The ability to create strategies and adapt to changing conditions quickly is critical for maintaining a competitive edge, says Christian Rynning-Tønnesen, the CEO of Statkraft, one of the largest power producers in the world. Building the organizational structures to support that demands shared values and solid management.
Statkraft, Europe’s largest renewable power producer, led by Christian Rynning-Tonnesen, made a strategic decision to enlarge its portfolio of renewable technologies long before most other power companies. They first invested in understanding the political economies of target country’s energy markets, then built on their established skill base in hydropower to add other technologies to their portfolio of plants.
The company developed organizational structures that helped them in creating new profitable projects. Their strategy process depends on accelerated cycles of action and observation. As new strategic plans are implemented, the process of strategic exploration and invention for the next phase is already in motion. Quick feedback on what is working and what isn’t ensures the company can innovate for competitive advantage. Encouraging a management style based on mutual trust and respect, rather than fear, ensured they could identify dangers, catch problems early and adapt quickly.