Breaking silos in utilities with cross-functional teams to enable the energy transition

I have been working for more than three years serving the energy industry with data-driven solutions and I am still consistently impressed by the diversity of tasks handled by these complex organizations. In the past, utilities faced a huge challenge of data scarcity while managing this dynamic system, but at least power delivery had a one-way flow from utility-controlled generation assets to the end customer. The increasing complexity of this system due to customer-adopted distributed energy resources (#DERs), in combination with stricter targets around energy efficiency and growing grid constraints, necessitated the generation of more valuable data– hence the #AMI revolution. Nowadays, many utilities find themselves in a scenario of data abundance, trying to make sense of this new data source and understand its implications across utility departments. This presents both a challenge and an opportunity. The opportunity is that many diverse utility departments can use the same insights for different use cases, maximizing the value of analytic solution investments. The challenge, however, is that this highlights the critical importance of fostering cross-functional teams in an industry where departmental silos have been the norm, especially in large #utilities.

To truly optimize for the grid of the future, utilities must break down these silos and encourage collaboration across all departments. As utilities continue on their grid modernization journeys, key departments such as demand response, grid management, grid planning, customer experience, and IT will need to closely collaborate to realize innovative, high-value grid orchestration use cases where engaged customers are key. Continuing to work independently across these departments will drive a fragmented approach that will hinder efficiency and innovation. Here are three actionable tips to help utilities build cross-functional teams:

1. Speak the same language

The first step in breaking down silos is ensuring that all departments are aligned on the importance of utilizing data. Advanced Metering Infrastructure (AMI) data and AMI 2.0 distributed-intelligence-enabled technology are the common opportunities that can unite these teams. By focusing on how data is translated to the end customer or the utility back-end, departments can find common ground. It's crucial to establish a unified understanding and appreciation for data's role in driving decision-making around core operations in their grid modernization journeys.

For example, the AMI team needs to understand how their data supports the demand response and marketing teams. Demand response and marketing teams need to understand the impact of such programs on customer experience while grid planning and operations teams need to understand how to make use of these engaged customers. Engaged customers can take on many different forms, for instance, they can either already be enrolled in a demand response program for one of their distributed energy assets, or they could just be supplied personalized tips toward behavioral energy efficiency. In all cases, engaged customers are transformed into grid resources in the #FutureGrid context. Regular inter-departmental meetings and shared training sessions on data interpretation can help ensure everyone is on the same page to bring this opportunity to fruition.

2. Assign an end-to-end IT professional to be the grid-to-customer ‘’architect’’

A critical role in bridging departmental gaps is an innovation-minded end-to-end IT professional. This individual ensures that all technological pieces are architected to work together seamlessly and that the proper components are put in place to truly deliver on their company’s grid of the future vision. More and more, utilities are understanding that this requires engaged customers with flexible assets. We've observed the emergence of roles specifically designed to connect various teams and keep multiple goals in mind, for example, roles that combine customer and grid strategies are becoming more and more common. These roles focus on integrating customer initiatives with grid management, ensuring that IT efforts support overall business objectives in the emerging space of virtual power plants and non-wires alternatives. By having someone in place who understands the full spectrum of utility operations, from #customerengagement to grid health, utilities can create a more cohesive and efficient workflow.

3. View the energy transition as a team sport

The #energytransition is a complex, multifaceted challenge that requires a unified effort from all departments. Each team within a utility has its specific sub-goals, but the overarching objective is to accelerate the energy transition. For instance, while the demand response team focuses on improving customer energy efficiency, the grid team is tasked with maintaining grid health and replacing transformers. Failing to realize how these sub-goals can work in tandem toward the ultimate goal is a missed opportunity?

It's essential to cultivate a mindset that views the energy transition as a team sport, both across utility departments but also between utilities and their customers. Regularly reminding all departments of the collective end goal helps maintain focus and motivation. Joint planning sessions, cross-functional projects, and shared metrics can reinforce this team-oriented approach. By keeping the big picture in mind, utilities can ensure that all teammates are working towards common challenges and contributing to the overall success of the energy transition.

What’s your take? I would be happy to hear from you at [email protected].