When one leaves a job, there’s a natural urge to stride into the boss’s office on the last day and say, “Boss, let me tell you what I really think of you!” This is followed by a litany of insults and criticisms the likes of which haven’t been heard since Kevin Costner’s last film.
This, my final commentary for Electric Light & Power, provides me with a similar opportunity. Although you, EL&P’s reader, are not my direct supervisor, I do see you as my boss in the big-picture, long-term sense. So, Boss, here it is-the unvarnished truth about You, as I see it:
1. You’re too conservative: Electric utilities, by definition, are conservative companies. This was perfectly appropriate when the industry was simple and regulators ran the show. It won’t work so well in a competitive marketplace, where customers can decide what services to buy from whom.
If you want to grow, you’d better get good at managing change and pursuing new opportunities. Dare to think big and take some risks, then execute quickly and expertly. Otherwise you’ll get left behind in the new economy.
2. You whine too much: When I published the commentaries “Pretty Woman’s revenge” [April 2000] and “It’s reliability stupid!” [August 1999], I challenged EL&P’s readers to think about how the customer sees the utility. What I heard in response from many utility employees was “We can’t do this! The system wasn’t designed to accommodate market forces!”
Make it work, for crying out loud! The railroads did it, the airlines did it, the telecoms did it, ellipse aren’t you as smart as they are?
3. You’re a hypocrite and 4. You’re missing the boat: Even some of the best utilities are guilty of bald-faced hypocrisy. For example, how can you argue that competition in your own service territory is a bad thing while your affiliates are romping around on other utilities’ turf?
After the transition to customer choice, which company is better positioned: the one that focused, from the beginning, on competing effectively, or the one that fought, tooth-and-nail, against competition?
5. You’re too sneaky: The Three Mile Island accident did more harm to the public’s trust of big corporate institutions than any other event in modern history. And the reason was not that the mistake was made, but that the utility initially tried to cover it up.
Bill Clinton’s Oval Office escapades might have been forgiven early on if it weren’t for his sustained denials and evasions. Richard Nixon was forced out, not because crimes took place on his watch, but because he worked so hard to keep those crimes secret.
There are lessons to learn from these experiences, and the recent Erin Brockovich saga suggests the industry has not learned them.
Boss, not everything I see about You is bad. Here are some complimentary observations:
6. You’re very reliable: There’s no denying that American utilities provide absolutely superb service at a very low price. Consumers take electricity for granted because utilities are so good at keeping the lights turned on. For the price, electricity is an extraordinarily reliable service.
7. You’re a technology innovator: While many utilities are overly conservative and tend to avoid anything that looks state-of-the-art, others are aggressive at exploring and deploying new technical innovations. From fuel cells to electronic billing, utilities are leading the world into the future, and that comes from a technology-centered business culture. Such a culture will help You thrive in the 21st century.
8. You’re serving the world: When it comes down to it, utilities have a pretty thankless job. The public is quick to complain when outages happen; when roads are torn up because of underground line work; and when power generation and delivery affects the environment (always). But the fact is utilities provide an indispensable service to millions of people. Electricity is the economy’s engine, and I know You work tirelessly to keep it running smoothly. Add to that utilities’ philanthropy, volunteerism and community support, and it’s no exaggeration to say utilities are among the world’s most generous, praiseworthy industries.
Boss, I guess what I’m trying to say is I’m proud to have worked for You.
Editor’s Note: Michael Burr left PennWell in mid-May to become the chief editor of Telecom Business magazine in Chicago.
