#BetterTogether – Championing Culture Change, from the Inside. June Gameau, CulturAlchemy

The purpose of the Energy Charter is to enable industry solutions needed to deliver a more affordable, reliable and sustainable energy system for all Australians. Critical to this transformation, is the work of Energy Charter champions, who are internal change champions driving customer-centric and community-focused change.

I have worked as an internal change champion for three decades, the last 9 years of which has been in the energy industry.   In the words of Sioban McHale (Insider’s Guide to Culture Change, 2021): “Culture change is one of the hardest jobs that you will ever do.”  But I can also say that it is one of the most rewarding areas to work in, when you start to see all of the forces aligned, mindsets and behaviours shifting, leaders listening and adapting, and people feeling a sense of hope that “this will work” and we can have a positive impact on our customers. 

So, why is change so hard? The truth is that culture change is complex, and in typical change programs, the more obvious aspects of organisation change are planned and tackled – e.g. structure, process, systems.  However, the more invisible and emotionally challenging elements of personal and cultural change are often left out of the equation.   For organizational change to have real impact, leaders of the change effort need to recognise the importance of the human element of change, and even more importantly, the personal transformation which needs to occur first.  

Organisations don’t change; people do, and it must start with leaders.”  Peter Fuda, (Leadership Transformed, 2014)

That was my opening quote at a recent workshop we held with Energy Charter signatories and FIAP members to share practical insights and lessons learned by industry change leaders.  I highlighted four key factors for internal change champions to pay attention to:

  1. Communication – don’t talk about the change, talk about the goal… communicate the compelling ‘why.’ As one of our panel members shared: regular communication taking in diverse perspectives and continuing to communicate and communicate is critical.  

  2. Leadership – Senior leaders have to role model the desired culture and lead with their personal transformation. Leaders also need to work hard at alignment; making sure they understand and are on the same page on the “what” and “how” of change.   Deep-level alignment can be supported through questions such as: What does that mean? How would you know? What would you see?

  3. Trusted coalition – As an internal change agent, you need the support of a coalition who will help you design, communicate, role model, and embed the change. Ensure you have the right characteristics in your coalition, including position power (who’s your executive sponsor?), capability, and credibility, and a team that will challenge your thinking and support you when the going is tough.

  4. Positive engagement & empowerment – When managing large-scale change, I have a simple formula I use to check if we have the right ingredients: Goal + Path + Agency.    The goal is our compelling why, enabled by the path – a detailed plan of what’s changing and how we will do it.  The last ingredient – agency – is people’s belief that their efforts will make a difference.   This comes with a lot of time spent engaging with impacted employees, customers and stakeholders and working through what matters most to them and how to address this through the change. 

This is probably one of the MOST critical roles that leaders need to play: communicating regularly and authentically, listening to their employees and customers, and then adapting their approach to address what’s needed.  

“Positive emotions matter enormously and can energise any effort. People must feel good about what is asked of them – and the only way to evolve their behaviours is to help them attach positive emotions to the (inherently frightening) idea of change.”   (Katzenback, 2019)

As we managed the unprecedented COVID-created changes in 2020, we learned a lot about what really matters, and we learned that we can transform rapidly.  We still face incredible uncertainty about the pandemic ahead.    But change champions and decision leaders together can unite to guide an adaptive and resilient way forward.  This is at the heart of the work of the Energy Charter.

June Gameau, CulturAlchemy

Independent Accountability Panel process: hitting the mark by 30 Sept ’21

As the Energy Charter Independent Accountability Panel (IAP) process draws closer, with annual disclosure reports due on 30 September 2021, Energy Charter signatories are knee-deep preparing drafts, engaging with customer groups and commencing their respective CEO and Board approval processes.

This year marks the third round of the IAP process, and as such, many signatories have existing mechanisms in place to capture customer outcomes aligned to the Energy Charter principles across their businesses.

Some businesses have working groups chaired with Board members who meet monthly to discuss their progress and ambitions for customers. Others have more organic processes, allowing employees to share the outcomes that they have achieved for their customers and communities within the business.

