Will the major reorganization initiated by Hydro-Québec CEO Sophie Brochu in 2021 continue despite her departure? Several executives fret over his decision to abandon ship amid upheaval.
• Also read: Surprise resignation of Hydro-Québec CEO
In February 2021, CEO Sophie Brochu announced an organizational reform to her employees: the disappearance of the Generation, Transmission and Distribution divisions to create one big Hydro-Québec. Division presidents would become vice presidents. Managers of a single company.
“The idea was good, but it created confusion internally. Several executives are demobilized. We now manage the maintenance of a street pole, a power transmission tower, a hundreds of millions of dollars of high voltage transmission line and a billions of dollars of power plant in the same group, but with multiple systems and different processes,” explains an executive at Hydro-Québec, under the condition of anonymity.
“It’s like trying to convince a school teacher that you can teach youngsters, teenagers and academics in the same school. That’s not realistic,” he added.
Who carries the ball?
The CEO announces her departure as engineers and executives are on standby and inefficiencies pile up across the company.
“Such a reorganization can take up to 10 years,” said a former Hydro-Quebec executive who was present in 2021 and also wished to remain anonymous. “During her tenure, Ms. Brochu impressed unions with her communication skills. But managers are still suffering from this restructuring. »
Since the reorganization was led by Ms. Brochu, what happens to the project once the new management is in place?
“She didn’t necessarily have a mandate for this, which emerged from a broad and transparent consultation. It’s his project. So once she’s gone, who’s gonna be the rewind? asks Pierre-Olivier Pineau, professor at HEC Montréal.
“Regardless of who is driving the project, employees will probably be even less motivated because they will be wondering if the next CEO will be doing the same thing in a few months,” he adds.
hard to swallow
In February 2022, Hydro-Québec announced another step in its transformation, the creation of four groups: Strategies and Development, Integrated Energy Demand Planning, Infrastructures and Energy Systems, and Operations and Customer Experience.
“We announced the end of the divisions and the creation of four groups that make up the value chain,” said Caroline Des Rosiers, spokeswoman for Hydro-Québec. “In June 2022 we announced details of the structure. Since then we have been working on improving processes and optimizing our tools and systems. “.
Hydro-Quebec executives we spoke to remain concerned. “We expected efficiency to slow down, but we thought it would be for the best in the long term,” one of them said. “But in the middle of the game Mrs. Brochu leaves. For many it is difficult to swallow. “.
THE BIG CHANGE AT HYDRO IN THREE DATES
February 2021: In a message to employees, Sophie Brochu announces the forthcoming abolition of the three divisions (production, transmission and distribution). Hydro-Québec consolidates its operations into a single entity to be more “collaborative”.
February 2022: Hydro-Québec announces a change in its “transversal” structure, which now includes four groups: Strategies and Development, Integrated Planning of Energy Demands, Infrastructures and Energy System, and Operations and Customer Experience.
January 2023: Sophie Brochu announces that she will be leaving Hydro-Québec on April 11th.
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