Innovators within the electric utility industry have changed the course of history, from the introduction of AC systems by Nikoli Tesla to the introduction of KWH billing by Samuel Insull. However, today’s electric utilities often seem stuck in the status quo, which may be the downfall of some established companies, especially when so much change is on the horizon. Electric utilities have a lot to prepare for in the coming decade: expanded distributed renewable energy sources, increased electric vehicle adoption, and increased electrification across homes and businesses, as well as necessary infrastructure improvements to withstand climate change-related severe weather and disasters, and more. Energy demand is increasing, and electric utilities must prepare through innovative thinking.
Often,it seems that only startup companies are staffed with innovative thinkers, while established companies are staffed with caretakers whose goal is to maintain the status quo. In my experience, established companies hire innovative, well-educated college graduates who want to contribute and help grow the business. As these employees advance in their careers, depending on the support they receive, they move into one of four types: innovation leaders, supporters, resters, or assassins.
Innovation leaders, supporters, and resters are essential in every company. Innovation assassins, on the other hand, obstruct change and stifle innovation. Let’s take a closer look at each of these employee types and see how they impact electric utilities’ potential for successful implementation of innovative ideas.
Innovation Leaders Move the Industry Forward
Innovation leaders are executives, directors, and managers who are open to new ideas and recognize the need to foster innovation within the electric utility industry. Their leadership is ongoing and persuasive. They are open to all their employees’ suggestions and demonstrate an awareness of the need to recognize employees for their willingness to innovate. They are aware of best practices in their company, best practices in other industries, and activities at universities and research laboratories.
The goal of every innovation leader must be to lay the groundwork so that everyone is willing to share their ideas. To do this, innovative leaders may create “good idea” files and implement recognition awards to track and reward their employees’ suggestions. Or they may start meetings by sharing an inspiring story from outside their daily work activities, such as innovations in electric vehicle charging, to stimulate fresh ideas within their teams.
Innovation Supporters Contribute and Participate
Innovation supporters are employees who recognize the need for change and participate in contributing new ideas. Their participation is essential. Innovation supporters also respond to fellow employees’ suggestions with positive comments and encouragement. When innovation leaders create a network of innovation supporters within their teams, different points of view can be introduced, and worthwhile improvements can be investigated.
Innovation Resters Maintain the Status Quo
Innovation resters are employees who have given up on the need to innovate. They may feel that, in the past, their ideas have been rejected without a fair hearing, or they believe that other employees have been rewarded for their ideas. Innovation resters are not problem employees. They perform their assignments timely, accurately, and cost effectively. Over time, many employees become innovation resters.
Innovation Assassins Obstruct Change
Innovation assassins are employees who have been rewarded by the status quo. Innovation assassins obstruct change and stifle innovation. They have risen through the ranks and enjoy the fruits of their efforts. Innovation assassins reject ideas based on tradition and will often reply to innovative ideas with phrases like “that’s not the way we do it here,” or “that will never work.” Over time, many executives unknowingly become innovation assassins because their focus is near-sighted rather than long term.
The Innovation Energy-Attitude Matrix
Executives, directors, and managers at electric utilities have the opportunity to act as innovation leaders by being intentional in their interactions with subordinates, coworkers, and other executives. The following matrix can be used by management teams to determine the strengths and weaknesses of their employees. Once innovation supporters and resters are identified, they can be appropriately encouraged to continue or begin contributing innovative ideas.
Employee Types Directly Relate to Company Success
The four types of employees outlined above are typically found in every electric utility. The number of each type of employee directly relates to the company’s ability to successfully implement innovative solutions.
Table 1 shows the relationship between companies that lead the way as industry best, fall in line as average companies, or lag the crowd. Company success is a function of the percentage of each type of employee.
To become industry best, innovation leaders and supporters need to outnumber resters and assassins. It is also critical that leaders have time to investigate ideas that keep the wheels of innovation turning and recognize that industry best is a moving target.
Leaders’ Tools to Foster Innovation
Every innovation leader’s goal is to encourage high energy and good attitudes. They can foster their teams’ forward-thinking capabilities when expectations are clear, commitments are kept, and rewards are shared. Attitudes improve when teammates, including team leaders, understand each other’s concerns.
Innovation leaders can use a variety of tools to foster innovation, including thoughtful recognition, personalized rewards, personal integrity, and innovative leadership. Some examples are:
Thoughtful recognition: Handwritten notes, lunches without cell phone interruptions, verbal recognition during team meetings, or plaques recognizing tasks well done are simple ways to show gratitude.
Personalized rewards: Taking the time to understand what is important to individual staff members and present rewards that reflect their values.
Personal Integrity: Keep promises, fulfill expectations, be loyal, spend time understanding.
Innovative leadership: Encourage your staff to innovate, grow, and try new things by following your example. Walk the talk.
Increase Employee Knowledge Base to Inspire Innovation
Increasing the knowledge base of all employees, managers, and executives is a great way to inspire innovation. This can be done through requiring continuing education, establishing a transition program, and studying best practices of other industries.
Electric utilities often require employees to attend outside training, industry conferences, or technical meetings, each year. Some employees are required to attend continuing education courses annually. When employees return from trainings, conferences, or courses, they should be required to provide a short (less than fifteen minute) presentation of the new knowledge they acquired. This ensures that employees are actively participating in the continued learning process. Employees should be encouraged to register for events that interest them, even if they are not directly related to their job title.
In addition, establishing a transition program for employees who move into new positions would help them feel successful in their new role, improve their productivity, and boost their confidence in contributing innovative ideas. During the transition, the previous incumbent would be responsible for setting the stage for the success of their replacement. This will prevent the silo mentality, in which all knowledge for a certain position is lost when the employee in that position moves on.
Finally, managers should be encouraged to develop an understanding of best practices at other companies. Best practices of pipeline companies, energy production facilities, aircraft manufacturers, and other industries can and should be duplicated by electric utilities. These could be best practices related to safety, physical security, cyber security, workplace culture, etc. Managers should choose a new topic annually to study and bring fresh ideas to the table.
Conclusion
Innovation leaders foster new ideas within electric utilities, and tend to be inspirational, charismatic, and effective in their work. They inspire innovation supporters to contribute new ideas and progress into leaders, and innovation resters to progress into supporters. They remember that zeal can be inspirational, and ability can be acquired through recognition and support.
Electric utility managers must ask themselves, how full is your company’s innovation “bank account”? By encouraging their employees to contribute new ideas, managers, directors, and executives can keep their company’s repository full of innovative ideas and solutions.