Strategic decisions in turbulent times: Lessons from the energy industry

Ferran Giones, Alexander Brem, Andreas Berger

Producció científica: Article en revista indexadaArticleAvaluat per experts

38 Cites (Scopus)

Resum

Most of the firms currently in the S&P 500 probably will not be there in 15 years. In times of great uncertainty, managers are called upon to make the right strategic choices, preserve core businesses, and prepare their organizations for the future. How can managers make these choices when the industry is under transformation? In this article, we explore how the popular VUCA framework can help to make sense of turbulent contexts and drive the decision making of managers. We study the case of the energy industry, in which traditional business models eroded quickly and dominant players lost their positions. Based on personal interviews with the CEOs of RWE (Germany) and NRG Energy (U.S.), we analyze how these executives led transformation of their organizations. We get immersed in their decision-making processes and depict how the VUCA framework helps them to identify, map, and prepare their organizations to respond to the volatility, uncertainty, complexity, and ambiguity in their industry. We propose a guide for executive managers to navigate through VUCA contexts, taking into account the necessity to introduce short- and long-term responses that prepare organizations and stakeholders for an uncertain future.

Idioma originalAnglès
Pàgines (de-a)215-225
Nombre de pàgines11
RevistaBusiness Horizons
Volum62
Número2
DOIs
Estat de la publicacióPublicada - 1 de març 2019
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