Energy, Utilities & Chemicals

the way we see it

Operational Change
Management
A small investment to prepare and educate
your workforce can lead to huge success in
Smart Grid implementations
Although it represents less than
one percent of the typical
Smart Grid implementation budget,
an organizational change management
plan can be one of the most powerful
tools that utility companies have to
drive the success of their Smart Grid
projects. Thats especially true with
the Employee Readiness for Smart
Grid (ERSG) solution offered
exclusively by Capgemini.
In fact, in working intimately with
leading utilities on successful Smart
Grid projects across the globe,
Capgemini has learned that the
ultimate outcome is most often
determined by how effectively a
company embraces and executes its
change management strategy.

Depending on their unique business

needs, utilities are rapidly investing
millions and sometimes billions in
Smart Grid programs. They are
educating consumers about the new
demand-response and energy-efficiency
rates that Smart Grid enables. While
customer-facing undertakings are
crucial to the success of Smart Grid
projects, utilities should not overlook
that an equal amount of time and
effort must also be dedicated to
preparing and educating utility
employees for the changes that
these new systems bring.

While a change management program

is a relative drop in the bucket for
most utilities in terms of their Smart
Grid investment, it is consistently
one of the most difficult aspects in
gaining the full support of management
and equally importantly, the broader
employee base.
The simple truth is that without an
effective change management strategy,
most Smart Grid projects will
ultimately fall short. Thats why its
critical for utilities to develop and
launch a well-strategized campaign
for engaging their workforce. In
Capgeminis view, this campaign is
most effectively waged when it consists
of an action-oriented three-pronged
approach utilizing training;
communication to both project
team members and the overall utility
workforce; and organizational change
tools. Based on our global experience in
collaborating with utility industry
leaders, Capgemini offers the following
observations on how this can best
be achieved.

Keys to Change
Management Success
To successfully manage change in a
Smart Grid implementation, utilities
must implement an integrated,
company-specific change strategy.
In our view, the key cornerstones
of this strategy should be executive
sponsorship and the staffing of
a dedicated change management team.
In fact, beyond all other elements of
a successful change management
strategy, Capgemini has found that
without these two keys serving as the
foundation, it is nearly impossible to
adequately equip employees to adapt
to and embrace the changes of Smart
Grid. As a result, our ERSG Solution
is designed to enable utilities to gain
the full support of upper management
for their Smart Grid implementation
while also helping them to efficiently
and effectively staff a dedicated change
management team.
Capgemini has found that the most
successful Smart Grid implementations
are invariably those that have the full

support of upper management from

day one and throughout the project
lifecycle. Why? Executive sponsorship
not only provides employees with a
sense of confidence and enthusiasm for
the changes that the transformation is
bringing, but it also pushes the
employees to embrace the innovation
and the positive direction it is taking
the company. When executives are able
to speak passionately and fluently
about the benefits of Smart Grid, it
resonates with employees both
personally and professionally. In
addition, it considerably increases
morale among the Smart Grid project
team when executives acknowledge and
show appreciation for their months,
and often years, of dedication to the
project by communicating and
interacting with them at key project
milestones. To this end, Capgemini has
vast expertise in helping executives
fine-tune their messages of project
support by facilitating workshops that
help them understand the details of the
Smart Grid strategy and the nuances of
the technology implementation.
However, we have learned that
executives are only capable of
delivering their messages of
sponsorship when they are given the
appropriate mediums to do so. Based
on our global experience, Capgemini
has found that creating a dedicated
change management teamrepresented
by leaders of the companys business
units and internal training groups, as
well as all third-party vendors involved
in the Smart Grid implementationis
among the most important steps in
developing a successful change
management strategy. In our ERSG
Solution, this team focuses their
energies on addressing each of the
critical areas of change and, in
particular, incorporating the message of
support for Smart Grid at the executive
level into their frequent interactions
with the business units. This team
should have the full support of
management and business leaders, as
well as a strong rapport with

