The Winning Transformations of ERG, Vistra Energy, and Ecopetrol, Among Others, Hold Lessons for Energy Industry Leaders, Says New Report from BCG
NEW YORK, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Uncertainty has been a constant in the energy industry—evidenced by the huge swings in the price of natural resources and frequently changing government regulations, among other things. This compels successful leaders of energy companies to always be willing to dramatically change their businesses, according to a new report by The Boston Consulting Group (BCG). The report, titled Energy’s Comeback Kids, is being released today.
Despite the importance of transformation in the space, success is rare, say the authors. Of the 900 energy companies screened by BCG, only 70 had a significant bounce back in key metrics after a downturn or stagnation.
“The energy space is not for the faint of heart, but the stellar results of a few key winners’ turnarounds should have the attention of all energy company leaders that are working to sustain profitability or grow revenue,” says Ramón Baeza, a BCG senior partner and a coauthor of the report.
The companies that succeeded at their turnarounds have a few things in common. They:
Six of the companies that BCG studied in depth managed to dramatically outperform not only the S&P Global 1200 Energy and Utilities Indexes, but even the S&P Global 1200 itself—and by a long shot. The following are among the notable turnarounds:
The other three companies in Energy’s Comeback Kids that pulled off stellar turnarounds are Kansai Electric Power, Equatorial Energia, and Energisa.
“Adopting a mindset of always-on transformation, rejecting sacred cows, and focusing on culture are crucial ingredients of any successful transformation or turnaround,” says Jaime Ruiz-Cabrero, a BCG partner and a coauthor of the report. “Beyond that, within the energy space specifically, responding to increasing consumer demand for renewable energy sources, investing in innovation, and investing in digital can also reap remarkable rewards.”
A copy of the report can be downloaded here.
To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or email@example.com.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with offices in more than 90 cities in 50 countries. For more information, please visit bcg.com.
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