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SustainAgilityDeveloping agile teams in the energy industry to drive profitable growth in
a rapidly changing world
Dr Patrick Dixon Chairman Global Change Ltd
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Global Talent Crisis in the Energy Industry is a long term threat, and can only be solved by energy companies and governments working together for a more sustainable future
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Big strategies often overtaken by eventsWorld can change faster than you can hold a board meeting
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Wild Cards: Risk Management
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ArabSpring
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• Click to edit Master text styles
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Cycles of Boom and Bust
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AGILITYmeans
more than one strategy
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Demographics
populaDon growthand decline -‐ impact on energy and workers
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300 million move to cities in China and475 million to cities in Africa by 2030
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>40% WDP by 2015� IMF - adjusted for Purchasing Power Parity
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4 couples needed to produce just
one great-grandchild
Europe is Dying
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US energy age
50% of engineers reDred during 2008 -‐ 2015
40% of nuclear workersSimilar in EU / other regions
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US energy age
50% of engineers reDred during 2008 -‐ 2015
40% of nuclear workersSimilar in EU / other regions
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Skilled workers returning to Asia
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• BUILD - “growing own timber” - too slow • SUBSTITUTE - with technology, difficult• BUY - competing globally for a few people!
Build, SubsDtute or Buy
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Talent War to Talent Partners
Talent Takers to
Talent Makers
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RAPIDENERGYCHANGES
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$40 Trillion Green Tech Boom driven by oil price, cost cuts, green activism
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Shale gas 33% US supplies
3.3m US jobs$468bn pa + more oil
produced than Saudi by 2020
200 years global supplyUp from 60 years in 5 years
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Boom
Bust
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5 coal plants replace with gas = 9000 megawa>s wind Coal prices fall = more coal burnt in Vietnam and China
57 coal plants closed in US in 2012
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120,000 terawatts of sunlight /day7,000 times total power useQUEBEC from ARIZONAMOSCOW from SAHARA
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Solar cell generaDon parity
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Falling solar cell prices
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120,000 terawatts of sunlight /day7,000 times total global power usePower Moscow from Libyan Desert
“40% EU power = wind by 2050”Surplus wind to hydrogen - to methane ?
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�Challenge to achieve carbon reducDon AND cut nuclear�Wild card = dirty terror bomb or another meltdown
Growth + Cuts in Nuclear
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Smart Power RegulaDon UDlity Co controls consumpDon in homes / factories10% Australian power generaDon only used for 72 hours a yearEnergy prices can soar from $50/Mw hour to $10,000/ Mw hour
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Germany Power Surplus
• In June 2013• Electricity prices became negaDve • -‐ minus EU150 / MWhr !!
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Enough salt caverns planned to power Germany for a week
Power Storage
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•Rapid growth HVDC Super Grids
• 500,000 S Korea jobs - $200bn Smart Grid Project
•China planning to power Moscow
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The future is aboutEMOTION
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do things you really believe inLife is Short
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PEOPLEHR development needs to be as agile as energy trends -‐ protecDng and redeploying talent through booms / busts
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Text
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80% lost in seconds
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IMAGEGraduates want to feel that they are making a
posiDve difference to world
How do they feel about energy industry ?
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1 trillion pages a month
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"Perfection!, Wonderful hotel. Good value, beautiful views.“
Madrid May 20, 2013
This was the most beautiful hotel. Clean, friendly and good value.
“Worst hotel I have ever been in. Should be closed down.“
Paris April 11, 2013
NEVER stay in this terrible place. Rats, insects, dirty. Many guests got sick.
74 million users a month
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HIGH SCHOOL
PromoDng engineering and energy industry as exciDng, agile ways to create a beaer world
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UNIVERSITYPARTNERSHIPSAgile trainings schemes, radical approaches, Sponsoring courses,
individual students, work placements, PhDs and research departments
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STEMScience, technologyengineering, maths
>70% rise energy demand wil be in Asia
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3.6m engineering graduates a year in China by 2015
• Even if only 20% are “employable” in global market, China’s output is already larger than US
• Brazil will produce more engineering PhDs than US by 2016
• Challenge to LOCATE and ACCESS talent in unfamiliar emerging markets
• Barriers of language, culture, willingness to move, immigration controls etc
• (Accenture Inst for High Performance 2011)
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Most STEM graduates in emerging markets
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China and India dominate
STEM degrees including post-‐graduate / PhDs
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STEM degree holders in US
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STEMGlobal market -‐ opportuniDes
for pro-‐acDve, dynamic, visionary and rapidly adapDng Specialist Talent Agencies
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KAGGLE and YourOncore
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AGILE CAREERSGraduates and reDred people want freedom, agility and flexibility, variety and
opportunity
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AGILE COMPANIES
Smart technology, radical team structures, rapid redeployment,
partnership, collaboraDon, empowering
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AGILE TRAINING
fast-‐track for flexible, agile roles
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MENTORINGCONSULTING
by older workers
Encouraging oldest experts to teach vital skills and give
experience to younger teams
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AGILE CAREERSRotaDng high fliers through variety of stretching jobs in
different sectors and regions to create agile leaders for
tomorrow
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RECRUITNG DIVERSE WORKFORCE
Local talent, reverse expats, hiring from emerging markets, broader mix of gender, age,
culture, experience
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Diversity in workplace leads to diversity in marketplace
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Diversity linked to higher sales, market share and profits, talent recruitment
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85% of leaders of largest US corporaDons say diversity
is key to innovaDon
Forbes study
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What have we learned from
tackling GENDER issues?
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Only 30% Wal-‐Mart management are women
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Women Outperform Men
•Most sales to women• 60% US graduates• 40% primary earners•Most women leave corporaDons early• Solve talent shortage
UrbanTribal
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Toxic Testosterone Culture
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•Young children•Dependent parents•Double careers•Double shiP pa>erns•Divorce / separaDon
Fit around Complex Homes
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Balance usually about people
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Reproduce own imageTend to recruit people with familiar name,
voice, accent, personality, culture, appearance
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• Treat as board strategic issue requiring rapid acDon• Invest heavily in in-‐house training and development• Promote cross-‐training / transfers• Ensure be>er career paths / conDnuity between projects• Allow diverse career pa>erns eg part-‐Dme• Re-‐posiDon older / reDring team members incl mentoring• Partner with UniversiDes + placements• Industry-‐sponsored PR campaign, partner with government• Teams of non-‐specialist leaders supported by specialists• Recruit people who thrive on change and ambiguity
Agile answers to talent crisis
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�For individuals�For family�For community�For whole earth
Making Life BetterEnergy industry is vital to our future
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SustainAgilitySLIDES + VIDEOS
globalchange.com
Dr Patrick Dixon Chairman Global Change Ltd