Energy, Utilities & Chemicals

employees. These are among the

primary goals of the Capgemini
ERSG Solution.
Critical Elements of
Change Management
Education and Training
Without an understanding of the big
picture few, if any, employees will
embrace the changes that come with a
Smart Grid implementation. Thats why
its important for utilities to develop a
change management training strategy
that demonstrates not just why but
how employees will be doing things
in the new world of Smart Grid. To that
end, the training should look beyond
how Smart Grid will impact their jobs
and into how it will transform the
company as a whole.
Just as all Smart Grid implementations
are unique, so should be all change
management training strategies. In
fact, the most effective strategies are
consistently those that are highly
adaptiveable to be amended and
updated as new training needs
come to light. Strategies should
also be designed to be easily
tracked and measured consistently
across workgroups.
In our ERSG solution, change
management training provides an
excellent opportunity for knowledgeand skills-transfer within and among
the companys business units. Working
with the business unit leaders to
develop the curriculum and identify
training structures will provide the
opportunity to share with them the
methodology behind the delivery of an
effective training program.
Understanding of this methodology
may be put to good use during future
utility initiatives.
Organizational Alignment
Of the many impacts that a Smart Grid
implementation makes on a utility
companys culture, organizational
changes are often the most visibly
resisted. For example, employees often
Operational Change Management

believe that the elimination of meter

readers is merely the tip of the iceberg
for potential job losses. They are
understandably resistant to any changes
that they believe will impact their
livelihood and those of their colleagues.
To alleviate this tension, a proactive
approach should be taken to addressing
organizational impacts that are known
from both the business-case filing and
then later discovered through the
business architecture work. Such an
approach is a hallmark of the
Capgemini ERSG Solution.
Companies should immediately focus
on preparing employees for changes to
their roles and responsibilities so that
potential impacts on their performance
can be mitigated. For those roles that
are being eliminated because of Smart
Grid, transition plans should be
developed and a fluid stream of
communication should be established
so that employees are apprised of their
job options and the timeline for the
phase-out of their current roles.
Communication
To win employee support for a Smart
Grid implementation, effective
communication is among the best
resources that the change management
team has in its toolkit. When the team
offers full details to the workforce
about the projects vision while
effectively managing expectations and
providing accurate and timely updates
on project progress, employees are
much more likely to embrace each
angle of the change curve and
ultimately, the Smart Grid
implementation itself.
Its never too early to begin
communicating with employees.
In fact, companies should be prepared
to address their workforce on the day
that preparations for the Smart Grid
business case are started because this
is when employees will begin to
share informationand often,
misinformationabout how Smart
Grid will affect their jobs.

the way we see it

Especially within the business-case

phase of a Smart Grid implementation,
business unit leaders will tend to focus
much more on how the project will
impact their individual units than how
it will impact the company overall.
Thats why its important for a company
to create an environment in which
there is close collaboration among all
its business units so that a clear and
accurate understanding of the impacts
of Smart Grid and the anticipated
project timeline are evident across the
utility. Capgemini has found that an
effective way to increase employee
understanding at the business-case
phase is to create an Employee Change
Network (ECN) represented by
employees from each of the companys
business units. When these employees
are invited to serve on the ECN, they
feel valued and tend to take ownership
of the Smart Grid project. As a result,
they become the utilitys first
ambassadors for Smart Grid among
their co-workers. And as the project
continues, they are able to provide their
peers with consistent and accurate
updates on the projects progress. This
helps to ensure that the flow of
information does not bottleneck
which can easily happen with a
traditional, top-down approach. This,
in turn, helps reduce the spread of
misinformation and the inevitable fears
it creates among employees. A key
component of Capgeminis ERSG
Solution, the ECN also serves as a
highly effective medium for
communicating the messages of
executive sponsorship.
Objectives of an Effective
Change Management Strategy
Drive Business Acceptance
To facilitate business acceptance, the
project must be supported and
sponsored at all levels of the
organization. Utilities should recognize
that gaining employee buy-in will be a
major challenge throughout the project
lifecycle. Users and managers need to
understand the change process and the
benefits that these changes will bring to
3