All of the customer-centric information is being collated, refined and summarised for the purposes of the business’ 2020-21 disclosures which will be submitted to the IAP by 30 September. There’s a focus on the top 3-5 outcomes that have been delivered for customers.

The maturity self-assessment tool, co-created March 2020, enables signatories to assess their maturity against the Energy Charter Principles by reference to articulated criteria, as well as indicating where on the maturity scale they intend to progress to, over what period and how they plan to achieve this progress. 

Most signatories start their maturity self-assessment by leveraging their senior executives internally to have authentic discussions about what levels of maturity their business.

As Rebecca Kardos, CEO Aurora Energy said last year to the IAP  “It was actually probably one of the best conversations we’ve had as an executive group because we got to compare, contrast and reflect ….that’s really powerful and assists us in either challenging ourselves or encouraging us to do more for customers.”

Anecdotal feedback from a number of senior executives has been that these discussions are incredibly unique in the business planning cycle.

Signatories use a variety of methods to then “reality test” their maturity self-assessment. For those with customer councils, this is the natural landing place for a discussion on whether the business has assessed their maturity in a way that aligns with their customers’ expectations. For those higher up in the supply chain, including gas pipelines and generators, the discussion may take place one-on-one with individual direct connected customers or stakeholder more broadly.

The final step in the process is CEO and Board approval. While depending on ownership structures, this can vary in terms of timing and processes, Energy Charter signatories commit to having sign off of their disclosure at the most senior levels of their business to ensure there is accountability and transparency.

So while the disclosures themselves are only 10 pages, they present a unique opportunity for each Energy Charter signatory to generate meaningful conversations within their business on customer centricity and culture and be held accountable to outcomes. Where have they done well for customers? Where could they do better? What ambition do they have for the coming 12 months and beyond?

Stay tuned for the Energy Charter signatory disclosures which will feature on the IAP website in early October 2021!

#BetterTogether – sharing better practice to amplify the voice of customers at board level

The voices of customers are set to be further amplified at a board level following the release of a better practice resource for company directors. Developed as part of the Energy Charter #BetterTogether initiative Customer Voice @ Board, in collaboration with the Australian Institute for Company Directors (AICD) the resource provides better practice examples and a checklist to prompt discussion by board members.

This resource was developedby Boards Chairs and Directors from Powerlink Queensland, CleanCo, Horizon Power and Stanwell in response to insights from The Energy Charter Independent Accountability Panel (IAP) about the benefits from the customer voice influencing the strategic direction of energy businesses.

“This is an important resource.  We know there is no one ‘best way’ to amplify the customer voice, so it needs to be flexible to allow boards to take a fit-for-purpose approach.” Gerard Reilly, General Manager Communications Powerlink Queensland

“Many of the Energy Charter signatories are already driving better practice in this areas, so it is a great opportunity for businesses to learn from each other and encourage continuous improvement across the sector,” Gerard said.

The resource includes practical insights that support the energy sector to embrace the customer voice at a board level, including:

  1. Board composition and training – consider including directors with customer experience who have insights into customer touchpoints, issues, and value propositions
  2. Board meetings – ensure structure and facilitation of board meetings enable appropriate discussions about customer expectations, risks and opportunities
  3. Decision-making – consider the needs of customer within the decision-making process
  4. Customer engagement – gain customer insights by ensuring appropriate engagement with customers and their representatives
  5. Risk and assurance – consider the role of the customer voice through a risk lens to ensure that appropriate governance, metrics and measures are in place
  6. Customer advocacy structures – advocate for customer perspectives within senior leadership levels to influence strategic decision-making

A number of Energy Charter signatories have already road tested the Customer Voice @ Board Resource with their Boards. This has encouraged an authentic discussion on opportunities to get the customer voice greater magnification at a Board level, together with practical commitments.

