Teams transition in renewables space.

Alarm - Controversial topic!

My favorite observation about the current energy transition is that the rapid pace of growth has created colossal contrasts in workplace culture and performance across different companies in renewables space. The experience people gain at one company can be entirely different from what you’d get at another. In fact, someone who’s considered an average performer at one company might shine as top talent at another. You know how fascinated I am by team dynamics in this booming market—and some times it’s so crazy to see how companies are different and how they actually progress all the time.

Why is this happening? I believe it’s all about a market that’s been running too hot for years. When the industry grows by 40–50% year-over-year, there’s always room—even for “less-than-stellar” (Very polite version, lol) market players. This creates a wild landscape: Some companies are innovating with modeling, custom software, and sophisticated commissioning tools, while others are still doing some wild things like manually triggering fire sensors by smoking on them during commissioning. It’s like living in a world where both the prehistoric and the modern era coexist and planes flying around brontosaurus.

What does this mean for employees? If you find yourself in a “prehistoric” environment, trouble may be just a few years down the line. As the market cools, companies will suddenly realize they need to be more selective when hiring. For employees, the key is to trust both your instincts and the numbers. Take a hard look at these indicators:

• Is your company’s profit 1.5-2x each year? If not, consider it a red flag. If profits are shrinking—double red flag.
• Is your headcount growing by a factor of 1.5–2 each year? If not, that’s a warning sign. If it’s dropping, run!
• Do you have 3–10 times as many projects in the pipeline for the coming years? If not, red flag.
• Do customers refuse to work with your company? That’s a big red flag.
• Does your company trust you? If not, red flag.

Comparing your company’s metrics to the broader market—not just to its own, essential, given how fast things are moving.

How does this affect employers? As I’ve mentioned before in some posts, companies are trying to replicate the success of major tech players like Google and Apple, but they’re doing it with outdated, “stone-age” methods. Those tech giants didn’t win just by hiring everyone in California and keeping them in the office micromanagement them. They scoured the globe for top talent, constantly bringing in the best of the best and then trust them to make decision and growing to real experts. That’s the real differentiator.

I’ve seen this firsthand: Two teams: 1st -5 people and 2nd – 2 people, working on different products for the same market with the same market capacity. The two-person team outperformed the five-person team in sales by a factor of two for many years. That’s talent over quantity, plain and simple.

My opinion what companies should do? Be more flexible about whom and where you hire. A hot local market might push you to onboard people who don’t truly drive success, creating only the illusion of growth.

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And what do you think about it? It’s a pretty controversial topic, and I’d love to hear your perspective.