The mosaic Company
The Mosaic Company is a national workforce consulting firm seving the energy and utility industries
Supply chain issues and the availability of skilled workers are two huge challenges facing leaders in the utility industry today. It can take years to develop the knowledge and skills needed to operate safely and effectively and to develop the know-how to solve unexpected problems. At the same time, utilities need more skilled workers, and that’s not something you can just manufacture. Even contractors are struggling to keep pace.
The most successful leaders will be those who can pivot and look at the world through a different lens and develop an effective playbook. The Mosaic Company recently spoke with board member and former gas utility executive Nick Stavropoulos for his insights on leadership and the workforce in this new environment.
Rachel Collier: Public policy, regulation and customer demand are driving transformational changes as the nation works toward a cleaner energy future. How do utilities meet those requirements while continuing to focus on resilience, reliability and safety?
Nick Stavropoulos: A lot of promises have been made, and companies are trying, but moving to green energy is proving to be very expensive. And if it’s not affordable, it’s not doable. We see that playing out in Europe right now. In the United States, every company is in its own unique position. The political pressures are different in different states. And some companies have more levers to pull than others. If you look at annual sustainability reports, it’s a scale: On one end, there are many great ideas but smoke and mirrors for plans, while others have funding and actual projects in place.
The biggest issue, however, is the supply chain. The utility industry relies heavily on China for the equipment needed to operate, maintain and expand our infrastructure. Utilities are now struggling to get certain things. Many senior executives have never lived through such massive cost and availability challenges. Customers are also pushing back on rate increases, forcing regulators to rethink cost structures. The first reaction is to roll back O&M budgets to buffer cost increases, but that only gets you so far. There is incredible pressure on utility leaders to figure out how to work through this.
Most leaders have never led through high interest rates and high-inflation environments. It requires a different way of thinking to attract investors, fund capital projects and recruit diverse skill sets to manage the competing interests of customers, employees, regulators and shareholders.
RC: Do you think the digital trends we see in other industries have a place in the utility industry?
NS: Energy time runs in 10-year cycles, from when the germ of an idea starts to designing, permitting, building and then operating big energy infrastructure. But political time operates in four-year cycles or less. Right now, everything is green, but if Republicans take control two years from now, will the whole thing flip? Utility companies have to deal with that seesaw all the time, making it extremely difficult to make big bets. On top of that, utilities are designed by nature to be cautious; they provide a critical service and can’t afford to fail. All these factors create an industry that is cautious in adopting new technologies or ways of working.
I’m interested in how we use technology more aggressively to manage knowledge transfer. A gas utility in Italy is experimenting by taking seasoned workers out of the field and bringing them to a central location to oversee multiple crews and answer questions. This knowledge-transfer solution is only feasible through the deployment of advanced technology. With [artificial intelligence and extended reality], there are better ways to get more done with fewer people.
RC: We often see training organizations struggle to maintain alignment with the business over the long term. Why do you think that is so difficult?
NS: Training is essential to employee safety, productivity and commitment. The electric grid is designed to “fail safe,” but the gas system doesn’t work that way—it’s designed never to fail.
Right now, everything is green, but if Republicans take control two years from now, will the whole thing flip?
Ultimately, effective training must be tied to the business. And that level of alignment comes from the top. Leaders focused on operational excellence and safety give their employees the best tools, training and technology because you can’t be the best worker if you don’t have those things.
RC: Is there a last piece of advice you have for utility leaders about developing the workforce of the future?
NS: Trust in your people. Get closest to the people who actually do the work. Listen to them. Try to see things from their perspective. Seek out their advice. My mother gave me the best advice: You have two ears and one mouth and should use them in that proportion. Leaders who do that are the most successful.
This interview has been edited for length and clarity.
Nick Stavropoulos’ career in the U.S. and international energy industry spans four decades. After seven years at San Francisco-based Pacific Gas and Electric Company, Stavropoulos retired as president and chief operating officer in 2018. Before joining PG&E, he served as executive vice president and COO for National Grid. Since his retirement, Stavropoulos has served on multiple public and private company and not-for-profit boards, including at The Mosaic Company.