Aboitiz Power Corporation - Innovative Management in Consumer Product & Service Industries

Name of Organization / Company: Aboitiz Power Corporation
Category: A01 - A09 - Award for Innovation in Management > A02B. Award for Innovative Management in Consumer Product & Service Industries - More than 100 Employees

Entry Title: Soaring from silos and breaking borders: AboitizPower organizational Change Management program

The unprecedented global events of last year have set ablaze significant shifts and disruptions in the way we do business. AboitizPower (AP), specifically the Commercial Operations Business Unit (COBU) had undergone some organizational challenges in the course of the pandemic, but together, they have proven their resilience to direct their setbacks into accomplishments and meaningful results that drive value for the company.

Disruptive restructuring. In January 2020, COBU embarked on an organizational restructuring whose primary objective was to form two major commercial groups out of six existing cross-functional groups to focus on highly dynamic energy market segments with distinct customer needs, regulatory requirements, commercial considerations, and ultimately a highly-specialized approach in service delivery. To address these, alongside the continuing evolution of the energy market, management decided to merge subteams into 2 key commercial groups: Retail and Wholesale.

The re-organization was bold and ambitious. This meant that resource planning, market approach, and financial decisions were to be done almost independently of each other. Such a move was unthinkable, considering potentially conflicting objectives between these two groups. Regardless, COBU was determined to make the set-up work. Things were about to change, and a huge, sudden change it was indeed.

This decision was received with resistance and apathy with its abrupt announcement. Uncertainties on possible movements were unsettling. Questions were brewing in their minds, which challenged the status quo that was working for the longest time. Frenzied by change, morale was low with tightly-knit cliques transferring to new groups. New roles had emerged, with new skill sets and learning curves.

Crippled by COVID. In March, community quarantines were enforced where employees were forced to embrace the digital ways of working from home. Personal and professional aspects of life were blurred, the lines almost entirely gone with having to joggle household chores alongside work tasks. Employees were burning out from their days filled with so much to do with seemingly so little time.

Deep effects of redundation. Revenue streams became worrisome, with energy demand from businesses diving down from minimal economic activity. Paranoia surrounding job security was evident in employees, and the surprise of their lives slammed before their eyes with the Aboitiz direction to optimize the organization with lean and only essential functions. Employees, both tenured and new were let go and personal lives were shaken.

Silver lining. To address these changes, group head Sandro Aboitiz instituted a Change Management program with the objective of managing organizational impacts reeling from COVID and the redundation. Following the CM framework of ADKAR, multi-faceted programs were implemented to address key problem areas in employee morale, process, system disruptions. Milestones were designed to measure culture, customer engagement, process streamlining, build competencies for new roles, and innovate new systems to strengthen operations.

A COVID campaign was also launched for brand visibility with customers and industry stakeholders. Communication activities were activated to engage customers virtually and build employee morale. Townhalls and culture-forming activities were implemented as catch-up sessions. Surveys and FGDs were conducted to capture results. Process improvement implemented to support new market requirements.

As the program ends this month, outstanding benefits have been realized. With increased productivity, financial targets were exceeded despite a difficult year. Employee and customer programs yielded a satisfaction rating of 4. Bottlenecks were cut and new processes were institutionalized. Trainings on new platforms were implemented. Job roles were updated to clearly define new roles and skillsets, alongside the formation of a COBU charter to articulate the group’s mission/vision.

Overall, the CM program delivered stronger group synergies. It has enabled COBU to break barriers and soar through organizational challenges. While the program itself is about to end, the group is aware that managing change is an iterative and continuous endeavor that must be engrained in the culture of the organization.

Supporting File :

AboitizPower APAC Stevies 2021.pptx