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18 | 20TH - 26TH MARCH 2015 | UTILITY WEEK Resilient people Resilience cannot be achieved only through clever strategy and the application of technology. Fundamentally, an organisation can only be resilient if its people are too. Personnel issues UtilityWeek Resilience F aced with challenges on multi- ple fronts, chief executives cannot afford to be sur- rounded by execu- tives who wilt under pressure. Utility compa- nies, sandwiched between custom- ers expecting value and share- holders seeking returns, have to tread extremely carefully – even more so when politicians get closely involved. A company's best-laid plans can be derailed by outside forces that are hard if not impossible to control. Looking for an easy way out will only backfire. Resilience under pressure is an essential character trait for senior executives in the utilities sector, but it should not be confused with dogmatism or intransigence, neither of which belong on a leadership team. Resil- ience is about keeping your head, maintain- ing confidence and adjusting to changing circumstances without sacrificing principles or integrity. A resilient leadership team does not panic, nor is it swayed from doing the right thing. Its members have a desire to learn from mistakes, can withstand candid and constructive feedback, and stick together when the climate turns hostile. The reality today is that sticking to a strategic plan in the face of political and economic headwinds is not always possible. Chief executives need their teams to embrace uncertainty and the unexpected, to be agile and creative in navi- gating the obstacles in their way. Aer a period of disruption, businesses rarely return to their original state – resilient teams need to undergo a continual process of renewal and be flexible enough to adjust to the new normal. No-one can predict where the next crisis will come from or when it will strike. Chief executives need to know in advance which members of their leadership team have the appetite and the temperament to deal with a disruptive event head-on instead of running for the hills. Fortunately, chief executives no A FRAMEWORK FOR ORGANISATIONAL RESILIENCE "Resilient organisations have a profound and detailed under- standing of the risk they must take in order to be efficient and profitable – their risk appetite." Stefan Gershater, risk management director, EY What does it take to be a resilient utility? A very high degree of fore- sight and fidelity through the entire life-cycle is required to understand, manage and exploit the risks and uncer- tainty inherent to strategic programmes. There are three serious challenges to address: 1. Evidenced decision-making: Obtaining, refining, analysing and exploiting all relevant digital and other information to inform and optimise all phases of asset life-cycles, in line with an appropriate risk appetite. 2. Mindful collaboration: Utility providers offer a ser- vice on which others depend. Analysis and understanding of the resilience of the entire value-chain, from raw materi- als to consumers is required to provide appropriate, and appropriately priced utilities. 3. Judgement: Promoting sound judgement, especially under pressure, which combines expert opin- ion with available evidence and analysis. Behaviours do not always follow the evi- dence; the boards of utilities companies must set the 'tone at the top' with regard to risk and decision-making, and must ensure this is followed and enacted throughout the company. longer have to wait until a crisis occurs to find out how people will respond. The most sophisticated assessment tools are capable of accurately discerning how people handle adversity. In our top team assessments, we frequently reveal under- used qualities in individuals as well as iden- tify their blind spots. Not only do executives find the experience enjoyable, but these assessments oen stimulate substantial improvements in team effectiveness. Hugh Thorneycro runs Spencer Stuart's Industrial and Energy practices in London "A resilient leadership team is not swayed from doing the right thing" 0. BAU 1. Awareness Clear, unambiguous triggers for escalation into further stages. Estimates are made of likely impact of an event on infrastructure and resource management, based on scenarios and data captured from previous events. UK integrated electric utility Identified areas of dense tree cover and targets those assets for hardening, such as undergrounding or tree wire. National highway agency Identified flooding hot spots and priority drainage assets (such as culverts) so that prioritised measures to improve resilience to flood- ing could be developed. International airport Integration of weather forecasts into operational plans, which are updated on a rolling basis, to constantly monitor and report on opera- tional impacts. Major rail operator Developed specific triggers defined for "alert/watch" and "prepare phase" to launch response plans. US North West utility Created a tool that uses an automated call to crew members to get an estimated time of repair updated by touch tone phone. This estimate is logged on the system and communicated to customers.