#BetterTogether initiatives leverage high impact areas for meaningful change using the architecture of the Energy Charter to deliver better outcomes for customers. Learn more 

The Energy Charter July News Update

Message from the Chair of the CEO Council – Frank Tudor MD at Jemena, Customer Voice @ Board Resource Released, Customer Voice –  Heather Saunders at Good Shepherd Australia New Zealand, #BetterTothether WE (Water + Energy) Collaborate MOU and COVID-19 Customer Research CEO Insights Panel Wave 3, Quarter 2. Read More 

#BetterTogether – WE (Water + Energy) Collaborate

WE (water and energy) play a vital role in everyone’s lives, and we share the same customers and communities. It is critical that we collectively meet their needs now and into the future. The impact of the COVID-19 pandemic has reinforced that there are many areas of “better practice” that WE can share and operationalise across both sectors by working #bettertogether. During the last 18 months the sectors have worked closely together on issues such as getting concessions to the right people, support for vulnerable customers and innovation opportunities.

In May 2021, The Energy Charter and Water Services Association of Australia (WSAA) entered a landmark WE Collaborate MoU through their respect CEO Council and Board. The MoU aims to deliver better outcomes to our customers through collaboration and organisational efficiencies and increasing trust. It is a high-level commitment to:

So, what does this really mean?

Eve Rodrigues, Manager of Customer and Community at WSAA explains “While our relationship with the energy sector may have grown from our common purpose of supporting customers during the COVID19 pandemic, it has opened up so many potential opportunities in customer engagement and circular economy (to name just a few). The water sector has realised huge benefits from collaborating with each other – the next obvious step for us is working with the energy sector to deliver better outcomes to our customers and communities”.

“Collaboration across and between sectors is vital to address many of the burning platform issues for our customers and communities, particularly the most vulnerable. This landmark MoU solidifies the commitment of two essential service sectors to work #bettertogether. The trust being built across the sectors has already led to deep insights sharing and exploration of customer innovations” said Sabiene Heindl, Executive Director of the Energy Charter.

Stay tuned for updates on this unique collaboration between WSAA and the Energy Charter.

#BetterTogether – COVID-19 Customer Vulnerability Insights – Wave 3, Q2, 2021

Energy Charter signatories Jemena, ActewAGL, Energy Queensland and Powershop, together with Simply Energy, are collaborating #bettertogether with Deloitte to research the impacts of COVID-19 on our customers and communities. 

Research was conducted to understand the degree of customer vulnerability, as well as customers’ consumption and sentiment towards energy in the context of the COVID-19 pandemic, via survey between April 28th to May 3rd 2021 which found:

  • 35% of people are optimistic about Australia’s economic direction
  • 45% of people agreed that COVID-19 had increased their stress levels
  • 56% of people on JobSeeker reported a decrease in household income
  • 31% of people indicated that that they are spending more on energy bills over the last 3 months
Key themes from the COVID-19 Customer Vulnerability Research include:
 
  • Respondents wellbeing continue to trend upwards across the entire sample population, suggesting a continued trajectory of recovery
  • Pandemic induced stress has improved as the COVID-19 situation becomes more manageable across the country, however figures remain high
  • Whilst JobSeekers have improved since Wave 2, the ending of income supplements may amplify their vulnerability over the coming months
  • The proportion of respondents needing hardship support has persisted since Wave 2.

The snapshot placemat and full report are now available on COVID-19 Consumer Research

#BetterTogether – Know your Customers and Communities initiative in action

#BetterTogether – Know your Customers and Communities is a key initiative of the Energy Charter focused on ensuring diverse customer and community voices are heard at all levels within businesses, and across the sector, to shape the expectations of the energy industry.

Delivering against Principle 1: We will put customers at the centre of our business and the energy system, the latest example of #BetterTogether – Know your Customers and Communities initiative in action is APA’s Stakeholder Advisory Panel. Similar to other industry-leading customer and stakeholder engagement groups from Energy Charter signatories such as Essential Energy and Aurora Energy, APA’s Stakeholder Advisory Panel is designed to share what they’re doing with stakeholders and the broader community, as well as gain insights from them about their interests, concerns and expectations.