www.na.capgemini.com

Develop A Strong Internal

Communications Network
Clear, consistent and comprehensive
communication between the project
leaders and all impacted business units
is critical. Building a common language
for project terminology and
communicating the process changes
across business units will facilitate the
successful employee adoption of the
project and enable its business goals
to be achieved.
Increase Executive Sponsorship
and Involvement
Executive-level sponsorship is needed
to ensure that the projects are visibly
and actively supported throughout
implementation. Management should
be prepared to walk the talk to gain
the commitment and acceptance of the
project throughout the workforce,
especially with concurrent change
initiatives and tight deadlines.

The Power of the Capgemini

ERSG Solution
Though it typically represents only a
tiny fraction of an overall Smart Grid
implementation investment, an effective
change management strategy is an
invaluable tool for driving the success
of the project. Capgeminis extensive
expertise in the utility industry enables
our professionals to help companies
anticipate the impacts of change within
the many demands of utility
operational considerations. With our
powerful ERSG Solution, Capgemini

can complement your existing

workforce, provide effective training,
and lend guidance from concept
through successful adoption and
integration into operation.
From Blueprint to Reality:
Experience Reduces Risks
As global specialists with proven
experience enabling Smart Grid
initiatives, Capgemini distinguishes
between promise and execution.
We offer Blueprints for the Smart Grid
not just pilots, but practical working
solutionscollaborating with leading
utilities throughout the world. Our
commitment is strong with more
than 10,000 professionals dedicated
to the sector.
For more information about
Capgeminis Employee Readiness
Smart Grid solution, please
contact Ellen Krohne at
ellen.krohne@capgemini.com.

About Capgemini and the

Collaborative Business Experience

Capgemini, one of the

world's foremost providers
of consulting, technology and outsourcing
services, enables its clients to transform
and perform through technologies.
Capgemini provides its clients with insights
and capabilities that boost their freedom to
achieve superior results through a unique
way of working, the Collaborative Business
Experience. The Group relies on its global
delivery model called Rightshore, which
For more information contact:
Gord Reynolds
Utility Practice Leader
Global Smart Energy Services
gord.reynolds@capgemini.com
+1-416-732-2200
Copyright 2009 Capgemini. All rights reserved.

aims to get the right balance of the best

talent from multiple locations, working
as one team to create and deliver the
optimum solution for clients. Present in
more than 30 countries, Capgemini
reported 2008 global revenues of
approximately $12.74 billion and
employs over 90,000 people worldwide.
More information is available at
www.na.capgemini.com.
EUC_OPCHMGPOV_092009_038

Ensure Organizational Readiness

In a successful Smart Grid
implementation, it is crucial to quickly
identify those employees whose roles
within the company will be most
affected by the project. The change
management team should be ready to
address these employees concerns and
discuss their futures as they adapt to
the new systems and processes. Making
users aware of redefined work roles and
operational changes will enable them
to see how the current operations are
impacted by the "to be" vision. End
users from each impacted business
must be involved throughout the
implementation. The communication
and education/training programs
will enable the project members to
manage user expectations and
ensure user readiness.

Integrate Employee Readiness with a

Successful Customer Experience
Because employees are also customers
of the utility, their understanding of the
changes that Smart Grid inevitably
createsand their appreciation for
the many benefits that will resultcan
empower them to be strong advocates
for the project among the utilitys
customers. As they communicate
with their friends and neighbors, these
employee advocates will ultimately
help to ensure that the companys
target customer base is successfully
informed and fully engaged in the
Smart Grid implementation.

them individually and to the company

overall. The utility should be aware
that it is important to present these
benefits early in the project to
encourage involvement and support
among the workforce.