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Changing the corporate culture in the electric utility industry / by Robert John Miller.

by Miller, Robert John.

Electric utilities -- Deregulation

Supervisors -- Training of

Communication in personnel management

iv, 143 leaves : ill. ; 29 cm.

Advisor: Dr. William Gleason.

Committee members: Edward Patneande, Roger Austria.

Introduction -- Introduction to the electric utility industry -- Forces of influence in the electric utility industry -- Defining and analyzing organizational culture -- The change process - unfreezing the current culture -- Transforming -- Refreezing -- Examples in other industries -- Summary and conclusions.

The electric utility industry is experiencing significant changes, it is being deregulated and becoming more competitive. Deregulation is forcing utilities to reassess their strategies, structure, and culture. In the early 1990’s the environment electric utilities operate in began to change and this has led to changes in their strategies and structures. Their challenge now is to change their corporate culture so it is aligned with the new strategies and structure. This thesis has three main objectives. First, to explain the changes that are currently taking place in the utility industry. Deregulation, market forces, and technological advancements are the forces of change that are increasing competition and requiring utilities to change their culture. The second objective is to identify what managers can do to support a cultural change. Role modeling, positive reinforcement, communication, union involvement, recruitment, training, coaching, fostering goal setting, and providing more opportunities for employee growth and development are strategies and tactics that managers can use to change the culture. The third objective is to determine if the process of changing the culture in the utility industry is different than what is used in other industries. The process is not much different but there are three essential areas that utilities must focus on if they are going to be successful in their change efforts. First, utilities must provide training for their managers and first line supervisors.

The training should focus on improving their communication and motivational skills, including how to manage those employees who resist change. Topics of the training should include coaching, setting goals, reinforcing good performance, and developing teamwork. Second, utilities must focus on improving their marketing skills and strive to gain a better understanding of their customers needs. The third area is utilities must provide current information to employees on what changes are happening in the industry and why and how they have to change. The Lewin development model is used as a guide to organize the process of changing culture. Unfreezing is the first step. Employees will resist changes because they look upon changes as a personal criticism, they fear the unknown, they don’t see how the changes will benefit them, or the changes may involve new technologies and employees feel incompetent. Transforming is the second step and is the step in which change actually occurs. Employees begin to adopt new attitudes and behaviors. In the refreezing stage, the third and final step, all the changes that occurred in the transformation phase become stable and permanent. As results are achieved, the focus shifts to sustaining and reinforcing the new positive culture. Contracts with outside change agents are terminated and the new attitudes, values, and behaviors are integrated into everyday processes and procedures.

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