“The panel will act as a sounding board to APA on policy matters, strategic programs and plans, as well as identifying additional matters that panel members consider of importance to their stakeholders. Listening to our stakeholders and responding to their needs is key to our purpose to strengthen communities through responsible energy.” – Nives Matosin, Chair of the #BetterTogether – Know your Customers and Communities and Manager Regulatory at APA Group

The inaugural panel comprises senior representatives from a range of high-profile and diverse Australian organisations:

  • Council of Small Business of Australia
  • St Vincent de Paul
  • Energy Consumers Australia
  • National Native Title Council
  • Australian Energy Council
  • Clean Energy Finance Corporation
  • Energy Users Association of Australia
  • Chamber of Minerals and Energy of Western Australia

The establishment of this panel is a significant milestone for APA and represents a step-change in how they engage with their customers, consumers, and the communities in which they work.

Reflecting their commitment to transparency and accountability, APA will make a summary of the panel’s discussions at each of their meetings available on their website. In addition, feedback from the panel will inform new Stakeholder Engagement Forums to be held at least twice a year.

The #BetterTogether – Know your Customers and Communities initiative is led by APA and Essential Energy together with Endeavour Energy, Energy Queensland, Jemena, Horizon Power, Powerlink Queensland and TransGrid consulting with National Consumer Roundtable. Since inception in 2019, they have delivered robust and fit-for-purpose customer, community and stakeholder engagement activities including a Better Practice Toolkit for customer engagement and a Shared Learning Customer Engagement Platform to highlight better examples of customer and stakeholder engagement across signatories. For more information visit #BetterTogether

The Energy Charter June News Update

Message from the Chair of the CEO Council – Frank Tudor MD at Jemena, Customer Voice, Doug Allen, Australian Red Cross Lifeblood, COVID-19 Customer Research CEO Insights Panel Wave 3, Quarter 2, Voices for Power, WE (water + energy) MoU. Read More 

#BetterTogether – Collaborating across the energy supply chain to improve the experience of customers connecting to gas in Victoria

New gas connection requirements have differed between each distribution business across Victoria making it complicated in some cases and not consistent for customers and others in the supply chain such as building developers. Through the architecture of the Energy Charter, energy distributors Australian Gas Networks (AGN), Multinet Gas Networks (MGN), and AusNet Services collaborated with retailers Origin Energy, AGL and EnergyAustralia to run a trial and now fully implement the single gas connection process with all retailers; making  it easier for customers to connect to gas in Victoria, irrespective of their postcode area, improving the customer experience.

“Having different processes for new gas connections across three energy distribution networks has been a long-standing issue in Victoria and was further highlighted in the results of each distribution business Customer Satisfaction Survey. We wanted to come together to agree on a single process to improve the experience of our customers and we’re making great progress.” Nadia Janevski – Manager, Customer & Support Services at APA Group (AGN Service Partner).

Collaboration began in 2019 where the three Victorian gas distribution networks, AGN, MGN, and AusNet Services, came together to co-create a site readiness document to standardise ‘site ready’ requirements and technical differences across the state. Site readiness, for example, means when the site is ready for a gas service to be constructed, ie no scaffolding, no building material, clean site and safe access etc… on the building site.

The site readiness document standards were then shared more broadly with builders to contribute to the feedback loop and improvement.  This was key in ensuring we were focussing on their problem and not what we thought was their problem.

“There were some challenges, but we all had a vision and were able to work together to standardise site readiness into one document and to improve the connection process for all our customers.” James Wong, Marketing & Stakeholder Engagement Manager at Australian Gas Infrastructure Group

The second stage of the collaboration focused on co-creating a ‘Vic New Connection 10 step process’ to ensure energy distributors could connect customers at the right time and meet their expectations. This primarily improves the experience of residential customers making up approximately 80% of new gas connections.

The ‘Vic New Connection 10 step process includes Builders Information I Multinet Gas and Applying for Your Gas Service I Australian Gas Networks.

Buy-in from energy retailers was easy as a streamlined process, and consistent clear communication, helps them deliver a better service to customers. Customer support teams in call centres can now follow one new gas connections process, rather than three. This will really improve the experience of customers who are connecting gas for the first time.

From here, the focus will be on developing a communication and engagement strategy to embed the process across Victoria. #BetterTogether champions are undertaking activities such as communicating to and educating builders and making the process available for download on distributor websites. They will also share the process through different channels to get the message out more broadly.

Nadia Janevski – Manager, Customer & Support Services at APA Group said “It’s a work in progress, changing behaviours takes time, but we’re getting there.”