Energy and LeadershipContinued from page 21amongst a number of industry leaders.40CEO’s and top managers from the industry,a.o. from BP, Chevron, Dong, EON, Eni,Essent, GasTerra, Gasunie, Gazprom,Qatar Gas, Shell, South Stream and Total,participated in this survey and shared theiropinion. In this article, besides highlightingsurvey results, I will also shed some light onmy own vision on strong leadership.Leadership: A definitionIt is evident that we need strong leadershipin order to overcome the challenges we arefacing in the industry. But how do we definecompetent leadership? If we check thedictionary on leadership, it tells us that one ofthe meanings is ‘the capacity or ability to leador give direction.’Before I became president of the EnergyDelta Institute, I was a member of theexecutive board of N.V. Nederlandse Gasunie,where I was also responsible for constructionand maintenance. Being responsible for ofone of the largest departments of Gasunie,I was ‘giving direction’ to a team of severalhundreds of employees.Golden rules in projectmanagement and leadershipFor all department activities both in the pastand in the present, I always apply four ‘goldenrules’. The first one is safety. In our businesssafety is priority number one. The second ruleis budget equals budget. This means alwayssticking to the defined budget. Sticking to thebudget instils confidence by external parties.Rule number three is scope control. It is ofgreat importance to determine the scope,based on what you know today and expectto be true in the future. If and when situationschange, you have to assess the effect ofthese changes on all aspects of the project,like time and budget. Delivering on time is thefourth golden rule I apply as a manager. In mywork I also apply another, not so formal rule,which I think is very important for a great teamatmosphere, which is: work hard and have fun.Strong leadershipIn my opinion, giving direction to a large teamof employees doesn’t automatically mean youare a skilled leader. You can’t judge yourselfwhether you are a good leader or not. Thisis something only others can say about you.Being a good leader means that you are ableto let others excel in everything they do, andthat others respect you for doing so.Some people believe that a good leadershould have the full package of sectorknowledge – both of the entire energy valuechain and in-dept knowledge – and possessexcellent skills, competences and expertise.I disagree. In my opinion, good leadershipmeans you are able to build a good teamaround you. With a fine sense of diversity,you are able to establish a team in which allknowledge and competences needed to getthe job done are covered. When you are ableto surround yourself with such a team, andknow how to inspire them in order to let themexcel, you have proven strong leadership.Of course you should have a soundfundamental knowledge of technology andsector developments, and also develop andexperiment a broad view on different businessprocesses during your career. But establishinga winning team also means being able toidentify personal skills and interests, bothinternally and externally. It means masteringthe art of stakeholder management.‘A great person attracts great people andknows how to hold them together’–Johann Wolfgang Von GoetheDuring the 25th World Gas Conference inKuala Lumpur, Malaysia, the first copy of our‘leadership’ report, written by energy analystMarius Popescu, was handed over to Dr.Datuk Abdul Rahim Hashim, President of theInternational Gas Union, on 4 June, 2012. Theoutcome of the report shall guide the furtherdevelopment of EDI’s educational portfolio.22
<strong>October</strong> 2012 | Vol. 5 | Issue 3BLUE FUELKey findings reportAccording to several interviewees, a successful executive inthe energy industry will require a solid understanding of theenergy industry as a whole, as well as the function it servesin society. A clear overview of the energy value chain andhow different segments interact with one another is vital forthe leaders of the industry. Besides understanding the energybusiness, being an executive requires a comprehensiveknowledge of the technical aspects of the industry and alsosolid commercial skills. Thus, executives must not onlyunderstand the technical processes behind their productsbut also the commercial mechanisms involved in deliveringtheir products to the market. Ultimately, most executives leadfor-profit organizations and must concentrate on ensuringdesirable financial results. Next to these ‘hard’ skills, anenergy executive must demonstrate good vision andleadership in order to drive energy companies to success.In order to succeed in today’s energy industry, executivesrequire an international orientation. The industry is a globaland multicultural industry, which means that leaders must becomfortable in multicultural environments, accept diversityand leverage on variety.IGU President, Dr Datuk Abdul Rahim Hashim with the first copy of EDI’sreport flanked by Eric Dam (left) and Marius Popescu (right).The development of skills and competenciesIn their own professional development, most executivesregard practical experience as the most important factor.Rotating several jobs within different countries, potentiallydifferent companies and even among various stakeholdersencourages the development of an open mind and a muchneeded overall perspective.Formal education such as professional courses, together withmentoring, mainly had a role of complementing the experiencegained on the job by the interviewees with relevant knowledgeon how the energy industry’s mechanisms interact and how acompany integrates into the overall perspective.Future skills and competenciesThe skill that most interviewees expect to become of greaterimportance in the future is stakeholder management. As theindustry becomes more central in public debate, society’sexpectations towards energy companies regarding their social,health & safety and environmental responsibilities will increasesignificantly and future executives will be required to possessthe necessary skills to manage tighter relationships with allstakeholders. As the energy industry is moving more and moretowards open market conditions, commercial skills and anorientation that places customers at the center of organizationswill become crucial for future energy executives. Future leaderswill require increased flexibility to face the coming trials andrapidly capitalize on future opportunities.Generalists vs. specialistsProfessionals can develop themselves as specialists or as puregeneralists; both routes can lead to top executive positions.There is a ’preferred or natural’ path for professionals in theenergy industry to develop into top level executives namelyto first specialize for a couple of years and afterwards lookto branching out. Several interviewees say that most of theexecutives they know personally in the energy industry aregeneralists with a specialization.Visit our website to read more or contact us to get a copy ofthe report.About EDIEnergy Delta Institute (EDI) is an international energy businessschool, with a primary focus on natural gas. EDI was foundedin 2002 by Nederlandse Gasunie, GasTerra, Gazprom andthe University of Groningen, later joined by Shell, Essent,Dong Energy, EBN, Eneco, Taqa, A.Hak and Tebodin. EDI’smain objective is to contribute to the professional developmentof current and future energy managers. EDI develops andorganizes training programmes and network events with a focuson the economic, management, legal and geopolitical aspects ofthe energy business.www.gazpromexport.com | newsletter@gazpromexport.com | +7 (499) 503-61-61 | comm@gazpromexport.com 23ÝÊÑÏÎÐÒ