Smart Grid Best Practices – We Need to Understand Worst Practices

Integrating digital technology by various electric utilities represents the most significant change to the U.S. electric grid in over a century. As these Smart Grid deployments mature, business process transformation has become an absolute necessity for benefits realization relative to the unprecedented capital investment by such utilities. The pioneer utilities are blazing a trail within a landscape where best practices are still emerging. After all, the early adopters have to essentially assume risks that will likely be minimized for later adopters.

Strategic organizational change strategies will continue to be of significant importance when a utility enters the post Smart Grid era. The convergence of energy delivery challenges, diversity and inclusion, and environmental sustainability in our society are game changers for utilities. Social and political will along with the overhaul of an antiquated transmission and distribution infrastructure are redefining the energy landscape for generations to come. The failure by a utility to position the organization today to deliver 21st century energy solutions will facilitate a variety of worst practices in the future.

Consequently adopting an entirely new cultural mindset is a prerequisite for utilities seeking to add value to their stakeholders in the future. Many commercial and industrial customers are seriously assessing options for distributed generation (on site generation of electricity) and energy efficiency solutions for its buildings. Walmart already outlined its plans to generate and manage its own electricity. If this approach gains momentum, utilities will no longer “hold the cards”. Every utility should develop viable and competitive alternatives for the commercial and industrial customer of the future.

The Smart Grid will also continue to empower the residential customer. The “rate payer” has to give way to the “valued customer.” The digitization of the electric grid (Smart Grid) will also enable a plethora of home energy management options for customers. Customized energy management leveraged by mobile applications will become more commonplace. There is now a growing expectation that technology will expedite power restoration during a major storm. Messaging has to be accurate and well-managed. Reputation management is the social capital of the future for utilities.

Refusing to embrace strategic change management will also prove to be a future worst practice. Residential customer analytics will help utilities to better address the unique customer needs of diverse market segments. Language, race, income level, and environmental values will matter more than ever. Strategic communication planning and customer engagement has to be inherent to a utility just as it is to major retail giants today. The building blocks are already in place. The energy demands of tomorrow will clearly be delivered by those utilities that today already have the vision.

In This Huge Sustainability World…You Matter

Almost every day I am reminded of being a good environmental steward.  Public service announcements have President Obama encouraging home energy efficiency from the oval office.  News articles tout the value of water conservation.  In my local community, I can place my recyclable glass, plastic, and aluminum cans for weekly curbside pickup.  Since this is voluntary in my community, it feels good to know that I am doing my part in preserving life on earth.

However, various studies have shown that most utilities have a long way to go on educating consumers about smart energy and water management.  Furthermore, I notice that very few of the neighbors in my suburban development recycle.  Surely, many of my educated and professional neighbors should understand the value sustaining our planet.

The fact is that this entire “green” movement is still abstract to the average person, and it does not resonate to most of us in a way that is immediately personal.  As I engage people on topics of the environment, it has occurred to me that I spend most of the time simplifying the message for people.  At that point, I get the “now I get it” response.

It’s not that hard, but it takes some effort. When President Obama ran for office his second term, there were countless commercials touting the effects of voting. “Yes, in the grand scheme of things your vote does count…” is what we heard. And it does. Every little bit counts. The same goes for recycling. Every bottle you recycle, every plastic bag that gets reused, every light that is not turned on…matters. The people need to know, and need to know the way they understand.

Messaging and strategic communication are critical.  Government entities, utilities, and major community stakeholders have to simplify the message.  We are told to get ready for the Smart Grid or to reduce our carbon footprint.  If we are to really prompt public behavior modification, then we have to put an end to the esoteric jargon.   This necessitates effective public relations and strategic communication planning.  When you can explain to a 93-year-old grandmother exactly how reducing her carbon footprint can require less of her fixed income, now we are onto something. In This Huge Sustainability World…You Matter