and location whether national or international.

How a headhunter maps a market

The headhunter will work with the client to define the requirements of a role and then create a target list of companies (typically up to 50) where they will identify people that match the competencies and skills required by their client. The target list created might be a list of competitors, a range of organisations from similar sectors or from an industry that is leading the way in an area that the company would like to develop their expertise in.

Conducting research to find the best candidates

The research phase can involve identifying 200+ candidates, which the executive search firm will then directly speak with 50 – 100 of those over a four to six week period. During this timeframe, an executive search firm will often create a longlist of 5 – 10 candidates and a shortlist of between 2 – 5 that they then recommend to the client.During this period, clients can expect a weekly progress updateto review CVs, market insight and what is available in the market place that is within their budget.

Candidate attraction

Headhunters will use a variety of methods to find candidates using technology, referrals, social networking as well as their personal network. Headhunters take a proactive, direct but discrete approach to speaking with candidates ensuring they do not put the candidate at risk during any conversations.

The difference between recruitment agencies and executive search firms

Recruitment agencies may sometimes take a proactive approach to finding candidates, but their time is spread thinly working on upwards of 20+ jobs. Headhunters may spend upwards of 100+ hours per assignment which may entail interviewing candidates across the UK as well as Skype calls across different time zones to suit candidates and clients’ needs.  An executive search consultant will typically only actively work on two to four roles at any one time due to the labour intensive nature of each search.

A fundamental difference between an agency recruiter and a headhunter is their ability to engage with senior level candidates.  The best executive search consultants can engage a candidate that they have never spoken to before and uncover their motivation, drivers and remuneration details and then use this to engage them in a recruitment process with their client.

A search process that mitigates risk

The business benefit of using a headhunter is that it gives the organisation confidence that it is interviewing the very best available talent rather than a small sub-section of people that are actively looking or relying on those that are in their network.  Even at a mid-manager level, the cost of hiring the wrong person on a salary of £42,000 can cost a business more than £132,000 (Recruitment Employment Confederation). Therefore, the cost of using a headhunter, far outweighs the cost of getting it wrong.

Proven track record

Ultimately, any good headhunter will have an extensive track record of case studies and recommendations and their process should be a transparent one that allows you to manage, monitor and measure their performance.

For a more detailed explanation of the process and the business benefits contact Harrison Bridge, Lee De Souza, Managing Director at:lee.desouza@harrisonbridge.com01212894293.